Phoenix Copper Share Discussion Threads

[kaos3] 04/9/2023 07:04

crucial to me in the RNS

---have identified two potential processes which merit further optimisation, namely flotation plus ATS and flotation plus sulphuric acid leach----

why .... it will take further time ... to get the money ..... probably

the fog has to clear up completely first i would assume

PS - thank you DP for acting professional - with an explanation prepared in advance for people like myself and posted it when needed - before theories even start to appear

[donald pond] 04/9/2023 07:03

Today’s RNS is a really significant one, so I’ll break it down step by step. There is a lot of technical stuff in there, so let's unpack it and explain why it is excellent news.

Historically, we were focused solely on the copper, but as we have explored the open pit further and got to better understand the geology, we’ve thought long and hard about whether we can recover the gold and silver at the same time. It’s obvious that would be transformational to the economics of the project.

So originally the plan was to truck or transport the ore to the processing facilities, where it would be heap leached – effectively, piled high on football pitch size pads and sprayed with sulphuric acid. That will help dissolve out the copper, which would then be recovered by a process called electro winnowing: using electricity to separate out the copper.

The very significant news announced today means that we will not be taking this route. Instead, we can process the ore in sealed tanks. This is hugely important. It means that the environmental risk is much reduced. Heap leach pads are big, open to the elements, and it can be tricky to monitor if the sulphuric acid is 100% contained. Also, the amount of acid you use is very variable, as temperature and precipitation vary considerably. A big rainstorm, or a few inches of snow can change the conditions significantly. So being able to proceed using sealed tanks is a huge improvement.

This gives lots of big advantages. Firstly, we will be using industry standard equipment. Although we can’t include this in the financial analysis, that means it is certainly possible that we might be able to acquire a decent proportion of the kit second hand. That would obviously change the financial analysis significantly. Secondly, the plant will be equally suited to processing the sulphides, when we get down to them. Thirdly, we are using an industry standard process, albeit in a new context and possibly using ATS rather than acid. That will make the job of the permitting authorities more straightforward. And finally, the amount of reagent we use, and in fact, all aspects of the processing facility, are much easier to monitor and improve.

We have 2 routes that are possible, using either ATS or sulphuric acid. At the moment, ATS looks the better route from a purely commercial perspective, and it also has environmental advantages. But remember, during optimisation we expect the recoveries to improve, perhaps by something in the 5-10% region (though that is my speculation rather than anything official), and all of that will drop through to the bottom line. This is again very good news. It might tilt the balance between using ATS and acid, we just don’t know at the moment.

Also significant is the suggestion that we may be able to site the processing facilities adjacent to the pit. This is a result of the hugely reduced footprint that comes as a result of using sealed tanks rather than heap leaching. If we could do this, it would make a massive difference to the project. Instead of either trucking or moving ore by aerial tramway, we would be able to simply crush it next to the pit and process it there and then. The savings in terms of time, diesel, and also the general robustness of the project, would be material. Idaho has proper winters, and while mines can process ore in all weather (I’ve been to Kittila in Finland, and they manage fine in the Arctic circle), if we can have all the facilities indoor, next to the mine, that will make life much easier. No trucks needing to tiptoe their way down icy roads carrying tens of tonnes of ore would be a great benefit. We have to wait to see if this is possible, but the signs look good.

Also, if we can go down this route, we would be able to situate virtually everything on private land. It may be that the tailings go onto non-permitted land, but that is all. One of the authorities main concerns is to ensure that there is no pollution coming onto public land as a result of mining activities. By using sealed tank processing on private land (as opposed to heap leaching on public land) we will have gone a long way to meeting those concerns.

The overall effect of this is transformational. We need to finalise optimisation, but we are looking at a project with a much improved economic and environmental profile. From a regulatory perspective, the project looks much more straightforward. And we can start work on private land in advance of the permit being issued, provided of course we are confident (as we are) that the permit will be issued in due course.

So this is a fantastic RNS. The project has been improved in many material ways, from an environmental, economic and operational perspective. It also paves the way to many future improvements, through both initial optimisation, opening the door to potential cost savings through acquiring second hand kit, and in operational improvements as we will be able to vary the grind, temperature, chemical concentration, degree of agitation etc. Exciting times indeed!

[stefan178] 02/9/2023 12:05

The Greeks were quite clever look up the Antikythera mechanism. But as to metallurgy I believe they had a process for hardening bronze that is hard to equal today.

