latest from Richard Marshall.
posted on
Mar 05, 2008 08:59AM
Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America
Hi xxxx, the PDAC is now winding down and I have a little time to respond to your inquiries. I have answered your questions below.
Regards,
Richard Marshall
-----Original Message-----
From: xxxx [mailto:xxxx@telusplanet.net]
Sent: Sunday, March 02, 2008 12:52 PM
To: 'Richard Marshall'
Subject: Bloomberg Faux Pas and questions
Hi Richard,
Firstly allow me the opportunity to thank Crystallex management for coming out and defending its position with the recent new releases. It was nice to see as many retail investors were screaming for help. So Thanks. If I can get your response to a couple of questions it would be
appreciated:
1. I am very curious about the Bloomberg article stating that KRY received the permit. How is it possible that Bloomberg could allow for such a mistake to be published? Can you confirm if the source did call the KRY office and that you or others had a conversation with them? And can you provide a review of that conversation as to why they felt the permit was issued? I believe Bloomberg ran a story based on comments in a regional newspaper last week. Crystallex did receive the EIS project approval last year and is now awaiting the administration and issuance of the permit.The original article could be viewed as permission (approval) or permit. To date we are not aware of the permit being issued but believe it's a matter of time with all the requirements already fulfilled.
2. We are now into March and about 9 months since KRY posted the bonds and taxed. If I am not mistaken KRY had to repost once already due to expiration; are we approaching another expiration date requiring another post? Construction guarantee bonds are routinely used in the industry and Venezuela and roll / renew during the duration of the construction phase. The Bond has been posted and I believe remains in place or is automatically extended through the end of the construction phase.
3. Do you or Crystallex know where your status is on the priority list for the signature to receive the permit? And can you offer your best estimate as to what time frame remains to get the permit? Do you see evidence that the VZ officials are back to work, since they were all re-deployed to Mr. Chavez's referendum project; are these VZ officials showing progress in dealing with the backlog created from the referendum and working on the real issues of running the affairs of the country? We have no guidance as to timing. It appears that the Bolivar State agenda and projects there have moved at a slower pace while officials focus on other issues or regions. Articles in Bolivar State newspapers suggest a frustration on many projects awaiting attention or approvals from the National Administration. Minister Sanz of MIBAM, also the newly appointed President of the CVG, appears focused on the region and will hopefully elevate the status of all the projects there.
3. And with the coming earnings announcement can you comment on any positives or negatives or any surprises that will affect performance? With the price of Gold approaching $1000 and the change in how KRY collects will this result in better then expected? I believe the Auditors will apply the same accounting methods to gold sales in Venezuela as we saw in the Q3 MD&A and Financial Statements. In order to mitigate the effects of a lower realized gold price in Bs, management has informed Venezuelan authorities of its decision to sell its gold production to registered local purchasers at the parallel rate. In October 2007, the Company commenced the sale of gold production at El Callao to registered purchasers at negotiated prices using the USD spot price with settlement in Bs approximating the parallel rate at the time of delivery and at a negotiated discount. The 2007 year-end statements should be issued later this month.
4. As you know there are still many naysayers who continue to comment that KRY will not receive the permit and they support their comments with the length of time that has passed and still no permit so get the message. Can you comment with a positive statement to refute these naysayers to support the many KRY retail investors who remained committed to this very large opportunity? We have not been advised of any outstanding issues and believe that the permit will be issued in a matter of time. The Bolivar State agenda and projects there appear to have been back seat to other areas of the country and issues that may have been more pressing to the MinAmb and Administration. With the appointment of Rodolfo Sanz we hope that projects and the Bolivar State may the get needed attention to break the log jam.
If you are able to offer any new developments to help support any of the many KRY investors it would be appreciated.
Thanks
xxxx