Ann: Twin Hills Operations and Production Update , page-5

re: Ann: Twin Hills Operations and Production... Hi Siameseparrot,

thanks for your excellent post (TU from me), I think you raised some good points.
I hold this stock and hope it will do well. I agree that teething problems during ramp-up are absolutely normal (you'd get suspicious if they didn't report any), however, I will play the devil's advocate.

From March 2011 Quarterly:

"Ramp up to full scale commercial silver extraction at Twin Hills will occur during the September Quarter at an annualised rate of 1.5 to 2 million ounces per annum".

This was 2011. We are now talking Q3 2012 for full production, i.e. a delay of one whole year.

This somewhat undermines confidence in whether this target will now be met.

The main issue is how much money the company is spending whilst trying to fix their problems.

While it is reassuring to know that money is flowing in because silver is being produced at a decent rate, the question is: Is it going to be enough to keep Alcyone going until they reach steady state?

Sorry this sounds a bit negative, but I'm a case of once burnt, twice shy, had a few goldies who went down whilst ramping up production, and the harder they tried, the more money they lost in the process.

Now I am not saying that this is a real concern for AYN (if I thought that, I wouldn't post and hold, instead I would quietly get out), but I do want to use this forum to point out issues or potential issues rather than just reassuring each other how wonderful a stock is.

Ultimately I think that this company is well positioned to profit from a rising silver price when this eventuates.