Phoenix Copper Share Discussion Threads

[meanreverter] 29/1/2020 12:50

Video about mining regulation in Idaho:

[the_debt_collector] 27/1/2020 15:24

So it seems PXC are moving to production of silver & lead in 2021, all well and good except they need to raise $30m + fund ongoing G&A costs to boot.

That $30m is 5 times their current market value, not forgetting operational 'challenges' that always occur early doors in the process.

This is still an 'avoid' in my book - more dilution is inevitable.

[pantsonfire] 26/1/2020 15:15

Hi MrMcnee, I was at the recent shareholder meeting with some of the directors. They are not ditching the Empire mine at all, and indeed all the resources are within proximate territories. During exploration work for Empire they discovered an easier to exploit/better return deposit, on the same territory. If you look at the presentation I've linked to below, you can see on page 13 the geographic proximity in a photograph, and in a map on page 15. The Empire mine remains there for the next phase, and they remain positive about it. Meanwhile the Red Star deposit looks to have a payback of under a year. That's pretty dramatic.
hxxps://static1.squarespace.com/static/5914577386e6c0cd77e15c74/t/5dada2ed218aa17443caa360/1571660546946/WEBSITE+USE+Phoenix+Copper+Presentation+Oct+2019.pdf

[mrmcnee] 26/1/2020 10:22

Been following the story, but not invested yet and am still struggling to see near term value.

So are we now saying that they have changed policy ? Have they not already spent a ton of cash on Empire and have now decided to mothball it ?

It does seem a rather strange time ditch Empire given the copper price has been depressed for a long time and seems to be picking up.

[zaphod99] 25/1/2020 17:22

Last week's RNS confirms that board were spot on when they changed tack to concentrate on Red Star rather than continue to prioritise Empire whilst the copper price remains below expectations and vulnerable to the ongoing trade wars and the fallout from the Chinese coronavirus outbreak.

Although the Empire open pit copper project remains viable even at the current lowish copper price, it's clearly been trumped by the Red Star silver/lead discovery.

Lower capex, better potential NPV and IRR figures and an even faster route to production.

The funds raised via the loan notes recently have been put to good use and we now have a better project that can be brought into production as early as the tail end of next year.

I spoke to the company last week and the message I took was that based on the recent positive sample results at Red Star, the initial 3 holes that generated a resource of 500,000oz silver (or 1.6 million oz silver equivalent when including the other metals) could be increased by a multiple of 7 times since the plan is to drill a further 21 holes approx, also funded as far as possible by loan notes to minimise dilution.

As stated in the RNS, the capital costs are expected to be in the region of US$30 million but one of the benefits of having a CEO with local knowledge and local contacts is the possibility of reducing the capex to closer to $20m if they can source quality second-hand plant and machinery.

Financing for the mine construction is likely be more debt rather than equity based and will likely come primarily via specialist mining finance firms with the possibly of involvement by US-based private wealth individuals.

Debt payback period could be as short as around 2 years.

Red Star remains open at both ends so further exploration is likely to result in higher resource figures, improved economics and to add years to the mine's life expectancy. All on patented land so licencing will be straightforward and rapid.

In the meantime, whilst Red Star is being accelerated, the Empire open pit will be on hold but primed and ready to go at hopefully a much higher copper price, when the time is right.

Not forgetting of course that we also have a couple of other irons in the fire in the Navarre Creek gold prospect and the 2 cobalt prospects further north. I believe there is significant interest from other parties about potential partnership deals which I expect we'll hear about in due course.

Once we're in production the resultant cash-flow will open up all sorts of opportunities to exploit the other 99% of the ore system that hasn't been touched yet.

2020 looks like being a very interesting and transformative year for Phoenix.

