Phoenix Copper Share Discussion Threads

[bsg] 04/1/2024 09:05

I think they'll end up having a placing. They've got to keep getting paid after all.

[haveapunt1] 04/1/2024 08:43

Cromwwell- I am also a long term holder but reality is, it’s a sh1t show now. The board have left loyal holders second guessing, the loan facility is up in the air, no comms and as much as I hate to say it, the bonds are clearly not as straight forward as portrayed. The only positive (if you can call it that) is the II’s and Hughes don’t appear to be selling and it’s mainly PIs

That said, things are looking bleak without any contrary information from the board and with further silence and the closer we get to March the more the price will fall

I have emailed the company and suggest others do the same. They owe a responsibility to shareholders as a minimum to offer clarity on the non extension of the RF loan initial term

[cromw3ll] 04/1/2024 08:32

Always the sign to buy when the idiots come on and deramp, long term holders have nothing to say because we did all our work looking at the facts. I will be adding on dips, rude not to :-) DYOR

[bumpa33] 04/1/2024 08:08

brilliantly deduced.

[1big b] 04/1/2024 08:06

And you obviously have no shares so toddle off

[bumpa33] 04/1/2024 07:56

The company is running out of cash and clearly now running out of time, they have a £2m debt hanging over them to a provider who will have no compunction in trashing the share price in order to protect their position. They have no permits, no POO, no plans and as I’ve maintained for years, no commercially viable resource. They have continually missed any timeframes set. They are this morning still valued at £25m. You’d have to be insane to see value here at this current juncture? The positivity channels seem to have gone deafeningly quiet, for now…

[the_debt_collector] 04/1/2024 07:30

With BOD renumeration and other G&A expenses PXC are easily burning £120k a month, one suspects that $2m Riverfort loan has all but gone.

So not only are they indebted to Riverfort they are almost certainly short of cash and it seems very likely, in the absence of bond delivery, they will have to raise a further £1m+ to keep the lights on.

The share price cratered to 13p in October on worries of a placing, it could happen again.

The matter is getting very serious to say the least.

[retirementplan] 04/1/2024 05:06

mach100: it's soooooo not a scam. I bet they all say that! Oddly, I have the opposite view to you: subjectively concerned funding has taken so long; objectively I 'know' finance is coming. Time will tell - we are all likely to learn the truth shortly. BW. DYOR.

[mach100] 04/1/2024 00:08

The problem is the funding is increasingly becoming a spanish prisoner scam.
Subjectively it is easy to stay hanging on. Objectively though...

[retirementplan] 03/1/2024 20:08

I deal with uncertainty all day long. Common illness/injury patterns happen...wait for it...commonly. Uncommon problems are by definition uncommon. Unfortunately, there are a lot of uncommon conditions. So one just sees different uncommon conditions daily.

The obvious answer for PXC is that they will fail with their minimally dilutive funding. As that is what has happened to date. Until it is successful. Bit like DP's turkeys.

PXC is different (opinion!!). Why?
1. Jurisdiction (blah, blah - we all 'should' know this.
2. Brown field: Mackay is a mining town. The town needs the mine.
3. ESG is baked in. Not interested? Just look how many funds take money out of O&G despite O&G being essential for the lifestyle we enjoy/aspire to. You don't go get a Digbee A for lifestyle.
4. OXUS Gold was brought to production. Appropriated by the country. Directors lost a lot from my understanding. Some of them need to make good here (not the salary, but the exponential increase in wealth bringing an efficient mine to production). Appropriation in Idaho is not a risk.
5. The directors are different (opinion!): a) changing the terms for options when shareholders complained. b) pledge for minimal dilution (benefits all stakeholders, us & them). c) attempting, as someone here put it yesterday, to buy a 4 bedroom house as a first time buyer, with little down payment (the bonds). d) I believe (situational judgement and reading folk) that the BoDs are honest, and have given comment in good faith. From my communications with them, I don't feel hoodwinked. Reading between all the lines (including DP), I have the conviction that finance is genuinely close this time. Days/weeks.

Not going to go on, and not posting anymore, as it has all be said before. The share price is clearly under pressure, but, IMO, the storm will pass. Up to individuals to DYOR and make your own decisions.

[jbravo2] 03/1/2024 18:27

@RP
It is indeed an important observation, they certainly weren't hell bent on converting, and I reckon you're right in your observation that the options accounted for it.
They would have loved the company to have delivered the bonds and the share price to be 3 figures. Those options would pay handsomely.
Phoenix haven't delivered the bonds (to date) and so perhaps RF's opinion has changed.
Occam's razor?


Fantasy situation alert...
If Phoenix did deliver the bonds tomorrow, and the price accelerated to £1+ tomorrow, it would be an oversight of the BOD to then watch RF convert $2m at c.18p as they'd be able to do for 24hrs, just because the BOD felt "they don't need it"
:D
I don't suppose anyone here would mind too much through sheer relief, but :D

[retirementplan] 03/1/2024 18:14

jb2: good question re 8th Dec and the 2nd Jan, but no further extension of initial term RNS. No one has offered any reasonable explanation: 1. Didn't feel they needed to this time? or 2. Initial term has really lapsed?

Of course. RT had no obligation to extend the initial term twice - we were told this. If they were hell bent on driving share price down and converting, they could have in the Autumn anyway. This is just as important an observation as they might (or might not) be able to convert now.

[saucepan] 03/1/2024 18:13

Fwiw, this was when my own concerns started to escalate (as posted on 5th December)

Richard Wilkins (allegedly) quoted here on 24th October:

"...Ryan does not need money to start sourcing equipment for another 3 weeks or so, when the updated economic model (which looks good) will be ready. We are confident Ryan will have the funds when he needs them".

