AXM - Apex Minerals

[LPA]

What do people think about this company?

They recently had another float in April - quickly went from 7c to over 40c then back down to around 30c where it is resting now. It isn't too largely traded but seems to be an alright long term speculative stock...

 

[LPA]

Nobody else has this stock on their radar? It has recently risen from 28c to 34c today, even with the declining price of gold....maybe some people know something we don't?

Their management team looks great on paper, and in my opinion good management is 80% of the score

It looks like this one may be, as I said above, a great way to speculate on small up coming exploration companies. They have solid leadership and at the moment a nice proven base of 28c for their share price...opinions?

 

[danc]

I just bought it and have an order in to buy again at .255,i like the chart day and week and i reads well on web site.

 

[danc]

Now holding a good sized parcel at an av of .31,day and week and month look good too me.management look to be well connected to other mining houses like kzl which i hold.

 

[Ruprect]

Anyone watching Apex? Jumped 6.5cents yesterday after coming out of a halt, announcing a purchase of 3 gold projects with the aim of producing 300,000 ounces a year within 3 years.

Sellers are on the thin side, with close to 4 million shares traded yesterday.

Def one to watch over the coming days, this could jump very quickly IMO.

From Todays Sydney Morning Herald

Apex grabs gold projects for $28m

THE team that successfully built LionOre Mining and Kagara Zinc into $1 billion-plus companies has revealed plans to create a mid-tier West Australian gold producer.

Apex Minerals, led by former LionOre Australia boss Mark Ashley, will purchase three gold projects for $28 million. The company aims to produce about 300,000 ounces a year within three years, placing it in a similar league with rising WA gold houses St Barbara Mines and Monarch Gold.

Apex said it was able to pick up the three projects relatively cheaply since the deposits contain refractory ores, which can be more difficult to treat. Its strategy is to mine high-grade deposits in the Eastern Goldfields region and truck the ore to a central processing facility.

The Youanmi mine it has purchased from Canadian-listed Goldcrest Resources for $10 million was closed in 1997 because it was no longer economic. But Mr Ashley noted the owners were putting only 150,000 tonnes of ore a year through a plant with a 600,000 tonne capacity.

Apex's plan is to truck the ore to the Gidgee Gold project it is purchasing from Legend Mining for $11 million in order to keep a plant running at capacity and cut down on fixed costs.

Apex hopes to produce 130,000 ounces a year from Youanmi and Gidgee combined within two years.

The third project Apex purchased was Barrick Gold's Aphrodite deposit, which cost $7 million. Apex plans to start production of 150,000 ounces or so within three years. It would need to build a flotation plant to turn the ore into concentrate on site so it could be trucked to Gidgee for final processing.

Apex is also believed to be interested in LionOre's nearby Thunderbox goldmine, which is for sale. Thunderbox was discovered by Apex director Mark Bennett.

Apex plans to raise an unspecified amount of funds within three months to complete the deals, which require $10 million in cash and $18 million of shares.

Apex shares closed 6.5c higher at 41.5c.

 

[LPA]

I've been holding this one for over a year now, so I finally can ride the wave and find a good place to jump off with all the CGT benefits

Nice to see it finally gain some momentum, I always thought it had great fundamentals as far as management were concerned...

 

[Rob_ee]

Anyone watching Apex? Jumped 6.5cents yesterday after coming out of a halt, announcing a purchase of 3 gold projects with the aim of producing 300,000 ounces a year within 3 years.

Sellers are on the thin side, with close to 4 million shares traded yesterday.

This came up on my MS exploration last night.
Seems to be bucking the trend and nicely up the last two days considering our market down on both and Gold down $10 overnight.

I don't know whats driving it but can't argue with the price direction.
So I am now a holder as of today

Only 5 bids left on the sell side.

Rob

 

[Rob_ee]

Well ... it looks like LPA and I are the only ones interested in this one.

For 7 consecutive days it has made Higher Lows AND Higher Highs, quietly on reasonably good volume (considering practically no one is selling) of average over 500,000 per day which is quite liquid.

Sure beats the manipulated penny dreadfuls that go up 25% in 1 day and the same amount down the next

MAYBE this will be my 1st long term hold ?
Pyramided into this again today.

Rob

 

[Rob_ee]

Guess I got VERY lucky with this one ... for days the insiders who knew have been buying up big almost doubling the price in a very short time.

