i think this one is nearly dead ., page-10

I like to look at silver stocks in gold adjusted terms. This gives numbers like millions of ounces of silver production a nice reality check for me.

Currently the ratio is 57.8. It takes 57.8 ounces of silver to buy one ounce of gold.

So when we talk about AYN being a 1.2 million to 1.5 million ounces per annum silver producer in gold adjusted terms that makes it a very small minnow: 20,690 ounces to 25,950 ounces.

At a cash cost of $A20 in gold adjusted terms we are talking a cash cost of A$1,156 per ounce.

Add in all the other expenses that aren't included in cash costs and my conclusion is that if AYN can successfully ramp up to 1.2 million to 1.5 million ounces per annum it will be a very small producer with very little to no chance of building up cash, paying dividends to shareholders etc. while silver is anywhere near current prices.

Personally I'm not interested in investing in a relatively high cost 20,690 ounces per annum gold producer that is capitalised near $50 million.

As I posted at the start of this post, I like to look at silver stocks in gold adjusted terms. This gives numbers like millions of ounces of silver production a nice reality check for me.