Hope for Crystallex Yet

Re Crystallex (KRY), there is hope yet. The company released the following statement Tuesday morning:

Crystallex has received the official minutes of the meeting held at the Permanent Committee for the Economic Development of the National Assembly at the public hearing held on June 4, 2008 to discuss the delay of the Las Cristinas project. At the meeting, representatives of the Ministry of Mines [“MIBAM”] confirmed support for Crystallex and its compliance with all procedural and administrative steps up to the denial of the permit by MinAmb. The resolution issued by the Committee states that the Las Cristinas project has been in development for a significant period of time with the support of different branches of the Government. The resolution further notes a lack of coordination between the various Government branches, which it suggests should be resolved in light of the macroeconomic policies and goals of Venezuela, as well as the social needs of the people and the pre-existing environmental damage.

Would someone please check the insider trading reports and see whether the managers of this company are showing their support by buying the stock at these ultra-low levels?

These news releases have zero impact on me unless I see that management is putting their own skin in the game.

Comments

[sherm:]

Bill
my thoughts as an engineer who has worked in VZ since Commisar Chavez took control: when I worked for PDVSA, it was clear that he had plenty of inept, as well as some talented people to run the refineries and make money off their oil. There was no preventative maint, it was and is basically a "run-to-failure" mentality. So be it. No refinery has exploded there. Now we have the govt proposing to take over these mines and try to reap the bounty to line their coffers. I just don't see it happening until he first allows a foreign entity to set up the operation, and THEN nationalize. Based on what I have experienced over 20 yrs at petrochem side, to expect the govt to strart up KRY's ops from scratch is just too much to expect. This is why I think that he/they will let KRY start mining. Are there VZ officials all-in at 60cents? wouldn't surprise me at all....

2008 Jun 24 10:40 AM

[JKA:]

1. It seems that, so I am told, It took more than 4 (or is it 5 days) for this news to be published after it was supposedly known by the company!
2. Has anyone seen/found anything (any articles?) to this effect in Venezuelan press? I would appreciate receiving a link. I believe such information is vital for a serious investor.
3. It seems contrary to what Venezuelan government offcials have reportedly been saying about protecting their natural resources and environment especially in light of (if I am not mistaken) this being an open pit mining exploration!

2008 Jun 24 04:44 PM

[Tom Szabo:]

It looks to me like there is a lot of internal disagreement within the government with some constituents insisting on a total mining ban in the Itacama forest while others "just" want some unspecified changes (post approval!) made. No doubt a third constituency wants to nationalize. My guess is this is part of a loose master plan to stall and eventually make Crystallex go away. I note that Hecla finally did the right thing and get out while the getting was still good (though it is getting punished brutally for it). So, it appears stay in VZ and you lose, leave VZ and you still lose.

2008 Jun 24 04:53 PM

[jock:]

both KRY's and GRZ's press releases make them sound like total outsiders to the process. To succeed in a political environment like VZ, you have to have high touch with the key officials who determine your fate. I won't be surprised if both Las Brisas and Las Cristinas end up in a JV with Rusoro (RML.V) owned and operated by Russians, which already bought out Goldfields and Hecla's properties in Bolivar State. Rusoro could be a stalking horse for Russia's Peter Hambros (who just loaned Rusoro $80M) or Polyus ...

2008 Jun 24 08:08 PM

[jock:]

a JV that's 51% CVG (VZ govt) and 49% Rusoro ...

2008 Jun 24 08:08 PM

[ManAboutDallas:]

Two words: "palm grease". That's what the stalling is all about... what it's ALWAYS been about, and... until Chavez and everybody else with their palm out has GOTTEN enough grease... what it always WILL BE about.

And somewhere Occam waves his Razor and is laughing hysterically.

2008 Jun 24 08:57 PM

[OKMONEY:]

Looks like Sherm's got the inside; his obversation makes sense, money and points out the pitfalls.

2008 Jun 25 01:33 AM