Phoenix Copper* - formerly Phoenix Global Mining (PXC LN) 15.5p, Mkt Cap £6.6m – Updated project economics for Empire oxide project • Phoenix Copper has released the highlights of its updated internal economic model for the open-pit/heap-leach/SXEW oxide copper project at the historic Empire mine in Idaho. • The updated PEA envisages the treatment of 1.6mtpa of ore over a 9 years mine life in order to produce an average of 7,000tpa of copper and 1,600tpa of zinc. • Using a long-term copper price of US$3.25/lb, pre-production capital investment of US$50.578m is expected to generate an after tax NPV7% of US$55.5m and IRR of 33%. • Sensitivity analysis presented in the announcement indicates that a variation of 25cents/lb in the assumed copper price represents approximately US$15m or around 27% in the NPV7% • Based on the company’s reported life-of-mine copper production of 68,500t, zinc production of 16,500t and their commodity price assumptions of US$3.25/lb of copper and US$1.35/lb of zinc, Phoenic Copper reports life of mine operating costs of US$259.25m representing an average cost of approximately US$1.72/lb of equivalent copper production. • The study announced today updates the previous PEA, released in April 2018, and incorporates a number of changes, including: o Average ore treatment has been reduced from over 2mtpa to 1.6mtpa and mine life increased from 9 years to 11 years. o Annual copper production of 7,000tpa is approximately 14% lower than the previous study which envisaged 8,124tpa. o Phoenix Copper is using a lower copper price forecast of US$3.25/lb compared to its previous $8,265/tonne – equivalent to US$3.75/lb. o Pre-production capital costs have been reduced to US$50.578m from the previous estimate of US$61.2m. This implies a capital intensity of approximately $7,225/annual tonne of copper production, excluding the contribution from zinc (approximately $6,600/annual tonne of production on a copper equivalent basis), and is, we believe, around the lowest quartile of North American copper development projects o As discussed above, we estimate net life-of mine costs of copper production of around US$1.72/lb which are significantly lower than the US$4,068/t (US$1.85/lb) estimated in April 2018, reflecting, in part we believe, the inclusion of credits for zinc production. We note, however, that at this stage, any potential precious metals credits have still been excluded. • Our analysis of 15 other undeveloped copper projects in North America shows that although Phoenix Copper’s project is amongst the smallest in terms of overall production it is also amongst the lowest cost in both capital and operating cost terms. • Commenting on the updated PEA, CEO, Dennis Thomas, said that the updated internal economic model, which incorporates a higher initial grade on the heap leach pads “has allowed the mine production rate to be reduced from 2.25 million tons a year in the April 2018 economic model to 1.6 million tons, resulting in a reduction in the pre-production capital cost from $68 million to $51 million”. • Mr. Thomas went on to confirm that the feasibility study was “scheduled for completion in Q2 2020, and look forward to commencement of mine production of copper and zinc in late 2021. In due course, we will also look to expand and extend the project.”. • Referring to the longer term potential in and around the Empire mine in which the initial open pit project is described as “very much … a starter mine” ”, Mr. Thomas discussed the “23 square kilometres of mineralised claims staked along a 5.4 kilometre strike length from the Empire oxides, as well as the Navarre Creek precious metals zone” and in particular to the “high grade Red Star discovery, the deeper underground sulphide orebody at Empire and three other historic producing mines.” • The company has previously drawn attention to a report on the exploration potential of the area by its consulting geologist, Nigel Maund which estimates that “only 1-2% of the potential ore system has been explored”. The report by Mr. Maund is available on the company’s website at • We are optimistic that the possible identification of further operating refinements during the feasibility studies as well as the potential to recover precious metals credits offers the opportunity for further improvements to the economic returns from the oxide project as the feasibility study progresses while much of the exploration potential of the wider land holdings remains to be evaluated. Conclusion: Phoenix Copper’s updated economic model for the oxide operation at the Empire mine-site uses more conservative metal price assumptions and production rates than the earlier study, however, lower capital and operating costs and a capital intensity amongst the lowest of undeveloped copper projects in North America all of which contribute to robust economics.. *SP Angel acts as Nomad and broker to Phoenix Copper
