Member Info for RightOn

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!

# The high grade vein in Gosha (“Hasan”) has gold grades in the 100’s of g/ton, which could be exceptional (noting that this does not say that we have this level throughout). They are hopeful of mining before year end.
# Concerning Libero, we were told “we do not like to stay in just 1 geographic location”. They found Libero very well technically qualified, so this will not be a drain on their resources. With an investment of just $5 million, and the potential that this could be a billion dollar company, Libero could eventually be looked on virtually as a royalty provider.
# The key point I took out was the palpable relief from the board for the issue of the hoped for parliamentary ratification. I captured the words “we feel unburdened”. The board feel that AAZ has had to endure a couple of difficult years with delays but that the trajectory from here is clearly up for the foreseeable future ….
Please note that these words are personal, are not advice, and I invite any other present to correct and/or add.

I attended the AAZ AGM today, and in case this were of interest to others, I supply here my notes:
# The company started with thanks to the patient shareholders bearing in mind the times we have gone through since the last in person AGM. This included the Pandemic with its impact on the workers, noting that we have isolated locations with specific issues. Then of course the pandemic impacted the supply chain. Then we were located just 60 kms from a live war. All the above meant that today we are in a situation with a share price far lower than it is felt it should be.
# As for the share repurchase scheme, the directors felt that they wanted to tighten the market, and to see the sp move up, thereby rewarding shareholders. They are hoping to tempt in institutions and if they buy in (in the future) at a higher price, the company will gain the benefit.
# One questioner stated that the company are excellent concerning technical aspects, but light on the road they intend to follow, ie presenting their strategy. The response was very informative. AAZ saw themselves as a gold producer, but are now moving to have copper as a strong component of their portfolio, just when the world needs copper. They apologised for the lack of communication, but also explained that this was due to discussions with the Az government. They commented that news getting out does not take much to derail things. The great news is that this has been agreed with the PM (signed off), the decree issued by the President, and we are now just waiting for the parliament ratification decision, which is expected within weeks (and before they go on holiday on 15th July).
# Now for some detail about the new properties. The deal involves Garadagh, Xarxar, Demirli and Vejnaly. Garadagh is today owned by Azergold, and the license is being transferred after Azergold have already completed some exploration. They have swapped this with a property on the border with Armenia, so this represents a bird in the hand today, besides which Garadagh looks good, and is also close by Gedabek, as is Xarxar. This was a good commercial deal with payment after work starts. Demirli is the potential jewel in the portfolio, being a massive copper mine. Vejnaly already has work under way, with production from the underground. Although there are Russian “peacekeepers” locally, these are not anticipated to be a problem., since with Turkish military also present, and the Russian peacekeeping role in theory present for just 3 years, the Turks will make sure they do not extend their stay.
# This represents 2 huge steps ups for the company, first the new mines, and secondly we now have full access to all our (extremely valuable) properties. In the next 2-3 years everything is expected to come together, with the company focussed on producing dividends, low cost production, and free cash generation. They anticipate that it will take a 4 year step-wise approach to ramp up to full production.

Silence from sirspread..... Is what he says hot air, or a grenade thrown without regard to the consequences, or even a comment made after proper research? Is he prepared to take the consequences for what he writes? Let's hear....

Sirspread, let me quote back to you your comment in your post today at 15.39:

Start
what a shambles
when this comes off of the grey market in about a fortnight we will be lucky to trade out at 1p per share
face it folks if you are holding anything here 90-100% of your money is gone
End

I have followed your comments here, so let me lay down the challenge, and see if you are prepared to stake your reputation on the above quote. Presuming that none of us here know what the actual event is which has triggered the suspension, you came out strongly saying that 90-100% of our money is gone. No ifs. No buts. A specific range. Do you stand by that, and are you prepared to eat humble pie if you got it wrong?

and it confirms that the raise is being done without dilution. That's fantastic news today, and I believe the turning of a page, maybe a chapter, in the history and progress of PXC. Plus, without having to repay now, it leaves the money in place for further exploration and development of the other treasures. It's win all round.

Stanley, I think we need some clarification. The money is being raised by the company, and not the shareholders, who include ExGen (as well as you, I would presume), and as such there will be no general call to any individual shareholder to participate. However, the issue specific to ExGen is that under the terms of their agreement with PXC, when there is a bankable feasibility study completed, ExGen will be given the opportunity to contribute according to their share in Konnex (20%). If they do not make that contribution, and at the present time that is not expected, they will be diluted. But ExGen's main interest is in Royalty payments, so I do not think this will be an issue for them. As for producing a BFS, there will most likely be a situation at which they will agree on this definition, since we are friends. This above is my analysis.

