The way the market depth is building on the sell side it looks as though this stock is being priced to fail. Unless things change in a hurry it looks as though 0.002 will be taken out.
Haven't touched this stock since Macmin days but have been watching this and CCU. After many years of watching pure silver plays in Australia I have come to the conclusion that there is too much risk in the pure silver plays. Better off finding a stock that mines resources with high silver content but with a good bi product to reduce the cost per ounce.
There was one company I owned (name eludes me at the moment) that owned the Mt Carlton project but was gobbled up in the Evolution Mining merger. Mt Carlton has just flashed up, has more or less reached nameplate capacity, has a production of 1M oz of silver and 65K oz of gold (ramping up to 90K of gold) and has a production cost of AUD$750 oz at the reduced gold production. This is a good example of the type of silver play that has less risk and would still rocket if silver ever took off like we hope. The US and CDN silver plays all have huge bi-product credits so it seems the way to de-risk an operation. The Mexican mines are all gold/silver ore bodies, hence their profitability.
I suppose what I am saying is it appears on a risk/reward basis, pure silver plays in Aust are just not worth investing in. Trading is another story.
AYN Price at posting:
0.2¢ Sentiment: None Disclosure: Not Held
