Comments on: Cramer’s Crystallex Play (AMEX:KRY) http://www.investorgeeks.com/articles/2006/04/16/cramers-crystallex-play/ Learning and sharing investment knowledge. Thu, 04 Dec 2008 19:39:57 +0000 http://wordpress.org/?v=2.0.4 by: Crystallex (AMEX:KRY), Las Cristinas Update on InvestorGeeks http://www.investorgeeks.com/articles/2006/04/16/cramers-crystallex-play/#comment-1218 Tue, 13 Jun 2006 13:51:36 +0000 http://www.investorgeeks.com/articles/2006/04/16/cramers-crystallex-play/#comment-1218 [...] You guys may know that I have a position in Crystallex (AMEX: KRY). Here is the article I wrote when I first purchased shares: Cramer’s Crystallex Play. [...] […] You guys may know that I have a position in Crystallex (AMEX: KRY). Here is the article I wrote when I first purchased shares: Cramer’s Crystallex Play. […]

]]> by: [HWG] http://www.investorgeeks.com/articles/2006/04/16/cramers-crystallex-play/#comment-1095 Tue, 06 Jun 2006 15:05:17 +0000 http://www.investorgeeks.com/articles/2006/04/16/cramers-crystallex-play/#comment-1095 Any word on the permit? What are the chances this permit might be obtained before June 16th? I recall Kramer mentioning he thought it would happen in the first week of June... Any word on the permit? What are the chances this permit might be obtained before June 16th? I recall Kramer mentioning he thought it would happen in the first week of June…

]]> by: TerryB http://www.investorgeeks.com/articles/2006/04/16/cramers-crystallex-play/#comment-284 Mon, 01 May 2006 19:11:20 +0000 http://www.investorgeeks.com/articles/2006/04/16/cramers-crystallex-play/#comment-284 Jason is wrong in saying Chavez may nationalize the mine, that occured in 2002. KRY has a operating contract that was reviewed and re-ratified on March 26th. Robumic is wrong as well as there has been no permit issued, the other key to the private placement is that it was one Investor not a bunch of investors as is normally the case, so to suggest 16 million shares will hit the market all at once is a poor anology, especially if you do your research on the intentions of the investor. Do your homework boys!! KRY is a BUY BUY BUY Jason is wrong in saying Chavez may nationalize the mine, that occured in 2002. KRY has a operating contract that was reviewed and re-ratified on March 26th.

Robumic is wrong as well as there has been no permit issued, the other key to the private placement is that it was one Investor not a bunch of investors as is normally the case, so to suggest 16 million shares will hit the market all at once is a poor anology, especially if you do your research on the intentions of the investor. Do your homework boys!!

KRY is a BUY BUY BUY

]]> by: Jason http://www.investorgeeks.com/articles/2006/04/16/cramers-crystallex-play/#comment-283 Mon, 01 May 2006 17:25:57 +0000 http://www.investorgeeks.com/articles/2006/04/16/cramers-crystallex-play/#comment-283 Crystallex (AMEX:KRY) released their<a href=”http://www.crystallex.com/images/uploadedfiles/NR_Year_End_Results_2005-31Mar05.pdf” rel="nofollow">Year End Results</a> yesterday. It's pretty dense. Some of the more interesting numbers: 2005 Revenues: $25 Million 2005 Total Recovered Ounces (of gold): 53,178 "Average annual production over the mine's life was estimated to be 504,000..." The math here is more complicated than I'm making it out to be. But you can see that when Las Cristinas goes online, Crstyallex will be mining roughly 10x the amount of gold they are today. Ignoring differences mining costs, you could assume that their revenues would also multiple by 10: $250 Million per year. Here's another simplified calculation. Estimate reserves in Las Cristinas = 13.6 Million ounces of gold. The estimated cost to retrieve that gold (including royalties) is $228. Assuming a sell price of $400, that sets the value of the mine at roughly $2.4 Billion... or about twice their current market share. The math above is simplified, but I believe there is enough margin for error in there to still make the stock a buy. I do want to look into the options stuff you are referencing; it’s a bit disconcerting. I’ll be the first person to say that this investment is a gamble. Crystallex (AMEX:KRY) released theirYear End Results yesterday. It’s pretty dense. Some of the more interesting numbers:

2005 Revenues: $25 Million

2005 Total Recovered Ounces (of gold): 53,178

“Average annual production over the mine’s life was estimated to be 504,000…”

The math here is more complicated than I’m making it out to be. But you can see that when Las Cristinas goes online, Crstyallex will be mining roughly 10x the amount of gold they are today. Ignoring differences mining costs, you could assume that their revenues would also multiple by 10: $250 Million per year.

