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I should add that there appear to be broadly 2 camps. Those that believe the copper bonds will close, and those that don't, or are just disillusioned by the protracted process. I'm in the 1st group.
No, it's a 'copper bond'. The bond holder gets paid a variable interest rate. A minimum of 8.5% when copper is $3.60. A maximum of 20%. Each 10c rise, or part thereof, the interest rises by 0.15%. Bonds are not convertible. The bondholder will get some equity, but it is not known how much.
IMO opinion you have as much chance of buying for 5p as 70p in the next 2 months. On the one hand PXC seems to be a slam dunk brilliant opportunity for a multi, multi bagger. BUT if that's the case why is funding taking soooooooo long? You'll go mad trying to time your entry. You either gamble now or pay a much higher price later if funding is non dilutative.
IMO do your research. If you choose to invest do so sooner rather than later.
The 'not quite' in my post is NOT a reply to ScottJ - for clarity. We just posted at more or less the same time. 🙂
Ok thanks to both.
and the "$80m corporate copper bond financing underway" from presentation will be in the form of a royalty style deal, where they take so many tonnes of future copper ? the way gold companies sometimes do it ?
Not quite. They had applied for a license, and then deliberately withdrew it: stated reason was to alter the processes by which metal(s) might be recovered. The plan is to resubmit the application action this summer, and build the mine (90% odd on patented land, no license required) in parallel to the application progressing.
Others may, but I don't anticipate major hurdles with the license application. Right now, it's all about the bonds.
They have been doing analysis of core samples taken last yr to get best recovery method, changed plan from just mining copper in yr 1 to copper, gold and silver so delayed permit application. Will be building mine on patented land this year so permit is just for tailings etc - will be submitted within weeks for approval next yr, imo. So awaiting funding to begin the build.
Looking to get an entry point here, looked at the resource etc but someone on here with far greater knowledge give an update on approvals, i assume they have applied since 2021 by the looks of it and are currently waiting mining approval to move into production ?
thx in advance
The hunt for copper assets does make funding this project ever more likely doesn't it. Lets hope we have another asset purchase on the cards too as has been hinted at before.
Https://www.reuters.com/markets/deals/rio-tinto-had-considered-bid-bhp-target-anglo-american-afr-says-2024-05-10/
Haha first BHP, then Glencore, now Rio Tinto all after Anglo's copper.
Correction 3% now!
Get some produced PXC!
The highest demand will be for copper produced with good ESG ratings. The more environmentally friendly the copper is produced the higher the price you can demand as the carbon saving is passed down the supply chain. Miners will soon have an ESG rating which will matter.
Copper price is going vertical again.
Many heavyweights like Robert Friedland and Stanley Druckenmiller have recently commented on the supple/demand crunch in Copper, unlike anything we have ever seen. Right now, it's the tightest position it's ever been. Record long positions on copper, with some suggesting it could easily hit $7-8 in the coming years!
With the Ivanhoe/BHP deal yesterday, it shows with the current geopolitics there is a metals arms race to reshore in US, create a domestic supply chain, US assets of critical minerals will be carrying huge premiums.
Https://www.mining.com/bhp-ivanhoe-electric-hunt-for-us-copper-together/
They can visit Idaho lol
Thanks...
When you say 'In the final countdown. By the end of May, hopefully all PXC investors will be ecstatic.'
For context, is that the boards communication or something you added?
Https://www.proactiveinvestors.co.uk/companies/news/1046974/phoenix-copper-in-right-place-as-metals-prices-climb-says-broker-1046974.html
Only way is up!
Bipolar
If you havnt got bipolar, you will have after investing :)
Thanks for sharing Plutus1. Sounds very positive and exciting. Lets hope they finally deliver !
Yes, traders in a very illiquid stock. Not many real investors left.
Just heard back from a BOD member. All good, and very positive.
AGM will be announced soon, end of May.
News released leading upto it.
Can fully discuss everything at AGM.
Accounts done.
PFS all but complete.
Will all makes sense in the end!!
(Business is never black and white, multiple things in play, multiple dependent)
In the final countdown. By the end of May, hopefully all PXC investors will be ecstatic.
DYOR
......I don't think its bad news on the way. It looks like the stock is being traded hopefully we bounce from here. Another try at breaking through 16p maybe.
I think it's just delay on PFS....at the end of the day it's nearly 1,000 pages of work....and they need it to be 100%....perhaps they just need e.g. one lab testing method result or delivery of e.g. a second hand crusher/grinder??
They needed to release something to keep their RIs semi-placated?? I honestly expect things to be ok once we start to progress.......23p perhaps more when £25m or so bonds land!!
Not sure what to make of the sell off TBH. You could be correct. Could placing share sell off. £25m market cap so this SP isn't exactly panic stations. Nothing is straight forward with this company.
I find it odd they released this on its own. Would normally be part of the PFS as reserves a function of both technical and commercial parameters. Downward sp pressure would suggest either bad news on the way or delays (again!)?
Phoenix have evaluated just 1% of the Empire area and it has $900m of booked reserves
Pro rata .....