Phoenix Copper Share Discussion Threads

[rainyrain] 15/5/2024 18:42

Funny innit and perhaps rather "conditional" that nobody has any idea whatsoever how many tonnes of copper Pheonix copper will produce per annum!

[boonboon] 15/5/2024 18:42

I've been a massive sceptic over the last couple of years, but happy to see they've finally got the deal over the line.Better late than never.I would think by the end of it all we'll be at 100% dilution from where we were when they first started talking about bonds and minimal dilution. It's not the end of the world, but let's hope they can now deliver everything to a decent timescale and we stop having all these delays. Delays once we have the bond money means expensive interest costs. Let's assume 250m shares in issue when in production and a $1 billion dollar company which they've always said is the goal then that's £3.15 a share so hopefully plenty of upside to come over the next few years.

[kooba] 15/5/2024 18:33

Is there any detail on up to date development costs of or timelines to production now there is conditional funding in place , having looked through todays rns's I can't see such details, apart from that PFS is still nearing completion.i presume the investor has been given far more detailed information than shareholders have been given to be able to make an investment decision.

[bumpa33] 15/5/2024 18:32

Haven’t the board always said that the financing was going to be innovative and non-dilutive?

They got the first part right at least…

[jbravo2] 15/5/2024 18:28

That’s the million dollar question kooba.
I suspect you’ll be kept in the dark on the conditions.

[kooba] 15/5/2024 18:27

Investorman33That is what I am asking is it conditional on shareholder approval to issue the shares or are there other conditions..I thought that was a straightforward question. Where can I view the conditions ?

[jbravo2] 15/5/2024 18:25

If you read my posts I’ve been quite clear. This bond is about getting to production.
Total share count when reaching production is what will count.

Not if they’ve given 56m shares via a non-convertible bond or 56m shares via a convertible bond. It’s the number that matters not how you describe it.
Same as what matters is if the management take 40m shares during that time as a bonus, or a wage.

Production brings a 67.8% dilution as the plans currently stand it would seem.

[sji2671] 15/5/2024 18:19

You are using existing outstanding warrants, board options and rolling them in to this as the dilution figure, which is incorrect,

[investorman33] 15/5/2024 18:16

Kooba

There's a price to pay for getting $80m bonds - which is more than double PXC current market cap !

Sure, everyone would prefer less dilution, but its not horrendous, and unlike traditional bank financing there is no requirement to hedge the metals (which in today's market might mean selling copper at $3.60/lb etc.

The 'conditions' refer to the fact that PXC had authority to issue 'X' shares given by shareholders at last AGM, but need to issue 'Y' shares to complete the bond deal - so at the AGM just called for 29 May there will be a resolution to permit BoD to issue more shares so it can complete the bond issue.

[juju44] 15/5/2024 18:14

So what price tomorrow

[jbravo2] 15/5/2024 18:10

You struggling investorman?
:D

[jbravo2] 15/5/2024 18:08

According to donald PXC is “likely to get into production with around 250m shares”

Presumably from existing options/warrants etc as well as the deal announced today.

Existing shares = 149m

I then used mental maths. It’s roughly 2/3.
I’ve now checked it on a calculator, it’s 67.8%

[investorman33] 15/5/2024 18:06

Sjthuk

66% probably due to pressing wrong button on calculator !

[sithuk] 15/5/2024 18:01

Jb: how have you (or DP?) calculated 66% dilution?

[kooba] 15/5/2024 17:55

"NIU Invest SE is wholly owned by Mr Cevdet Caner, an Austrian entrepreneur."He's a colourful fellow!Hardly avoiding dilution! But a price to pay for getting that kind of funding..so an understandable ask from the investor. Do they get the initial share issue for just the initial $5m? "Subject to certain conditions being met" ..what conditions not yet met ? Is it nothing material and just subject to shareholder approval to issue all those shares at the short notice AGM, or conditional on permitting or PFS ? Its headed "conditional" subscription would be good to know what it relates to.

[leedslad001] 15/5/2024 17:36

Great deal and remember empire is just the start

[donald pond] 15/5/2024 17:35

The investor ends up with 25% of the company.

[jbravo2] 15/5/2024 17:30

It’s not 25% dilution
It’s 37% on current share count but with full expected dilution it’s 66% as disclosed by donald on another thread.

[investorman33] 15/5/2024 17:26

Now who were all those posters who said PXC could never raise bonds ?

Especially without a feasibility study - and several posters said a full bankable study required too !

Delighted to see those posters were wrong ...... and we do have 80m bonds raised.

A lot of junior miners would kill for a deal like this !

[investorman33] 15/5/2024 17:21

Great deal, even at 25% dilution ( and NO broker fees and NO hedging to sell copper production at low prices eg $3.60/lb as would be found with traditional mining finance provided by banks). I#ll enjoy 75%, no problem at all

Well done BoD.

[investorman33] 15/5/2024 17:16

BSG

The interest is escrowed into a bank account for the next year out of the bond raise (per RNS). The bond money is expected to pay capex and opex into production - but if there is any need for extra money once they have the 80m secured (as PXC has) then believe me its easy enough to place another 5m/10m/20m bonds no problem at all especially with copper at current prices = fantastic yield) and other finance houses would also be delighted to offer terms. The key investor at 80m took time to close, follow on investors are pretty easy !

[juju44] 15/5/2024 17:13

Lousy deal but much better than no deal

[jbravo2] 15/5/2024 17:12

Hmmmm
37%?