Phoenix Copper Boosted by Loan Note Conversion and Improved Metals Pricing

Phoenix Copper Limited (LSE:PXC) has confirmed that Indigo Capital has partially converted its US$2.1 million convertible loan note, exchanging US$536,000 of debt into close to 27 million new ordinary shares. Most of the newly issued shares are expected to be placed with a mix of equity funds and family offices, lifting Phoenix Copper’s total issued share capital to approximately 288 million shares.

Alongside the balance sheet update, the company highlighted the positive impact of current higher copper, gold and silver prices on the projected economics of its Empire open-pit project in Idaho. Management indicated that, should prevailing metals prices be maintained, cumulative pre-tax net cash flow could increase to around US$406 million over an 8.5-year mine life. Under this scenario, both the project’s pre-tax net present value and internal rate of return would be close to double those outlined in the 2024 economic model. Phoenix Copper also confirmed that discussions with a US-based bond investor remain ongoing, with potential financing viewed as a key step toward advancing mine development.

Despite the more supportive commodity backdrop, the company’s outlook remains constrained by weak underlying financial performance, characterised by the absence of revenue, widening losses and accelerating cash burn, which continue to elevate funding and dilution risk. Technical indicators offer some counterbalance, with improving medium-term momentum, but valuation remains pressured due to ongoing losses, reflected in a negative price-to-earnings ratio and the lack of dividend support.

More about Phoenix Copper

Phoenix Copper Limited is an emerging producer and exploration company focused on copper, gold and silver assets in the United States. Its principal asset is the Empire Mine in the Alder Creek mining district near Mackay, Idaho, where the company holds an 80% interest and has significantly expanded the open-pit resource since 2017, publishing its first mineral reserve statement in 2024. The group also controls additional past-producing mines and exploration projects in the district, including Red Star and Navarre Creek, as well as cobalt properties on the Idaho Cobalt Belt.