[pantsonfire] 23/1/2020 12:46

Re your excellent question SOS, in the December meeting company management said that they are currently financing via loan notes and plan to maximise this, so minimising dilution. They did say that they not could rule out some equity for the construction finance but I think the current activity clearly indicates their commitment to minimise future dilution. Since management have a significant share in the company personally, I think we can see that they do genuinely own this intent. But it is a good question, and I hope the company will respond to shareholders shortly clarifying the route forward.

[goldrush] 23/1/2020 07:57

That's a better RNS IMHO.

[sos100] 23/1/2020 07:10

"Whilst our focus will be production from Red Star, anticipated in 2021, the Company will also be evaluating alternatives for the Empire Mine's open pit copper project in an attempt to improve on the revenue, operating and capital cost estimates. The completion of the feasibility study for this project will be accelerated in a more attractive copper price environment.


--

how are they going to finance this?

[zaphod99] 23/1/2020 07:06

Phoenix Copper Limited Red Star Vein Strike Length Extended to 320-MetresSource: UK Regulatory (RNS & others)TIDMPXCRNS Number : 6466APhoenix Copper Limited23 January 2020Phoenix Copper Limited / Ticker: PXC / Sector: Mining23 January 2020Phoenix Copper Limited (the "Company" or "Phoenix")Red Star vein strike length extended to 320-metres and open on both endsTwo additional veins identified in road cutsPhoenix Copper Ltd (AIM: PXC, OTCQX: PGMLF), the AIM quoted North American focused base and precious metals exploration and development company, is pleased to announce the results of ongoing exploration at the Company's Red Star silver deposit, ("Red Star" or the "Red Star Zone") adjacent to the Company's Empire copper deposit in Idaho, USA.Sampling Programme Highlights -- Red Star vein now measured along 320m - open at both ends -- Surface sampling results returned similar values to those from the outcrop that forms the current maiden NI 43-101 Resource -- Two additional veins have been exposed to the southeast -- All of the new vein exposures are situated on the patented Empire property -- These results will now be used to identify further drill targets -- Objective to continue to update the Red Star Resource in preparation for construction and production which is expected in 2021-- A map showing the relevant Red Star vein system can be found on the website version of this press release at www.phoenixcopperlimited.com/news.Ryan McDermott, Chief Executive Officer, commented:"We are pleased with the latest Red Star results which indicate an open-ended extension to the Red Star vein of 320-metres. Additionally, during the Q4 2019 drill road-building work, two additional veins were identified. These new veins are particularly exciting as they may be indicative of a much larger, multi-vein shear zone."During 2020 the Company plans to complete a drilling programme on Red Star to generate a Measured and Indicated resource sufficient to justify a small underground "adit" mine with a flotation process plant to produce lead-silver, copper-gold and zinc concentrates. The scale of operations will be in the region of 450 tonnes of ore a day or 155,000 tonnes a year."The Red Star discovery is a primary high-grade silver/lead sulphide vein and has, after drilling only three holes, generated a maiden NI 43-101 compliant resource of 103,500 tonnes, containing half a million ounces of silver or a silver equivalent resource of 1.6 million ounces when gold, lead, copper and zinc values are included. The value of the contained metal in the NI 43-101 Red Star resource is US$260/tonne of ore at today's metal prices, or US$40.3 million a year at a production rate of 155,000 tonnes of ore a year. Capital costs are anticipated to be in the region of US$30 million."Whilst our focus will be production from Red Star, anticipated in 2021, the Company will also be evaluating alternatives for the Empire Mine's open pit copper project in an attempt to improve on the revenue, operating and capital cost estimates. The completion of the feasibility study for this project will be accelerated in a more attractive copper price environment."My predecessor, Dennis Thomas, has pointed out many times that the polymetallic nature of the Empire System is largely untapped and barely exploited or explored. These latest results are certainly consistent with this view. I would like to