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

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Message: Re: value
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Aug 17, 2011 03:27PM

Aug 17, 2011 03:41PM

Oh, I imagine our share price will benefit from financing. Right now we do have the financial resources to make it through arbitration thanks to the selling of equipment and the completion (sale) of the remaining equipment. Crystallex stated this directly in the recent filing.

However, we do not have the resource for the $100m note due in December mitigated. If/when management accomplishes this task, clearly the company's asset (arb case) becomes more valuable. A "simple" math exercise can be completed based on different award/time assumptions.

It is reasonable to think we are owed the minimum of invested capital. Additionally, by our BIT and international rule of law we are entitled to interest, lost profits, and damages.

Crystallex intends to state all in that that number is $3,8000,000,000. It will be up to the tribunal to decide the value of the different elements based on evidence submitted.

With the potential of $8 a share in 2-3 years, I would anticipate an initial market cap of $200m - $250m give or take 10% with the final proof (note financing) necessary to demonstrate we can complete the prosecution of the case. As the case progresses, we, like Gold Reserve will enjoy a market cap appreciation due to time. Less time = more value.

My take on the last 24 hour news cycle from Vz, well, this puts us in a window of opportunity for something "alternative" to happen. Let's see if Chavez changes the "gold law" by decree in "coming days". It won't take long to see if it is just another round of Chavez being a blowhard or if he is ready to start meaningful exploitation of Vz mineral resources.

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Aug 17, 2011 08:21PM
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