Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Trek, got to say thanks to you. I've bought & sold small amounts of TXP for a while. I did my DD, and used the dips below 60p to add. Now, it's my second largest holding (currently PXC, TXP, DEC & small ALL and IQAI free caries. I would never have looked at TXP had you not mentioned it. The DD and 'low' buy in gives me confidence to hold longterm, which I much prefer (work gets in the way).
Further small update today, whilst we wait: "Navarre Creek drilling is progressing well by the way. We are ahead of schedule with the drill and I’m told the samples are being sent to the lab one at a time. There’s no current guidance on turnaround times but the plan is to report results as they one in. It’s over 100 degrees in Idaho right now btw." from DP today.
Three posts, two in response to questions, on Telegram this morning. Only posting if these are of help to others. I, genuinely, have no ramping agenda. I own lots of PXC and am holding for many years. Short term price movements don't worry me for this share - my opinion.💪whilst we wait. GLA.
"I had a long meeting with the board yesterday afternoon. There is nothing new that I am able to report. The level of excitement and confidence is the highest it has been, and there are multiple credible finance offers being explored. It is just a question of getting one over the line, but there won’t be any more financing updates until it happens. Navarre Creek is genuinely exciting too. Don’t forget that one."
Re bond closure in July: "Possibly but probably not. Some time in August looks more likely. There is at least one new significant option on the table, so there are multiple routes for this to get resolved. There is absolutely no concern that Riverfort will convert, that was not seen as a risk at all."
"Nothing has changed there. We anticipate getting the final metallurgical report in the next few weeks, that will determine the final design and we will apply for permission on that basis.
But to be clear, there are 3 obstacles to bringing Empire into development: financial, technical and regulatory. If we can get the finance sorted - and Richard and Marcus are very confident on that - the others will be fine. That’s not to say easy, because bringing a mine into production takes a lot of hard work and the regulators will do their job diligently. But i simply don’t see a scenario where we have the funding and this project doesn’t happen. So it’s all down to sorting that, and my hope and expectation is that one day soon we will be able to announce that we have done so."
1.38 close in Toronto.
Closed at 1.36 CAD
Shows how quick this will change & just how tightly help. NC RNS is the starter. Waiting patiently for the main course.
Found it. RW on 28th March. I re-posted here for others on the same date:
"And Navarre Creek. We are really excited about this. The drill rig is prepaid. The programme is permitted. 30 pads, 2 holes from each. Should be very exciting."
Yv00: I can't find the quote/date, but I'm pretty certain that RW said drilling at NC was pre-paid.
Lab turnaround times apparently improving. Results expected in about 3 months.
Just a matter of time. If it's not in 50 minutes, I wouldn't want to be out of this at the weekend. I wouldn't want to be out for quite a few years.. GLA.
DP is very bullish on Telegram atm. Reflects that he & PXC genuinely believe the funding will land 'soon'. The end of his post was "The aim is to start outperforming that sentiment over the summer, by getting funding sorted, the metallurgical approach confirmed, NC drilling results and a general pickup in newsflow."
Thanks Bankrupty & JimBob67. Got a feeling we are due a run up in the SP in anticipation (finally!) of the bonds closing. The Telegram group has > 500 members. I don't think it is an echo chamber at all. My interest is that PXC is > 75% of my portfolio - in it for the long haul.
Latest "news' (nil new, but positive noises) from DP this morning:
"There is a clear path to a much higher market cap here. Funding, metallurgy results, Navarre Creek, permitting, and we will have a free hand to update much more frequently on all aspects of progress. Just need to finalise the funding."
And another one, from today:
"An update on things.
At the moment we have announced that the preliminary results for ATS are very promising. The lab is now looking at optimising the process to see what is the best way of extracting the metals. That word “best” does a lot of work: we are looking at 3 metals, we can vary the quantity, type and strength of reagents, use different types and sizes of tanks, different temperatures and grind size etc. All will produce different outcomes at a different cost. What is best for one metal might not be best for another. The process that has the highest upfront capital cost may have the lowest operational cost.
The important thing is that we get it right. Every improvement in recovery will fall to the bottom line. If, for example, it costs $70 to produce metals currently selling for $100, then a 3% improvement in recovery would increase our profit from $30 to $33. If we can then find a $3 cost saving, we are spending 67 and making 33, so our margin has risen from near 40% to near 50%. That’s a huge simplification but you get the point: getting it right now yields huge benefits later and they fall to the bottom line. That is also the best way to hedge commodity and cost volatility.
