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Metals futures, including copper, taking a big hit. Ugh. Not looking forward to next week's equity markets. Fasten seat belts for a temporary rough ride if you're significantly invested in equities, imho.
Excelsior Mining received two COVID-19 related Paycheck Protection Program (PPP) loans from the Small Business Administration. One on May 3, 2020, for an amount between $1-2 million, and another on May 18, 2020, for a similar amount. Guess those weren't material enough to warrant a Press Release.
Me too, but preferably before I kick the bucket or go senile.
I seriously doubt any takeover/buyout until proof of concept has been achieved (e.g., steady-state production of copper). We were at the 55-minute mark of an hour-long movie, before the movie went into a prolonged pause. Hopefully, we'll see a happy ending.
Agree, Walter. We all just need a little patience. Hope you and your loved ones are being safe and staying healthy.
fyi - I lived for 3 years in Soesterberg, The Netherlands, from 1984-1987. I was with the US Air Force at Soesterberg Air Base. My brother-in-law was stationed at Florennes, Belgium, about the same time. The folks I met in The Netherlands and in Belgium were the nicest people I've ever met. I went to Berlin after that tour, and was fortunate enough to be in Berlin when the Wall came down. Needless to say, my memories of Western Europe are so precious -- probably the best time in my life.
Peter Arendas article on Seeking Alpha about latest update from Excelsior Mining: https://seekingalpha.com/article/4357761-excelsior-mining-waiting-for-coronavirus-crisis-to-pass?utm_medium=email&utm_source=seeking_alpha&mail_subject=exmgf-excelsior-mining-waiting-for-the-coronavirus-crisis-to-pass&utm_campaign=rta-stock-article&utm_content=link-0
Ridiculous, isn't it? The resilient bounce back in copper price, and the thud creep up in Excelsior Mining share price. Excelsior Mining share price will be a super ball bounce once that first plate of copper is produced. I think we'll see it well before the end of 2020.
Copper output cuts offsetting weak demand -- supporting price.
"Jefferies Equity Research analysts also improved their copper forecast based on improving demand and supply constraints.
“Demand in the US and Europe should recover as lockdowns are hopefully lifted, and Chinese demand should continue to improve due to stimulus measures,” the analysts said in a June 23 research note. “Meanwhile, supply constraints are significant and structural as mines are depleting and the industry’s project pipeline is relatively thin.”
Jefferies forecast an average copper price of 285 cents/lb for 2021."
Seeing a common theme in the news about COVID-19 impact on copper production and prices. Article link:
https://www.hellenicshippingnews.com/copper-output-cuts-offsetting-weak-demand-supporting-price-analysts/
Future of copper production thrown into doubt by worker cuts in Chilean mines: see article at link below
https://www.expressnews.com/news/article/Future-of-copper-production-thrown-into-doubt-by-15371944.php
Chilean mines minister sees 3.5% drop in Chilean mine copper output. Article from Mining.com: https://www.mining.com/web/chilean-mines-minister-sees-3-5-drop-in-copper-output/
Chilean mines getting hit hard by COVID-19. I never want to personally profit from someone else's misery, but facts are what they are. Mining.com article: https://www.mining.com/web/bhp-announces-stricter-covid-19-protocols-in-chile/?utm_source=Daily_Digest&utm_medium=email&utm_campaign=MNG-DIGESTS&utm_content=bhp-announces-stricter-covid19-protocols-in-chile
Gist I got is that the South American copper miners are depleting their higher quality ore now to try to keep up a steady supply of copper, to the detriment of their mid-to-long term plans for extending mine life. The fact that they're doing that will help keep copper price balanced, even if there is a moderate downturn in China demand for copper due to COVID-19 economic effect.
Different topic - Niocorp. Noticed that Mark Smith agreed to increase the line of credit he's provided to NioCorp and extend the deadline for repayment of the loan. I'm amazed at his generosity, and can see why NioCorp shareholders adore him. He could have called in on his note, and taken the land lease and mineral deposit claim as secured assets for the loan, but he didn't. Hope the company gets the financing it has been seeking, and the digging begins on that project.
