the good news about ayn is ....

That in the 14th. May ASX announcement "Silver production for the month of April has been confirmed at 75,082oz, which guidance issued last week."

Now gold is currently US$1559 an ounce while silver is US$28.20 an ounce. This means 55.28 ounces of silver equals one ounce of gold.

So the good news is that in April AYN's silver production in gold equivalent ounces was 1,358 ounces.

The good news is that in April AYN's cash costs are "expected to average A$21/oz for the month." In gold equivalent terms that is cash costs of A$1,160/oz. Now cash costs do not include administration expenses, mining expenses that are capitalised nor exploration expenses.

The good news is that "Ore mined since the commencement of mining operations at the end of September 2011 to the 31st March 2012 has totalled 364,148 tonnes at an average grade of 75g/t."

In gold equivalent terms that is 364,148 tonnes at an average grade of 1.36g/t."

The good news is that "Initial figures indicate that overall silver recoveries from the newly stacked leach pads in the March quarter have already passed the 50 per cent point, and the pads continue to leach well as they trend towards the overall recovery recovery of 65 to 70%."

So in gold equivalent terms based on April's production AYN was recovering about 0.70 g/t gold and is aiming for an overall recovery of 0.88g/t to 0.95 g/t.

The good news is that AYN is ramping up to an annualised silver production of 1.2 million ounces to 1.5 million ounces per year. In gold equivalent terms this is 21,700 ounces to 27,130 ounces.

The good news is AYN's 29th. March resource update told us that "The updated Mineral Resource, using a revised cut-off grade of 26.5g/t Ag and reported against end of February 2012 mined surface, comprises 9.5 million tonnes grading 53.8g/t Ag for 16.4 million ounces of contained silver. This represents a 69% increase in contained silver over the previous Mineral Resource estimate (3.684Mt grading 82g/t Ag for 9.7 million ounces) reported to the same surface. The reserves and mine plan will now be reviewed with a likely increase in both reserves and mine life based on a forecast production rate of 1.2-1.5Moz per annum."

In gold adjusted terms this is 9.5 million tonnes grading 0.97 g/t gold for 297,000 ounces of contained gold, of which AYN is aiming to recover 65 to 70%.

The good news is you can get all this plus AYN's exploration upside at a market cap of $62 million at AYN's Monday closing price. $62 million is equivalent to 100% of the value of 2.2 million ounces of silver.