As stated I bought this on a MS signal at 58c and it has been making continual higher highs ON NO NEWS.

Toady ASX issues a please explain for the big rise on no news to the market.

Stock goes into trading halt for a few hours till company can find a reason for the jump.

Apparently an acquisition from OXR .

You need luck in this game BUT especially timely news

Rob

 

[Freeballinginawetsuit]

Just noticed this thread on Apex. I too have been a holder since the middle of last year, only a minor parcel, but it is definitely one in the long term portfolio

For those who have missed this little gem, they are definately worth a look..........led by the lads from KZL

http://www.apexminerals.com/

 

[Big Bad Sammus]

Just noticed this thread on Apex. I too have been a holder since the middle of last year, only a minor parcel, but it is definitely one in the long term portfolio

For those who have missed this little gem, they are definately worth a look..........led by the lads from KZL

http://www.apexminerals.com/

What's the little 'gem' that you're referring to exactly?

I bought a substantial amount @ $1.09 and it hasn't broken through that yet... wondering if they will get anywhere near their high of $1.43?

 

[Freeballinginawetsuit]

What's the little 'gem' that you're referring to exactly?

I bought a substantial amount @ $1.09 and it hasn't broken through that yet... wondering if they will get anywhere near their high of $1.43?

For a little wannabe Company AXM has got plenty going for it.

Obviously youre entry is a recent one and plenty of punters are sitting on a lot lower entries than you!.Considering the current market conditions AXM has held up quite well.

If your concerned with youre entry, well cut out............AXM's SP is still frothy so may be best you beat others to the punch

 

[Firdy]

I have a few medium and junior cap gold stock investments, including Oceania (solid), Bendigo Gold (BDG) (a Dog), where everyone famously got burnt, and Greater Bendigo Gold (GBM), which is looking great.

With this experience I have looked at Apex, and decided, at this stage, that there are better prospects. Can anyone correct me if the following is wrong:

- cash at september 07 - $ 40 million
- cash at december 07 - $ 10 million
- production due - November 08 (always subject to delay)

- Market Cap $324 million
- JORC resource 2.5 million ounces.

So where is the cash go complete through to November going to come from?

If we are not diluted with a new issue, then at the current share price (0.94 when I looked), and taking a ratio of Market Cap/Resource in ($/oz) I would be buying an ounce of Gold Resource for $ 129.00.

There are better deals than this around!

 

[jman2007]

So where is the cash go complete through to November going to come from?

Well it looks like AXM answered your question today, release stated "Apex announces placement to raise $62M".

Imo, this is not looking too bad really. There was probably never any question that further dilution would not be required to fund mill reburbishment and their aggressive exploration strategy. In the current market climate, the issue of these shares, almost at the current market trading price is a significant achievment, when considering other companies are being forced to issue new shares at a heavily discounted rate.

Goldman Sachs analysis also indicates that AXM compares favouraly in terms of value compared to other industry peers, and while in the short-term may look expensive, this should be offset once full production is achieved in FY2010.

Considering the advanced stage of much of their exploration, ie a lot of reource and infill drilling, there should be a good conversion factor of much of their inferred ounces to measured and indicated during the year, and many of the ore bodies remain open at depth and down plunge.

It will be interesting to see how AXM manages the mining schedule around Wiluna, when historically, many of these deposits were mined as stand-alone operations and were never economic to seriously remain viable over the long-term.

My one main issue is the haulage costs involved in transporting ore from Youanmi and Wilsons, I would consider possibly between 1.5-2.0g/t value from the head-grade would need to be subtracted for Youanmi haluage costs. I'm unsure if the BIOX process has been successfully maintained for an operation of this scale in Australia before, but the technology is interesting although I'm certainly no expert. For refractory ore of the type APEX will be processing there are only two choices; putting the ore through a roaster, or a more environmentally bio-leaching process.

Anyway, AXM certainly looks like an interesting opportunity and certainly not one to be scoffed at.

jman

 

[Miner]

Well
AXM share last traded at 78 cents. THe offer is for 82 cents
They are looking for a bunch of new people GM, Met Manager, Minnig Manager and Maint Supdt - a whole contingent of people normally require for a new operations
Is it possible that they are starting or acquiring something new.