Mining.com article: Future of Copper Production Thrown Into Doubt by Worker Cuts
https://www.mining.com/web/future-of-copper-production-thrown-into-doubt-by-worker-cuts/?utm_source=Daily_Digest&utm_medium=email&utm_campaign=MNG-DIGESTS&utm_content=future-of-copper-production-thrown-into-doubt-by-worker-cuts
Many thanks, RW.
As some others have posted, if you have questions, give J.J. a call. I sent him an email asking for a good time to call him, and he immediately responded and said I could call him "now".
He confirmed the furlough/layoff of about 60-something employees during this temp shutdown, but given their job specialty, he expected they would be readily available when Excelsior Mining announces hiring/resumption of operations.
J.J. also emphasized that Excelsior Mining was well positioned with cash ($15 million)/access to cash during this temporary care/maintenance period.
If you haven't read their May 12, 2020 Management's Discussion & Analysis (MD&A) for the 3-month period ending March 31, 2020, accessible through the SEDAR site at https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00025928, below is one extract fyi:
"During the start-up process in January 2020, initial copper recovery grades exceeded feasibility study expectations. Pregnant leach solution grade measured 0.15 grams per liter of copper in the primary recovery pond, which also exceeded start-up expectations. Acid injection was steadily increased during the start-up process, up to approximately 50% of the full production rate.
In February 2020, in order to improve efficiency for long-term production performance the Company initiated several optimization changes to the production wellfield. The goal of the wellfield optimization is to assist in acid breakthrough and continued copper mobilization. Breakthrough will be achieved when free acid is detected at designated recovery wells; thereby maintaining the desired pH level (acidity level) where copper will remain in solution.
Specific optimizations that were completed in March and April 2020 include making the wellfield reversible in terms of fluid flow. Injection wells were retrofitted with pumps, allowing them to be used as recovery wells when needed. In addition, recovery wells were reconfigured to allow for injection. By making the wellfield reversible, Excelsior will have the option of moving mobilized copper only a portion of the full distance between the wells before reversing the fluid flow, and thus reducing the effective distance that the copper must travel before it is recovered. This new capacity to move fluids back and forth (or, “push and pull”) is expected to help achieve breakthrough, at which point copper would remain in solution throughout the production process.
In parallel during February and March 2020, infrastructure was installed that will allow for concentrated acid to be injected into each well, which will dissolve any reprecipitated copper (copper sulphate) in the area of the pumps, thereby ensuring effective fluid flow. Preventative maintenance programs to limit pump and wellfield down-time are also in place.
The Company had 92 employees as of March 31, 2020."
No. Belief I have is that we'll be hearing some news soon (not sure what news it will be).
As Todd mentioned earlier, they're still trying to get medium-to-long term sulfuric acid supply contract at reasonable rates. I believe they get their sulfuric acid through H.J. Baker (who recently acquired ICEC, the previous supply middleman). H.J. Baker obtains the sulfuric acid from various suppliers. Grupo Mexico, a major supplier of sulfuric acid, has not been deemed an "essential" business by the Mexican authorities, and therefore, likely won't be exporting sulfuric acid to its US customers in 2020. I believe Kennecott in Utah was also a major supplier, but their plant suffered earthquake damage in March 2020. Company is confident that the sulfuric acid supply situation will stabilize soon, as the US copper mining activity picks up.
J.J. explained that they have had the ISR experts from Florence review their new pump setup, and the Taseko/Florence guys said that is what they did, also, and should do the trick. Also brought in some other ISR experts who also reviewed/gave thumbs up on the new pump upgrades.
Maybe the drill rig is to provide some final mods, as recommended by the Taseko Florence and outside expert groups?
p.s. I was very surprised not to see J.J. Jennex listed as a Named Exec Officer, subject to the Exec Compensation program. Perhaps, he's under a contractor arrangement, rather than as an emmployee? Weird, considering J.J. does so much of the road show presentations for the company in lieu of Stephen. When's the last time you've seen COO Goodgame do a presentation?
