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"As Phoenix Copper looks towards the future, the successful execution of its refinancing and bond issuance plans could mark a turning point, potentially leading to a reevaluation of the company's market position and growth prospects"
"The future drawdowns from this facility are cleverly tied to the company's ability to secure additional funding through its proposed corporate copper bond issue, reflecting a vote of confidence from Riverfort Global in Phoenix Copper's financial prospects"
https://www.google.com/amp/s/bnnbreaking.com/finance-nav/phoenix-copper-secures-10m-refinancing-with-riverfort-global-eyes-corporate-copper-bond-issue
Quite telling of the confidence and support which Riverfort have in Phoenix - On PXC LinkedIn Post with regards to the loan extension 3 days ago, 19 people have liked the post in total, 4 of them are very senior people at ..... Riverfort!!!
A total gamechanger and truly transformational when the Bond Issue RNS arrives.
DYOR
I'll believe it when I see it. It's not like the company have got a history of giving completely inaccurate timeframes.
All info on processing and economics should be available early Q2.
Anything before then is guesswork.
Regarding ball mills, I'm not sure gigantic is the right word for them.
They are large(ish), sure, and will take a bit of logistics to move them both, but by no means gigantic.
Why 2? - I'm guessing one for main production, the other for backup and/or spares, We certainly don't need 2 operational at the side of the pit. As Rain says (welcome back under the new moniker, btw), it's only a small starter pit.
Hopefully still profitable enough for us to make a decent return here, regardless. We should find out more once the PFS comes out in early Q2.
I just want to see the bonds get completed, then everything else can follow.
No
Seems another well respected poster is having a problem with you Rainwhenidie on MARU.pl
Andi says:-
"Now you know as much as me and I would really appreciate if you started doing your own research and maybe coming back with some useful info and not pet names and cheek please. Sound reasonable enough? OK cool, looking forward to your positive contribution now I won't be replying again."
and your reply:-
"OK I guess we'll leave it there then ! I'll just sit here and wait for the magic to happen. Thanks !"
I hope you do the same here........p.s. The market cap and hence S.P. on these shares reflects the market's perception of risk and that is why we are priced accordingly. If one wants to invest with much less risk and reward potential one should look at the majors and if one does both and has a portfolio (I have 50 different companies)....and cash, properties, collectibles, etc. besides.....all for different reasons and designed for real growth, income and low risk overall....therefore peace of mind and contentment.
ATB
Rainwhenidie, I'll put it politely too then....lol.
You don't know what you are talking about as you haven't DYOR on PXC. Whilst your opinion may make sense generically on some other shares, you need to be specifically up to date with PXC and how we are planning a small scale operation to ultimately fund a much bigger one later!
I don't know if Bankruptcy's name is fitting because I've never heard of him. I am bankrupty (abbreviated due to my success in buying near bankrupt companies stock about 20 years ago).
Making uneducated specific assumptions makes one look a bit junior and silly....lol! May I politely suggest you get educated on PXC if you want your opinion to matter!
ATB
Rain, your post:
"Why do they need two gigantic ball Mills?
think about it
So why buy production equipment then with their last few funds?
Prod can occur in tandem with full asset feasibility studies
I see smart bottom is back.......I think the BOD, Riverfort, all PXC shareholders, Konnex employees, and "interested pending Investors" all fully expect PXC to be in production......If they didn't .....they wouldn't be here...lol!
I see your post of 1st March also remains unanswered.....I wonder why....lol!
And from memory the "insiders" (or as close as) were buying @ 20p and couldn't believe that opportunity was present (anther reason why I think 20p is where the BOD value PXC as "today's value" and "short lived" at that!
The cash position may well be running low, but the fact they committed so much money in the purchase of equipment rather than use that for G and A does seems to imply that they wont run out of cash before financing is all agreed?
The BoD obviously have more info and know more than we do, so either the BoD are on a suicide mission and spent loads of money on machinery that was needed to keep the lights on, or they are confident the agreement will be signed before the cash runs out?
Well that's my take. We'll see.
Indeed we went from 6p to 75p over the course of 16 months in '20/'21........so the 80p+ should occur when we "close" the first tranche.
I would guess that $25m is not a theoretical figure "plucked" out of the air........??
Has to mean the Bond is within sight, presumably new information on Bond timelines they were able to share with RF to allow this type of structured deal to be agreed, in capital terms five times the previous RF drawdown demonstrates confidence in RF being able to lend this and make a good profit as Phoenix are fully expected to be in production.
