Crystallex International Corporation

Crystallex International Corporation

November 11, 2009 16:08 ET

Crystallex Reports Q3 2009 Financial Results

TORONTO, ONTARIO--(Marketwire – Nov. 11, 2009) - Crystallex International Corporation (TSX:KRY)(NYSE Amex:KRY) today reported its financial results for the quarter ended September 30, 2009. The Company prepares its consolidated financial statements in U.S. dollars and in accordance with Canadian Generally Accepted Accounting Principles. The consolidated financial statements along with management's discussion and analysis will be available for viewing on the Crystallex International Corporation website at The Documents have been filed with SEDAR (


Crystallex is a Canadian based mining company engaged in the development of the Las Cristinas gold properties in Venezuela. Its common shares (symbol: KRY) are traded on both the Toronto Stock Exchange and the NYSE Amex Exchange.

Las Cristinas
  • The Company's principal asset is its interest in the Las Cristinas gold project located in Bolivar State, Venezuela. The Company's interests in the Las Cristinas concessions are derived from a Mine Operating Contract (the "MOC") with the Corporacion Venezolana de Guayana (the "CVG") which grants Crystallex exclusive rights to develop and mine the gold deposits on the Las Cristinas property.
  • The Company has not received a response from the Minister of Environment and Natural Resources ("MinAmb") to its June 16, 2008 appeal of the Director General of the Administrative Office of Permits at MinAmb denying its request for the Permit for the Las Cristinas project.
  • On March 2, 2009, the CVG confirmed that the Company was in compliance with the MOC. This corroborates the Company's position that it is not in default of the MOC and there is no change in control under the terms of the MOC.
  • The Company remains compliant with the MOC in order to protect the option of proceeding to international arbitration.
Liquidity and Capital Resources
  • Cash and cash equivalents at September 30, 2009 were $4.9 million.
  • With proceeds from recent equipment sales, the Company forecasts that it will have sufficient cash to fund its operations through the first quarter of 2010 (see "Liquidity and Capital Resources" section).
Financial Results
  • Losses from continuing operations were $19.7 million ($(0.07) per share) and $30.6 million ($(0.10) per share) for the three month and nine month periods ended September 30, 2009, respectively. Approximately 50% of the current quarter's loss is attributable to the write down of equipment held for sale.
  • Losses from operations were $20.1 million ($(0.07) per share) and $32.1 million (($0.11) per share) for the three month and nine month periods ended September 30, 2009, respectively.
Legal Matters
  • On May 4, 2009, the holders of the Company's $100 million notes due December, 2011, agreed to have its derivative action dismissed with prejudice. The Noteholders' Application to the court also included an oppression claim, which is scheduled to be heard in early December 2009.
  • The Company and certain officers and/or directors have been named as defendants in a proposed class action lawsuit commenced in the United States. This action is in its preliminary stage, however, Crystallex believes that the complaint is without merit and will vigorously defend itself against this action.

About Crystallex

Crystallex International Corporation is a Canadian based company, whose principal asset is its interest in the Las Cristinas gold development project located in Bolivar State, Venezuela. Crystallex shares trade on the TSX (symbol: KRY) and NYSE Amex (symbol: KRY) Exchanges.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including: statements relating to the estimated reserves and resources at Las Cristinas; anticipated results of drilling programs, feasibility studies or other analyses; the potential to increase reserves and expand production, at Las Cristinas; Crystallex's projected construction and production schedule, and cost and production estimates, for Las Cristinas; and management's statements regarding its expectations regarding mining in Venezuela. Forward-looking statements are based on estimates and assumptions made by Crystallex in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Crystallex believes are appropriate in the circumstances. Many factors could cause Crystallex's actual results, performance or achievements to differ materially from those expressed or implied by the forward looking statements, including: gold price volatility; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production, between actual and estimated reserves, and between actual and estimated metallurgical recoveries; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property. These factors and others that could affect Crystallex's forward-looking statements are discussed in greater detail in the section entitled "Risk Factors" in Crystallex's Annual Information Form (which is included in the Annual Report on Form 40-F that Crystallex files with the United States Securities and Exchange Commission (the "SEC") and elsewhere in documents filed from time to time with the Canadian provincial securities regulators, the SEC and other regulatory authorities. These factors should be considered carefully, and persons reviewing this press release should not place undue reliance on forward-looking statements. Crystallex has no intention and undertakes no obligation to update or revise any forward-looking statements in this press release, except as required by law.

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