Phoenix Copper Share Discussion Threads

[jasperthemonkeygod] 15/5/2024 23:30

An extremely good environmental rating, and a very likely permit, local town supports it, Idaho the land of the free and epic breakfasts?

[investorman33] 15/5/2024 23:29

Jasper

I'm guessing that's a fair estimate but have not seen the PFS. Will depend on mine life etc

[goldrush] 15/5/2024 23:26

I say well done....eventually.

[jasperthemonkeygod] 15/5/2024 23:25

It's $100 mill turnover per year, right?

[investorman33] 15/5/2024 23:24

Retirement plan

Its more likely to pay off Riverfort asap as its 15% interest rate is higher than the bond interest rate. So no conversion

[jasperthemonkeygod] 15/5/2024 23:23

That's what I thought too

Don't particularly care about the small print, but doubtless advfn's great and good will

[investorman33] 15/5/2024 23:21

Jasper

Yes. The plan is to get the mine up and running and producing $'s in the next year or so.

[retirementplan] 15/5/2024 23:20

PXC are highly unlikely to borrow more from RF. The initial drawdown (old loan plus accrued interest) will likely be converted at 20p. However, the facility is there.

[investorman33] 15/5/2024 23:19

tim000

The lender has assessed the risks of the project and agreed to lend $80m on the terms he has - and those terms do NOT require any further equity raise.

[jasperthemonkeygod] 15/5/2024 23:17

Forgive me for being naive but are they not going to use this cash injection to get the mine working, up and running in the next couple of years or so?

[investorman33] 15/5/2024 23:11

Bazboa

PXC only pay 20% interest when copper prices hit £11.30/lb - its only just over US$5/lb for the first time now.

And even to pay 15% interest copper prices need to be over $8/lb

So its pretty unlikely the bond interest will get anywhere close to 15% or 20% any time soon.

And even 12% interest rates looks a big stretch as it requires $6 copper versus the copper prices reaching $5/lb for the first time ever.

And once PXC have the first 80m financing its a lot easier to get follow on finance from other financiers - or issue more bonds (but its not expected this will be necessary).

[retirementplan] 15/5/2024 23:10

Cu(lb) Int
$3.60 8.50%
$3.70 8.65%
$3.80 8.80%
$3.90 8.95%
$4.00 9.10%
$4.10 9.25%
$4.20 9.40%
$4.30 9.55%
$4.40 9.70%
$4.50 9.85%
$4.60 10.00%
$4.70 10.15%
$4.80 10.30%
$4.90 10.45%
$5.00 10.60%
$5.10 10.75%
$5.20 10.90%
$5.30 11.05%
$5.40 11.20%
$5.50 11.35%
$5.60 11.50%
$5.70 11.65%
$5.80 11.80%
$5.90 11.95%
$6.00 12.10%
$6.10 12.25%
$6.20 12.40%
$6.30 12.55%
$6.40 12.70%
$6.50 12.85%
$6.60 13.00%
$6.70 13.15%
$6.80 13.30%
$6.90 13.45%
$7.00 13.60%
$7.10 13.75%
$7.20 13.90%
$7.30 14.05%
$7.40 14.20%
$7.50 14.35%
$7.60 14.50%
$7.70 14.65%
$7.80 14.80%
$7.90 14.95%
$8.00 15.10%
$8.10 15.25%
$8.20 15.40%
$8.30 15.55%
$8.40 15.70%
$8.50 15.85%
$8.60 16.00%
$8.70 16.15%
$8.80 16.30%
$8.90 16.45%
$9.00 16.60%
$9.10 16.75%
$9.20 16.90%
$9.30 17.05%
$9.40 17.20%
$9.50 17.35%
$9.60 17.50%
$9.70 17.65%
$9.80 17.80%
$9.90 17.95%
$10.00 18.10%
$10.10 18.25%
$10.20 18.40%
$10.30 18.55%
$10.40 18.70%
$10.50 18.85%
$10.60 19.00%
$10.70 19.15%
$10.80 19.30%
$10.90 19.45%
$11.00 19.60%
$11.10 19.75%
$11.20 19.90%
$11.30 20.00%

[tim000] 15/5/2024 22:58

Worth pointing out that 100% LTVs are rare obviously. Lenders normally require the borrower to self-finance a significant proportion of a risky project, which any mine is. Obviously that’s to reduce the likelihood of default. It’s not entirely clear whether PXC will raise any equity contribution, if they don’t then risk to the lender is increased and they will have negotiated a commensurate reward in terms of the interest rate charged and security over the assets (which is total I believe).