Phoenix Copper Current Price: 15.50p Market Cap (M): £6.6 EV (M): £6.6 Event Phoenix Coper Ltd (“Phoenix”) has announced that it has completed a new economic model for the Empire Mine open pit heap leach SX-EW project in Idaho, USA. Highlights The key points relating to this update are: • The revised economic model is based on the updated NI 43-101 compliant resource from May 2019. • The mine will treat 1.6M tons of ore per year for a 9 year mine life producing 7,000 tons of copper and 1,600 tons of zinc per year. • There will be an additional 2 years mine life processing low grade ore yielding a further 6.6kt of copper and 2.28kt of zinc pa. • Initial capital expenditure is US$50.6M • Using a US$2.75/lb copper price and a 7% discount rate the NPV is US$25.5M with an IRR of 20%. Comment In deriving this valuation, Phoenix have reverted to using short tons which makes comparatives with previous releases somewhat awkward. The net present value (“NPV”) is quoted after tax, but is unfunded. It is also based on the co-production of 1,600 tons of zinc per year. The valuation is based on 100% ownership of the property, whereas Phoenix currently own 80%. The valuations are very sensitive to the copper price with NPV’s ranging from US$25.5M at US$2.75/lb rising to US$85.4M at US$3.75/lb for the life of mine. Phoenix are using a zinc price of US$1.35/lb. The price of copper used in this new economic model has dropped to US$3.25/lb from the US$3.75 used in the April 2018 PEA. This has had a significant impact on mine planning, resulting in a drop in the strip ratio from 2.7 to 2.0 and raised the head grade. The weighted average cash cost of copper production is US$1.89/lb, which is excellent for a small scale producer. Even better, in the first 2 years of operations, the cash cost averages a very respectable US$1.49/lb. The reason for the drop in the pre-production capex from $68M to $50.6M is three fold: • it is a smaller plant producing 7kpy rather than 7.9ktpy and leaching 4ktpd down from the original 6.2ktpd • the head grade has increased from 0.52% copper to 0.6% copper • Substantial use has been made of second hand equipment The use of a smaller plant has also stretched the total mine life out from 9 to 11 years, albeit the last 2 years processes low grade ore. The revised parameters used in the model, primarily brought about by the reduced copper price has had a significant impact on the valuation. Originally, the base case NPV in 2018 was $43.1M with a 20.6% IRR whereas it now has an NPV of $55.5M and an IPP of 33% with a $0.50/lb lower copper price. The new model did not include the recovery of gold or silver in the evaluation. This is because the current flowsheet does not allow for the recovery of precious metals. However, they could be recovered after the copper and zinc which would prolong the mine life and further boost the NPV. The calculations assume construction in 2021 with production from 2022 onwards. This seems realistic, especially given that the proposed site for the plant is beside the main road on the valley floor and not up the mountain near the mine. Finally, we note this is a modest “starter” mine that should be able to finance the exploration budgets required to fully explore the Empire district and extended mine life. We firmly believe that getting to first cash flow is imperative for junior companies given the lack of exploration funding available. This is a very positive outcome for Phoenix, with a relatively short construction time. We also note that at a copper price of US$2.75/lb, the NPV is still a very creditable US$25.5M with an IRR of 20%.
Phoenix Copper Ltd, the North American-focused base and precious metals exploration and development company, is pleased to announce that it has completed a new economic model for the Empire Mine open pit heap leach SX-EW project in Idaho, USA.. -Life of mine EBITDA of $202 million and profit after tax of $177 million at $3.25/ lb copper. -7% NPV of $55.5 million...
Dennis Thomas, CEO of Phoenix Copper Limited #PXC covers the company in their latest elevator pitch.
RNS Number: 0607 E Phoenix Global Mining Ltd 01 July 2019 Phoenix Global Mining Ltd/ Ticker: AIM: PGM/ Sector: Mining. Phoenix Global Mining Ltd is a North American focused, base and precious metal explorer and developer, which is fast-tracking the historically-producing Empire Mine in Idaho, USA, back into production, and exploring for cobalt in Idaho..
