By the way this is another OLD article from Nov 2008. It seems Peter Koven and Kerry Smith have something in common as Peter brings up Kerry Smiths thought in this article as well as today's article:

Posted: November 19, 2008, 2:20 PM by Peter Koven
Mining, gold, Crystallex
The situation is looking worse and worse in Venezuela for Crystallex
International Corp. Recent comments attributed to mining minister
Rodolfo Sanz suggest the Las Cristinas gold deposit could be taken
away from Crystallex and handed over to Rusoro Mining Ltd. Crystallex
itself has heard nothing from the government along these lines.

With the risk profile on the project getting even bigger, Haywood
Securities analyst Kerry Smith cut his target price on the stock to
70¢ a share, down 46% from his prior target. The cut was made after
he increased the discount rate to 10% from 7% to reflect higher risk.

"We have very little insight, other than increased risk associated
with a project in an already risky situation," he wrote in a note to
clients.

Crystallex also reported its third quarter results last week. Mr.
Smith wrote that they are not relevant except for the balance sheet.
The company currently has US$44.6-million in cash, but it burned
through US$16.9-million in the third quarter alone. Crystallex is
taking steps to reduce spending, but he calculated that its cash
position could be down to US$8-million to US$10-million in 12 months.

In the meantime, investors can only wait and see if Crystallex will
get the environmental permit it needs in order to develop Las
Cristinas.

"If Crystallex lost its rights to Las Cristinas, the residual asset
value would not be adequate to cover the existing debt, and the
equity value would be effectively zero," Mr. Smith wrote.

Peter Koven
http://network.nationalpost.com/np/blogs/tradingdesk/archive/2008/11/1
9/crystallex-target-slashed-on-rising-risk.aspx