revision by ord minnett expected, page-10

This from SIDR over at AYN forum 19/7/13

Worthwhile seeing what other Ag types think.. Had Ayn briefly but like NMAR and SVL left some time ago.
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sidr
Post #: 9531236
Price at time of posting: 1.2c
In Reply to msg: #9526273
IP: 211.30.xxx.xxx
Sentiment: Buy
Disclosure: Stock Held
Views: 47



full width | single post My take on the pros and cons of share issue:

Arguments for taking up new shares:
-silver fundamentals indicate silver is extremely undervalued... and when suppression is stopped/overwhelmed $100+/oz is expected.
-further recent very bullish signs including negative GOFO rates, Comex inventory rapidly depleting, and J P Morgan going long after years of shorting silver.
-for a small % extra in our AYN investment $, significant dilution is avoided
-the restructure will reduce production costs substantially to around $15/oz (director statement at shareholder briefing)
-the new directors have managed to secure funding, when silver has fallen and there isn't much investment $ around in poor world economic status. This indicates corporates understand the great potential for pure silver producers.
-if silver were to fall further so AYN unprofitable (unlikely), the directors stated they have temporary “care and maintenance” strategy, in order to protect the silver asset until silver recovers.

Arguments against:
-share price has fallen, mainly due to 2 freak floods and coordinated paper attacks (naked short selling) led by US Fed. However if a price is low but fundamentals are strong that is normally a buy signal.
-perception that physical demand has fallen. This is incorrect, demand for physical is at record levels... and in fact is further increasing at artificially suppressed levels, and eventually demand for physical will outweigh paper sales, probably by year-end, as per fundamentals and above negative GOFO rates, Comex inventory depleting, and JP Morgan going long.


If there is a rebound forecast...CCU shoul;d be in the box seat hopefully as best pure silver play on the ASX.
Silver..ah to know it will hit $40 + again...You would buy more..no??