Member Info for StanleyUK

Hi, MC.

You asked for comment.

Honestly, it was a bit of a blow yesterday. Not so much that dilution happened, but the price it happened at. It could have happened at any point in the past at a more favourable level. It is only because of the company communications that we found ourselves in the teens, so it does feel a bit self-inflicted.

But it was only 18% dilution. Yes, it goes against everything they have openly promised, but as things have taken longer than expected they had to react. You could argue it’s poor planning, but it is what it is.

I’m not even against the board being able to buy in at these levels. I wish they commuted more money themselves though.

The majority of the money will be used for machinery procurement, which will likely save $4-5m on capex compared to new. This is just the start of the savings we can achieve on used vs new. I’m sure Ryan will be completing that next week, and I hope the company will announce it via RNS to give a bit of comfort that the money isn’t just to keep the lights on.

it comes at a big cost to us holders, but the money needed to come from somewhere.

On the bonds, this will get some scoffs, but the board remain convinced of their success, as do I. As stated last week by Paul, the due diligence team were on site and this has now concluded. It’s the final steps in getting this completed.

Yesterday wasn’t fun. But now it’s back to waiting for the news, with a slightly reduced holding in the company. Some would have lost faith and trust, and I understand that. But as Trek said, if (or when) the bonds are finalised everything will look very different.

I’m not a company cheerleader, and try to look at things in a balanced way. 18% dilution at 11.5p was a crappy move, but if it keeps the project moving forward then it’s a pill I can swallow.

I guess we’re all entitled to an opinion, EP. But I think you’d have to be the ultimate skeptic to think they will never mine.

Sure, many think it will be after massive dilution, but easily accessible copper with a low-cost startup, in a green economy, it’s always going to be mined.

I still expect minimally dilutive funding to land, in fact my conviction of this has never been higher.

It’s also funny you mention about someone buying other old mines, but I’ll say no more on that, and just encourage the same DYOR message.

I can understand people getting tired of the waiting, but once finance lands and the PFS is released (showing improved economics), permitting is the final major hurdle before production.

One of us will be wrong, anyway. Good luck with your investing decisions.

I can only reiterate my point from a day ago, don’t panic.

The positive in today’s RNS was that the metallurgy is now complete, the model is updated, and it’s now being formalised into the PFS and Plan of Operations. Once the bond completes this is the final step ahead of permitting.

It doesn’t really matter if the PFS is ready today or next month. So long as it is completed ahead of a summer environmental inspection then we are still largely on track (from the recent timeline revisions, anyway).

The situation is the same as yesterday. And the day before. We are waiting for finance.

And I know I’ve said it before, but I believe finance is closer than some people believe.

It seems we have another overreaction by the retail market.

Yes, it is another slipped timeline, but nothing has materially changed within the company.

Finance discussions are ongoing, and it was mentioned today that the cornerstone investors team is again in Mackay finalising their due diligence (posted on Telegram).

Metalurgy is all but complete, and the final report is being worked on. Indications are that the economics will be improved.

The terms of the Riverfort loan remain the same, and we have until March to settle this, or have it renegotiated, increased, and extended. I'm presuming the wait on this is due to the ongoing DD.

The wait is frustrating, but it doesn't justify a 12% drop.

From the company.

All these are great points, Tiburn.

I also agree with the conclusion that the bond is coming!

Your points look at this from the Phoenix side, but it's "possible" that some of these apply to the cornerstone investor, too.

• The bondholder may have extensive experience in mining

• The bondholder may also have extensive finance expertise

• They may be interested in a strategy involving, but not solely linked to, Empire. Is this the reason for the slight delay?

• They may be interested in copper, as well as other battery metals in the portfolio

• They may want to develop their own local infrastructure

• They may be interested in what Phoenix can offer from a regional perspective

It's possible that this is about more than just bonds. People are saying "we only need one signature", but what if we need to wait for a few other pieces (not linked to us) to be completed before the curtain is pulled back and all is revealed?

Just an opinion, anyway.

Just a bit more patience. The overriding message is “stop panicking”.

There’s plenty going on behind the scenes, and I’m sure the story of the journey will be told once financing is complete.

The timeline is slightly out of our hands, but everything is under control.

Personally, I think the directors have been obsessed with the "no more dilution" route and it may have got in the way of more logical (or at least expedited) financing decisions.

That said, had the intitial group of investors they were talking to chosen to invest in the bond then this could have been wrapped up over a year ago. It seems we are now talking to the next set of investors, whoever they may be, and I get the feeling we are now very close and the board are much more optimistic.

If the bond remains on the stated terms then it is a good deal for us, and one I would be happy to have waited for.

I'm sure that as we move towards the sulphides and Navarre Creek that a JV partner is more likely to be brought in. For now, I'm happy to keep the majority of the Empire upside to ourselves.

So the news today is that the bond process has moved forward to the point where the paperwork is now all in place, awaiting funds, and to avoid brinkmanship the Riverfort terms are being extended, with additional working capital in case the closing stages take slightly longer (yes, I know, stretched timelines are a common theme for us).

The board remain confident.

I reiterate my point from yesterday. What if we are just one cog in a bigger plan for the bondholder, and he is waiting for a few other pieces to fall into place before completing with Phoenix, and these pieces are taking longer than expected?

But again, what do I know....

