Market's view on Phoenix Copper.
Published on April 2024
- BHP is making a bid for Anglo American’s copper mines, driven by the increasing demand for copper in various technologies like electric cars and wind turbines.
- There are discussions on the in-situ value of the Empire Mine, with stock watchers interested in the undiscovered potential beneath, indicating that the current market capitalisation does not reflect this potential.
- A stock watcher mentions the strategic value of copper, particularly for stocks like PXC (Phoenix Copper), pointing out the asset’s intrinsic value due to the growing need for copper in technology and energy sectors.
- Concerns are raised about the clarity and completion of the pre-feasibility study (PFS) for the Empire Open-Pit Mine, with questions about the collation of the reports from various consultants and the professional sign-off.
- The discussion includes speculation about potential news releases and financial movements, such as issuing bonds and the impact of these on stock prices.
- There is debate over the company’s financial strategy, with alternative plans discussed in case preferred funding through bonds does not materialise.
- Risks and benefits of different investment strategies in the mining sector are assessed, including the emphasis on risk management and technical positions based on stock price movements.
- The overall market sentiment towards junior miners and the implications of recent mergers in the copper sector are also discussed, with a view on how these could affect smaller mining operations.