SuchislifeI agree with you about one thing: If you can't...

Suchislife

I agree with you about one thing: If you can't generate a profit at these gold prices (A$1416) average for the June quarter then you probably should not be in the gold mining business!

But to say that they have never been profitable in 10 quarters is misleading because the GUP notes, which costs the company 3m/quarter have just been effectively eliminated in the last quarter.

Also, let us not forget, that Wiluna has a history of profitability having produced over 3moz of gold in its lifetime. For example, Wiluna's previous owner Agincourt was profitable between 2003 and 2006 with a gold price of almost half of today's price at a cash cost of about AU500/au.

But getting back to Apex, I actually thought that the share price held up well after producing such a miserable report. That is because, in my view, in spite of the operational difficulities, the company is still worth more than 38.5m (current market cap).

The company is even worth more than that in liquidation!

They bought Wiluna for 30m when gold was AU800/oz with only 700000oz of defined resources, how much is it worth today with gold trading at AU1477/oz and 2.2moz of resources?

The Gidgee exploration tenements ALONE excluding the high grade Wilson deposit recentely sold for AU$15.5m...

So, at the end of the day, the cash in the til is a concern but the fact is they have no debt, the fundamentals for gold remain bullish, and the company remains undervalued...

At AU1.40 they were overbought but at 0.007 they are OVERSOLD....

DYOR