Re: This is a great Board for DD
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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: This is a great Board for DD
Missanderson, you've read a bunch of ideas and thoughts of others. Tell us what you think of kry and it's possible future prospects or possible demise. You must have come to some conclusions. Don't buy or sell based solely on other's opinions, base it on your conclusions. Tell us what you think.
I posted the following on Stockhouse yesterday based on what I feel is the factual situation if kry heads to arbitration, which I feel now is where we will go. This is what I feel any arbitration amount will be based on if and when it gets there. I feel Fung threw out the 2 billion remark as a signal more than anything, a signal that he would take this instead of arbitration, but I feel it will take arbitration to get anything. Yhe following is something one should use to put any shareprice into the picture in that scenario. Again, just my opinion.
Post:
One thing that's very important to consider regarding the speculation and numbers some attach to any buy out, arbitration award, or any other scenario is the actual agreement in place.
The contract is for 20,000 tpd nothing more. Sure there is expansion abilities in the design of the mill but they(expansion plans) have never been approved. Same goes for the EIS and the supposed permit we have all been hypnotized by(relating to the 40,00tpd).
The other factor is the 10 year extensions at the end of the 20 year initial contract term. These are based on MUTUAL agreement. I have never seen anything to date where this has been assured in any way that these two terms will be tacked on to make a 40 year time frame. Has anyone else?
So if anyone wants to put an actual binding agreement on the table to value this contract or arb award you would have to use an agreement that Ven has signatured alongside Kry's.
Has Vz signed off on the two 10 year extensions? No
Has Vz signed off on the 40,000tpd expansion, associated EIS and appropriate permitting? No.
Is it reasonable to put issues on the table that neither party has signed off on in reaching a value that KRY is being denied by not receiving the permit? I'm sure any arb panel would only look at what is actually leagally binding in deciding a value.
So imo the only number for any values would have to be based on the 20,000tpd for twenty years as nothing more has been approved by Vz.
Attaching the total ounces of gold at LC doesn't hold for me in this as it isn't stated anywhere that KRY is entitled to all of it, only what is agreed to in the contract, with future hopes of negotiating for more. The lost profit claim seems to me would be what Vz has legally entitled Kry to up to this point.
Food for thought.
The contract is for 20,000 tpd nothing more. Sure there is expansion abilities in the design of the mill but they(expansion plans) have never been approved. Same goes for the EIS and the supposed permit we have all been hypnotized by(relating to the 40,00tpd).
The other factor is the 10 year extensions at the end of the 20 year initial contract term. These are based on MUTUAL agreement. I have never seen anything to date where this has been assured in any way that these two terms will be tacked on to make a 40 year time frame. Has anyone else?
So if anyone wants to put an actual binding agreement on the table to value this contract or arb award you would have to use an agreement that Ven has signatured alongside Kry's.
Has Vz signed off on the two 10 year extensions? No
Has Vz signed off on the 40,000tpd expansion, associated EIS and appropriate permitting? No.
Is it reasonable to put issues on the table that neither party has signed off on in reaching a value that KRY is being denied by not receiving the permit? I'm sure any arb panel would only look at what is actually leagally binding in deciding a value.
So imo the only number for any values would have to be based on the 20,000tpd for twenty years as nothing more has been approved by Vz.
Attaching the total ounces of gold at LC doesn't hold for me in this as it isn't stated anywhere that KRY is entitled to all of it, only what is agreed to in the contract, with future hopes of negotiating for more. The lost profit claim seems to me would be what Vz has legally entitled Kry to up to this point.
Food for thought.
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