cash costs came in today..
ASX/MEDIA ANNOUNCEMENT 10 July 2009
Apex hits production target for June quarter
• Wiluna’s steady performance confirmed with production reaching target
of 29,000 ounces in June quarter
• Plant throughput averages an annualised rate of 930,000 tonnes in June
(10% higher than initially forecast) and 880,000 tonnes for the June
quarter (5% higher than initially forecast)
• Cash costs expected to be A$750/oz while production stands at the
current annual rate of 120,000 ounces. Costs expected to fall on the back
of any increase in production.
• First ore drive in Henry 5 North nears completion and second access into
Henry 5 North intersects ore as planned.
this was an article earlier this month on apex
Apex Minerals
Just as one swallow does not make a summer, two months of meeting gold production targets does not make for a sharemarket re-rating.
But for Mark Ashley's Apex Minerals (AXM), summer is at least closer than it was after its Wiluna gold operation in Western Australia hit its annualised production target of 120,000 ounces last month with output of 10,000 ounces.
So that's two months on the scoreboard, a welcome improvement from the March quarter when high-grade feed from underground operations fell short of plan.
The slower than expected ramp up in production prompted a $28 million capital raising - $14 million from a share placement and the rest from an underwritten rights issue.
Modified drilling and blasting techniques have since overcome the March quarter production issues, allowing Wiluna to hit its straps. Not that you would know that from Apex's share price performance. It seems the market is holding back on re-rating the stock until Apex makes public its guidance on costs, expected early next month, and until it has a couple of quarters of steady-state production at the annual rate of 120,000 ounces under its belt.
Those prepared to back Ashley and the rest of the Apex team to get Wiluna humming may be well rewarded. The shares closed flat, at 20c, on Friday.
Goldman Sachs JB Were was one of those saying Apex would need to maintain the 120,000 ounce annualised gold production rate for at least two quarters before the market started to re-rate the stock and "believe its production profile and hence it long-term value".
It values the stock at 52c, but its 12-month price target is 40c, still double the current share price. Intersuisse rates the stock as a speculative buy without setting a price target.
There is now nothing in Apex's share price for its 27 per cent stake (fully diluted) in Croesus Mines, the former Norseman gold producer reworked as a WA nickel explorer with an impressive land bank.
bfitzgerald@theage.com.au
i have been watching this one a while also.. lets hope the market accepts the story is indeed genuine and as barry said, ther is nothing in the sp for croesus