Technical and Fundamental Analysis on Apex Mining Company, Inc.

Nature of Business

Apex Mining Company, Inc. (APX) was incorporated on February 26, 1970 primarily to carry on the business of mining, milling, concentrating, converting, smelting, treating, preparing for market, manufacturing, buying, selling, exchanging and otherwise producing and dealing in gold, silver, copper, lead, zinc brass, iron, steel and all kinds of ores, metals and minerals. The Company's operation is situated in Maco, Compostela Valley.

The Company's mine produces bullions containing gold and silver. All of its production, as well as the incidental production of its wholly-owned subsidiary, Itogon-Suyoc Resources, Inc. (ISRI), were smelted and refined by Heraeus Ltd. in Hong Kong. APX obtained full ownership of ISRI in August 2016. ISRI owns the mill and production facilities of the Sangilo and Suyoc mines in Itogon, Benguet.

In October 2014, APX acquired 100% ownership of Monte Oro Resources & Energy, Inc. (MOREI), and Prime Metroline Holdings, Inc. and other MOREI shareholders used the proceeds of the sale of their shares in MOREI to subscribe to new shares in the Company and in the process acquire control of the Company, diluting to a small minority the ownership of Mindanao Gold Ltd. and Mapula Creek Gold Corporation.

Source: PSE Edge

Fundamental Analysis

Market Price: 1.51

Book Value: 1.10

Earnings per Share Trailing 12 Months (EPS TTM): 0.19

P/E Ratio TTM: 7.95

EPS YTD: 0.18

P/E Ratio YTD: 8.38

Price to Book Value Ratio: 1.37

Return on Equity (ROE): 23.86% (Source: investagrams)

ROE Previous Year:  4.47%

ROE Current Year: 5.09%

Important Notes on Public Disclosure as of 14 December:

We would like to inform the Exchange that as of this writing, sixty-nine (69) employees and contractors of Apex Mining Co., Inc. (“Company”) working in Maco Mine, Davao de Oro have been found COVID positive.

The Mine has been reinforcing all its safety protocols as contained in the Company’s COVID-19 Emergency Response Plan. All offices and work areas of the identified COVID-19 patients were temporarily closed and disinfected. The Company’s Polyplex Dormitory and Senior Staff House were placed on a lockdown and have been designated as a quarantine house to prevent any further spread of the virus. The Company has temporarily suspended communal eating in the site and all food is being delivered to employees’ respective rooms.

With a part of its work force in quarantine it is expected that the Maco Mine underground operations and mill plant will operate at a reduced capacity. The mine will return to normal capacity only after the minesite is declared Covid-free. Alternative work arrangement for the office employees has been implemented to minimize the disruption of support activities.

Technical Analysis

61.8% Fibonacci: Entry Price @ 1.23.

Support 1: 1.48

Support 2: 1.36

Resistance 1: 1.56

Resistance 2: 1.65

Moving Averages

MA 20: 1.56

MA 50: 1.66

MA 100: 1.72

MA 200: 1.52

Volume: 5.68 Million lower than the previous day as of 07 March

A/D: Negative

PEI: Negative

MACD: Negative

Momentum: Negative

RSI: 39.13

Market Sentiment: Silent and taken for granted evident in low volume during its last trading day. 

Gold Price in US Market and EWP

Last 15 February, I published this chart: 

Now, 07 March, after 20 days, it appears that XAUUSD is about to complete its Wave II correction. Possible floor is @ 1,620 area.