fundamental notes

Until prices exploded higher in late-2003, it was hard to find anything positive to say about silver. The main changes have been the consolidation that has taken place in the gold and copper industries and the difficulty in developing new sources of production. As much as 75% of silver's production comes from gold, copper, lead, and zinc mining which is why changes in these other industries have a large impact on the price of silver. On the demand side, silver (like most commodities) benefits from strong world growth, a weaker U.S. dollar, and increasing use in electronic applications. According to an article in Barron's on June 8, 2009, the cash cost of producing silver is somewhere around $4.50 to $5.30 an ounce, but that rises to as much as $12 per ounce if exploration costs are included.

Penoles has one of the lowest cost structures in silver because of above-average ore grades. (S&P Credit Analysts Juan Pablo) Becerra and (Laura) Martinez estimates the company cash cost was $4 to $5 per ounce as of March 31, 2009, which they said compares favorably with Penoles' global peers and the average price of silver during the same period.

Dorothy Kosich, Standard and Poor's. August 3, 2009.

Bodes well for AYN planning for 1,000,000 ounces per annum. Current price of silver $33/ounce. Then convert that to $AUD.

Newminer.