Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
Courtesy of Zaphod99 from ADVFN
https://www.hallgartenco.com/pdf/Mining/Phoenix_Copper_March2021.pdf
The first of a few to come out.
I don’t see that as a “told you so” moment, on either side.
We all have our own ideas of what minimal dilution looks like. I was expecting around 100m shares in issue to get us to Empire being underway. We are 15% over that, and while it was a bigger raise than expected we now have the extra cash to accelerate Red Star and Navarre Creek, which would have taken a few years to get around to otherwise. This will lead to a summer of activity ands newsflow, and hopefully propel the share price higher. That’s worth the extra 15m shares.
The 35p price was probably 10% below what we hoped for, and while I’m maybe dismissing this too easily, what’s 10% if we can get greater income in a shorter time period?
We have the potential of a billion dollar company with only 115m shares in issue. For a current price of 37p. If this is the last raise (certainly at these levels), then there is a solid investment case laid out.
Now we have some big institutions on board, we should hopefully see more stable (northward moving) price action in a few months time, once we get a bit of the overhang out the way. The US market is now also wide open to us.
Am I being overly rose-tinted? Maybe. But the numbers make sense.
2Daman, mate, I have no issue with your posts. Yours are with an occasion negative slant (or balanced, as can be argued), and mine might be tipping the opposite end of the dial.
Let’s both hope we have invested in a serious, profitable business here. I’m confident we have.
This is a post from Richard Wilkins (CFO) in the Telegram group. Shared with his permission.
Dear All. Apologies if this is a bit long. I know you are surprised at the size of the funding. So were we. We set out to do £10m (pre Open Offer), we were offered £16.45m. A great vote of confidence. Everyone advised us to take it. We expect this to be the last equity raise before production. It might be the last ever.
We are seriously upgrading our share register. We have a number of excellent institutional funds coming on board who will be long term investors. We’ve been chasing some of them for years. But we were too small. Not any more.
To the extent that debt financiers require equity for the construction financing, we’ve now got it, if we need it.
We’ve got plenty for exploration. This summer we will be drilling Red Star, Navarre Creek and the underground sulphides. Fantastic news flow I hope.
This takes the Company beyond a critical mass market cap once the new shares are issued. Upwards of $50m. This opens the door for new investors, particularly in the US.
We consider all of this very positive. Finance to support the construction debt, for exploration, and to up our marketing game.
We always said our target was to be cash generative with approx 100m shares in issue. I think we’ve achieved that. Maybe it’s 115m. So what. It’s better than 200, or 300, or more, like so many other companies.
By the way the £2m debt is repayable in November. Right now it’s working hard on site to keep things going whilst we wait for this finance.
You are all offered the finance on the same terms. We stood our ground and insisted on this. If you want to participate in the Open Offer, just be on the register at COB tonight (the Record Date).
Finally, do you think the BOD would deliberately act to destroy our own value? Far from it. We believe today will significantly enhance our value, once the dust has settled, and the market takes on board where we now stand.
There will plenty of analysts publishing new price targets in the near future, hopefully starting next week. Watch this space.
OK, the 35p hurts a little, 40p would have been more palatable. But this could conceivably be the last raise needed.
I would expect the share register to soon show significant institutional investors. Steady, long tearm investors.
With this, I would imagine the US markets will start to take an interest as well.
There are massve gains to be had here, and we now have the funds to properly assess the wider property.
I was expecting 100m shares in issue. We have come away with 15% more than this, but to me, it is a small price to pay to hopefully now unlock the next stages of our development.
Phoenix was never a short term trading share, and we knew dilution was coming. We are now ready to level up our investor-base, our M&I resources, and realise the real value that the Company holds.
Wait for the broker notes over the next few weeks. If any of them put us at less than 75-80p fair value I would be surprised.
This is a billion dollar company in the making.
If the sale of Georgia goes to CAND, the agreement was for shares at 50c. The CAND price is currently 20% higher, valuing the deal to us at CAD $8.4m., or £4.8m Sterling.
The current price just doesn't align with reality.
If there has been a persistant seller in the background, surely a TR-1 notice would be needed by now.
For me, this is just games filling a new vacuum for the next week or so.
Moring, 2Daman,
Regarding yoor question on funding, I don't think the lenders will look at Market Cap so much as Asset Value.
A company's market cap can soar or plummet based on perceptions completely unrelated to its performance. Market cap is just shares in issue multiplied by the price the market wants to pay for them today.
The asset value is the significant figure to look at, and with £1.4b identified just for Empire alone, with a significant roadmap ahead to unloack further assets, I am sure lenders will have no problem offering funds against the project.
https://twitter.com/sharetalknews/status/1363839035098169347?s=21
Tipping Phoenix to rise to 80p in the next few months.
Ezhik said “A couple of small intercepts at 60g/t or above would have done the trick”.
Yeah, sure. And maybe finding a hand carving explaining the secrets of the universe. That would certainly help too.
This is open pit mining, mate. Our grades are good (most of the last intercepts classed as high grade), cheap to extract, and ready to go.
I’m not sure your making the correct distinction between open-pit and underground mining here.
As a guide, high grade is anything above 1.5g/t.
https://www.bullionbypost.co.uk/index/gold/gold-grade/
We have an easy access, oven-ready project that can be started with about $15, a sweeping brush and a carrier bag, and the JORC will clearly outline that it’s highly profitable.
But for me, it won’t be Empire taking it forward. It will either be flipped on, or the whole company will be taken over.
Mike knows what’s there, and now has control over the CAND purse strings....
I also think we will get a partial set of results announced with the news of the next CEO.
Mike wouldn’t step down unless someone was imminent, and his departure was announced 3 months ago, giving ample time to find the right person.
