Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
My blog:
  • Arian Silver Stops Milling At Third-Party Site 0 comments
    Jun 25, 2013 12:02 PM

    Arian Silver (LON:AGQ, CVE:AGQ) has stopped toll milling at its third-party-owned Juan Reyes site in Mexico in a bid to preserve value due to current metals prices.

    Terminating the contract was done without penalty and by mutual consent with the mill-owner.

    Processing began at the Juan Reyes mill in February this year after Arian halted processing at its previous mill in July last year after a dispute.

    The firm is now focused on sealing a financing package so it can buy its own second-hand custom mill and to fund mine development to increase capacity up to 1,500 tonnes per day.

    Jim Williams, Arian's chief executive, said: "In the context of current metal prices, we are preserving value by halting milling operations and, with the knowledge obtained from the toll milling operations, positioning the company to resume production with its own mill at a significantly reduced cost base."

    He added: "The second-hand custom mill is expected to deliver cost savings of some 75% compared to previous toll milling operations, which, alongside the additional revenue from lead and zinc credits, would produce considerable profits even at today's silver price."

    Shares in London dropped around 12% to 4.25p.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.