take this opportunity to personally thank Dennis for his service to the Company as the former CEO and thank him in advance for his future contribution as VP Investor Relations."Red Star ZoneThe Red Star Zone is located approximately 330 metres north-northwest of the Empire open-pit resource area within the Empire patented claim boundary. This boundary is contiguous with the Company's unpatented Horseshoe Block to the north and west.The Red Star vein was discovered as a single vein outcrop (discovery outcrop) in 2018 during a field mapping and reconnaissance of the northern patented claim boundary and adjacent Horseshoe Block. Geological and structural mapping in the vicinity of the discovery outcrop indicated a N30E to N40E strike dipping 80 degrees north west. The lack of any surface outcropping, besides the discovery outcrop, made it necessary to excavate road cuts through the 2.0 metre to 5.0 metre thick overburden in order to expose the uppermost sub-crop of the underlying rocks.Following the 2018 discovery, the lone discovery outcrop was sampled by cutting one continuous channel comprised of 12 times 1.5 metre long samples. The assay results were reported on 30 October 2018. Silver values in the individual channels ranged from 3.0 g/t ("grammes per tonne") to 78.5 g/t, lead ranged from 0.010% to 0.354% and zinc from 0.038% to 0.278%. Gold values were anomalous, and manganese values were high at 0.379% to 0.837% compared to the surrounding unmineralized rock (Table 1).Apart from the discovery outcrop, no other significant outcrops exist in the Red Star area. In October and November 2019 approximately 2,000 metres of drill access roads were constructed throughout the Red Star Zone with the intent of crossing the vein system and exposing sub-crops beneath the 2.0 metre to 5.0 metre thick overburden along the anticipated strike of the vein. Visibly mineralized sub-crops were exposed in seven road cuts. The geology and geochemistry of the sub-crop intercepts were consistent with the 2018 discovery outcrop channel with silver values ranging from 0.5 g/t to 18.5 g/t, lead ranging from 0.001% to 0.705%, and zinc from 0.011% to 1.361%. Gold was anomalous, and manganese 0.031% to 0.769%. (Table 2). The wider variation in the recent channel sampling results is likely to be due to the highly weathered and broken sub-crop that was exposed in the road cuts.The samples were analysed using 33-element ICP. Silver values above 1 ppm ("parts per million"), and manganese values above 1,000 ppm were significant in the discovery outcrop channel sampling in 2018, as they were indicative of high grade silver and lead below, as proven by subsequent drilling. The 2019 channel samples are indicative of the same and demonstrate the potential for further high grade silver and lead. Table 1 - 2018 Discovery Outcrop Channel Samples --------------------------------------------------------- ID Au g/t Ag g/t Cu % Mn % Pb % Zn % ------------ ----------- ------- --------- 22701 0.03 17.3 1.39 0.583 0.019 0.101 ------------ ----------- ------- --------- ------ ------ 22702 0.03 9.4 0.7 0.578 0.051 0.084 ------------ ----------- ------- --------- ------ ------ 22703 0.02 14.3 1.24 0.512 0.126 0.194 ------------ ----------- ------- --------- ------ ------ 22705 0.07 15.9 0.3 0.687 0.208 0.219 ------------ ----------- ------- --------- ------ ------ 22706 3.64 78.5 0.91 0.503 0.354 0.278 ------------ ----------- ------- --------- ------ ------ 22707 0.13 23.7 0.37 0.837 0.199 0.076 ------------ ----------- ------- --------- ------ ------ 22708 0.04 5.7 0.15 0.753 0.042 0.038 ------------ ----------- ------- --------- ------ ------ 22709 0.24 8.1 0.21 0.494 0.048 0.058 ------------ ----------- ------- --------- ------ ------ 22710 0.03 5.1 0.18 0.489 0.012 0.088 ------------ ----------- ------- --------- ------ ------ 22711 0.02 11 0.69 0.486 0.010 0.077 ------------ ----------- ------- --------- ------ ------ 22712 0.02 3 0.3 0.379 0.012 0.125 ------------ ----------- ------- --------- ------ ------ 22713 0.05 4.7 0.43 0.427 0.057 0.125 ------------ ----------- ------- --------- ------ ------ Table 2 - 2019 Road Cut and Trench Samples ---------------------------------------------------- ID Au g/t Ag g/t Cu % Mn % Pb % Zn % --------- --------- ------- ------- RS19-09

[the_debt_collector] 15/1/2020 11:04

Pantsonfire

In respect of Loan Notes, I do not subscribe to your commentary that they cannot be issued for exploration - see CONroy Gold has recently issued such notes and they are no-where near production.