We have an extremely skilled and experienced metallurgist looking at our entire process and he is currently - here’s the key word - OPTIMISING it prior to making his final recommendation. I don’t have a precise timescale. It isn’t imminent but it is soon. And when it arrives it will include quantitative data that we will share via RNS. There is no point revisiting the preliminary announcement because we know from the optimisation work going on that has already been superseded. And any recovery figure would be misleading: you can always increase the amount you recover by leaving it in the tank for longer, or increasing the strength of reagents etc.
What matters is the percentage you recover using the optimal process that balances recovery, cost and time.
The final report is going to set out a clear approach to bringing Empire into production in the most financially robust and environmentally sustainable way, and then it will be full steam ahead. We will announce data then.
Of course we need funding. That goes without saying. But chatting to Ryan has been an education for me. Like most PIs I perhaps focus too much on headline grades. They are important: you cannot produce copper if you don’t have it in the first place. But metallurgy and operational efficiency are even more important: they dictate what you produce and at what cost. For investors it is boring: work in a lab that takes many months without any output that can meaningfully be shares with investors. But it is the stage where a dream becomes a concrete plan. Or, to use the phrase Ed Conway uses in his book, where the ethereal world becomes the material world.
We are coming to the end of that process. And we will update fully when we have that final
I had a quick chat with a director last night. He is as frustrated as everyone else but the noises remain positive from potential investors. “This will happen but we won’t be rushed” is the consistent message. We all know that can’t be an open ended option and so the aim is to conclude funding during July: if not plan A then B and/or C. Will the confidence of the board translate to a successful conclusion? We will know soon.
On plan A everything is agreed. It appears to be literally a case of releasing documents and funds. It could happen today, it might not happen at all. But we are not dealing with time wasters here.
As far as the roadmap is concerned, I am speaking to Ryan this afternoon but drilling starts at Navarre Creek very soon and that is exciting. Then we expect to get final results from the lab on metals recovery soon.
Everything is on track and really, we have had a few years where everything we have done to progress Empire has been positive. Yes, some things have taken longer than expected but the project itself shows more and more long term potential. We’ve done lots of important and successful work on ESG, community engagement and understanding the geology, all of which is vital to bringing the mine into production. We’ve got options to accelerate the progress of the company and reduce costs significantly. So there is a great story to tell. We just need to get the funding done and we will be telling it.
Story intact, plus word kept - sticking to avoiding dilution. Not sure whether there will be a dip today or not: many were worried about a RF conversion being legally possible in the next few days. I'm (very) long in both PXC and TXP. TREK, aside from small trading pots in both - slowly working my average.
MTS:
1. Can you elaborate on the rumour, and give some idea of the source.
2. NC drill results will not be till much later this year. Also, the grades will be 'low' but made up for with large volumes. That's the type of gold deposit it is thought to be. Worth pointing this out in advance so there is no misunderstanding.
3. No date/deadline etc was given at either the AGM or in the 2022 results re when the bonds would close. I am (still) optimistic that they will close 'soon'.
Feed near you soon.
Fully subscribed bond through Middle East investment in PXC, part of the raise used for buy-out of producing mine in exchange for revenue share once up and running. ExGen to dilute holding, giving Konnex/PXC 90-100% of Empire.
and viable (rather than groundbreaking) results in ATS testing signed off by our CP.
items 1,2&3 within 10 days, ATS by end of month (I hope Zach had a nice vacation).
Interesting times ahead, but 27p is a steal.
DYOR, but plenty of clues that funding is highly likely, and soon. When it's announced, this will rocket. Not sure to what level, but I guess 60-100p.
MTS, agreeing with you that we should move on. We have very different takes on the same information.
Https://twitter.com/DonaldPond6/status/1666821117083021318?t=WDO0EAlLuqQCq3GMlvTdKQ&s=19
For those that don't use Twitter either. I would echo what Steve mentioned re media mode(s). But I can so that as my only substantial holdings are PXC, TXP, DEC & ALL, with PXC by far the largest. MTSparky, I think the bonds are in the bag and if SP remains weak for a while, I will add as I can.