how is it possible, page-10

Hi topwon, all I was doing was answering the question, as nobody else seemed to want to have a go :-)

With reference to the r & r, the two are very difficult to compare. CCU have used a cut off of 22g/T, while AYN used 40 g/T. Previous r & r from the old AYN days had different totals (45m oz) - and so it goes on. Both companies have potential for other discoveries.

I have checked the announcements about the debt. They say nothing! The trouble is, the last announcement with detail on the debt said that the loan would be over three years, with 30% of production hedged over that period. That will be affecting the share price, which was the original question. You don't just repay the debt earlier simply because the price of silver is higher - you have to buy your way out of the hedges, which are the bank's way of profiting from a risky (by their standards) deal. As the market doesn't know the details, it is judging accordingly. I hope management isn't that stupid - but they aren't saying. The banks pretty much had them over a barrel after the 1st March ann. They couldn't back out of the debt finance without going back tot he mkt for another cr, which would have dented confidence.

I think AYN's put options will turn out to be a lot cheaper than CCU's hedges.

Good luck with the first pour in December. They COULD do it - but everything needs to go perfectly.

Cheers, J.