Compensation for Execs
Link to report on compensation for Excelsior Mining execs (including bonuses, stock options, etc.):
https://www.sedar.com/GetFile.do?lang=EN&docClass=30&issuerNo=00025928&issuerType=03&projectNo=03060288&docId=4727080
Some info/excerpts from the report:
1. Rebecca Sawyer, VP for Sustainability (e.g., environmental compliance), is gone. As you may recall, she sold a lot of her shares, but her pending "retirement" may have been the impetus for her selling.
2. "During the financial year ended December 31, 2019, the annual base salary for services provided by Stephen Twyerould, the President and CEO was US$410,000, the annual base salary for services provided by Roland Goodgame, Chief Operating Officer, was US$330,000, the annual base salary for services provided by Barry Dahl, Senior Vice President & CFO was US$300,000, the annual base salary for services provided by Rebecca Sawyer, the former Vice President, Sustainability was US$150,000 and the annual base salary for services provided by Brent Berg, Vice President, Sustainability, Health & Safety was US$150,000. Ms. Sawyer resigned as Vice President, Sustainability effective June 20, 2019. Mr. Berg was appointed Vice President Sustainability, Health & Safety effective June 20, 2019. As salary adjustments were made in fiscal 2018, the Compensation Committee elected to not provide further increases in fiscal 2019."
3. Bonus Payments (Cash): "The Compensation Committee [2 person committee: Colin Kinley and Lord Robin Renwick] undertook a review of both Company and executive performance during fiscal 2019. After consideration, the Compensation Committee determined that no
bonuses would be payable to Stephen Twyerould, Roland Goodgame or Barry Dahl. In making this assessment the Compensation Committee considered the collapse of the global markets due to COVID-19, and the economic shutdown within the North American markets, and certain performance metrics relative to schedule and production. As full start-up of the Company’s operations at the Gunnison Project was delayed, the Compensation Committee resolved that production-based metrics would be taken into consideration in evaluating bonus payments for fiscal 2020. The Compensation Committee also intends to develop other key performance indicators that will form the basis for the calculation of performance bonuses for fiscal 2020."
4. Stock Options, Restricted Share Units (RSU), and Performance Share Units (PSU): Combined, the stock option plan, RSU plan, and PSU plan are referred to as the Security-based Compensation Plan. Max number of common shares available under the Compensation Plan is 10% of outstanding shares. As of end-Dec 2019, number of shares subject to commitments (issuable upon exercise of such options) under the Compensation Plan was 6.88%. During the financial year ended Dec 31, 2019, the Company granted a total of 3,800,000 stock options and no
RSUs to its management. The USD $ value (as computed using Black Scholes option pricing model with certain assumptions) to exec management team members were as follows: CEO Twyerould - $786,420; COO Goodgame - $524,280; Brent Berg, new VP for Sustainability, Health & Safety) - $157,284; CFO Dahl - $524,280).
I think Excelsior Mining management has some explaining to do. See excerpt from Taseko's latest PR, which includes the following comments about its Florence copper project (pilot test facility).
""At our Florence Copper Project, the test facility continues to operate on a steady-state basis with no disruption to our operation. PLS grade in the center recovery well (most representative of the performance of the commercial wellfield) has been stable at roughly two grams per liter since November and recently the SX/EW plant producing at a rate of approximately one million pounds of copper cathode per year, mainly from the center recovery well.
We have not experienced any significant supply chain issues, with all necessary feedstock materials available, allowing for steady cathode production and regular sales. With the experience we have gained over the last 18 months of operation at the test facility, we are very confident in our ability to ramp up quickly to full scale production once the commercial plant is operational," added Mr. Hallbauer."
Note the comment about not experiencing any significant supply chain issues (I assume that includes sulfuric acid). Maybe the scale of production (1 million lbs annually) vs Excelsior Mining's planned 25 million lbs annually might explain Excelsior Mining's concerns about stable sulfuric acid supply. But, at this point, just getting some amount of copper produced would speak loudly on the technical feasibility of Excelsior Mining's ISR project, and reflect accordingly in the share price. Instead, we're in a limbo of uncertainty, and the current share price reflects that. Very disappointed right now.
