"Alcyone Resources’ Managing Director, Andrew King, said the pre-paid silver and forward transaction provides a solid floor to the Company's first 12 months of operation, thus underpinning Alcyone's solid operating margin while still delivering significant leverage to the silver price in the future. “This has the triple benefit of locking in a guaranteed return on approximately half of our forecast production for the 2012 calendar year and covering more than 100% of our forecast operating costs, providing us with $3 million in additional cash up-front while our cash flow profile is building, and preserving significant exposure to the upside in the silver price for the remaining reserves,” Mr King said. “That puts us in a strong position both operationally and financially, providing the platform to further increase exploration and drilling activities at Texas,” he added. “With production now ramping up at Twin Hills, we have been assessing a number of new opportunities in the silver and base metals space, and we want to be appropriately positioned to capitalise on any opportunities that emerge,” he added.
kind regards, fast41.
AYN Price at posting:
5.4¢ Sentiment: LT Buy Disclosure: Held
