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Michael Bennet in Kalgoorlie

August 03, 2009 / wotnews.com.au

APEX Minerals managing director Mark Ashley says China's love of jewellery will help drive the gold price and his company.

Speaking today at the Diggers and Dealers conference in Kalgoorlie, Mr Ashley said he remains bullish on gold and was looking to China and India to drive demand for gold from the company’s Wiluna operations in WA.

“There’s a lot more gold being utilised in jewellery,” he said of China and India.

“You’re getting richer and richer Chinese…there’s a huge market for jewellery.

“There love for jewellery and gold could be a major thing for the gold price.”

Mr Ashley also said Apex would look at taking advantage of Apex’s expected consolidation of the gold sector.

“I do see the opportunities of taking 100,000 or 200,000 ounce a year producers and coming up with one 500,000 or 1,000,000 a year producer and then getting the interest of the overseas investors/producers,” he said.

“There plants around, there’s assets around and there’s a lot of opportunity to bring them together.”

Mr Ashley said Apex would look at a variety of options including joint ventures, acquisitions and mergers.

“It could be a whole range of things and there’s a number of things we are considering at the moment,” he said.

Perth-based Apex has debt of $60.5 million maturing in September 2011 and a market cap of $96.5 million.

Apex recently spun-off its nickel assets in a deal with millionaire prospector and major shareholder Mark Creasy.

The new company will be called Sirius Resources and allow Apex to concentrate on its primary assets at Wiluna.

Mr Ashley used his presentation to try and dispel myths about Wiluna being tired and worn out and the high risk of its Biox bacterial oxidation plant at Wiluna.

Mr Ashley told media afterwards he won’t be happy with his strategy until Wiluna increases production to 200,000 ounces per year from 120,000 ounces at present.

“Most of my worth in Apex is in shares, so I’m certainly not here for a salary, I’m not here for a job, I’m here to make it work,” he said. Apex produced 29,000 ounces of gold at Wiluna in the June quarter.

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