In respect of your other commentary I say there is too much uncertainty surrounding this company, in particular, the dilution aspect, they have issued shares like confetti so far and what is stopping them now is the woeful share price.

Basically the market (AIM investors generally) have seen through this company and until something material is delivered (apart from more dilution) then the share price will remain in the gutter possibly go lower.

Not forgetting project risk - getting a new mine into production is full of challenges.

Basically they need a deep pocketed JV partner to do the paying, deliver on that one I say.

[zaphod99] 14/1/2020 07:36

Whilst we await further updates.....With Copper Stocks Tapped Out, Banks See a 2020 Price SpikehTTps://www.bloomberg.com/amp/news/articles/2020-01-12/with-copper-stockpiles-tapped-out-banks-see-a-2020-price-spike

[pantsonfire] 02/1/2020 18:06

Happy New Year to all. And to TDC, you are correct, except for one conclusion, which I think you missed. Like many, indeed most people, we make our conclusions like a driver looking in the rear view mirror. And your conclusion was based on the share price, and how it has moved. I cannot question that based on today's price. But I think that the BoD have a plan, and if we look forward I think we may be seeing a slightly different and more positive future. Zaphod said that Phoenix have been "able to weather this negative period by raising funds via loan notes with warrants attached, rather than via equity which at the current sp, would be quite dilutive". Please correct me if I am wrong, but LN’s cannot generally be issued against exploration, and normally can only be issued if production is in sight. If what Zaphod says is correct, as Zaphod suggested, maybe Red Star is already mapped out and will enter production sooner rather than later. Looking globally at this company, and analysing remaining risk, our money has gone into a large exploration programme, so now we have a geological resource which is known; the location is safe politically, and indeed they are encouraging local investment; management know their mining, so as I see it, our only remaining significant risk is the possibility of more dilution when raising finance. And as I have said above, if they can raise funds through loan notes, then looking forward (and not backwards) we should see this soar. Can you question this logic TDC? Yes you are correct when looking backwards, and explaining where we are today. And that works well for established companies with a track record. But for a new opportunity, like this one, it might just not be the correct approach? I don't have the answer, but I am confident still my investment will give me a return, so I'm staying put.

[deuchar] 02/1/2020 17:02

TDC well spoken currently a pathetic loser

[aussiebeach] 02/1/2020 07:44

TDC

You make some fair points concerning dilution, it does look like there are more fund raisings to come.

With copper on the rise and sentiment turning is this a good investment at current levels though? If I was to answer my own question probably not right now as they seem a long way off from production.

AIM is full of under capitalised juniors, that is bad enough but when they have 2 or more projects on the go like PXC cash burns quickly.

Fallen 70% from IPO you say but many peers go down 90%+ before bouncing so possibly this has lower to go.

I will watch carefully.

[the_debt_collector] 23/12/2019 11:30

Some facts..........

In 30 months this small company has raised £10m
Has diluted IPO investors by 300%
Lost IPO investors 70% of their initial entry point cash
Shares have fallen from 40p on listing to 12p bid
Current burn is £350k a month

Typical AIM company, blaming market conditions despite selected junior resource stocks multi bagging over the same period.

Too many projects for a junior to carry.

Prospective investors beware, a fund-raise is ALWAYS just around the corner.

