Permit and where Kry goes.
posted on
Aug 23, 2008 01:03PM
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
As a number have said we did not get as big a bump as we should have because of disgruntled/worried investors(big & small) for all the reasons we know of how VZ is run. With permit is a different story. I believe Rusoro is the model - namely shared benefit and Kry/CVG already have that. The benchmark for valuing a mine/share worth has been $200-250/oz x oz/gold and that was when gold was $500-600/oz. Now - let's say conservative $250/oz x20mm oz/300mmsh = $17/share. Let's halve that for the VZ factor and we have $9/sh or so(remember this is very conservative). IMO we hit $6 on permit, sell off to $4.5(investors who just want to get away from VZ) and trade up & down $4-7 until the buyout which will come at the $7-10 area. Keep in mind the buyer has already been accumulating shares in various ways down here and upon public offer they already have agreements to buy shares lower than the public offer and here is where shareholders like Tradewinds come in. Talks and possibly agreements have already taken place with contingencies. Large holders should not be worried about unless there is a disaster such as 4/30 and the bagel muncher. We're getting warm.