Phoenix Copper Share Discussion Threads

[rainyrain] 16/5/2024 18:53

Where and when has it worked before fella? You don't like that question do you Pondy?

[donald pond] 16/5/2024 17:43

We will be recovering the metals using flotation followed by tank leaching. We haven't announced the precise leaching chemistry but are confident it will work. You really don't need to know all the details. We have focused on the best way of producing the metals and will announce all in due course.

[london07] 16/5/2024 15:53

Inpatient will sell out and smart investors will load up knowing what's to come.

A single private equity firm has just lent $80m to PXC having done all the due deligence, and showed all the conviction anyone wanted.

I reckon there are a few surprises on the way before the AGM. 8 trading days to go.

[kooba] 16/5/2024 15:36

Yeah right..wrong on both counts.Keep up the excellent work cu5nty.

[rainyrain] 16/5/2024 14:59

DP you mentioned nothing about producing mines using ammonium thiosulphate successfully, kiddo.

This is from the fantastic www.911metallurgist.com

Summary and Conclusions

Although thiosulfate leaching of gold and silver has been known for over a century, recent studies have demonstrated the complexity of this system and the lack of understanding of the fundamental dissolution mechanisms. Preliminary results obtained in this study utilizing the rotating disk technique, have also confirmed the earlier conclusions: the catalytic action of copper ions, the necessity of maintaining thiosulfate and soluble copper above a certain molar ratio, and the lack of gold dissolution in the absence of free ammonia. The decrease in gold dissolution rate at high thiosulfate concentrations can be attributed to the rapid reduction of cupric ions to cuprous, similarly, reduction in dissolution rates at high ammonia concentrations (i.e. 4.0 M) may be due to reduced cupric ion activity through complexation.

Ore leaching experiments have also demonstrated the need for closely monitoring the reagent concentrations and the leaching times. Although the initial tests conducted with an oxidized copper ore yielded encouraging recoveries for gold and silver, longer leaching tests showed that solubilized values may reprecipitate in-situ and be lost to the tailings. Furthermore, routine analytical techniques were not readily applicable because of interferences and the degradation of the thiosulfate solutions. These aspects of thiosulfate leaching may hinder the potential for large-scale applications of this reagent.

Acknowledgements
This investigation has been supported by the Department of The Interior’s mineral institute program administrated by the Bureau of Mines under allotment grant number G1114135. We would also like to thank the Lordsburg Mining Company for providing the ore samples for this study.

[donald pond] 16/5/2024 14:53

RainIf you don't read my posts there is no point me answering your questions

[kooba] 16/5/2024 14:50

"pompous and ignorant" hey ..wow ...too much projection going on there for me guys . Good luck and if you have answers to any questions , do please reply. If not maybe you should ask questions yourselves or shush and not expose your lack of knowledge. Chin chin

[qazwsxedc69] 16/5/2024 14:45

@WarmNorm. I'd add that he manages to use more words than any other poster, yet still say the least.

Or as Disraeli said he is "inebriated with the exuberance of his own verbosity"

[rainyrain] 16/5/2024 14:39

Hi DP. Can you name a mine that has successfully utilised ammonium thiosulphate leaching followed by flotation? Is this a "world first" or a common approach?

[warm norm] 16/5/2024 14:36

There's your answer kooba. Amused how you manage to be both pompous and ignorant in your postings. As for juju, how can you still show your face on this bulleting board after all the unsubstantiated slander you have written? If you ever set foot in Idaho you will be tarred and feathered. Well done to the board for getting this over the line. Not a few of you trolls owe them an apology. Hope the hats taste good.

[kooba] 16/5/2024 14:35

How is the company going to be fully transparent and answer any questions at the AGM as you said would be the case without any PFS to discuss or even an economic analysis. The purchasing of further plant has not been given as a reason to expect greater delays even with the results, why was this not set out by the company officially ..when did this change??Who outside of the company has had sight of what now appears a completed PFS bar the line on plant and machinery costs?Does the PFS contain an anticipated first production date..there must be a ball park assumption for the debt interest funding calculations to stack up. Or is any development timing and production still uncertain until permitting is approved?Unfortunately there remains some key questions which remain important in evaluating the current value of the shares. We sort of have half the story ..which is better than it was as the apparent certainty of funding is now ticked off...now it's looking at affording the debt before production cash flows , and what those cash flows look like in production ramp up.

