While the discussion of the "quarterly released" thread has...

While the discussion of the "quarterly released" thread has digressed to speculating about JPMorgan, I believe it is important to note that silver looks to be on the move - US$34.30 at time of posting - and I have read and reread the following from the quarterly that I have posted below.

I would be seriously concerned if we were dealing with silver being recovered well below budgeted grades. However that does not appear to be the case - AYN appears to have had nothing more than normal ramp up teething problems, such as mechanical problems with the crushing circuit.

I particularly noted that AYN told us that "At the time of preparing this report ... the crusher circuit was achieving a steady-state production rate of over 160 tonnes per hour ... (at a head grade of over 90 g/t Ag)...This tonnage rate equates to an annualised ore feed rate of 1Mtpa, which is sufficient to achieve the targeted annualised silver production rate of 1.5-2.0Moz."

"Ore feed onto the heap leach pads was constrained during the Quarter by some mechanical issues with the crushing circuit, particularly the new Quad Rolls Crusher. This adversely affected overall plant availability and utilisation, resulting in a lower-than-budgeted rate of ore feed into the front end of the production process.

These issues have since been addressed, and the Twin Hills processing plant was nearing its nameplate capacity of 1Mtpa by Quarter-end work, with work continuing to focus on optimising key components of the circuit to increase plant utilisation and reliability.

At the time of preparing this report, the crusher circuit was achieving a steady-state production rate of over 160 tonnes per hour (tph), or 15 per cent above design, with utilisation and availability exceeding 72 per cent (at a head grade of over 90 g/t Ag). This tonnage rate equates to an annualised ore feed rate of 1Mtpa, which is sufficient to achieve the targeted annualised silver production rate of 1.5-2.0Moz.

Construction of Leach Pad 2 progressed rapidly during the Quarter, with the first lift of ore onto this leach pad nearing completion by Quarter-end. Civil construction work for Leach Pad 3 is also well advanced, with placement of ore expected early in the March Quarter. This will further expand ore under irrigation and deliver the next increase in production ounces.

Despite the lower than expected crusher performance, the Company was still able to stack approximately 379,000oz ofsilver ore on Leach Pad 2, representing approximately 253,000oz of recoverable silver.

The stacked ounces from the December Quarter – coupled with the increasing crushing rates currently being achieved and the introduction of Leach Pad 3 – are expected to significantly boost production levels during current Quarter."