Welcome to the Crystallex HUB on AGORACOM
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
Message: Using Process of Elimination?
Your Vote:
Did you know?
You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)
From KRY financials June 30:
Accordingly, the Company has a number of financing options available to generate sufficient cash to fund ongoing operations and service its debt requirements as they come due in order to meet such a test in the future including, but not limited to, the following:
|
|
a)
|
sale of equity securities;
|
|
|
b)
|
further expenditure reductions;
|
|
|
c)
|
sale of equipment;
|
|
|
d)
|
introduction of joint venture partners; and
|
|
|
e)
|
negotiated settlement with its note holders to reduce, eliminate or otherwise decrease
|
its obligations, particularly interest costs.
In the June 30 earnings release KRY mentioned 5 financing options. This is now the quandary most investors face right now. If we use the process of elimination can we narrow down what may be going on?
Sale of stock? Hasn't happen yet.
Expenditure reductions? Even if they did this it wouldn't help them in the least bit.
Sale of equipement? Haven't heard a thing.
Introduction of Joint Venture Partners? Could be, haven't heard a thing but RM did mention they were working on a solution/resolution with VZ. Per Rundles earlier email from RM: Does being engaged in a process that will result in a solution/resolution fit with the sale of stock, expenditure reductions, sale of equipment or settlement with Noteholders for financing?
Negotiated settlement with Noteholder? I don't think so the hearing is scheduled for late October so that didn't happen it seems.
My take is the only viable option here since we haven't heard a word from the company and anything that would have taken place already would have been material info leaves me to believe that KRY is going with Joint Venture Partner based on what they have told us already in needing to finance past the 4th quarter. I would think it is a little too late to do any of the others based on their cash position at this point in time. Sounds to me KRY's solution/resolution is a joint venture/partner....the details are yet to be seen but certainly worth more that .25 IMO.
7 Recommendations
Loading...
Loading...
New Message
Please
login
to post a reply