Phoenix Copper Share Discussion Threads

[haveapunt1] 04/1/2024 14:16

retirementplan:-

the question we need answering is why didn't PXC extend. DP seems to be alluding that this is an issue of PXC making by that reply (rather than RF), as the simple thing would be to extend the loan for a small 1% per month interest. Its cloak and daggers again from PXC.

I have had a reply from RW which basically says they understand the frustration but will issue an RNS when it is appropriate - seems pretty appropriate now!

[haveapunt1] 04/1/2024 14:11

dougmachin - PXC could only extend whilst they were in the initial term. This expired 2 Jan 24.

11 Dec 23 RNS : "although the Loan Facility can be extended until 23 March 2024, whilst the Loan Facility remains within the Initial Term".

Also within the same RNS "the company confirms that the INITIAL TERM of the short-term $2,000,000 loan facility, first announced on 24 March 2023 (the "Loan Facility"), has been extended until 2 January 2024".

For 1% per month you would extend. Any existing loan you would keep running until the cash from the following loan (the bond) was in you bank account to pay the first one off.

I wont post anymore. time will tell

[retirementplan] 04/1/2024 14:09

I suspect a formal response to the RT extension question might be forthcoming. DP on Telegram now:

"Tzec,
You are not the first to ask this question. My understanding is, as it has always been, that Riverfort do not want to convert. They want to be paid interest and seen as good corporate citizens, not as harbingers of doom.
But given the number of people asking, it is appropriate that the company issue something that has more weight than "my understanding is". So we will work on that."

[dougmachin] 04/1/2024 13:59

There was a 3-month extension to the initial term on 23rd June.
Then the next extension was on 28th September, issued with the interims.
Which is after the 3-months. 23rd September would be the 3 months.
So, seems to be some leeway there...

Also, "At the Company's option, the Loan Facility may be extended to 22 March 2024".

So, either:
[1] PXC are about to extend again and RF aren't so concerned about this exact date, as PXC can extend up until the 22 March anyway.
[2] PXC have reached the point they don't need to extend, 'cos the bonds are getting signed........ (I hope).

There's no way that PXC are going to let RF convert, whilst they have control over it (so between now and 23rd March).

I believe that the BoD are doing absolutely everything to get the funding over the line. Whether they can is the (80) million dollar question.

The volume of sells that has knocked the share price down 50% in just a couple of weeks is pretty paltry. Which is why the share price will go into orbit if funding can be secured.

It's certainly getting "interesting".

[haveapunt1] 04/1/2024 13:57

And get no answers or reply. Yeah good one. Funny how posters like that post that stuff get never call themselves. As I said PXC had the ball in their court to extend the loan. They didn’t. Leaves only two sensible options, loan is being paid off / has been, or PXC have defaulted somehow and couldn’t legally extend. Only two viable options for me. The loan was due to be repaid on or before 22 November 23 unless extended. Extension 1, extension 2. No extension 3.

[sipptrader88] 04/1/2024 13:53

from an LSE post

".......Today, the BoD cannot announce anything as they are in a closed period. If you want reassurance, then call to a director........"

[williamcooper104] 04/1/2024 13:17

Anyways good look all It's been a good and helpful debate without descending into usual ramp/de-ramp rubbishHave been long out at c30p but can't get this of my watchlist It's clear that it's not clear if RF can convert or indeed if the company is in default or has paid of RF - all possible - very disappointing that the company is leaving its long suffering shareholders in the dark on this when they're all over announcing and pre-announcing good news

[williamcooper104] 04/1/2024 13:14

Option B really really shouldn't be something to seriously consider That's unless you've got extensive experience investing in UK investment trusts and AIM :) In which it's unlikely but not exactly remote

[williamcooper104] 04/1/2024 13:12

They've not been shy on holding back on good news in the past

[copper copper] 04/1/2024 13:12

I suppose the relationship with RF is so good that they have just let it go. And Ryan won't need the money for at least a few weeks ;)

[williamcooper104] 04/1/2024 13:10

Either way totally remiss not to RNS it You should not have to be guessing

[williamcooper104] 04/1/2024 13:05

You don't need Elliot's and bollengers to say that this is a good price if you think funding is right around the corner and an awful price if you don't

[haveapunt1] 04/1/2024 13:05

You cant 'hold back' if the bond is in place. that is withholding market sensitive information. the bond is therefore not in place, and the EM i doubt is completed given there are currently no funds to buy anything with, so until finance is in place the EM will continually change due to market volatility and inflation (as already stated by the company hence why they delayed in last year too).

For whatever reason the company has not extended the initial term and the loan facility has therefore ended, allowing RF to convert sums owed into shares. The question remains why did the Board allow this to happen, for a 1% a month interest rate!

option A - finance all bar done and in the process of paying the loan off with bond finance hence didn't extend

option B - the board have done their usual and thought finance would be in place so they let the RF loan lapse - and as if by magic, the finance has not happened and they are now having to try convince RF to continue the loan - school boy error if this is the case and heads should roll

option C - the company have defaulted some how enabling RF to pull the loan and deny an extension

either way its a total f00k up by the company and the board - a 1% a month loan extension in the companies hands is a no bl00dy brainer from a risk perspective! just extend it! they didnt.