RNS Number: 5400 D Phoenix Global Mining Ltd 26 June 2019 Phoenix Global Mining Ltd/ Ticker: AIM: PGM/ Sector: Mining. Phoenix Global Mining Ltd is a North American focused, base and precious metal explorer and developer, which is fast-tracking the historically-producing Empire Mine in Idaho, USA, back into production, and exploring for cobalt in Idaho..
Phoenix Global Mining Ltd is a North American focused, base and precious metal explorer and developer, which is fast-tracking the historically-producing Empire Mine in Idaho, USA, back into production, and exploring for cobalt in Idaho.. Phoenix's flagship project is a brownfield, past producing, copper, gold, silver, zinc and tungsten underground mine, the...
Phoenix Global Mining Limited (PGM.L) Announced that it has updated its corporate presentation. A copy of the Company's updated corporate presentation can be found on its website at
Phoenix Global Mining Ltd is a North American focused, base and precious metal explorer and developer, which is fast-tracking the historically-producing Empire Mine in Idaho, USA, back into production, and exploring for cobalt in Idaho.. Phoenix's flagship project is a brownfield, past producing, copper, gold, silver, zinc and tungsten underground mine, the...
Phoenix Global Mining* (PGM LN) 16.5p, Mkt Cap £7.1m – 2018 Annual Report • Phoenix Global Mining has posted its 2018 Annual Report to the company’s website (www.pgmining.com/corporate-documents) • As previously announced, the company made a loss for calendar year 2018 of $1.65m or 5.82cents/share (2017 loss $1.36m or 8.16cents/share) as it works towards the re-opening of the historic Empire mine in Idaho. • Executive Chairman, Marcus Edwards-Jones highlights the success of the 2018 drilling programme at the Empire site, comprising 93 holes totalling 8,604m, which has resulted in a 46% increase in the measured and indicated oxide mineral resources to 15.2mt at an average grade of 0.47% copper, 0.15% zinc, 11.8g/t silver and 0.29g/t gold, • The resource upgrade underpins the current work towards “the Bankable Feasibility Study (“BFS”) scheduled for completion in mid 2020” and Mr. Edwards-Jones describes the 2018 drilling campaign as “a major breakthrough for our company, in that the updated resource shows that the planned Empire open-pit mine, combined with the lower-cost SX-EW processing plant, is now economic at current metal prices and will generate early cashflow to enable us to explore the higher-grade sulphide deposits underneath the open pit mine”. • The company has previously reported that work by an independent environmental engineering firm “conducting plant and wildlife, hydrology, and surface impact studies at the Empire Mine for two years now as an integral part of the Plan of Operations development. No fatal environmental flaws have been identified” • As well as the expansion and upgrading of the oxide mineral resource, initial drilling of surface sulphide mineralisation at the Red Star prospect “located 330 metres north-northwest of the Empire oxide pit” yielded a small maiden "Inferred" sulphide resource of 103,500 tonnes, containing 577,000 ounces of silver, 3,988 tonnes of lead, 957 tonnes of zinc, 338 tonnes of copper, and 2,800 ounces of gold”. • As previously announced, the company also expanded its landholdings adjacent to the Empire mine site to 1837 acres (approximately 740 hectares) “through the acquisition of an additional 54 claims containing the northern extension of the Empire Mine skarn orebody through to the old Horseshoe lead/zinc/copper mine, and a further four claims in the Granite block to the south of the Empire open pit.” • Additional land holdings totalling a further 2,717 acres (2314 hectares) was acquired in February 2019 including “more than 30 historical prospects, shafts and adits north of the Horseshoe block into the Windy Devil area, resulting in an overall length of identified contiguous skarn mineralisation of some 5.38 kilometres”. The latest land acquisitions also include the Navarre Creek area some four miles west of the Empire Mine, “a 2,420-acre zone geologically similar to the Carlin Trend gold belt in Nevada”. • Mr. Edwards-Jones also drew the attention of shareholders to the report of the company’s consulting geologist, Nigel Maund, (available on the company’s website at www.pgmining.com/research) , which “concludes that we currently understand less than 2% of the ore system” along the 5km known strike length of mineralisation and which “states that we are sitting on a major, district-style opportunity”. • As it focuses on the rejuvenation of the Empire mine, the company has decided to allow its option over the Gordon Lake gold project in Canada’s Northwest Territories to lapse. Conclusion: The increased measured and indicated oxide mineral resources at the former Empire mine has laid the foundations for the current bankable feasibility work scheduled for completion in mid 2020. The initial, inferred, resource estimate of sulphide mineralisation at the Red Star prospect hints at the potential underlying the oxide mineralisation while additional land holdings have expanded the company’s tenure over a 5km long mineralised belt which is believed to be to be significantly underexplored. *SP Angel acts as Nomad and broker to Phoenix Global Mining
RNS Number: 0490 B Phoenix Global Mining Ltd 04 June 2019 TR-1: S tandard form for notification of major holdings. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom.