That does not sound to me as if everything is still on track.

We are five days into December. Therefore, the updated economic model should have been ready and published, and Ryan should have had the funds to start purchasing the equipment he needs.

There has still been no explanation, satisfactory or otherwise, as to why the updated economic model has not been published.

Ryan needed the money by mid November. He presumably has not been given it. So that suggests further slippage to any plan of operations.

In the meantime, the Company's financial position becomes weaker and weaker - possibly critically.

Fair enough: if the copper bond is secured, I'll have been wrong to lose faith and will be the first to admit it and congratulate those who judged differently.

[jbravo2] 03/1/2024 17:39

@haveapunt
So it seems to me you're suggesting they asked for an extension which in fact they could have just taken on the original terms i.e. it included conversion rights and therefore didn't need RNS'ing, just like today's extension. Only it was RNS'ed.
A baffling point of view IMO so we'll agree to disagree.

[jbravo2] 03/1/2024 17:35

@RP
Re "If PXC wanted another extension, I believe it would be granted (opinion)."
Can you explain why, in your opinion, they repeatedly asked for the previous extensions to the initial term but have now decided they don't need it?

[retirementplan] 03/1/2024 17:26

jb2: If PXC wanted another extension, I believe it would be granted (opinion). Neither you nor I really know whether it has been asked for or not, or issued or not. All rules can be bent a little. I work in A&E. One might believe, as a simple example, that it's straight forward to decide from a protocol who fulfils criteria for a head CT for trauma. Far from the truth. Likewise, exactly what event needs an RNS will be open to interpretation.

What we do know is that the BODs have stuck to that mantra of minimal dilution - this is a significant part of why I am here. The bond will close soon (opinion), and there won't be clarity on anything till it does (almost certainly fact).

So, when I bought into this early stage explores/pre-production mining company with potential huge rewards, it was done gradually. The last 1.5 years have allowed me to increase holding by 50% and reduce my average to keep in touch with the current share price for the same outlay by trading on spikes. My opinion is now is the time to hold. If finance lands, it's likely hold 'forever'. Each to his/her own.

[haveapunt1] 03/1/2024 17:02

@JB your missing the next para of your quote from the March 23 RNS re RF

“If the Facility is extended, the Lender will be entitled to convert any principal or other amount outstanding into the Company's ordinary shares ("Ordinary Shares"), in one or more tranches, at a price equal to a 10% discount to the lowest VWAP in the ten days prior to conversion.”

Thus IF the facility is extended ( ie over the The unsecured initial three month term (the "Initial Term), the Lender will be entitled to convert. IMO you have to read the paragraph in its entirety.

I do not read that as post the 23 March but granted it’s open to interpretation

Re your point sole discretion I think we are on the same page just at different angles

[boonboon] 03/1/2024 16:47

Well people who have trusted info from the board are currently significantly down on their investment.The board are losing trust with every missed date and have been doing so for over 2 year's.One way or another by the 23rd of March I expect we'll either have finance and be pushing £1 or be in single figures.I'm hoping for the former, but I know there's a realistic chance of the latter.

[jbravo2] 03/1/2024 16:44

@RP

You’re right both sentences were speculation. Especially the last one.
But the one before??
Do you think Phoenix didn’t want another extension?? You think they wanted to move to the conversion phase?

[jbravo2] 03/1/2024 16:41

@haveapunt

Re 9923

Eh?
What do you mean at the sole discretion of RF?

If Phoenix wanted to extend the loan (on the agreed terms) that was their sole decision. If Phoenix want to alter the agreement to extend the “initial term” ie alter the agreement, that is clearly the lender’s sole decision. As it has been in June and September and December.

[retirementplan] 03/1/2024 16:40

Your last 2 sentences are speculation. The warrants at 42p were agreed for a reason. PXC have had a loan from RT before. No death spiral ensued. The BODs and DP have stressed their excellent relationship with RT on several occasions. Selling today has clearly been some PIs that have lost confidence. Though it shouldn't, I bet that repeated negative posts (oh, repeated positive post will influence too) can influence the share price significantly on illiquid stocks. Enough of this nonsense now - market closed. Play nicely tomorrow.

[jbravo2] 03/1/2024 16:36

@haveapunt

Here’s the June extension. The first extension.

“Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLY), the AIM-quoted USA-focused base and precious metals emerging producer and exploration company refers to the short-term $2,000,000 loan facility announced on 24 March 2023 (the "Loan Facility"), and confirms that the initial three month term has been extended for a further three months (the "Extended Initial Term"), also at a fixed 4% coupon. The Company retains the option to extend the Loan Facility beyond the Extended Initial Term until 23 March 2024 on the same terms as previously announced.”

Quite clear to my mind it was an extension of the “initial term” which carried no conversion rights.

[saucepan] 03/1/2024 16:35

"self-confessed non shareholders who come on this BB for altruistic reasons".

Personally, I think that is unfair in respect of the interesting debate today.

In my own case I have simply made some bearish observations in order to clarify my own understanding of the situation, not to offer advice. I have learnt from the discussion.

[williamcooper104] 03/1/2024 16:34

Strictly speaking it's not clear, and you could read it either way Either way, the ever active board (on PR at least) ought to clarify and update on where they are with RFSuspect it's academic now

[haveapunt1] 03/1/2024 16:34

I would also be surprised if it was at the sole discretion of RF. In fact having experience of such loan agreements I would imagine it would be at the discretion of either party to extend to the March 24 expiry. If this isn’t the case the lawyers want shooting