silver commissioning - ahead pf budget ..., page-32

Chawkey, on my understanding AYN have NOT entered into any arrangements where they must deliver silver at a fixed price of A$27.00.

From the April quarterly:

"To take advantage of the recent strength in the silver price, during the Quarter Alcyone purchased Put Options at a strike price of A$27 per ounce covering approximately 770,000 ounces of silver production from the Twin Hills mine. The total cost of the Put Options was $1.5 million.

The Put Options provide Alcyone with floor price protection at A$27/ounce for initial production during the start-up and commissioning phase of the Twin Hills operation while retaining significant exposure to the upside potential of a strong silver price."

My comment:
We can see that AYN paid $1.5 million for Put Options which gives AYN the right to "put" 770,000 ounces of silver to the seller of those options. However this does NOT commit AYN to deliver at that price.