Phoenix Global Mining* (PGM LN) 17p, Mkt Cap £7.3m – 2018 results • Phoenix Global Mining has announced a loss for calendar year 2018 of $1.65m or 5.82cents/share (2017 loss $1.36m or 8.16cents/share) as it works towards the re-opening of the historic Empire mine in Idaho. • Following share issues totalling $4.7m during the year, the company’s cash position at the end of December amounted to $0.1m, however the announcement last week of the raising of a further £700,000 provides, in our view, additional funding as the company progresses with feasibility study work at Empire. • The 2018 drilling programme at the Empire site, comprising 93 holes totalling 8,604m, has resulted in a 46% increase in the measured and indicated oxide mineral resources to 15.2mt at an average grade of 0.47% copper, 0.15% zinc, 11.8g/t silver and 0.29g/t gold, • The resource upgrade underpins the current work towards “the Bankable Feasibility Study (“BFS”) scheduled for completion in mid 2020”. • Work by an independent environmental engineering firm “conducting plant and wildlife, hydrology, and surface impact studies at the Empire Mine for two years now as an integral part of the Plan of Operations development. No fatal environmental flaws have been identified” • As well as the expansion and upgrading of the oxide mineral resource, initial drilling of surface sulphide mineralisation at the Red Star prospect “located 330 metres north-northwest of the Empire oxide pit” yielded “a small maiden "Inferred" sulphide resource of 103,500 tonnes, containing 577,000 ounces of silver, 3,988 tonnes of lead, 957 tonnes of zinc, 338 tonnes of copper, and 2,800 ounces of gold”. • The company also expanded its landholdings adjacent to the Empire mine site to 1837 acres (approximately 740 hectares) “through the acquisition of an additional 54 claims containing the northern extension of the Empire Mine skarn orebody through to the old Horseshoe lead/zinc/copper mine, and a further four claims in the Granite block to the south of the Empire open pit.” • Additional land holdings totalling a further 2,717 acres (2314 hectares) was acquired in February 2019 including “more than 30 historical prospects, shafts and adits north of the Horseshoe block into the Windy Devil area, resulting in an overall length of identified contiguous skarn mineralisation of some 5.38 kilometres”. The latest land acquisitions also include the Navarre Creek area some four miles west of the Empire Mine, “a 2,420-acre zone geologically similar to the Carlin Trend gold belt in Nevada”. • Hailing the “2018 drilling campaign … … a major breakthrough for our company” Executive Chairman, Marcus Edwards-Jones said that “The Empire project is already attracting interest from mining finance and trading houses, and we hope to be able to fund capital expenditure predominantly with debt and other forms of project and metal offtake finance, involving minimal issues of ordinary shares.” • He also drew the attention of shareholders to the report of the company’s consulting geologist, Nigel Maund, (available on the company’s website at www.pgmining.com/research) , which “concludes that we currently understand less than 2% of the ore system” along the 5km known strike length of mineralisation and which “states that we are sitting on a major, district-style opportunity”. Conclusion: Work at the former Empire mine during 2018 resulted in increased measured and indicated oxide mineral resources and has laid the foundations for the current bankable feasibility work scheduled for completion in mid 2020. An initial, inferred, resource estimate of sulphide mineralisation hints at the potential underlying the oxide mineralisation while additional land holdings have expanded the company’s tenure over a 5km long mineralised belt which is estimated to be significantly underexplored. *SP Angel acts as Nomad and broker to Phoenix Global Mining
RNS Number: 7270 A Phoenix Global Mining Ltd 31 May 2019. Final audited results for the year ended 31 December 2018. Phoenix Global Mining Ltd, the North American focused base and precious metals exploration and development company, is pleased to announce its audited results for the year ended 31 December 2018..
