Phoenix Copper Share Discussion Threads

[jbravo2] 15/5/2024 19:17

You’re forgetting RiverFort will presumably start to convert their debt once the share price gets over 20p.
That probably won’t add 25m right away but also your 225m relies on no plan slippage.
Donald reckons 250m. And he’s the company man.

[investorman33] 15/5/2024 19:13

Jbravo

Donald's statement that the bond investor will end up with 25% of PXC is mathematically correct.

Total shares issued: 149,069,995
Warrants outstanding: 14.12 million
Options outstanding: 6.22 million
Arrangement fee 33.88 million new ordinary shares
Drawdown fee 22.59 million New Ordinary Shares
New total shares = 225 million shares

So Bond investor has 25% of shares when PXC is expected to be in production [ (33.88+22.59)/225n- 25%].

[jbravo2] 15/5/2024 19:10

“As for interest, it is linked to the price of copper. The higher copper goes the more interest is payable. But that’s fine as the company will take 80-90% of the uplift in prices and the bond holder the rest”

Great once producing. A high copper price whilst permitting is gonna make everyone wince.

[jbravo2] 15/5/2024 19:07

Re“That’s my understanding”
Then credit where it’s due that’s remarkably strong.

[donald pond] 15/5/2024 19:06

That's my understanding As for interest, it is linked to the price of copper. The higher copper goes the more interest is payable. But that's fine as the company will take 80-90% of the uplift in prices and the bond holder the rest

[jbravo2] 15/5/2024 19:02

It’ll be really simple for donald to confirm the only condition on all tranches of the bonds being drawn is shareholder approval to issue new shares then, won’t it?

[boonboon] 15/5/2024 18:57

The bonds aren't subject to a vote the associated share issue is so shareholders aren't officially voting to approve the bonds (but in essence they are).

[investorman33] 15/5/2024 18:57

Kooba

Conditions from RNS

''Subject to the Directors being granted the authority to allot relevant securities at the Company's forthcoming Annual General Meeting ("AGM"), scheduled to be held on 29 May 2024, unless and until agreed otherwise, the Bonds will be drawn down as to US$5,000,000 on or around 31 May 2024 (the "Initial Drawdown"), US$5,000,000 on or around 30 June 2024, US$20,000,000 on or around 31 August 2024, and the balance of US$50,000,000 in two tranches during the first half of 2025.''

So the condition is the resolution to authorise BoD to allot/issue the shares at AGM on 29 May

[kooba] 15/5/2024 18:48

Seems that way but normally would specify subject to shareholder approval rather than the "subject to certain conditions being met" they have announced.

[boonboon] 15/5/2024 18:45

I'm pretty sure the conditional part is shareholders voting through the associated equity element at the AGM.Once that's done, which should be a formality, then we can start drawing down.

[bazboa] 15/5/2024 18:44

How does the yearly interest/coupon work 8-20%?

[kooba] 15/5/2024 18:42

"That's the million dollar question kooba.I suspect you'll be kept in the dark on the conditions."Thats as maybe but apparently the Bonds will be drawn down as to US$5,000,000 on or around 31 May 2024 (the "Initial Drawdown")Indicates it might just be down to shareholder approval as that is 2 weeks time ...not going to be able to meet much else on such a timetable...though "around" could be interesting.The other thing is the bond funding ring-fenced for direct capex or can it be used for A&G central costs. The company already has debt and will have access to more on drawing down further loans by end August I guess.

[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