multibagger-why i reckon it maybe

Why apex could be a goer

Up until around 9 months ago apex appeared to be going nowhere, apparently hogtied by poor practices and GUP notes that sucked it dry of cash while it was running itself into the ground. E.g, Running diesel gens because no one fixed the gas ones (cost 100k to save $400k?/month from memory) I consider that sick believe me.

Then all of a sudden, a subtle announcement about addressing costs and monthly cost reductions.

I suspect the major catalyst for this being major shareholders running out of patience, plus impending collapse no doubt that caused the last tenement sale.
Once these cost reductions had started taking place and management was placed at the mine instead of 1000km away, productivity started to improve.
Mining plans re-evaluated to extract MORE ECONOMIC GOLD from the same loads.

After a few more management changes and those major investors are willing to divvy up via a GUP buyout at well above current share price and also convert their options at the same time to minimise future tax cost on redeeming them later (e.g. baker steel)

Lets face it , the plants on its last legs and the cash hasn?t been targeted efficiently until now, because there probably hasn?t been any free, or anyone on the ground at the plant managing all maintenance, because your relying on Atlas Copco. Then again they?re only maintaining their contracted equipment, Not the power plant and so forth.
then again,If they were, maybe that?s part of the court case counter claims. I have no idea.

Encouraging mention of the Nelson concentrator. One poster mentioned it used to be positioned at the tail end after the biox tanks.
SCARY, No doubt to prove that nothing was coming out the end, by the biox system tank designers (first biox plant in aussie I believe) Not to increase yield at the front of the plant which is normal, I also believe. I hope its not a TONKA TOY version and they shift it further up the plant train for the following reason.

With yields of 88% and just having completed mining some free milling gold and still getting only 88% then look at at the results with a refurbished Knelson concentrator at the front of the circuit in ASHANTI golds Mali in 2008, taking up to 40% of free milling gold before processing thru the rest of the plant at 88% upping yield to 92%.(sorry can?t find the link but put up your email and I?ll forward the pdf ) Prior recovery before reconditioning the unit was around 10% freemilling 88% total yield and feed was around 4g/ton refractory gold.(also plant capacity rose 30%)Sound s like a similar starting point to apex to me.
15500oz last month would have risen 750oz and extra cash around $1m bucks.

Do the same here and all of a sudden BIOX PLANT COSTS crash and processing capacity thru those tanks rises.

Besides apex now having access to its full cashflow from sales.

They?re sorting out the electrical generation plant to make it more reliable, with new controllers and better load sharing, to protect the plant from overloading stresses by the sound of it. Again only another $100k to put things right. Doesn?t it make you sick to know it hasn?t been done before.

The issues about blasted ore getting to the surface and mention of hired contract loaders assisting which started in the prior quarter, says to me, someone is exercising a level of management control, addressing important plant and onsite deficiencies.If you look at the total blasted ore,that signifys a big plant throughput ramp-up in the happening,without enough trucks working to shift it.

It sounds like the new man on the ground knows his stuff and is putting the whole place to rights. Where does that leave shareholders ?

What?s left?, just sit back and wait me thinks until these changes start showing thru into cashflow .

I know there is a lot of dissatisfaction with what appears to be a board that has governed over a miserable history by the look of it, but you can see why I?ve been a buyer at current levels.
Just the fact that these issues are being openly mentioned implies massive change for the better and also justifies many a past moan here at the same time.

Multigagger?

A quick comparison to NGF says it all
NGF 2.5g/ton $80m debt market cap $100m ($180m equiv if debt free)
Apex 4g/ton no debt market cap $44m

Maybe its time to look forward and for many long time holders - look forward to seeing some regain of their investment..

Note the big shareholders haven?t baled and they own most of this company.

DYOR- tanked up for bear and no spare cash - so make up your own mind,don't rely on me and my view of the world or this company.DYOR