{"id":322560,"date":"2023-04-05T01:05:57","date_gmt":"2023-04-04T17:05:57","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=322560"},"modified":"2023-04-05T02:17:02","modified_gmt":"2023-04-04T18:17:02","slug":"stock-in-focus-apex-mining-co-inc-apx-5-apr-2023-by-ab-capital-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-apex-mining-co-inc-apx-5-apr-2023-by-ab-capital-securities\/","title":{"rendered":"Stock in Focus: Apex Mining Co. Inc. (APX) – 5 Apr 2023 by AB Capital Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>APX<\/td><\/tr>
Company Name<\/strong><\/td>Apex Mining Co. Inc.<\/td><\/tr>
Broker<\/strong><\/td>AB Capital Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>5 Apr 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 3.02<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We reiterate our BUY recommendation on APX and increase our target price to P3.02\/share as we revise our topline and bottomline 2023 forecasts upward from P9.6 Billion to P10.4 Billion and from P3.2 Billion to P3.9 Billion, respectively, given the sustained elevation in gold prices.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

Apex Mining Co., Inc. (APX) continued to deliver with full-year 2022 net income of P3.34 Billion, up 316% year-on-year (YoY), in-line with forecasts. Stripping off one-off expenses in 2021, recurring income still grew 69% YoY. <\/p>\n\n\n\n

Net income for 4Q hit P880 Million (up 11% YoY) due to the slight appreciation of the Peso. The sustained elevation in gold prices, weak Peso and ramp up in production drove earnings to new heights last year. The stock\u2019s 2023F P\/E of 3x against the remaining life of the company\u2019s Maco mine at 9 years suggests the stock is still cheap despite increasing 11% year-to-date. In addition, APX\u2019s Sangilo mine in Benguet and newly acquired mine in Davao provides optionality.<\/p>\n\n\n\n

Topline grew 39% to P10.31 Billion driven by the sustained elevation in gold prices, higher production and a weak peso. Realized gold price was higher by 1% to USD1,797\/oz while silver prices dropped 11% to USD21.78\/oz. <\/p>\n\n\n\n

Note, however, that the sale of silver has historically accounted for ~6% of sales over the past few years. Given the current global banking crisis, we expect gold prices to remain elevated. Currently, spot gold price of USD1,949 is 8.5% higher than the company\u2019s full-year 2022 realized gold price of USD1,797. <\/p>\n\n\n\n

Year-to-date, gold prices have been ranging from USD1,811 to USD1,949. As a result, we revised our gold price assumptions. We now assume gold prices to fall to pre-pandemic levels of USD1,200 by the end of 2025 (vs. end of 2023 previously).<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>