[kooba] 16/5/2024 14:19

"His background is as an entrepreneur, which is why he is willing to invest in the Empire project without having a bankable feasibility study"I guess this is his first outing in the wonderful world of mining finance ,not sure who is advising him ! Judging by the listed companies he is involved with he might do well for himself but his shareholders don't as big risks with big leverage were made which has seen the value of his connected property businesses plummet. Now he moves into mining...think it could make property look a like a doddle.

[donald pond] 16/5/2024 13:22

This was in the Annual Report and got overlooked in the bond excitement:
In 2022, 3,502 feet (1,067 metres) of core was drilled in the oxide portion of the Empire copper deposit for the purpose of collecting representative samples of the copper, gold, and silver mineralization within the boundaries of the resource pit. Initially, the metallurgical work was intended to further develop a commercial leaching design using only ammonium thiosulfate ("ATS") as the primary reagent for recovering copper, gold and silver. Following the initial test work, our metallurgists determined that adding a flotation step upstream of the leaching circuit and generating a saleable concentrate stream containing all three of the metals would provide an immediate revenue stream, reduce the quantity of ore feeding the downstream leaching circuit, and therefore reduce the total quantity of leaching reagent used. The reduction in reagent usage equates to lower overall processing costs. The flotation-leaching circuit has a much smaller footprint than a classic heap leach, allowing for the processing plant to be sited on the Group's patented (private) mining claims nearer the open pit. The proximity of the plant to the open pit will reduce overall operating costs by reducing the ore haulage distance. The improved haulage cycle-time gained from the shortened haulage distance also allows for the use of smaller, less expensive haul trucks.

In addition to the cost benefits of a smaller footprint plant sited on private land, the flotation-leaching circuit will be capable of processing sulphide material currently being explored elsewhere on the Empire property. From an environmental permitting standpoint, siting the processing plant on private land should help to simplify the overall permitting process.

[donald pond] 16/5/2024 13:01

Since Phoenix Copper announced that it has received subscriptions for $80m of copper-linked bonds, I have had a large number of investors contact me asking for further background information. I’ve attempted to identify the most common questions and to answer them as follow:

1) How much do you know about the investor?

The board have been speaking to the bond investor over a period of 18 months. His background is as an entrepreneur, which is why he is willing to invest in the Empire project without having a bankable feasibility study. He sees the opportunity and wants to be a strategic, long term investor in Phoenix, and to help the company achieve a substantially higher market cap.

The company can also confirm that all compliance, anti-money laundering and client due diligence checks that are required by regulation imposed on multiple entities have been completed. The London market is among the most heavily regulated in the world, and the investor has met all of the requirements.

Some investors have found one or two “colourfulR21; stories about the investor. He is an extremely successful entrepreneur who has passed all compliance checks and has contractually agreed to provide Phoenix with $80m of funding. We believe having the support of someone who is willing to make decisions and back his judgment is of great value to the company.

The board are confident that the investor is aligned with the company’s goals and are delighted to have secured the financing that will enable the Empire mine to be brought into production.

2) What is the position of Exgen?

Exgen own 20% of Konnex, the holding company of the Empire site. Phoenix own the remaining 80%. Under the terms of an agreement between the parties, each is required to fund the development of the mine in proportion to their shareholding.

There are certain formalities that need to be completed before a “call” can be made on Exgen to provide their share of the funding. Phoenix is working on the assumption that Exgen will provide their share of the funding, but if they cannot, there is a mechanism for their share to be diluted to reflect the relative contributions made to Konnex.

Importantly, the $80m that has been raised has been judged to be sufficient to bring the mine into production, and includes both a contingency and an allowance for making interest payments on the bonds.

3) When will we get an economic study for the mine?