Stanley, well done for remembering the source, and it was DP. If I remember correctly, what he wrote (not sure if it was published here or on ADVFN) was that with the present supply chain difficulties, and particularly the shortage of steel in the light of the Ukrainian war, it was almost impossible to obtain prices for the key equipment with validity over a week or so, which would mean that a BFS is practically out of date by the time it is issued. But the lenders understand that, so the banks will support us, despite not meeting the strict terms of a BFS. So, it will be delivered, but as a FS, but still acceptable for moving forward. I am sure that PXC are clever enough to be working things out so that this meets the criteria required from the ExGen contract. My further understanding is that the total debt will be $60 million, and I presume from that, they are not expecting any contribution from ExGen.

unvrkw, why take oil from Russia when Kazakhstan has a massive surplus and is an exporter?

No issue there bankrupty. I was going to post it later on, so you've saved me the bother! Yes, I remain superbly positive that this company is going to bring us in large rewards. The opportunity (metals in the ground) is fantastic, in a safe secure environment, with low taxes and which encourages investment, and with a really good BoD steering us along. One day soon, and very soon I believe, the finance will drop on the table, and at that point we'll know the project is secure, and the majority of the risk behind. We'll then never see the current sp again.

It's really like watching the kettle come to the boil. Every increased moment of attention just appears to slow down the process. We know that the BoD are slow to publish information, and are poor communicators. Maybe we just sit back and let the kettle boil.

I had a very good meeting yesterday with UK management. There was much discussed, and all extremely positive. Knowing pretty much everyone’s interests, I highlight the 3 main points:
# Our USA representatives met in Washington with one Idaho Senator (James Risch), whilst the other senator (Mike Crapo) was called away at the last moment on business, so they met with his senior team. The meeting was positive and supportive. A meeting at this high level is unusual, and sends a very positive sign of the recognition of the support available in Idaho for mining projects and this sector in general.
# No significant issues have been identified with permitting to date.
# The project remains on course to be financed by corporate notes, as promised. I understood that the coupon is likely to be based directly on the copper price rather than revenue, which should make these very attractive instruments for both parties (the higher the price of copper, the more we earn).

Here's a really positive interview with Ryan
hTTps://news.financial/interviews/interview-phoenix-copper-copper-with-certain-advantages

It was interesting talking to Ryan immediately after the AGM had completed, as he explained the detail of the issue. This is a confluence of many issues, but is broadly lack of the qualified staff, rather than the physical rig itself. He explained that metals prices had been depressed for a number of years, so there was a surplus of drillers, and many left the profession, then fewer went through the training. Then COVID hit, and many just left the industry, either to retire, or to accept the government handouts. With COVID and the aftermath, today drillers earn more working in Starbucks than on a drill rig, and so it is difficult to drag them back, even with incentives. So, it is the shortage of qualified drill riggers which is hurting.

• Konnex have established a community advisory group, with local citizens and businesses involved, and information being fed back to the community. It is working well.
• The Loan Note concept has been very favourably received. The company feels they can put this together fast, but are in no hurry, since “we don’t want to complete on loans too early and to start paying interest on a loan we don’t yet need”.
• The benefit of the Loan Note is that they don’t have to pay back any capital till the note expires (10 years suggested), so they will free up money to go into other projects. This will be non-dilutive value adding capital, and will accelerate the company.
• I also talked with Harry Kenyon-Slater, who believes that this is a real once in a lifetime opportunity. He agrees with the potential from the “elephant” below and likes the way that the financial plan is being developed.
• I talked my way round to several other directors, and was generally very impressed by their confidence and their approachability. This is really a special company.

