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
Message: canacord capital morning coffee on KRY
Below is a write up on KRY in Canacord Capitals Morning Coffee:
CANNACORD CAPITAL CORPORATIONMORNING COFFEETuesday, January 22, 2008 Crystallex International (KRY : TSX : $1.88), Net Change: -0.55, % Change: -22.63%, Volume: 629,924“I have said it already, I am convinced that the way to build a new and better world is not capitalism. Capitalism leads us straight to hell.” – Hugo “Boss” Chavez. It was reported late in the day that Venezuela’s tax agency ordered a two-day closing of Crystallex in connection with alleged tax irregularities (emphasis on the word “alleged”, something Russia’s Putin is fond of doing to owners of assets he covets). Though the temporary closure is said to be a normal penalty faced by foreign and local businesses in Venezuela, we continue to distrust Hugo Chavez and his myopic and intuitive style of rule. This is a man who places Karl Marx next to God and Adam Smith next to the devil. In late October, the Venezuelan National Assembly’s Commission of Economic Development recommended that Venezuelan regulators grant Crystallex a permit for the construction and development of Las Cristinas Project, and said that a delay in granting the permits affects the operator. It was reported that the commission said that all legal, technical and feasibility study requirements for the permits to be granted. That was when the stock was about $3. It has been a long battle since Crystallex won the property contract in 2002. Nobody knows for certain why the Venezuelan government has been so slow to move. Even cynics that don’t trust Chavez (ahem) are confused. Even if Chavez intended to expropriate this prized gold deposit, why would he not let Crystallex spend their money and expertise building the mine first? In the mean time, Q3 production fell almost 50% and it lost $0.04 per share. Revenue fell from $9.8 million to $2.2 million in part due to adverse currency exposure.
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