Understand the COVID-19 situation/reason for delay towards full production, and the impact it is having on sulfuric acid supply. However, it is disheartening when, on the cusp of proof-of-concept (i.e., produce that first plate of copper cathode) after some technical glitches causing some doubt on the viability of ISR at Gunnison, we go on a delay while still working out the wrinkles on ISR system. I think some investors are concerned that the technical risks are more daunting than previously explained by the company, and that the company may be going back to the drawing board under the COVID-19 delay excuse.
I'm hoping their concerns are unfounded. But, until that first batch of copper plate is produced, I certainly understand their concerns.
Best timing would have been: (1) produce first batch of copper plate to assuage investors; then (2) go on care/maintenance until sulfuric acid supply stabilized. Would have shown proof of concept, and avoid delay in reaching a critical milestone (first production). jmho
Article from Mining.com Read the entire article. If somehow China-US relations improved, copper price be popping like corn, given China's recently announced infrastructure investment. Trump can't play hardball with China much longer, since his hopes for reelection rests on an improving US economy. That won't happen until China-US relations stabilize. Or, he doesn't get re-elected, and Biden normalizes China-US relations.
https://www.mining.com/rising-us-china-tensions-halt-copper-price-rally/?utm_source=Daily_Digest&utm_medium=email&utm_campaign=MNG-DIGESTS&utm_content=[[post.post_title]
This was the Governor's "stay at home" order, that is now being relaxed.
https://www.azdhs.gov/documents/preparedness/epidemiology-disease-control/infectious-disease-epidemiology/novel-coronavirus/eo-stay-home-stay-healthy-stay-connected.pdf
I wholeheartedly supported Excelsior Mining's decision to comply with the order.
I don't know how the Florence copper project continued under this order, other than perhaps they were already in a steady state operational mode where the pumps could continue working with very minimal staffing, even though I imagine they would have needed supplies/materials, such as sulfuric acid, being transported to their site.
Excelsior Mining was still in the process of tweaking the operations with their upgraded pumping/extraction system, and certainly would need more technical staff during this process as well as significant supply of sulfuric acid.
Aside from all of this, why rush production when the copper price/lb is so low? I imagine Triple Flag with its % share of copper sales was not thrilled with that portion being at such low copper price levels.
Putz -- you need to keep your eye on June 20th date for your investment. It's a significant date (read Mark Smith's loan agreement with the company).
Arizona's "stay at home" order to expire today. Hopefully Excelsior Mining will re-mobilize its crew soon and resume operations.
https://www.bensonnews-sun.com/news/coronavirus/article_9dc971f6-07a0-5e51-8d86-459c6945d9c5.html
Agree. No debt to have to service with cash flow, copper prices are depressed, and no need to expose the workers/technicians/managers they require to operate the wells to COVID-19. Good news is that the retrofits are complete, so ready to turn key the copper optimization/production once the COVID-19 emergency situation is over.
Kmack
I always thought you were a little squirrelly, having read your earlier panic posts on the NioCorp message board. I think a lot of the NioCorp faithful feel the same way about you - that you're a little sniveling weasel.
Your post is quite despicable - gloating and taunting investors in Excelsior Mining who, like investors in other equities, have watched their holdings and financial funds plummet. I bear no ill will towards investors in NioCorp. In fact, I hope they all prosper (except one now).
Copper rally today after touching 2009 lows. https://www.mining.com/copper-price-in-rally-for-the-ages/?utm_source=Daily_Digest&utm_medium=email&utm_campaign=MNG-DIGESTS&utm_content=[[post.post_title]
Rio Tinto temporarily halts Kennecott copper production due to St Lake City earthquake. Produces one-fifth of US copper production.
https://www.mining.com/rio-halts-kennecott-operations-after-earthquake/?utm_source=Daily_Digest&utm_medium=email&utm_campaign=MNG-DIGESTS&utm_content=[[post.post_title]
Totally agree with you. The stimulus packages (China, US, and other countries) will light up infrastructure spending, and the price curve for copper will rocket. Fuse lit. Just waiting for the lit fuse to hit the propellant.
Think we'll hear some good news on the biopharma front in regards to treatment/mitigation of the COVID19. Japan's flu drug, favipiravir, is showing to be effective as a mitigating treatment (reduced 11 days of symptoms to 4 days) and improved lung condition in 91% of patients who received it (compared to 62% who didn't take favipiravir).
