Blue Scorpion

Bolivia: A Blizzard of Misinformation on Mining and Everything Else

Why do I even bother to read these useless articles? Have you taken any time to delve into the real Apex issues? The company is in default of its debt covenants and lacks the $175 million cash it needs to get through 2009. They have 2 choices: borrow more from "partner" Sumitomo at usurous rates or sell a piece of their 65% stake in San Cristobal for cash. The former is not very appetizing, as the increased debt load and high interest rates likely lead to a downward spiral. The latter could be more favorable as long as they don't have to give up an outlandish % ownership. If they can pull it off, the stock would skyrocket. The metal in the ground from this one project would conservatively put the value of the company at $25 if they could retain 40% to 50% (and that's being very conservative). Right now, the stock price is discounting them going down to around 15% ownership in the mine, a scenario that seems a bit draconian. Is it worth a speculation? Beats me. I could answer that if I knew the capital was out there at a reasonable price.

On Apex Silver's Huge Day

This is like the blind leading the blind. Andrew gets it right, but really doesn't know why. Tim, you can't be as big of a fool as you project. Do you know ANYTHING about SIL other than it's stock went up a lot in 3 days? Do you know they are shopping the company out of necessity, that the mine is the largest silver mine in the world with one of the lowest cash costs per oz. due to robust credits? An idiot and his money are soon parted.