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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

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Message: Cost Basis

Cost Basis

posted on Nov 11, 2009 09:23PM

Taking my previous posts in account and my current cost basis, I would vote for a deal that just paid us back what we have in country.

Back of the napkin tells me that would come out to about $1 per share.

My assumptions

300 million shares outstanding

350 million into project

outstanding warrants/grants would mostly be out of the money

equipment + 50 million would pay noteholders.

I would imagine this could be done. Is it fair? NO, but personally this is the best.

And I am sure many shareholders would not like this because of their individual cost basis. We all diverge at certain points. FWIW, this is what I am going to be advocating to Crystallex (if I still see it the same way after sleeping on it:)

My only other choice is to wait for the Canadian dollar to blow past the US dollar. That will probably happen quicker than any deal directly with VZ. I would think a company would pay 350 for the contract assuming Chavez' blessing.

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