And Gilead's remdesivir is believed to be even much more potent in mitigating COVID19 than favipiravir, albeit with perhaps more severe side effects.
If either of those get official approval to treat COVID19, even in another country such as China or Japan, and news starts leaking about positive results, it takes quite a bit of the "boogeyman" shade off COVID19 and folks will calm down.
That's when the lit fuse hits the propellant. I think that's why the Olympics IOC and Japan are reluctant to cancel the Tokyo Olympics this year, given the positive results they're seeing from favipiravir.
Today's the day if you have some available cash to buy a load of Excelsior Mining shares. Totally shocked to see it this low. But then again, there's a lot of quality stocks out there at absurdly low prices.
Folks with funds in money market accounts and CDs ought to be rotating into equities now.
JJ Jennex's Excelsior Mining presentation at the Metals Investor Forum, in case you haven't seen it already. Not much new to those who have been following Excelsior Mining, other than the description of the system tweaks they are making, and forecasting the remainder of 2020 as a period of optimizing the system. Production still slated for Q2 2020.
OT, but related to copper. If you're interested in copper and numismatics (coin collecting), you may want to consider compiling a collection of every type and year/mint mark of copper penny minted by the US Mint. it's a real challenge. Think you'll find the 1856 Flying Eagle cent is one of the most expensive (Professional Coin Grading Service, or PCGS retail guide showing that an 1856 Flying Eagle cent in "good" [really rough] condition has a retail price of 7000 USD). The 1804 Draped Bust Cent is no price slouch, either. Here's a link to the PCGS coin price guide: https://www.pcgs.com/prices/us Click on hyperlink for any given category of coin that is listed, and you'll see the year/mint mark list. Click on any of those, and you'll get a full spread view of the coin, price by grade, mintage numbers, and PCGS estimate of how many have survived by grade category.
I have a nearly complete collection of the "Large Cents" (1793 - 1857), three full sets of Indian Head cents, and 2 full/3 nearly full sets of Lincoln pennies. Still working on completing the partial sets.
There's some very expensive Lincoln pennies: 1909-S VDB, 1914-D, 1922 Plain (no-D), and 1955 double-die.
And, no, I don't have an 1856 Flying Eagle cent. Now, if Excelsior Mining shares went to $2.00 a share, perhaps I'll splurge and get one or two.
Those are the key words describing Excelsior Mining's obligation, under section 8.5 of the October 2018 Triple Flag Purchase/Sale Agreement, to enter into an offtake agreement (in this case, with Trafigura) with "commercially reasonable terms and conditions for Offtake Agreements" for the sale of its produced copper. Excelsior Mining checking another square for its pending copper production and fulfillment of obligations. Link to the Oct 2018 Triple Flag Agreement (see section 8.5): https://backend.otcmarkets.com/otcapi/company/financial-report/209068/content
Maybe China (and other countries) remember to use more copper as they upgrade their infrastructure (like counter tops, rails, and other items that people touch or hold onto). Copper destroys viruses, including corona viruses in a matter of minutes (vs virus surviving for over 5 days on non-copper surfaces, such as tiles or steel). Read article:
https://www.sciencedaily.com/releases/2015/11/151110102147.htm
Wow, Hubernite apparently is not cheap.
If you get bored, and want to read some historical notes about the Johnson Mine (now owned by Excelsior Mining), read the circa 1899 - 1931 diary-like narrative discussion in the .pdf file at the following link: http://docs.azgs.az.gov/OnlineAccessMineFiles/G-L/JohnsoncampCochise567-1.pdf
When they talk about Hubernite, that is manganese-tungsten, which I guess was a highly sought mineral combo for strengthening steel back then.
They've mined tungsten, copper, zinc, and silver at the Johnson Mining Camp claims.
Another old article worth reading:
https://arizonadailyindependent.com/2014/05/29/the-i-10-copper-deposit-another-arizona-copper-mine-to-be-2/
June 16, 2020. That'll be the benchmark date on which to really gauge Mark's confidence, if external financing hasn't been agreed to.