Phoenix Announces Placing and Subscription to Raise £700,000 Event Phoenix Global Mining (“Phoenix”) has announced a placing at a price of 17p with a 1 for 4 warrant at 28p. Through a placing and subscription of 4,111,647 new ordinary shares, Phoenix has raise £700,000 before expenses. Highlights The key points relating to this raise are: • The Placing has been achieved at a premium of 13.3% to market, (to closing mid-price as at 22 May 2019) with a 1 for 4 warrant at 28p • The placing is to accelerate the Bankable Feasibility Study on an open pit heap leach SX-EW operation to produce copper and zinc. Comment In today’s market it is an achievement to raise money at a premium to market, let alone 13.3%. The fund raising was supported by new and existing shareholders who see value in the project beyond the recent share price. The proceeds will be used to further advance the Company's flagship asset, the Empire Mine in Idaho, United States of America. The proceeds will be applied to accelerate the Bankable Feasibility Study (“BFS”) on an open pit heap leach solvent extraction electrowinning (“SX-EW”) project, to produce copper and zinc, following the recently published updated NI 43-101 compliant resource (announcement dated 7 May 2019) which confirmed sufficient Measured and Indicated resources on which a BFS can be based. The Company expects the BFS to be completed in mid-2020, and production to commence in 2021.
Phoenix Global Mining* (PGM LN) 16.5p, Mkt Cap £6.4m – Raising £700,000 to advance Empire mine SXEW Bankable Feasibility Study • Phoenix Global Mining has announced that it has raised £700,000 though the issue of a further 4.1m shares at a price of 17p/share. The new shares are priced at a 13.3% premium to the closing mid-price on 22nd May and, we estimate, represent approximately 9.6% of the enlarged capital of the company. • The new shares carry a warrant, valid until 31st January 2022, entitling the holder to subscribe for a further share priced at 28p per share for every four of the shares currently being issued. • The additional funds are to used to “accelerate the Bankable Feasibility Study (“BFS”) on an open pit heap leach solvent extraction electrowinning (“SX-EW”) project, to produce copper and zinc” from the recently upgraded oxide mineral resource at the historic Empire mine in Custer County, Idaho. • Phoenix Global Mining “expects the BFS to be completed in mid-2020, and production to commence in 2021.” Important items to be addressed by the BFS include, “detailed mine planning and scheduling, additional metallurgical test-work, heap leach pads, ponds and process plant design, infrastructure design, environmental impact statement and project economic analysis.” • Commenting on the project in the light of the recent mineral resource upgrade and the financing, Chief Executive, Dennis Thomas, explained that “Given the advanced status of the project, our focus will now turn to project finance. We will seek to finance the project with a mix of debt and other instruments including offtake finance and we are progressing a number of these discussion in tandem with the BFS studies.” • Mr. Thomas went on to explain that “we are ultimately looking to minimise the issue of equity which has been required to develop the project to this stage. Management are significant shareholders in the Company and we hope to keep further equity dilution to a minimum.” In order to achieve this the company is examining “a mix of debt and other instruments including offtake finance” to finance project development. Conclusion: Raising additional funds to expedite the BFS for the Empire mine oxide project at a premium to the recent market price should help the company to deliver the BFS by mid-2020 as Phoenix Global Mining works towards initial production in 2021. *SP Angel acts as Nomad and broker to Phoenix Global Mining
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