Phoenix Copper Share Discussion Threads

[investorman33] 07/5/2020 14:04

Financial Times is very bullish on silver price (which is largest $'s in Red Star, and significant metal in Empire)



Investors are betting on a rally in silver, after the gap between gold and the industrial metal soared to its widest level in more than three centuries.

In March the price of an ounce of gold was 125 times higher than the same amount of silver — a record going back to at least 1687, according to data compiled by Ross Norman, a veteran gold trader. But since then the gap has closed to about 113 times, and analysts say more gains for silver are possible, as economies start to recover from the shock of coronavirus-related lockdowns and demand returns for use of the metal in electronics and solar panels.

“The longer gold keeps having a good performance you will get speculators . . . who will go ‘oh silver is really cheap’,” said Grant Beasley, a fund manager at Highbury Capital in Toronto. “It’s not the most complicated argument but it’s true. As the speculative fever increases retail investors will go crazy. And then when they’re feverish you’re close to the top.”

Silver prices dropped to an 11-year low of $11.62 a troy ounce in mid-March, but the metal has since rebounded to trade at $15 as holdings of silver-backed exchange traded funds hit a record high this month of 675m ounces. Analysts at Bank of America predict silver could rise to $20 over the next 12 months as economic growth rebounds. In the wake of the 2008 global financial crisis, silver rallied 440 per cent from its bottom to $48.44 a troy ounce in 2011. Gold has risen by 11 per cent this year to about $1,690 a troy ounce, driven by investor demand for the traditional haven asset. Holdings in gold-backed exchange traded funds rose seven-fold in the first quarter to a record high of 3,185 tonnes in March, according to the World Gold Council. The recent rally in the yellow metal was a sign of “deep anxiety about the global financial system”, said Mr Norman. In Alexander the Great’s time the silver/gold ratio was about 12 to 1 and an inscription from the Karnak temple in ancient Egypt reports it as 13.3 to 1.“Gold’s safe-haven status is coming to the fore,” he said. “Normally you’d expect silver to come along for the ride.”

About half of silver demand comes from the industrial sector, including the car and solar power industry, which has made it more vulnerable to the economic effects of coronavirus. Solar power projects are being delayed while the electronics supply chain has been hit by weaker consumer demand. Analysts at Metals Focus predict that industrial demand for silver will drop by 7 per cent this year, with declines across all industries. That is unlikely to be offset by shutdowns of silver mines in Mexico, Peru and Argentina, leaving a surplus of 14.7m ounces this year, they forecast. Suki Cooper, an analyst at Standard Chartered, said silver tended to need solid demand from both investors and industries to outperform. That may not happen until later this year, she said. Still, for many investors silver is too cheap, even given the Covid-19 slowdown. Ian Williams, chairman of the Charteris Treasury Portfolio Managers fund, said silver was just as good as gold as a hedge against inflation. “You can go back 3,000 years before Christ — silver has never been this cheap relative to gold,” he said. “There’s no justifiable reason.” Silver miners offer more upside to a rising price than gold miners, according to Mr Beasley. Many miners needed a price of just $17 to break even, he said. “When silver really starts to take off, the . . . returns in silver versus a gold producer are two to three times,” he said. Among the biggest gainers in the sector so far are First Majestic Silver, a Toronto-listed miner whose shares rose by 29 per cent last month, roughly double the rise in the Canadian benchmark. Last week Canadian mining billionaire Eric Sprott made his biggest personal investment in silver, buying a C$60m ($42m) stake in Toronto-listed explorer MAG Silver. Enthusiasts note that the metal is used in clean-energy technologies that are set to see growing demand such as electric cars and solar panels. It is also used in 5G mobile infrastructure and in radars for autonomous vehicles. New usages are emerging too: in March Samsung announced a new lithium-ion battery that uses a thin layer of silver-carbon material rather than graphite on its anode. “Because silver has such a wide range of applications, when one slows there’s potential for another to pick up,” said Philip Newman, an analyst at Metals Focus. “The range of applications argues for a very strong future.”


The good news just keeps coming for Phoenix !

[goldrush] 07/5/2020 13:56

jeanesy

Nice to have your input on this thread.

I think this is the best way to be that t is not ramped....it was miss priced and should not have been down here.....it is back up a bit.....profit takers have moved on....and looks good for a re-rate....they are doing the right things now and Ryan connects well and I am sure he can handle the positive build up in Idaho and USA markets.

Jason Reilly the Non Exec is based in Vancouver so the whole North American promotion is now starting to get moving.

The reason for the USA listing was they believed they had a whole group of local US investors who wanted to buy shares. Let's see how our promotion on the North American continent moves forward. This could obviously include a TSX listing if our drilling and expansion goes the way we believe.

[jeanesy] 07/5/2020 13:19

Despite the recent rise and the director share buys this seems 'unnoticed' atmo. It doesn't take much for this to move.

[jeanesy] 07/5/2020 13:08

Thanks for the link. All sounds very positive. Possible newsflow to come in mid June from the drilling that is currently taking place. I'm glad im on board here :)

[zaphod99] 07/5/2020 12:15

Update from CEO Ryan McDermott

[pantsonfire] 07/5/2020 11:03

and condensed to 5 lines or so:
# Massive, truly massive opportunity at entrance (low) price today, from a qualified team, operating in a geographically stable location (USA)
# Today's company valued at under £10 million, holding mining assets potentially valued from $1 to $10 billion (yes, I did write billions)
# Finance within touching distance. The BoD continue to express confidence they are on track to achieve this
# The first project is drilling now ("Red Star"), with results in the summer,
then BFS into construction leading to start-up planned for end 2021. But they already know pretty well what they are drilling into.
# A generally very loyal and supportive bunch of shareholders (always a good sign)
# Pretty much the only risk is the finance. But the board remain very confident they can do this without excessive dilution.
So, Goldenlady, there's your summary. I hope this helps.

