I agree with jantimot, that they need to sort out their LPs, ASAP. the more i think about it, I believe there's something seriously wrong with either their LP design or, their leaching liquids..
Before I posted it, i did as much reading and studying that I could on leachpad operations, so that i know at least what i'm talking about. I understand that it may take a while to leach silver out, but if as jantimot, what you said is true that LP1 have been stacked since 2006 until now.. and it was never cleared off before. then i'm afraid the management needs to go ASAP. At most, a leachpad need to be cleared off in a year.. if there's still a huge stockpile of silver after that period, that makes LP1 worth holding the old ores, something else is dead seriously wrong. I wish they would put more details on their Q reports, IE, LP1 cells cleared off to pour new ores, etc.
There were some good information available on LP operations. and this link below is an excellent one.
Each LP shld be managed actively, and monitored to ensure it's of optimal size, and the leach rates is acceptable/cost effective. If the silver's just not there anymore or in sufficient quantity, the entire pad/parts of the pad shld be cleared and new ores stacked to ensure consistent flow of pregnant solutions. If they're just pouring new ores on top of a huge pile of dried ores, this is just gonna slow the process down.
I'm actually a notion investor here in Msia, and would like to see their investment in alcyone not go down the drain. AFAIK, Mr Chow Fah is capable of turning things around, and I'm hoping he's seen enough of alcyone by now to decide if this is worth hanging on to, and if needed, force the other directors out if they're running the business to the ground. If it's not worth keeping, then fine, just write it off. No need to pour good money to chase the bad.
As investors not privy to their operation details, we just need more information, so that we can better decide or, decide on the same level ground, on what to do with our investments.
1) We need a clearer definition of 'Inventory' how much is in LP1, LP2, 3 and 4. How much is already in the pregnant solutions, and if a substantial amount is already in pregnant solution, why don't turn them into bullion? Also they need to be accountable for the 70k bullion production. There has to be something wrong somewhere, it just doesnt make sense that with old ores, they were getting 230k, and now with mixture of old and new ores (after 2 crusher upgrades) and a new LP that's fully stacked by now, production is just a meager 70k.. maybe even a leachpad leakage?
2) In the latest Q, they're saying stacking is done in LP4 and LP1 for faster leaching. does it mean they're clearing off old ores? and placing new ores in? By right, any competent mining company shld be doing this, I don't know why I need to ask... just feels we're dealing with very incompetent people, who dreams of investing in BMZ with borrowed money when they can't even manage their own boat. Im just worried they're stacking new ores on top of old ores, and making it worst to leach the fresh ores..
3) Is there a leak detection layer built into the leach pads? Again, this is such a basic requirement of leach pads, i dunno why i have to worry abt it.
4) What's the % of silver coming out from each LP? Do they monitor each cell's output performance and cycle new ores in and out as needed to keep flow consistent and high? Again this is such a basic must do in a proper mining operation..
5) While I'm a bit apprehensive on such a move, maybe the only way to turn ayn around is for notion to take it private, and assume full responsibility for it. (assuming all the necessary audits, and prerequisites checking on the LPs, and sampling of silver in stacked ores are done) Right now, I'm seeing a bunch of directors that don't care on how they're spending investors' money, and this is not going to end well for investors, the longer this goes on.
AYN Price at posting:
0.1¢ Sentiment: Hold Disclosure: Held
