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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: Why did Crystallex entered into a JV with CRRC/CREC and not CNGGC?

The buyer was not disclosed at the buyer's request but the other details of the sale are easily determined from GRZ's filings. The sale was made while the equipment was still in the process of manufacture and I assume it was easier to make the modifications the buyer required at that time. The buyer paid GRZ for the equipment cost up to that time and assumed responsibility for all future payments to the manufacturer. It looked to me that GRZ didn't make a profit from the deal but they did recover their entire cost.

In fact, while "specifically designed for LCB" was the description, it turns out that with relatively minor modifications it is suitable for a wide range of high volume, low grade ore processing common in most open cast mines anywhere in the world.

I assume that the same applies for the KRY equipment.

New mines generally have a long lead time, not only for the milling equipment so they can specify exactly what they want, and wait for it to be built as there are plenty of other milestones to pass before the mills become operationalal. They can also stagger payments to suit their cash flow on new equipment. As a result new mines are not natural buyers for this sort of equipment regardless of the lead times.

The natural buyer is an existing mine that has decided to massively increase output , and for them quick delivery is a positive. However this is a much smaller market.

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