{"id":324026,"date":"2023-07-13T00:01:58","date_gmt":"2023-07-12T16:01:58","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324026"},"modified":"2023-07-13T00:44:55","modified_gmt":"2023-07-12T16:44:55","slug":"stock-in-focus-apex-mining-co-inc-apx-13-july-2023-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-apex-mining-co-inc-apx-13-july-2023-by-ap-securities\/","title":{"rendered":"Stock in Focus: Apex Mining Co. Inc. (APX) – 13 July 2023 by AP 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>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>13 July 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 4.10<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We maintain our Buy recommendation on APX with Target Price estimate of P4.10\/share. <\/p>\n\n\n\n

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

Value up, stocks down<\/strong><\/p>\n\n\n\n

The monetary value of class A gold in the country surged by 20.5% last year on account of high gold prices. Physical reserves of the commodity however, dipped by 3.3% to 625,000kg as extractions rose by 21.5%. Overall, returns generated from gold continued to improve as its resource rent, which is a measure of surplus profit, rose to its highest level in 10 years at 0.089%.<\/p>\n\n\n\n

Performance likely to mellow down<\/strong><\/p>\n\n\n\n

Despite gold prices typically having an inverse relationship with interest rates, we note that the commodity has been surprisingly resilient so far. As of June 30, the asset was trading at a 6.4% premium to average 2022 prices. Moving forward however, it may be safe to assume that gold\u2019s performance could mellow down somewhat as high rates divert more funds towards fixed income assets at the expense of the former.<\/p>\n\n\n\n

\u2026Despite this, APX still poised to surprise<\/strong><\/p>\n\n\n\n

Nevertheless, we note that listed gold miner APX still remains an intriguing long-term prospect as the company continues to strengthen its operations in terms of volumes and cost efficiency. Based on 2022 figures, total mine production saw an 18.8% expansion on the back of a rise in its average grade of ore production from 3.96 in 2021 to 4.08 grams per tonne. With the company set to increase the capacity of its Sangilo Mine by 100 tpds beginning sometime by the end of the year or early 2024, this further raises the prospects of APX when it comes to generating volumes. We note as well that, all-in sustaining production cost (AISC) lies below the global standard. Currently, the stock is trading at only a P\/E of 4.41x, a massive 69.5% discount to its 5Y P\/E of 14.42x.<\/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>