Lets all put on our accountants hat and look at some possible fiqures that may transpire when this J/V comes to fruition.
China will own 70% of the new venture.
Crystallex will own 30% of our new venture.
We will base the issued shares on 100,000,000 to start this off.
Cost of production is said to be $350 per ounce.
At $1350 an ounce Gold this leaves $1000.00 per ounce profit.
At initial production of 250,000 ounces times $1000.00 = 250 million profit.
At 500,000 ounces per year production profits would be 500 million dollars.
Allowing for Venezuala taking 50%, China would end up with 35% of profits.
Allowing for Venezuala taking 50%, Crytallex would end up with 15%. of profits.
Profits for Crystallex based on 15% of 250,000 ounce production per year would be 37.5 million or 1.25 per share.
Profits for Crystallex based on 15% of 500,000 ounce production per year would be 75 million dollars or $2.50 per share.
These fiqures do not take into account our 30% share of building the mine which may be amortized over a number of years. The $1000.00 per ounce profit is net of all other costs based on $1350/ounce gold.
Nor does it take into account any future additional production from mergers, buy outs or additional Venezuala vend in properties. Nor does it allow for other metals i.e Silver and copper which may now be included in the new charter.
Again these are back of the envelope fiqures that do not take into consideration any price adjustments that we are certain to see.
Hopefully all shareholders who wish to put on their accountants hats will join in with their own interpretations. I hope your 12 digit calculators do not explode as mine did when I entered in 16,800,000 ounces.
It looks good for everyone. Lets hope that a resemblance of sorts gets finalized.
Best wishes to all. as Telus states "The future looks friendly"
Sm
Profits for Crystallex based on 15% of 500,000 ounce production per year would be 75 million or $2.50 per share profit.