I think that PXC was wrong not to put out an update after 2nd Jan. It's the lack of an update that has caused people to panic and sell, as there is uncertainty of where we are now at.

As has been posted on Telegram, the company will now look into putting out an update. Hopefully this will settle some nerves (if they do decide to update us).

Regarding the financing, what if we were part of a bigger picture? Maybe one cog in the cornerstone investors plans, waiting for a few other pieces of the jigsaw to drop into place? This could explain the confidence that the directors have shown, confident that the money is there, but not yet complete as the investor needs to get everything else lined up first?

I don't detect a mad scramble from the tone of their posts, and RightOn also seems confident, and we know that he is close to some of the team. The news blackout is annoying, but I do believe we are in the closing stages of what will be a transformational step for the company.

But what do I know.

I think the directors always give out dates in the best of faith, but yes, it is now time for actions and not words.

They were possibly too optimistic with the 2 week extension, and have learned their lesson and now been more cautious by extending to January.

There is clearly more than just a promise of completion on the table and we really are almost there, and I would be surprised if this isn't all in place by early next week.

We were. But now you can choose to either look back, or look forward.

Monday should give us a clear indication of whether “imminent financing” is a few days, a few weeks, or a few months away.

I’m going with days.

E.P,

There are offers on the table, ready to go. I'd guess that these are more traditional financing arrangements.

Then there are the deal(s) that we really want, this is the bnd financing ++.

There are pro's and cons to each proposal (as a guess these could be: staged drawdown vs all up front, just cash vs other beneficial aspects to the project, western vs non-western investors, onerous terms vs bond terms).

This is why I wrote earlier that I would rather hold on for a short while longer rather than take the first offer, just to satisfy the desire of a few shareholders.

It's clear that our visitor to Mackay offers something the other offers don't. Hpefully it will be worth the wait.

Quite the contrary, Fallingknife.

I want finance on the best terms possible, not at the earliest opportunity.

Yes, this has taken way longer than any of us, the PXC team included, wanted it to take.

But who was in Mackay a few weeks ago?

Why only extend by 2 weeks?

Why are the BoD showing so much confidence?

If Riverfort gets rolled by another week, then that's what it takes to get this bond deal over the line. But I am confident that the completion of financing is only days away.

I'll say this.

We aren't looking for an $80m mortgage to by a house. It does take time.

Possibly, we aren't just looking for $80m for Empire alone.

There are likely other moving parts to this that add additional value to us all.

I'm sure that the investors we are talking to are serious heavyweights, and not time wasters.

It will get done. Very soon.

Stan.

I know it’s easy for me to say, but look, finance is coming. Don’t get hung up on Monday, Wednesday, or Friday. If it doesn’t get done by the 8th, don’t panic.

The share price may go down in the very short-term, but boy, will it shoot back up once the bond subscription is finalised.

There is so much going on in the background, far more than just money, and I’d suggest just trusting the board to get this over the line on the best terms for all of us, and set us on a path of success not just for Empire, but the wider Empire system.

There have been enough hints dropped by people to be comfortable of where we are heading.

Trek has suggested 800p. That may be a few years away yet. 500p has always been my target.

Wherever you choose to get off this ride, the exit should be multiples of where we are today.

Stan.

I can’t see the finding RNS ever being a damp squib!

It really is a matter of how big the re-rate will be.

It probably will spike and fall back a little, but will trend in only one direction. There’s plenty of other news that should keep the momentum going.

Once firmly in production this could easily be paying dividends of 8-10p / share (+/- depending on warrants linked to the bond). That’s a decent 25% annual return for anyone buying in at these level.

Some people will obviously take profit, but long term this could be a cash cow.

I’m getting ahead I myself a little, but the roadmap to production should become clear within the next week or so.

Stan.

ButlerMan,

Due to the way economic models need to be issued for N43-101 regulations, you either have to use the "new" cost of equipment, or be in ownership of it already. With cash in the bank Ryan can then go and buy second-hand equipment which would have a significant impact of the new exonomic model.

So I would expect the bonds to be signed off, Ryan to do some shopping, then a complete model to be released.

I'm sure that Ryan already has equipment lined up, and then investors that visited Mackay last week would have been shown the model with the purchased equipment factored in.

It may even be that the investors are supplying some of the equiment themselves. Now there's a thought....

Stan.

I think it’s worth reading between the lines of RightOn’s post, and pay focus to his points 1, 3, and 5.

We should get some clarification of where we are this week with the Riverfort deadline approaching, maybe is won’t be the “we’ve got it!” News we want, but enough for us to be confident that “we really are about to get it”.

We all have down days, so I’ll retract my criticism, Bankrupty.

We’re all here to make money, whether that is through trading or investing, and it’s not my place to say how someone should achieve that.

But focussing on the company, look at the 3 questions I posed earlier. What’s going on in Mackay next week?

This is the final act in the financing. Richard has been vocal in stating that we’re almost there. The BoD are now heading to Idaho. The signs are there.

Caveat: this might not get done by the Riverfort deadline, and there may be a minor extension. Very minor. A few days or a week. Formalities, in my opinion. But we’re at the pointy end now, and the pencils are sharpened.

I’ve stated a few times that financing isn’t a concern, and I stand by that. December will see us all much more wealthy, and now is the time to lock in the positions.

I’m sure that Ryan has got more than just a few floatation tanks on his Christmas shopping list.

Stan.