[meanreverter] 02/9/2023 10:03

“Right now, reasonable financing would be better than optimal financing.” The present problem is getting any financing at all — short of usurious death-spiral financing. The entire junior natural-resources sector is bombed out, with equity prices a half or a quarter of what they were a year ago. Scared of their investors' rage should they dilute heavily at the bottom of the bear market, companies are desperate for the consideration of debt financiers.

Seldom has it been such a good time for companies in mining debt finance. The equity of low-risk producers, just a bit short of capital, can be picked up for a song. As for high-quality unpermitted developers (like PXC), the opportunities for massive returns must be making the financiers' mouths drool. But the money men are in no hurry — nor need they be.

If this looks like a bleak scenario for PXC, well ... it is — but it's not all that bad. The solution is to wait it out, until actual supply deficits drive metal prices higher. That will stimulate a new upward phase in equity prices and convince the financiers that the time has come to start making reasonable offers. Remember that “bankers only lend a man an umbrella when it is a fine day”.

[bradshaw980] 02/9/2023 09:59

How were the ancient Greeks on metallurgy and economic recoveries bro?

[kaos3] 02/9/2023 05:22

greeks had two words for the time, represented by 2 different gods

1. chronos .... time as chronology, time measured in units one after another /long term viability/
2. kairos ... time as the timing of the right moment /opportunity/ for a certain action /buy sell/

both existed for a reason. equally important.

similar to investing I suppose. and hence I agree with RetiremenPlan. I acted

not respecting kairos would bring his wrath and cost me
similar with chronos - denying long term vialbility would be a huge mistake and would cost me as well

[retirementplan] 01/9/2023 22:15

Honestly Juju et al (yep, you know who you all are), maybe 'investing' in PXC ain't for you. Why linger where there is no hope? Sell up and enjoy your life. Have a good weekend all.

[donald pond] 01/9/2023 20:03

My role here isn't to identify short term trades but explain the company and the opportunity. When there is no news around there is little to say, but we will get the metallurgy results very shortly and then I will be here to explain the implications.Everyone at the company knows they will be judged on what they achieve. That's where the focus is

[juju44] 01/9/2023 19:23

Agree this has become a real dog . Never was good with all the waffle and delays. I doubt that they will ever mine anything

[arab3] 01/9/2023 19:09

you should have followed our Investor Relations guy and traded ASC , he does tip a lot of other shares on another bb but is very quiet on this lot , strange or what ?

[soulsauce] 01/9/2023 17:59

Me too deuchar, luckily I don't hold what I used to. Credibilty completely shot.

[deuchar] 01/9/2023 17:47

aeu fully understand your frustration

[aeu97137] 01/9/2023 16:14

The board is rapidly losing its credibility and what's left of it's shareholder goodwill.

They need to blow the doors off with the metallurgy work RNS otherwise we'll have pi$$ed away most of the year for minimal benefit.

As far as financing goes, i'm sick and tired of the can kicking and constant BS about delays for plan A. The board are clearly being taken for a ride, need to create some certainty and get plan B/C financing signed up. Right now, reasonable financing would be better than optimal financing IMO.

Needless to say I will be significantly reducing my position if it ever reaches break even, there's a high possibility the board will die of old age before this ever becomes a mine.

[observer007] 01/9/2023 15:11

Well at least they are not buying Rambler as some had speculated, project that already had $250m spent on it has been bought for around £30m paid in cash/shares.

[kaos3] 01/9/2023 09:59

i acted according to this chart



as ...soon.... is being redifined by PXC , reasonably so, regarding circumstances

[juju44] 01/9/2023 08:57

Just another commitment down the toilet

[orhlsw7] 01/9/2023 08:46

You're hilarious

[hubs] 31/8/2023 11:24

Crikey! You've got yourself quite a job here Donald!

[donald pond] 31/8/2023 08:58

I can't say when the next RNS is going to be released, obviously. Just a little bit more patience please.

[puzzler2] 31/8/2023 08:46

To clarify, I can't find an RNS saying that the Board would update the market by the end of August - this was a comment made by DP some weeks ago, now amended to say that there will be no market update in August. As DP has started this ball rolling, perhaps he could give an indication as to when the next update can be expected?

[arab3] 31/8/2023 08:42

Does that mean you are not being paid this month DP ?

[bradshaw980] 31/8/2023 08:07

Why did you say results in August then ROFLMFAO

[donald pond] 31/8/2023 07:43

There is little point releasing news in the end days of August. Anyone with any experience of investor relations would say the same.

[sos100] 31/8/2023 07:18

Bradshaw -so your now a shareholder?