It is foresight (not hindsight), the ability to see into the future, especially where others can't, that allows you to make money.... There is absolutely no doubt that Apex's history has been nothing but costs that were substantially higher than the revenue they were bringing in.
But, if one looks a little deeper they can see why there were unable to turn a profit and how those barriers are slowly being removed, then you can see the potential for a $30+ million profit a year. A rising price of gold is just gravy on top!
Those GUP notes alone were preventing any profits to be generated.
If we are in fact generating ~250 ounces of gold per day, with the price of gold at ~$1500/oz and production costs of ~$1000/oz, we're looking at a profit of ~$500/oz. Let's take $350/oz to be conservative.
The market probably won't re-rate this stock until they see the profit and loss statement as proof and the cash on the balance sheet.
If they produce gold at full production capacity, they could be generating $90-100 million profit a year... what would they be worth then? $1 billion with a PE of 10?
AXM Price at posting:
0.7¢ Sentiment: Hold Disclosure: Held
