Phoenix Copper Share Discussion Threads

[williamcooper104] 23/6/2023 16:21

Yep - 18 months on the bond means it's unlikely to get done especially in this credit environment If it's not done by September and the $2m converts then surely time to give up and just raise equity Else the death spiral will death spiral; it's just a slow bleed out death

[donald pond] 23/6/2023 16:06

We have to repay in 3 months in order to avoid dilution. The initial loan has been rolled over. It's not complex or sinister. But money needs to be raised by September. Nobody is denying that

[jbravo2] 23/6/2023 13:29

Oh dear gs.
You’ve obviously never seen it in action. That’s how it starts but once in place questions are always asked about where the next tranche of money is coming from. It’s hard to break the cycle and get back to more conventional funding.
And by it’s nature it gets converted at ever cheaper prices meaning more and more shares.
Of course it’ll also have the massive effect that it’ll show the mine opening without dilution was always a fallacy.

[greyingsurfer] 23/6/2023 13:23

JB

Yes, my misreading. You are correct. However, I'm not sure issuing around 7% new equity to them, in the worst case, counts as a death spiral conversion! It certainly puts the pressure on PXC to progress with options A, B or C in the interim though.

[kop202] 23/6/2023 12:54

Ooh... I already feel that I'm turning into a turkey... ready for stuffing

[jbravo2] 23/6/2023 12:40

“It's not just 3, it's extendible up to 9 on the same terms.”

The same terms as detailed before, yes.

Absolutely NOT the same terms as the 3 month extension.
The 9 month extension involves “death spiral” conversion.

[arab3] 23/6/2023 12:22

For a paid PR man you don't seem to know what is going on DP

[greyingsurfer] 23/6/2023 11:06

3 months is nothing... Was that all they wanted or all they could get?

It's not just 3, it's extendible up to 9 on the same terms.

[juju44] 23/6/2023 10:39

They are not hacking it . Boo delivering

[boonboon] 23/6/2023 10:15

It's been close for 18 months or so.

[kop202] 23/6/2023 10:02

Surely the bond agreement must be close..... 3 months is nothing... Was that all they wanted or all they could get?

[mufprat] 23/6/2023 10:02

Yep, Turkeys (PIs) voting for Christmas about sums it up.

[kop202] 23/6/2023 09:59

Nice analogy....

[williamcooper104] 23/6/2023 09:40

Yep - so about 17 percent

[donald pond] 23/6/2023 09:33

The company needs long term financing. That is understood and what the board have been working on for a year. Those saying it won't happen have been right so far. But the Turkey thinks the farmer is his friend who comes to feed him every morning, and he is right every day until he isn't. Just because something hasn't happened yet doesn't mean it won't.But yes, that's the bet here: can funding be achieved and on what terms.

[jbravo2] 23/6/2023 09:03

The extension is a fabulous deal.
3 months @ 4%. What’s not to love?
It’s always been the conversion death spiralling that is the problem. That problem still remains.
I don’t follow this very closely… has it been confirmed the full 2m has been drawn?

Edit: oh hang on… it’s 4% for 3 months. Not annualised. Ok it’s not fabulous. It’s just average at best but it puts off disaster

[soulsauce] 23/6/2023 08:56

The voice of reason again Mufprat.

[donald pond] 23/6/2023 08:34

There is little I can say about the bond. It has taken longer than initially hoped. You can interpret that as meaning it will never happen or that it is about to happen. The company has been involved in very lengthy discussions with a number of extremely serious people who get no benefit from wasting their own time. And we know there is no point saying anything now about our expectations as you cannot answer scepticism with words. Only actions will do.

[greyingsurfer] 23/6/2023 08:31

It shows the board recognises the possibility funds will be needed for some time, and they've taken the sensible step of negotiating a potential extension of up to 9 months. Given it's on the same conditions for the next 9 as for the last 3 it would have been foolish not to. That's not the same as showing "there's no likelihood of that happening any time soon"

[retirementplan] 23/6/2023 07:56

I have a different view. I believe the BODs have kept to their 'no/minimal dilution' policy and are close to completing a highly complex bit of work.

[deuchar] 23/6/2023 07:54

Mufprat you have a point doesn’t look good

[mufprat] 23/6/2023 07:39

Can't say a conversion worried me at all, what does, is the BoD's continuing failure to secure the Bond. The option to extend until Mar 2024 appears as a tacit acceptation that there's no likelihood of that happening any time soon either. At what point do they decide this isn't going to happen and just do the usual equity raise? Or a least find a partner who actually has some money?

[donald pond] 23/6/2023 07:31

Well, Riverfort conversion worries out of the way for at least 3 months

[kop202] 22/6/2023 16:49

What are the odds on Phoenix being bought up any way? .... Most miners this size never get to the production phase. ...... If the investment case becomes compelling

[juju44] 22/6/2023 14:04

All too late . Dithering