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AXM - Apex Minerals

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pedalofogus said:
I am also glad to see you have taken AXM in the November tipping comp. I almost took it myself, but had to stay true to my current favourite (AJM).
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I only normally pick things that have so much negativity surrounding them that any slight quirk might pick them up a bit. It's the equivalent of the Roubini mantra...
 
Annual Report and Quarterly Report have come out the last 2 days.

Quite interesting reads.

There were some very encouraging things to come out of those reports, and they seem to be getting everything moving in the right direction (ie number of oz being produced has increased in last 5 qtrs, cost per oz seems to be on the way down).

However, i am especially concerned about the amount of $$$'s in the bank. Their cash burn has been amazing over the last 3 months, and if they keep up that level of development work then the next capital raising wont be far off.

They have indicated that one mine is up for sale. Really need that to be finalised to bulk up the cash reserves IMO.
 
I was actually thinking to myself this morning 'I wonder when AXM will run out of cash'. As if they have heard my thoughts, AXM have released their AGM presentation slides to the market.

They claim in those slides that the cash costs per oz were $850 (which was 23% lower than September quarter), and i estimate that it is about half of what it was at the start of the year.

At $850 per oz, gives a margin of approx $450 per oz (VERY ROUGH FIGURES), and on 6800 oz's gives a cash profit of approx $3m (before non cash costs etc).

Now obviously i would wait for the fully audited figures to come out (and evidence that this is sustainable over a long term) before i suggest people go flooding back into AXM. But it is a very positive sign for current holders!
 
November production results are out, and it is another positive result for AXM. Cash costs remained similar to October of $871 per oz. Production for month was just under 7,000 oz's.

Overall a very positive couple of months for AXM.

But the market still appears to be very wary about whether this recovery can be maintained (as can be witnessed from the lack of movement in the share price after the announcement today).
 
Trading Halt this morning. Company's reason for halt is:

'in relation to an asset sale, a restructuring arrangement regarding the Gold Upside Participation Notes and a proposed capital raising'

Be interesting to see whether this ends up being negative or positive for the company. My initial thoughts are that it will be negative, especially if it is a large capital raising (because the shareholders of this company have seen more capital raisings than they have seen hot dinners in the last couple of years). But possibly a higher than expected price being received for Younami (i think thats how you spell it) could see it turn into a positive.

But why would they need to do a capital raising if they received decent cash from the sale of a decent sized asset?

Anyway, enough speculation. Wait and see i guess.

Good luck to fellow holders.
 
Wow, talk about overkill. This capital raising is much larger than is needed. With the cash they received from Gidgee and the cash to be received from the Institutional placement, they would have had enough cash to pay out the GUP notes and retain some cash for working capital.

But instead they have decided to raise another 16m to pay off debts that were fine the way they were. And to make it worse, the cap raising price is 1c !!!
 
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