[jbravo2] 15/5/2024 22:56

“The copper price would have to hit $8/lb for the bonds to pay 15% interest -copper just going above US$5/lb now for the first time ever.”

That’s good if it’s right. Source please?
What’s the interest at $5/lb?

[investorman33] 15/5/2024 22:54

JBravo

The copper price would have to hit $8/lb for the bonds to pay 15% interest -copper just going above US$5/lb now for the first time ever.

So this Riverfort loan at 15% will be paid off before it converts. And if PXC needs more than the $80m bond (not forecaast), Riverfort (in a new facility without conversion) and other lenders will be happy to lend more $'s to a well financed PXC .

[tim000] 15/5/2024 22:42

If PXC pay interest twice yearly by borrowing from Riverfort, then by and large they’re wrapping up the interest and capital to repay at a later date - just that it involves an intermediary. Unless Riverfort’s loan is convertible of course, then it’s equity finance.

[paulscb] 15/5/2024 22:36

“ NIU Invest SE is wholly owned by Mr Cevdet Caner, an Austrian entrepreneur”




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Simultaneous raids in Germany, Austria, the Netherlands, Monaco, Portugal, Luxembourg and the UK involved 21 offices, one law firm and other properties including those of Cevdet Caner, an Austrian property magnate who lives in Monaco.

[boonboon] 15/5/2024 22:36

Once PXC have received $25m from the bonds they can access a further $8m from Riverfort if required.

[bazboa] 15/5/2024 22:19

Hence my question, how will the company pay interest when it's not earning anything. Assuming I takes a year to come online then all of the bond will be drawn down meaning PXC will owe interest on the full amount. I'm also not sure how they work out the higher price of interest and the copper price? So worst case scenario PXC could be paying 20% interest on the full bond and not be earning anything. The Bonds will pay a floating rate coupon subject to a minimum of 8.5% per annum and a maximum of 20% per annum. The coupon is calculated as to the higher of a copper price coupon linked to the copper price on the London Metal Exchange, or an interest rate coupon linked to the US Federal Discount Rate.

[tim000] 15/5/2024 22:14

I had assumed it would be wrapped up with the capital, but maybe I’m wrong. Donald can perhaps provide an answer. If it isn’t wrapped up, then it’s a good question how it will be financed - presumably by equity issues.

[tim000] 15/5/2024 22:11

HZM told its investors how much it needed to borrow and gave precise estimates of when its mine would be in production. It turned out that its paper financial and engineering models weren’t 100% accurate. No one knows whether PXC’s models will be accurate or not, it’s a leap of faith. Enormous upside and only 100% downside. But no one knows which will happen.

[kooba] 15/5/2024 22:06

"The coupon is payable semi-annually on 30 June and 31 December and will be payable on the principal value of Bonds drawn down. The coupons payable on 31 December 2024 and 30 June 2025 will be escrowed at 8.5% with the Escrow Agent, pending payment."Where does it say interest is rolled up into capital%?? This says bi annual coupon payable.

[kooba] 15/5/2024 22:03

But if the funds are drawn to then be held in escrow are we paying interest on those funds as they sit in escrow..I guess so.The company cannot use the $80m in full it appears...so hopefully the cost comes in below that amount and doesn't take too long to get into free cashflow to meet this interest bill.DP if everything is worked out when will they start producing and bringing in revenue...the year and quarter estimate would be fine. Is it dependent on permissions and permitting.

[tim000] 15/5/2024 21:57

The interest will be added to the capital and not repaid until 2029 onwards, when the mine is in production and the bonds are redeemed. In the meantime, the annual interest liability itself accumulates interest.

[kooba] 15/5/2024 21:56

"The coupons payable on 31 December 2024 and 30 June 2025 will be escrowed at 8.5% with the Escrow Agent, pending payment."Surely this means the company does not get the full loan amount as funds are held back in escrow to cover interest?