Newsletter tips $200 Silver by 2019

I googled, and came across a better googler, who made a case for one of the silver stocks Alex likes as being AYN (Alcyone Recources). I'm not going anywhere near AYN, because I did 20% on its previous incarnation as Macmin Mining (MMN). Came within a few months of losing the lot on that one. I recall the googler picked another one as Kingrose Mining (KRM); one I've definitely been interested in - at a tempting price. Have to be very tempting because of location, but massive silver credits to its 80% owned primary gold mine.
 
You cant compare AYN with Macmin. All the mining issues(ore size and recovery %) have been fixed with new machinery and better processes plus AYN have been exceeding their expectations with everything from recovery to output. Even the number of ounces recovered from the start up pads have been better than they first thought.

None of the issues from the Macmin days have risen there head. All looks good from here with an approx $15 production cost with a a forward sale(credit suisse) of 700,000oz @$33.77/oz for the first 12mths of production. The rest is unhedged. They are on target to produce 1.5m - 2m oz p/a. Current mine life of 4-5yrs but with current exploration they are looking to push this to 7-8yrs.

Also 102,000oz sale has been done with credit suisse for $3m ozzy for exploration that should push the mine life up a few years as above.

I bought my first 50,000 of AYN at 3.9c so i'm comfortable with a bit of weakness. I have bought more at around current levels though, and some a bit higher.


DYOR.


Scorp
 
AYN has saved my Bacon in 2011 from other poor choices

Glad to hold in SMSF and not selling short term regardless
 
If AYN has a bunch of positives going for it, what is causing the steady decline in share price.

I am not pulling any ones chain. It is a genuine question, as I am considering a buying in.


.
 
The decline in the Silver price along with the general market yo-yo. If its not the US in trouble its Europe or someone else. Also people are impatient in regards to news and sell. As far as i'm aware there is nothing bad in the winds. AYN should have production/leach pad announcements in Jan. Take a look at their website and read the announcements etc.

If you like what you see and read then you may wish to purchase some.

My target for the first 6mths of 2012 is 11c-13c. Last trade today was 7.8c. The main key is for production to be atleast inline with forecasts.The Silver price isnt really an issue until the second half of 2012 as they have forward sold 700k/oz @$33.77. I'm confident they can beat forecasts.


DYOR



Scorp
 
Thanks Scorp,

Looking at their chart the price appears to be in the balance. If they drop below say 7.4 cents support may not be there till around 6 cents.

I think it wise to let this sort itself out before committing.

Thank you for your info.
 
finicky said:
For your entertainment only.

Alex Cowie from the Daily Reckoning in a video free mailed out today:

Why Silver Will Be $200/oz By 2019

http://www.portphillippublishing.com.au/research/vp/EoY-2011-pres/m12osiendyear-tp.php?code=E9AOMC21

It's a lead-in to his newsletter which is tipping a few silver stocks lately.
Click to expand...

Heading is misleading. He doesn't say it'll be $200, he says if it keeps growing at 22%p.a. it'll get to $200 by 2020.

Doesn't really give a thorough analysis as to what would support 22% p.a. growth, aside from the relative size of supply for the silver market vs say equities, and the impact of increasing demand.

Not exactly a thorough piece of analysis IMO.
 
Ausecon said:
Heading is misleading. He doesn't say it'll be $200, he says if it keeps growing at 22%p.a. it'll get to $200 by 2020.
Click to expand...

Here is the title of the email:

Why Silver Will Be $200/oz By 2019
Wednesday, 28 December 2011 Melbourne, Australia
By Kris Sayce
 
finicky said:
Ausecon said:
Heading is misleading. He doesn't say it'll be $200, he says if it keeps growing at 22%p.a. it'll get to $200 by 2020.
Click to expand...

Here is the title of the email:

Why Silver Will Be $200/oz By 2019
Wednesday, 28 December 2011 Melbourne, Australia
By Kris Sayce
Click to expand...

Exactly. Heading is misleading.
 
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