famous fund manager in apex

Harris Kupperman has bought in APEX.

http://adventuresincapitalism.com

"Who's Kuppy

My Name is Harris Kupperman and I?ve been successfully investing in the markets for over a decade. In 2003 I started a hedge fund, Praetorian Capital, so that others could invest alongside me. Things went well and at the peak, five years later, a dollar invested on day one was worth over $26 before fees."

http://adventuresincapitalism.com/post/2010/06/08/Worried-About-Wiluna.aspx

http://adventuresincapitalism.com/askkuppy.aspx

Have u read the new Apex presentation that came out a few days ago?

http://apexminerals.com/reports/AGM2-Presentation261110.pdf

What are your thoughts? I mean, it looks like it is doing a runrate of 85,000oz ~850 cash cost

So can I assume that cashflow = 1350-850 * 85,000 = 42.5m??

Let's not declare victory yet. One good month doesn't mean that Wiluna is out of the woods yet. The slide on page 10 of the presentation really tells the story though. Pretty much every month has seen an improvement in production over the month before. Even more importantly, the cash cost has started to finally trend lower. Finally, it looks like they will have about $500k a month in expected future savings. I'm encouraged enough that I bought a few more shares at 1.9c today, but this is mining. I guarantee you that something else will go wrong. On your math, I'd add in SGA, cap-ex and some increase in exploration expense. But I don't see why they can't do 25-30m a year in cash flow at AUD1350 gold if they can continue producing at October rates. That gets you a low teens share price I would think because if they can stabilize things and build a cash buffer, they should be capable of increasing production beyond the 85,000 oz run rate. If gold in Aussie can get going, there could be real fireworks as this is such a high cost operation. Then again, this is underground mining, something will go wrong that pushes results out yet again. It's been a slow start, but it seems to be moving in the right direction (finally).