Mid-May 2008, all looked grim for shares of Crystallex (KRY), as Venezuela pulled the plug on the company’s Las Cristinas property. Production was expected to begin there by 2009.
At the time, Venezuela refused to grant a permit to KRY for the Las Cristinas mine after deciding not to grant licenses for open-pit mining for gold, diamonds and coal. Instead, they opted to step up oversight on the mining industry. Citing ecological damage for the move, Venezuela dashed KRY’s hopes to mine in the nine million acre reserve.
But that was in May.
Today, shares of Crystallex may be a buy after the Venezuelan government said it was willing to reconsider the cancellation of the permit for the Las Cristinas project. In this release, the company said it was invited to a meeting by representatives of the Ministry of the Environment, and was told that possible modifications of the Las Cristinas project could result in an issued permit.
Modifications included further optimizing the social project in the area, mitigating the impact of open vein deposit in the affected areas of the Imataca, improving the remediation plans at the end of the mine life as well as remediation of the existing environmental damage caused by illegal miners.
Even better, from the minutes from a National Assembly committee meeting, Crystallex learned that representatives from the Ministry of Mines "confirmed support" for the company.
While nothing is set in stone just yet, so far the news is good for the company and shareholders of the beaten down stock. Keep it on radar.
Good Investing,
Ian L. Cooper
——————————————
In case you missed our other investment opportunity highlights, here’s what we covered in Wealth Daily, Gold World, Energy and Capital, and your free blogs for the week of June 23, 2008.
Platinum Mining Companies: Zimbabwe Set For a New $400 Million Platinum Mine
Platinum is extremely rare, occurring at only 0.003 parts per billion in the Earth’s crust. This makes the most precious of all precious metals about 30 times rarer than gold. In fact, it’s so rare that if all the platinum in the world was poured into one Olympic-size swimming pool it would scarcely be deep enough to cover your ankles.
The Big Picture on Q2 2008, Part 2: Commodities and Renewables Charge While Market Tanks0
In part 1 of this series, we reviewed the trends in financials, fossil fuels and electricity. This week, we take a look at renewables, food and fertilizer.
Brazilian Ethanol: The Break-Out Brazilian Energy Play
Brazilian sugar refiners are ready to satisfy America’s energy sweet tooth. Here’s what I mean, and why the Brazilian ethanol recommendation noted below is about to explode.
Investing In Safaricom: The Coming African Stock Boom
Nigeria is mired in oil turmoil, and Zimbabwe’s elections just turned bloody again. But regional growth is at 30-year highs and has room to run. That’s why today I’m telling you to buy Africa. Across Africa, outbursts and opportunities pose huge potential for risk and reward to the international investors swarming in. Here’s how you can make money in African investments.
Investing in Wind Energy: How to Own 52 Wind Stocks for $30
As oil prices stay high, the wind power and alternative energy themes are becoming increasingly popular, making the latest ETF issue even more enticing at $30.
Investing in Electric Vehicles: The DIY Strategy for Energy Price Hedging
If you think $4 at the pump is bad, just wait. It’s not getting better anytime soon. By now, we’ve heard all the reasons for escalating prices: rising demand in India and China, a falling dollar, speculative trading and many others.
Microsoft-Yahoo Deal Back On?: Don’t get too excited, though.
TechCrunch is reporting that Yahoo and Microsoft talks are back on. "The information we have is thin, but what one source is saying that Microsoft is talking a price lower than the $33 they were offering when the talks disintegrated in May," the report said.
When Will the Credit Crisis End?: Peak by Q1 2009, says Goldman Sachs
The credit crisis will not peak until the first quarter of 2009, said Goldman Sachs. And, according to the latest Goldman forecast, global financials will need to raise another $65 billion by this time next year to deal with losses.
Dow Does it Again…Tack on Another 25%: Chemical Giant Hikes Prices for a Second Time
The last time I wrote about Liveris was less than a month ago, when he decided that his company had no other choice but to raise prices 20% across the board. His input costs (read the price of oil), he complained had simply become too high crushing his margins.
El Paso Calls Heating Up: Why it’s still a buy…
You may want to keep El Paso (EP) on radar. The El Paso August 2008 23 calls are seeing interest with 7,986 call contracts trading hands versus open interest of 69. The spike is being attributed to news that the company has expanded land holdings in the Haynesville shale area. While the stock has since retreated on the comments made at the Wachovia Nantucket Equity Conference, it and the call options are a buy.
How to Protect for Downside
This rally won’t last, we said June 12. Bank earnings are next week. The world is on the edge of severe crises. Israel and Iran are ready to fight. Oil is heading up. Gas is skyrocketing. Thousands of homes are in foreclosures. Global banks are struggling. Home equity loans are the new subprime fiasco. Unemployment is rising. Food riots are daily. Bond insurers are losing ratings. Oh, and then there are the hundreds of trillions in derivatives.