I attended the PXC AGM yesterday and made the following notes. Please do note that these were not completely verbatim, and I may have missed some points. I invite other attendees present to correct or add to my notes.
The formal part of the resolutions passed very quickly with all motions being carried. It was then announced that Paul de Gruchy was joining the company as Director UK IR. This was followed by 3 PXC employees standing up and offering their own reports, being Ryan (CEO), Cathy Evans (NED) and Lenie Wilkie (ESG Programme Lead), followed by questions and answers. Here follow my notes:
• The Feasibility Study is advancing smoothly as is Permitting. “There have been no hiccups with either process”. The delivery of the Permit is entirely in the hands of the authorities, and we have a team fully engaged with advancing this process.
• Drilling rigs are in exceptionally short supply today in USA. Nevertheless Konnex has located and contracted a core rig which will start drilling on 1st June. Initially on Empire, then Red Star and then the deep sulphides. Navarre Creek requires a reverse circulation drill, which are in even tighter supply, and Konnex have contracted one for 2023. Ryan believes that this programme represents a good result in the present situation, and will allow increased focus on getting Empire into Production.
• Ryan commented that he has seen that Electra Battery Metals (formerly First Cobalt Corporation) are seeking permitting to drill towards the Redcastle (ie PXC) side of their property. We can expect news here.
• Nearly all Konnex staff and their families, have moved to Mackay. This demonstrates confidence that the project will take place.
• Konnex have opened a small office in Boise, which will focus on PR. Important since it is closer to the state capital and politicians.
• For ESG: Huge work done. In Idaho mining laws are some of the strictest in the world. We are happy with that, and as a result we are getting massive support from the local community.

Yes, I'll be at the AGM, and will report back on anything interesting I learn

Through my wife I have family in Kazakhstan. They are completely split over this war, like we were on Brexit, including within families. Broadly, the older generation, particularly amongst the Russian families, see Russia as the hero, and buy into the propaganda. The younger generation who are more tech savvy, are on Ukraine's side. This is leading to major arguments, of course (don't we know it). The result will be, I am fairly confident, that Kazakhstan will not enter the war. There may even be some advantages, for Rouble owners looking for safe havens. Plus, Kazakhstan is desperate for investment, and entering the war they lose that opportunity. That's my outlook.

For the wider readership, for those that don't know, several of our directors, and particularly our CFO Richard Wilkins were involved with OXS, and learned their lesson over jurisdiction, for the assets of OXS were taken from under their noses by the Uzbek state. I know Richard lost his pension, and is determined to make it up here.

Red Star is an easy one to describe, but I believe is becoming a little more complex to move into production, as time moves forwards, but for positive reasons. It was found I understand almost by accident in just 2018, and was planned initially as a a low cost underground high grade silver/lead mine, and might have even have beaten Empire into production. However, they did some additional drilling, and found that whilst the seam was a lot more twisted and deformed than expected, it also went on for much longer, so they decided to spend more resources to determine the exact shape, and these are the EM results reported recently. The conclusion was that the potential appeared to be significantly greater than that of the discovery outcrop, which generated the maiden resource, which is of course magnificent news. They also talked about waiting for the survey results from Horseshoe-White Knob area to the north, which may make the deposit even much bigger. Now here's the issue. If you are going to build a mine, it would be silly to design the facilities for a small mine, when it is quite possibly going to be quite large. So, I am sure that they are waiting for the full results from the EM surveys, at which point they'll do a drilling programme for next summer, and only after which will they start to plan Red Star. That's my guess, for I have not talked with the company about this. As you can guess, a much larger mine means more revenue, and therefore becomes more interesting to investors, whilst I am still content that it can be fast tracked at the right time.

On the question of whether they do a standalone project, like they are contemplating at Navarre Creek, I doubt it, since most of Red Star sits on their own patented land, and is close to the processing facilities which will be used for Empire open pit ore. Whilst most of the processing will be different (sulphides vs oxides), there are sufficient similarities to make good cost savings from running them together.

Finally, I agree with you that a £10 target is reasonable. Hope you have a great weekend!

That's kind of you bankrupty, but the thanks should really go to the company. The directors are standing true to their words, and are working hard to advance this company for everyone's benefit. We are not producing yet, so news comes out in spurts, but that production is not faraway. I speak with the directors regularly, and know that they remain committed, really committed, to bringing this company into production without the issue of any more shares. Once producing, we know that they will be throwing off cash, and so they will target the other resources in the portfolio beyond the Empire Open Pit, such as Red Star, or Navarre Creek or or the deep sulphides. which for the last 2 could each be much larger than the open pit mine. I am impressed by the way they are running the company, although I personally feel that they could do with simplifying some of their technical speak, and have told them that. I remain strongly tied to my belief that this company will make the early investors rich , and will allow many of us to take a significant boost to our pensions, and within a reasonably short time frame. Buy the shares now whilst they are at a bargain price, and put them away. Forget the short term volatility, and wait for the reward. Key leaps in the short term could come from advancement of the permit, from the sourcing of finance, and from other exceptional drilling results. Watch this space for any of those.