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The problem for PXC is that a huge storm is brewing. US interest rates could hit 5%. Recession. All designed to curb inflation. So you ask yourself, what happens to copper price? will bond buyers still want in? Just how bad is it going to get? There just doesn't appear to be any likely good news on the near term horizon. Production put back to 2024 tells you something maybe.
Thanks Paul. Much appreciated.
Stateside, There is drilling going on at Empire, but it is technical drilling to work out the best way of exploiting the known resource - things like where to build the first access points, what to access first etc. It is not concerned with "proving up" the resource which has already been done
RightOn. You say that no more drilling at Empire is needed? Have you seen the Tweet today?
htTps://twitter.com/Phoenix_Copper/status/1543898678313848832
The key news today is that we are now getting covered by Reuters, and are chasing up a number of media leads that will increase our visibility significantly. That is a major step forward and will bring us onto a lot of new radars.
As far as the 2024 date is concerned, Reuters are professional business journalists who spend their days speaking to people in our sector. It is common knowledge that the lead time on many bits of mining kit is horrendous at the moment. Had Marcus said anything other than 2024, that would not have been credible. Every miner is struggling to procure the kit they need. Those lead in times could change dramatically, we just don't know. But it is sensible to be cautious in the current economic climate, particularly while we are in the process of fundraising.
So we start the bookbuild this week, to conclude this month. The market is currently very difficult, as you might expect. But many investors are taking a longer term look and cannot imagine that copper will not recover strongly before we get into production. They are seeing the pullback as an opportunity.
As far as a feasibility study or similar is concerned, the focus is on getting the fundraising away at the moment. However, as soon as that is out of the way, there will be a full update on the company and its plans.
That’s an easy one to respond to Sparky, for no more drilling is required. The resource at Empire has more than 400 holes and is well determined. That’s the open pit copper mine. That’s what the finance will be based on. All the rest, namely the high grade silver mine at Red Star, the Carlin gold at Navarre Creek, the deep sulphides, the Tunges/Moly porphyry, the Cobalt, the 99% yet to be determined, they all come for free!
I wonder if the bond buyers will want additional drills before committing their cash.
Hi Stanley, I heard I was mentioned so I thought I'd sign up here.
As far as the general PR/IR is concerned, our hands are tied until the 2 big ones, permitting and financing, are achieved.
The primary aim of the drilling that is going on at the moment is to finalise production plans. So its about clarifying which parts of the pit we will start excavating first, rather than exploratory stuff. There have been over 400 holes drilled into the Oxides, so the company knows the resource very well. This is more about the technical aspects of bringing it into production. Once that is complete there will be more drilling into the sulphides and at Red Star over the summer. We are still at the early days in respect of both of those.
I do take the point and we have plans to keep investors updated over the summer.
I agree, Trek, all interests are aligned.
The options extension is clearly due to the team being in possession of Feasibility Study info, which in turn should support the bond issue, as well as the bond process itself.
The Feasibility Study was scheduled for Q2, and it was earlier indicated that this could be end of May. It can’t be far away now.
One area I’m slightly disappointed in is with the current drilling at Empire. Other than a single photo on Twitter there’s been no coverage from the company. They’ve been really good at social media lately, but for something as “crowd pleasing” as a drilling campaign it would have been good to get more build-up to it.
There’s a few of us that follow it closely, but even I’m in the dark on whether we’re drilling oxides or sulphides, how long it will take, expectation of results, objectives of the drilling etc.
In these turbulent times it would be good to remind the market what a solid proposition we are. Even Paul de Gruchy has been quiet on the drilling front, and as the new company voice this would have provided a great platform.
RNS options extension as deemed close period.
Now here’s an incentive. If the BoD don’t land a finance deal then the SP will very likely be below the options price!
Options are a big part of the director salary here.
We are aligned!
Usual caveats
Trek
Well the US economic plans certainly look promising…..
This article is a plug for a Canadian copper company but the macro is the same and we are in US with top ESG!
“But despite strong demand, supply is significantly lagging.[37] And it’s only going to get worse with analysts forecasting copper demand could rise 350% by 2050.[38]
It’s little wonder Biden has let loose a $226 billion dollar copper windfall in the coming infrastructure bonanza. Take a look:[39]
$65 Billion to rebuild the electric grid including building thousands of miles of new power lines and expanding renewable energy
$39 Billion to modernize public transit, with an emphasis on zero-emissions vehicles
$65 Billion investment in improving the nation’s broadband infrastructure
$17 Billion in port infrastructure
$25 Billion in airports to, among other things, promote electrification and other low-carbon technologies
$7.5 Billion for zero- and low-emission buses and ferries, aiming to deliver thousands of electric school buses to districts across the country
$7.5 Billion to building a nationwide network of plugin electric vehicle chargers
TOTAL: $226 Billion in spending, all demanding copper”
https://investingtrends.com/ALCUF/how-you-could-cash-in-on-the-governments-new-226-billion-copper-spending-jackpot/?utm_campaign=ALCUF_SPG&utm_source=10304&utm_medium=native&utm_content=183
Usual caveats
Trek
I personally think the next 6 months could Be very good for the company with certain milestones being hit .