[boonboon] 04/1/2024 13:03

If they've received the bond funds then they would need to rns that.

[klondykejohn] 04/1/2024 12:44

The bond facility may well be in place and the RF loan could also have been paid back by now. This then leaves the finalisation of the economic model which is also due.
It may well be all fitting into place, and the Board could be holding back on news until the model is completed, but who knows?

[haveapunt1] 04/1/2024 12:30

I also believe that the entire loan is now finished. it is clear that the loan facility can only be extended until 23 March 2024 WHILST THE LOAN REMAINS WITHIN THE INITIAL TERM"

"Although the Loan Facility can be extended until 23 March 2024, whilst the Loan Facility remains within the Initial Term"

The initial term ended on the 2nd January 2024.

Interims do state they have enough funds for corporate activities 'well into 2024'

[ptolemy] 04/1/2024 12:27

cu5hty

"if you subscribe to Technical Analysis, the chart is horrendous, essentially screaming sell"

I disagree. My interpretation is the chart shows an Elliott wave 5-wave move up Oct-Dec followed by a 3-wave move down indicating the primary price direction is up. It has retraced 76% - a deep but quite common Fibonacci retrace. Price is close to 18 which has provided support through 2022 and early 2003, and sitting on the lower Bollinger band.

It's quite straight forward from a TA perspective. This is a good entry point if you think the financing will materialise. If you don't think it will come, then the 3-wave abc will morph into a 5-wave pattern and break the October lows and you should be a seller.

[haveapunt1] 04/1/2024 12:21

Copper I agree but if you read 11 Dec 23 RNS:-

"Phoenix Copper Ltd (AIM: PXC, OTCQX ADR: PXCLY), the AIM-quoted USA-focused base and precious metals company confirms that the Initial Term of the short-term $2,000,000 loan facility, first announced on 24 March 2023 (the "Loan Facility"), has been extended until 2 January 2024."

The wording for me is clear to me " THAT THE INITIAL TERM OF THE SHORT TERM LOAN HAS BEEN EXTENDED".

This is further why the same RNS then states "whilst the Loan Facility remains within the Initial Term, the lender is not entitled to convert principal or other amounts into the Company's ordinary shares." (ie because they are still within the initial term).

However, i do agree as the RNS of 24 March states "The Company has the option to extend the Facility beyond the Initial Term for a further nine months". The RNS June 23, interims Sept 23, and the extensions Nov and Dec all extended this.

It is the wording in the last two RNSs in respect of RF not being able to convert as the facility remains in the initial term, that leads me to believe the initial term was extended, and by default the facility.

we are now in a position where the initial term and the facility itself has not been extended, and this is by the looks of it at the Company request (as the RNS says it is the company request to extend).

Not sure if anyone has heard or contacted the company to clarify

[copper copper] 04/1/2024 12:10

HP - surely you are confusing the 'Facility' with 'The Initial Term'. I know you've discussed this so let's not go over it, but the way I read it is that the company can extend the 'facility', not the 'initial term'.

[haveapunt1] 04/1/2024 11:51

The cynic in me thinks its being driven down for an inevitable conversion by Riverfort.

Given there has been no further extension it begs the question as to why. Do RF now want to call in the debt because they know the bonds are not happening?

Or are the bonds close to being settled and they have not granted the extension to enable them to quickly covert the loan into shares.....enabling a nice sell off on good news to make a few quid, and then they get double bubble when the warrants come into play.

If i was RF and i knew the settling of the bonds was very close, i would not allow the extension so i could bag a load of shares to sell when good news lands.

however i also struggle to see how this would make any sense given the agreement is that the initial term can be extended at the request of the company ("he Company has the option to extend the Facility beyond the Initial Term for a further nine months"), so i am not sure if RF would even have a say to deny the extension.

Alas, that leaves option 3 that the board are 'lining' RF pockets as a thank you prior to the close of the bonds. Speculation only of course.

[cu5hty] 04/1/2024 11:02

There's no getting away from it, if you subscribe to Technical Analysis, the chart is horrendous, essentially screaming sell!But how much value can you put on a wiggly line?I think we'll find out soon.

[sipptrader88] 04/1/2024 10:38

The dim light at the end of the tunnel (in my mind)......is the wee bit......that was stated by RW or Pd'G before (from memory).....that when the news can be released it will all become clear why it all had to be done like this......or words to that effect?

[williamcooper104] 04/1/2024 09:09

They will be if not yet out of cash then certainly on that trajectory Whether someone telling you that owns or doesn't own doesn't change the facts

[bsg] 04/1/2024 09:08

They will always be able to get it away. Large discount to market always works with a bit of forward selling so the mug punters end up with the confetti.

[williamcooper104] 04/1/2024 09:07

If they leave it too late they won't get it away