[manouk2] 07/5/2020 10:04

goldenlady---see post 252

[goldenlady] 07/5/2020 09:16

I’ve been pointed here. Told it’s going to fly. Could someone give me 5 lines of key pointers. Risks and rewards. Ta!

[dave4545] 06/5/2020 21:46

Cannot work this stock out at times

All those resources and another director buy and we get just 18k traded today

[milliecusto] 06/5/2020 09:45

Seems more of the Bod, always a good sign

[zaphod99] 06/5/2020 07:05

Phoenix Copper Limited("Phoenix" or the "Company") Director Dealing Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLF), the AIM quoted North American focused base and precious metals company, has been informed that Andre Cohen, Non-Executive Director of the Company, purchased a total of 50,000 shares in the Company yesterday at a price of 16 pence per share. 25,000 shares were bought in Andre's own name, and 25,000 shares were bought for his wife, Kay Cohen. Following completion of the share purchase, Andre Cohen is the beneficial holder of 382,809 shares in the Company which represents 0.73 per cent. of the issued share capital and total voting rights of the Company.

[jeanesy] 05/5/2020 19:55

Already feeling pleased with my initial purchase. Hopefully those who bought at much lower prices have taken their profits now. Looking forward to see how things pan out here . GLA

[dave4545] 05/5/2020 15:13

And me via 2 x 20k at 16.65p

[goldrush] 05/5/2020 15:09

Always good to have the Chairman topping up his holdings.

[zaphod99] 05/5/2020 14:48

Phoenix Copper Limited("Phoenix" or the "Company") Director Dealing Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLF), the AIM quoted North American focused base and precious metals company, has been informed that Marcus Edwards-Jones, Executive Chairman of the Company, purchased 52,927 shares in the Company today at a price of 16 pence per share.

[goldrush] 05/5/2020 14:29

Can we get back to all square on the day.....will look good on the charts....IMHO

Well done jeanesy ....Hope you bring us all luck !!

[dave4545] 05/5/2020 12:49

That 50k at 12.75p was nuts

it was 21p bid the other day and now it's back to 15-18p

Wish they were selling it to me, just think how much money the mm's make out of this stock.

The day before tax year somebody sold around 220k for 4.5p, they sold that on for 6-6.5p

Their margins in this stock are massive

[jeanesy] 05/5/2020 12:26

i decided to make a small purchase this morning on the drop. Seems like even small buys or sells move this as the price rose immediately i bought !

[goldrush] 05/5/2020 11:32

Price looks to be firming and there are now 2 MM's on the bid at 13 ....Level 2 is 2 @13p v 1 offering at 15p

[pantsonfire] 05/5/2020 11:00

There's not many shares in the kitty, so when someone buys or sells, this share price moves. The problem is that the loyal shareholders are staying just that, loyal, so the float is small.
I want to highlight one point I noticed in Monday's RNS. The measured and indicated resources went up in value, according to my calculations, by over $200 million. That’s not a bad return considering they did that for just the £3 million raised in 2019. I say that is good management, good finance, and a board in control. I look forward to them raising our finance for Red Star in a similar way, and have every confidence they will do just that.

[goldrush] 05/5/2020 10:57

Dave

Yep someone did....maybe someone got caught on a trade....or someone who has managed to make a profit and cannot hold or by nature trades...no problems in doing so....it's in the price now....When you are over market size anything can happen as you know.

I am not surprised at a bit of a pull back but this looks too much....and is a good entry point for new investors and I see some have started to take the plunge....IMHO

[pantsonfire] 05/5/2020 10:55

I would guess they are profit takers, Dave, having made 100%. I'm not complaining, but I see no reason to change the very sound expectation that this share will bring us a ten bagger, within a year, maybe sooner, with potentially more into the longer term. It's all there in the reports, in the assays, in the official papers, and with everything being signed off by competent persons, auditors, etc, I have confidence.

[dave4545] 05/5/2020 10:28

Am I seeing things here

Somebody has sold at 12.75p

[investorman33] 04/5/2020 21:41

Snowflake

If things go as I hope/expect with Red Star it may well be possible to finance the 30m usd to put project into production from bank debt finance (30m is pretty small thee days), so no dilution. But nothing is guaranteed at this stage.

Once Red Star is in production with real annual cash flow, financing the Empire oxide project (with its billion dollar value of metal in the ground)should be a lot easier. But until we see more of the project eg likely required investment, its impossible to guess how to finance it.

A few other possibilities including sale of the cobalt project to its neighbour or forward sale of some metals etc, which might also minimise or eliminate dilution.

But with the huge upside, quite possibly a 10 bagger or more, do you care if dilution makes this a 5 bagger (ie 50 % dilution - doubt if it would be as much as this) to you or an 8 bagger (less dilution) or 10 bagger (no dilution) ?

[pantsonfire] 04/5/2020 21:01

When we get company reports, or speak with Phoenix directors, they have never said anything except that they intend to finance the Red Star project as far as possible through debt, and that they are confident to achieve that, and up to 100% if possible. If you look at the results presented this morning I can imagine companies queuing at the door to finance a venture like Phoenix. I can understand why some people have concerns, but may I say that if you delay investing here, then you may miss the bus. Like the classical duck hunt, by the time the ducks are lined up in the cross hairs, they have flown on.