I do not hold this share nor suggesting any speculation here

I am just trying to correleate some obvious phenomenon which relate to company future plans

Cheers

 

[Rob_ee]

I have a few medium and junior cap gold stock investments, including Oceania (solid), Bendigo Gold (BDG) (a Dog), where everyone famously got burnt, and Greater Bendigo Gold (GBM), which is looking great.

With this experience I have looked at Apex, and decided, at this stage, that there are better prospects. Can anyone correct me if the following is wrong:

- cash at september 07 - $ 40 million
- cash at december 07 - $ 10 million
- production due - November 08 (always subject to delay)

- Market Cap $324 million
- JORC resource 2.5 million ounces.

So where is the cash go complete through to November going to come from?

If we are not diluted with a new issue, then at the current share price (0.94 when I looked), and taking a ratio of Market Cap/Resource in ($/oz) I would be buying an ounce of Gold Resource for $ 129.00.

There are better deals than this around!

So what dou you think now ?

This has to be the most ignored stock on this forum.
Not 1 single post in the past 6 months.

And what do we have today, 1st gold pour imminent to come within days.
Production costs of $ 550 per oz
Profit margin $ 600 per oz
Monthly production (to start) about 15000 oz per month (YES per month)
Profit pre tax of around 8 mil per MONTH
Fully funded
Promising reserves
Future drilling prospects lookin good.

I 1st posted on this stock a year ago where I congratulated myself for being able to buy in at 58c.
Sadly got greedy and sold below $1 only to see it go to a high of $ 1.40

I had forgotten all about AXM till I started re-visiting some of my earlier trades looking for bargains.

When I saw 23 cents I Literally fell out of my chair.

Gees I thought, perhaps a mine flood, or they lost their funding , or costs to high ...only to find the above is the current status.

Funny isn't it, They were $ 1.40 when they had no funding, less reserves, gold pour still over 1 year away, now with production to start 23c was offered.

Needless to say I am back in with substantial quantities.

Rob

 

[Who Dares Wins]

Does anyone know why this company seems to keep slipping under the radar?

A good announcement a few days ago which has brought the price up from 20cents to 26.5 cents but its still languishing way back compared to where I thought it would have been by now given that its producing gold.

• Targeted commercial gold production achieved in April at 10,000 ounces
• Plant throughput rate of approximately 850,000 tonnes per annum (above target)
• Underground ore production 50% higher than previous month to over 40,000 tonnes with a grade increase of 15%
• Gold poured was 9,500 ounces (14% increase from March)

I see also a buy recommendation from Eagle Research with target price of 61cents and another spec buy from Argonaut Securities. With production like this surely the price must come up?

WDW

 

[johannlo]

I'm tracking this too. They hit production targets again for May and apparently (read on hotcopper) cash costs will be revealed in July so that's when the big bounce should happen (if it happens lol).

 

[4fundamentals]

I have been following this stock for a while now,

I'm deffinately a beginner, but from what I can tell, I really believe this stock has some potential.

From a fundamental basis:-

I calculated based on 2008 Annual Figures: Net Total Assets per share of $0.238.

Technical Basis,

I am seeing a weak support at .195.

Anyway, I am very small time and entered the market today at $.205 for 16,500 shares.

This is me view, and by all means, more information the better!

Regards,

Boh

 

[jman2007]

I have been following this stock for a while now, I'm deffinately a beginner, but from what I can tell, I really believe this stock has some potential. From a fundamental basis:-

I calculated based on 2008 Annual Figures: Net Total Assets per share of $0.238. Technical Basis, I am seeing a weak support at .195.

Anyway, I am very small time and entered the market today at $.205 for 16,500 shares. This is me view, and by all means, more information the better!

Regards,

Boh

Boh, there are people around who would invest a lot less than yourself on the market and still do very well for themselves. I guess it's all relative, some people might be delighted and satisfied with making $500 after 6 months, some of my first punts were only $1500-2000.

I remember having a look at these guys ages ago actually, but I have never held a position. The current chart suggests that they seem to be struggling for credibility in the market for reasons I can't fully explain, as I don't recall them releasing any terribly bad news recently

The last Quarterly provided some useful insights, ROM stockpiles building up nicely and head grade increasing towards the end of last month as they begin accessing the higher grade ore blocks in the Calais zone. No word on operating costs though, which I always find a little unnerving. Lets hope they don't go the same way as SBM, and have their underground costs blow out towards A$1,000/oz.

A bit of a wait and see play for me I have to say.