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.