Following the AGM, and the first drawdown of bonds, the company expects to purchase a number of key items of equipment. It is anticipated that these, the majority of which have been identified within a reasonable distance of the mine, will be bought at a significant discount to the as new price. In the Annual Report we mentioned the laboratory equipment, ball mills and disk filtration circuit for filtration and dewatering of process tails that have already been acquired. These key purchases were all made at a fraction of the new price.

When drafting a PFS, the regulations demand that equipment to be acquired is priced at cost price plus 25% contingency. As we will only be producing one PFS, it is important that it accurately reflects the actual costs of the project.

The Annual report set out the assumption that the cost of mining would be a little under $21 per tonne, and last week we published our first reserves statement. These are the result of extensive work carried out by the company and are key pieces of information that will form a key part of the process to calculate the economics of the Empire open pit.

4) How will we pay interest on the bonds?

Interest on the bonds will eventually be paid from the production from the mine. In the period before production, the company will hold back a portion of the funds advanced and place them in an escrow account. It is important to highlight once again that the company is confident that it will be able to bring the mine into production and to service the coupon payable under the bonds from the $80m subscription.

Interest is payable at a rate that is the higher of either 8.5% or the amount, on a sliding scale linked to the price of copper, up to 20%. At present, we are very close to the tipping point where the interest rate would be linked to the copper price. However, the benefit of any increase in the copper price will feed into the economics of the project. As a rough guide, once in production the company will benefit from 80-90% of the upside in the copper price, with the balance going to increases in interest payable.

[rainyrain] 16/5/2024 12:06

Management haven't helped talking about buying a second hand processing plant before releasing a pre feasibility assessment, let alone a full Feasibility assessment.

What if the IRR comes in at say 12% on a PFS, meaning a DFS would likely have a circa 8% IRR. This is almost certainly a sub 10 year mine life, not multi decade which can handle a low IRR.

Lol!

All my own humble and personal opinion of course, and not advice of any kind, please DYOR!

[sportbilly1976] 16/5/2024 11:57

Based on the comments here, it looks as if a good few posters here have decided to sell and move onto other shares.

..or are trying to talk the share price down to top-up

[bsg] 16/5/2024 11:26

Looks like that, It seems like many AIM companies they realise that it's not going to be a money printing machine but a nice interesting job developing a mine with good levels of remuneration. Share holders get very little after the speculation phase. The Lassonde Curve rarely applies to the smaller mines. The high values during the speculation phase are rarely obtained in the actual mining phase. Just a nice number for the BOD. It's not that they didn't try but long term cost of the bonds suggest this isn't going to be a good return in the long run. IMO.

[juju44] 16/5/2024 11:19

Anyone for a red finish ?? Looks like after all this time its a damp squib on arrival

[kooba] 16/5/2024 11:05

I prefer they were open and honest with all shareholders creating a level playing field rather than anyone having to rely on body language and hoping a director lets something slip over coffee after the event. But good luck with that.Jasper grow up.

[rainyrain] 16/5/2024 11:02

Personally I'm questioning why this project hasn't gone forward before, as it sit right below all those mining executives in Vancouver. Why hasn't anyone snapped it up in all these years? Why is it listed on AIM and not the TSX-V?

[investorman33] 16/5/2024 11:00

Kooba

Agree price sensitive info neds to go out by rns.

But people can pick up a lot from body language at an agm and questions posed to individual directors at end of agm when smaller groups of investors talk to individual directors etc.

[jasperthemonkeygod] 16/5/2024 11:00

do you get out much, kooba?

[kooba] 16/5/2024 10:47

Obviously they cannot give any price sensitive information at the AGM that is not released correctly to the market..so there would have to be an rns pre meeting of anything meaningful and new they have to say.

[kooba] 16/5/2024 10:42

Probably not as have personal commitments and as they normally do they give less notice than required by a U.K. registered company. Since the IR has been saying that everything will be open and questions able to be answered at the AGM there really does need to be more information given to shareholders around the economics of the project ..but all seems to depend on buying a bit more kit...is that going to happen before the end of the month? No clues with the results.