The original AXM plan was to have Wiluna, Gidgee and Youanmi running, all feeding the Wiluna mill. The idea was to get Wiluna sorted out first, then get into Wilsons (Gidgee), then Youanmi.
Due to various issues, Wiluna never really made any money and they have had to go back to the market to keep AXM alive in the hope that Wiluna would turn around, make a profit, then get into the other 2 mines.
AXM will say they've brought new mines into production (or "stoping areas" such as East Lode, Burgundy, Calais etc) but they are all at Wiluna.
The problem is still making gold - regardless of where it comes from. If you can't make gold at less than the price of gold, you will naturally lose money. This would explain how AXM raised over $100m about 6-9 months ago and have $1m now. This tells me two things - firstly they aren't making gold at a price less than the current POG (hence making a loss) which leads to the second point - if they can't get Wiluna working, what happens next???
My answer to your question? "Are they useless?" I don't have a specific answer to that - but read previous reports on how AXM was going to be run, and how it is run now, and stretch your imagination out and realistically vision how AXM will be run in months or years time. Previous: 3 mine strategy. Now: 1 mine running at a loss, 1 mine on hold waiting for profits to open, 1 mine for sale. + Future: 2 mines running - Future: Youanmi sold, then Gidgee, then Wiluna, AXM wound up.
Your call. I've made my feelings known in my past few posts. I just don't see it flying unless gold gets up to $1500AUD/oz or higher. In that case there are still many more profitable miners which will be even more profitable.
AXM Price at posting:
1.4¢ Sentiment: None Disclosure: Not Held
