silver, page-15

blake, 15th April ann says $14m from shares and $10m rolling pre-pay facility. Basically unless they can improve recoveries, they can't improve the profit (apart from the power). They've always had the capacity to mine more, but unless they improve the crushing and leaching, it won't be worth it.

When I say production costs, I'm taking the numbers from the qrtly cash flow which I assume are mostly variable costs, or cost of sales. So the bit about savings of $10.6m but details only cover $3.6m, that's probably all C.O.S.

I've followed this mine since 2001. MMN were almost there, but were tripped up by the EWE. AYN management MkI improved the crushing with the quad crusher and put in the Merrill-Crowe circuit which was to have solved all the problems, but didn't. AYN MkII now want another $24m ?!?!? But are only detailing expenditure of $3.0m +. Another $7.6m is to pay off creditors because they are insolvent. So they have a cash burn fund of $13.4m to tide them through until they can make a profit.

OK, maybe the $24m to improve recoveries was a bit OTT, but they are looking to raise more than double what they have identified as necessary spend. Why? At 0.5c.