PERTH (miningweekly.com) - Gold miner Apex Minerals was considering selling off its Wiluna gold mine, in Western Australia, as part of a strategic review aimed at enhancing shareholder value.

The strategic review would encompass an ongoing review of operations and costs, as well as the restart of exploration, and would consider corporate strategies such as restructuring and a change of ownership.

The miner said on Friday that, while substantial progress had been made in the turnaround of the Wiluna project, the Apex board believed the inherent value of the company was not being reflected in the current share price, adding that another party with “improved access to capital” could be better placed to unlock the project’s value.

Apex has now appointed corporate adviser Lion Capital to assist in determining the availability of a potential restructure or change of ownership transaction. Lion Capital would seek to identify and assess expressions of interest from third parties for the company.

The ASX-listed Apex said it would also seek to realise greater value from its Youanmi gold mine, which was currently under care and maintenance.

“It is evident to management that Youanmi’s underlying value is not being recognised in the company’s recent share price. Accordingly, Apex is currently considering offers to realise this value, which may or may not result in a sale of Youanmi,” the company told shareholders.

In the meantime, Apex would continue to focus on identifying areas for further potential cost reductions, while maintaining its gold production, with the Wiluna operation expected to produce some 100 000 oz/y at a cash cost of A$1 100/oz.

The reduction in operating costs would allow for the early restart of exploration, which would further unlock the value potential at Wiluna.

Despite increases in production, the Wiluna mine had failed to reach production targets recently, as the miner struggled to access high-grade ore. Poor mine design, development and operating practices have been blamed for the issues.