spot silver increase

Increase in precious metals:

The spot price of silver has gone on a great run over the last month putting on plus 20% gains. Gold has also risen 7.13% over the last month.

Given these increases we are likely to see the production precious metal credits increase inline with the 2009 expectations.

If we look at the first quarter precious metal credits were given on assumption of $US700 gold and $US10 silver. Looking at the next quarter prices of precious metals had rebounded strongly, however as we saw in last ann production costs up until 30 April has risen to $US0.84 per pound. This reduction was due to different processes been trialled during metallurgy processes as another poster has identified.

Assuming production and recovery rates has resumed to the same levels as first quarter we could expect to see a significant drop in costs for the next qtr of production.

I would like to see a fall in costs back down to the $US0.70 range.

Another point is that analysts are expecting gold to test $US1000 ounce mark and for silver to move to $US20-25 ounce over this year. If we see a significant move on precious metals we can assume the PNA mgt costs guidances will be meet if not exceeded.

So far MGT have exceeded in everything else, great company IMO, I am very interested to see our next production figures.