[zaphod99] 20/12/2019 09:02

From Barrick to Freeport: Top Mining Chiefs Look Ahead to 2020https://www.bloomberg.com/news/articles/2019-12-19/from-barrick-to-freeport-top-mining-chiefs-look-ahead-to-2020

[dav37] 19/12/2019 13:55

Thanks for your reply Zaphod99 interesting that Red star maybe first into production.
I’m based in the northwest so it’s difficulty for me to get down to London just for a lunchtime meeting.

[the_debt_collector] 17/12/2019 20:16

This company reminds me very much of WRES - ever falling share price and just when one placing is out of the way in comes another.

Shares are down 80% since listing.

One day these will become a buy.

[zaphod99] 17/12/2019 19:29

The lunch was most enjoyable dav37, you should come along to the next one, probably in a few months time, if London is within easy reach.There was some obvious frustration at the current share price, a sentiment felt by almost every junior miner in the current climate.The recent negative sentiment for pre-production juniors like Phoenix, mainly due to the global slowdown especially in copper's biggest market China, has been a drag on the price of copper and therefore has impacted the ability to raise ongoing financing.Phoenix has been able to weather this negative period by raising funds via loan notes with warrants attached, rather than via equity which at the current sp, would be quite dilutive.There was notable confidence though that they'll get the financing for the mine construction and work to that end is progressing.On the ground over in Idaho, things continue to go well. Red Star has generated a lot of excitement and appears to be even lower hanging fruit than the Empire open pit which itself, was already pretty low hanging!Based on the various discussions, it looks like Red Star may be accelerated to take priority over the Empire open pit thanks to lower capex and the speed with which it can be brought into production.On the cobalt front, it's been relatively quiet recently but in the background things are moving apace. In fact, immediately after the lunch, the directors were meeting with another interested party.Not much was given away but it seems that discussions are advanced and going well so fingers crossed for positive news in the near future. Perhaps some sort of partnership but we'll have to wait and see.Navarre Creek looks like it could be an interesting standalone gold prospect, perhaps some sort of partneship to bring that into production also. The OTXQC listing continues to frustrate but the expectation is that it will be resolved sooner or later. Hopefully when it's resolved, there will be much more liquidity in the shares. In it's current illiquid state, it doesn't take much to move the share price so hopefully we'll see a positive reverse in the share price when US investors are able to get on board.Copper sentiment already seems to be turning more positive and there's been a notable increase in mining activity in US thanks to Trump's support for home-based miners.Idaho has improved it's position in Mining Journal's recently updated 'World Risk Report' adding several more points to be the outright leader of all the mining regions in the world.The overall message I took from the meeting is that 2019 has been quite a difficult year but the prospects for next year are looking much better. We should see positive newsflow on multiple fronts so 2020 looks like being significantly better than 2019.

[dav37] 17/12/2019 10:58

How did the lunch go with the Directors any information you can pass on will be greatfully received.

[zaphod99] 17/12/2019 07:02

Copper Tapped as the Next Big Metals Trade of 2020https://www.bloomberg.com/news/articles/2019-12-16/copper-tapped-as-next-big-metals-trade-of-2020-as-china-recovers

[zaphod99] 16/12/2019 21:03

Top tech firms sued over DR Congo cobalt mining deathshttps://www.bbc.co.uk/news/world-africa-50812616US produced cobalt becomes even more attractive to tech giants such as Microsoft, Apple, Tesla and Google.

[zaphod99] 05/12/2019 16:02

hTTps://www.mining.com/web/us-copper-frenzy-grows-as-rio-tinto-plans-1-5bn-utah-mine-expansion/....part of a growing trend by miners to invest in strategic mineral projects across the United States.The move more than doubles the mining industry's recent investment in U.S. copper projects, as Tesla Inc and other automakers demand more of the red metal for electric vehicle motors and other components."We like copper. We like the US," Rio Chief Executive Jean-Sebastien Jacques said in an interview.