Here’s another simplified calculation. Estimate reserves in Las Cristinas = 13.6 Million ounces of gold. The estimated cost to retrieve that gold (including royalties) is $228. Assuming a sell price of $400, that sets the value of the mine at roughly $2.4 Billion… or about twice their current market share.

The math above is simplified, but I believe there is enough margin for error in there to still make the stock a buy.

I do want to look into the options stuff you are referencing; it’s a bit disconcerting. I’ll be the first person to say that this investment is a gamble.

]]> by: Dale Glide http://www.investorgeeks.com/articles/2006/04/16/cramers-crystallex-play/#comment-279 Fri, 28 Apr 2006 00:58:30 +0000 http://www.investorgeeks.com/articles/2006/04/16/cramers-crystallex-play/#comment-279 I'm in this stock for the long haul , I beleave it is a good investment, not without risk. I’m in this stock for the long haul , I beleave it is a good investment, not without risk.

]]> by: Robutmic http://www.investorgeeks.com/articles/2006/04/16/cramers-crystallex-play/#comment-278 Thu, 27 Apr 2006 20:05:28 +0000 http://www.investorgeeks.com/articles/2006/04/16/cramers-crystallex-play/#comment-278 Cumulative totals for key operating items for Crystallex for years ending Dec. 31, 2003 thru 2005 are: Net losses: $ (167,347,481) Property write-downs: $ (49,509,590) Mining revenue: $56,564,778 Operating expenses: $ 64,356,954 General & Administrative: $54,059,228 Cash flow from operations $ (104,724,603) Shareholders’ deficit: $(215,467,693) Even if Crystallex realizes a best case operating scenario going forward, it appears that it could take several years just to recoup all the operating losses. In the most recently completed financing that Crystallex reportedly closed February 1, 2006, 10,799,000 shares and 16,330,000 warrants were issued and $31,317,100 was reportedly paid for these shares and options. The share price in this offering is $2.90, if no warrants are exercised, or $3.86 if all warrants are exercised. The exercise price to purchase shares for these warrant holders is $4.50, and Crystallex is now trading above $5.00 thanks to Cramer, so the warrants are in the money. So one could surmise that all the warrants may begin to be exercised beginning the later of: (i) 61 days from the closing date of the private placement (Feb. 1, 2006); and (ii) 45 days following the receipt of the permit for the corporation’s Las Cristinas Project in Venezuela (received on March 26, 2006). Therefore, these warrant holders will be able to start exercising around May 10, 2006. That means there will be a potential 16,330,000 shares that could hit the market at that time for sale. Still think it is a good buy? One final fact, and it is one that the Las Cristinas Project is in Venezuela, and that makes the future prospects somewhat unpredictable for rather obvious reasons. The end. Cumulative totals for key operating items for Crystallex for years ending Dec. 31, 2003 thru 2005 are:
Net losses: $ (167,347,481)
Property write-downs: $ (49,509,590)
Mining revenue: $56,564,778
Operating expenses: $ 64,356,954
General & Administrative: $54,059,228
Cash flow from operations $ (104,724,603)
Shareholders’ deficit: $(215,467,693)
Even if Crystallex realizes a best case operating scenario going forward, it appears that it could take several years just to recoup all the operating losses.
In the most recently completed financing that Crystallex reportedly closed February 1, 2006, 10,799,000 shares and 16,330,000 warrants were issued and $31,317,100 was reportedly paid for these shares and options. The share price in this offering is $2.90, if no warrants are exercised, or $3.86 if all warrants are exercised. The exercise price to purchase shares for these warrant holders is $4.50, and Crystallex is now trading above $5.00 thanks to Cramer, so the warrants are in the money. So one could surmise that all the warrants may begin to be exercised beginning the later of: (i) 61 days from the closing date of the private placement (Feb. 1, 2006); and (ii) 45 days following the receipt of the permit for the corporation’s Las Cristinas Project in Venezuela (received on March 26, 2006). Therefore, these warrant holders will be able to start exercising around May 10, 2006. That means there will be a potential 16,330,000 shares that could hit the market at that time for sale. Still think it is a good buy? One final fact, and it is one that the Las Cristinas Project is in Venezuela, and that makes the future prospects somewhat unpredictable for rather obvious reasons. The end.

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