The new facility then covers cash flow needs, advance production until revenue starts to flow - they do not need to use it but the fact its available reduces risk of future direct dilution events to cover funding gaps, causing delays and poor market perception:
"The Company is not obliged to make any further drawdowns."
Perhaps the Bond issuer required this type of RF drawdown facility to cover day to day O&A rather than their funding, business plan for the Bond spend itemised specifically for plant etc, a dependency that is now satisfied, allowing the Bond to complete:
"We now look forward to closing our corporate copper bond issue as soon as possible."
And that's precisely why I've bought in at the lows.
Today's RNS, the confidence of RF, on the verge of buying equipment next week, PFS due anytime, for me, it's a no brainer at 12.5p. On the cusp of multiple major game changing drivers.
Only a few months back, this was running away to 40p+, back in a similar situation, once it moves it will move up quickly.
Absolutely no one has any idea exactly what is happening, curiously there are many full time naysayers providing daily commentary, but having heard directly from the BOD, many will be surprised with the final outcome. Bonds could come tomorrow, who knows. They seem pretty confident, finally feels very close. And for once they have actually delivered.
You pay the price, every business has risks, pound for pound risk/reward PXC is one of the best out there.
On pre bond issue it was edging 40p, on bond issue it could quickly move to 70-80p, several multibagger.
DYOR
Hi Plutus,
I hope you are right but atm all we know is they have finalised the 2m loan and rolled up the debt into the first drawdown of the new loan.
Therefore they have no money.
The remaining debt can only be secured once they have at least 25m from the copper bond.
So atm the company better have a plan B which I have said all along should be a short term equity raise as no one is gonna give them anymore cash without revenue. The revs are pretty low royalties from Konnex.
This is because it’s all taken so long. 18months ago they had the cash to make the coupon repayments but now they don’t. For sure they haven’t wasted a second and are getting things operationally sweet.
But now the whole business is dependent on someone signing off 25m minimum. And accepting a repayments holiday on the bond or allowing them to pay one credit card off with another. Which whilst not impossible, as that’s what Riverfort have in effect done for one payment but it’s unusual for a bond albeit the bond will be secured to the assets.
That is also another risk. Whoever they get into bed with they need to make sure it’s debt only and no associated Machiavellian trading behaviours to claim the asset.
For sure it’s closer now but it’s still on a knife edge else they would have had the funds the time before last when they told us!
Whilst the copper price remains subdued they do have some macro tailwinds from rates. US 10years are down (a home for debt) and SOFR will logically follow.
So imo min Bond 25m, then Riverfort, then possibly just a small placing 2m ish as lower bond means lower coupon.
No Bond no Riverfort so a much bigger placing, possibly 5m + Riverfort should then step in 10m and if Bond still don’t land looking at another placing size depending on how well ops goes.
Another thought, the market thinks the hold up is with the bond holders. I don’t. I think it’s PXC looking for perfect and running it to the wire. Indeed if that is the case it explains the optimism around the finance coming through. Easy to blame an unknown entity numerous times when it’s been them all along!
Either way though this needs debt, they don’t have cash, they don’t want a JV but they have a great asset. Just time to pss or get off the pot!
Usual caveats
Trek
Seems like bond money arrive in tranches. The positive is that reduced coupon/interest payments. The equipment is being sourced at a significant cost saving too. I think many doubts are no answered, significant progress can be made now with that working capital, and I think bond subscriber releasing in tranches could be the way ahead.
Go to your bank and ask for a $10mln unsecured loan. See what you're offered
15% interest, says it all.
20p, 70% premium, 30p, 40% premium...and 20p! $10m etc.
I am more than happy with these figures! Shows me that our SP should be already 20p (minimum).
Thank-you Riverfort and to the BOD.
GLA
15% per annum, plenty Warrants 20p long term if project comes good, difficult times raise,
Totally and absolutely delivered. RW always maintained they have a fantastic relationship with RF.
3 years unsecured $10m loan.
Looks like Riverfort are super confident in the Bonds being issued 😉, drawdowns also linked to bond issue 🤑,.
""We now look forward to closing our corporate copper bond issue as soon as possible.""
Sit back, relax, and enjoy the rerate.
Great news - good alliance
d=(^o^)=b
Can put all this to bed, we will have an 18 month runway. Conversation can move on...
Hope this loan, purchase of equipment, PFS is the green light for the Bonds, as they still say imminent.
Exciting times for sure, with a huge backlog of news pending. IMO Something bigger at play here, once all revealed, we will all be in that moment 'oh now it all makes sense'
RF extending, and purchasing 2 gigantic ball mills speaks volumes.
Communications and deadlines need improving though.
DYOR