Don’t shoot me down, but Lenigas has been very quiet on Twitter regarding Empire since September, around the same time as Mike’s CAND announcement.
He seems to know the area intimately, and knows Mel Da Costa well, so must have a good understanding of what Eclipse could offer him personally...
Like I said, don’t shoot me down.
Nope, no agenda, and no panic.
I’m holding a significant amount of shares and hope to be in for the long term.
I just understand the importance of PR and momentum to create stickiness in the shareholder base.
Yes, I know they are working hard on the PEA.
Yes, I know there is lots going on behind the scenes.
Yes, Empire could be a world-class asset.
But the company should do more to keep the share price up, especially with potential dilution on the horizon. And when the great PEA arrives, it would be great to springboard up from a higher starting point.
If neither Ryan or Dennis have the time, I’d rather we employed a full time PR manager to handle the communications. That would be £50k well spent.
£10m cash raise at 40p compared to 50p would be an extra 5m shares in issues. I’d rather spend the £50k on a salary and save on the shares.
But maybe I’m not seeing the bigger picture.
I still anticipate a good RNS.
The daily drop comes from a lack of direct comms (sorry to keep beating this particular drum).
There are many good companies out there to invest in right now, both in precious metals, and Covid recovery. Phoenix have not offered anything to keep investors invested, and indicative timelines seem to be slipping. I think it’s just money being taken out to put elsewhere.
Let me pick up the drumsticks again, and say communication is key.
The ones now left are the believers in the project.
RightOn, honestly, my post wasn’t a criticism of you. I genuinely appreciate your posts and long hope they continue.
My issue is with the company. We should t have to call them. They should be proactive, particularly in this time of the new gold rush, where our money could go anywhere.
I do believe the companies approach has been amateurish, although I hold Ryan’s presentations in high regard.
Please keep posting.
I do respect the posts from RightOn, and it is useful to leverage the knowledge of those that have good communication with the company.
But my problem here is that the company shouldn’t rely on private shareholders to be the only cheerleaders. Feeding info to one person is amateurish. If there’s something to say, say it to all. This doesn’t have to cost much. A simple YouTube video explaining the process can be created in minutes.
The Twitter posts are ok, but it’s important to see the faces of the company, as it’s these guys we invest in.
As someone else mentions, silence breeds fear and uncertainty.
I’ve no doubt that there is a lot going on behind the scenes, but communication is key.
Whether here, ADVFN, or the Telegram group, people are crying out for communication to be improved, and it seems that RO is the only one saying “trust them”. Shareholders should be listened to, as there are plenty of places that funds can be reinvested.
We all generally agree that dilution will happen in order to raise funds for the project, so it should be in everyone’s interest that the price is kept up in advance of this. Momentum is key.
RightOn, I’m sure your intentions are good here, but many of us are seasoned investors with our fair share of evaporated wealth. I’ve been in a number of companies with a “happy clapper” brigade, and where knowledge personal relationships have turned out rather sinister.
Investors should not have to queue to speak to the board for info, and burden them and waste their available time. If there’s something to be said to one, it can be said to all through more efficient means.
I guess anything is possible. But Martin has been selling for over 3 weeks now, and I cannot believe that the Company would sit on information for that long and not release to the market.
His holding is well in profit, so maybe a justifiable sell to rebanace a portfolio?
I guess we will know if a few weeks time!
This is a great update, RightOn, thank you!
I would like to see the company take a more proactive appraoch to communication though, and this new flow should be coming from the Company, and not a PI.
They have been active with the Twitter posts, but they could easily have accompanied the posts with these kind of facts.
To be a big company they need to think and act like a big company. A few video interviews with Blythweight et al will reach a far wider audience. That's the best way to spread the message, and hopefully gain a wider investor base.
But still, kudos to you for this feedback, and well done maintaining the communication with the company.
Hi MTS,
From an armchair geology perspective, it shows them the type of volcanic activity and likely temperatures that existed to create the various minterals.
Esssentially, all of the silica, gold and silver (plus the other metals) were created from the heating of water around 1km underground, and altering the volcanic glass through cooling etc.
While it doesn't directly tell us how much gold could be present, it is likely indicative of high Si-Au (Silica - Gold) concentrations within the Ore.
Overall, the Twitter posts have showed us what an exciting plot we sit on (both geologically, and hopefully financially!).
Same here, joined the club this morning With 25k shares. The future does indeed look promising.
It’s very peaceful in here, too. Unlike a couple of boards of just sold out from. Let’s hope the Xmas predictions do indeed come to fruition.
Stanley.
I agree with the sentiment, and the lack of shares held by a board is always disappointing, I’m pretty sure they have been in quite a drawn out blackout period recently with all the well developments.
With Dr Parsley and Mr Tao on the board, I imagine Kerogen are also locked out of selling (or buying) due to inside info.
But a big buy after the next RNS, once all facts are public domain, would do wonders for investor confidence.
And 2 issues with yuor statement.
1. You're guessing.
2. OGA have made field determination for Lincoln. HUR and Spirit are now in discussion over how to proceed.
I believe that the F.D on Lincoln will be a disapointment to the company though. Likely ovr a smaller area than we hoped for.
Bt this is opinion only, as that's all any of us have right now.
Agree, SG2,
It’s a common approach.
Lace fear with a little truth, and then push another share they are invested in, hoping to get a few nervous holders to jump.
Maybe we are doomed. Who knows. But that’s the point, nobody does.
We could get an RNS saying 50% farm-out / JV of Halifax, fully funded campaign, and RBL secured on revised reserves to clear the bonds.
Anything could surprise, to the upside or downside.