KRY JV Post Permit Valuation
in response to
by
posted on
Jun 16, 2010 10:32AM
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
I took GG as the basis - there may be other stocks out there that are a better example, because GG is also mining a bunch of other materials that Gold. In addition, GG does not carry the political risk of Venezuela. I ran the KRY shareprice at a 20% Discount for these two reasons.
In the excercise - I included the dilution - up to 500,000,000 shares outstanding. I also ran a sensitivity on the Proven & Probable - when the new report comes out based on the 'new' price of Gold - it will have a huge impact on the valuation. Based on the current 17-18 million - KRY's 1/3 is 6 million - this should be the floor from a reserves standoint.
Even with the dilution - KRY still has HUGE potential.
BTW - if folks know of a 'producing' company that is more representative of KRY - mainly one that is mining exclusively Gold - it may be better to use that share price and that reserve basis as the example.
GG | |||
Price/Share | Shares Outstanding | Proven & Probable | $ / Ounce |
43.27 | 733,000,000 | 48,800,000 | 649.9367 |
KRY | |||
Price / Share | Shares Outstanding | Proven & Probable | 20% Discount |
$7.80 | 500,000,000 | 6,000,000 | $6.24 |
$9.10 | 500,000,000 | 7,000,000 | $7.28 |
$10.40 | 500,000,000 | 8,000,000 | $8.32 |
$11.70 | 500,000,000 | 9,000,000 | $9.36 |
$13.00 | 500,000,000 | 10,000,000 | $10.40 |