Phoenix Copper Limited has announced the partial conversion of its US$2.1 million convertible loan note, with US$536,000 converted into 26,981,814 new ordinary shares at a price of 1.483 pence per share. The new shares are expected to be admitted to trading on AIM on 26 January 2026. Following admission, the company will have 287,995,114 ordinary shares in issue.
The company also highlighted the positive impact of prevailing metal prices on the economics of its 2024 Empire open-pit pre-feasibility study. Using updated assumptions for copper, gold and silver prices, the project is forecast to generate cumulative pre-tax net cashflow of US$405.80 million over an 8.5-year mine life. The study indicates a pre-tax net present value (NPV) of US$252.11 million at a 7.5% discount rate and a pre-tax internal rate of return (IRR) of 98.4%, underlining the project’s strong leverage to current commodity markets.
A comparison of the impact to the 2024 Model is summarised in the table below:
|
Project Evaluation Overview |
2024 PFS Before Tax / After Tax |
2026 Before Tax / After Tax |
% Change |
|
Cumulative Net Cashflow (millions) |
$152.98 / $132.44 |
$405.80 / $350.89 |
165.3 / 164.9% Increase |
|
NPV @ 5.0% (millions) |
$105.44 / $89.55 |
$293.85 / $252.34 |
178.7 / 181.8% Increase |
|
NPV @ 7.5% (millions) |
$87.86 / $73.75 |
$252.11 / $215.67 |
186.9 / 192.4% Increase |
|
NPV @ 10.0% (millions) |
$73.29 / $60.71 |
$217.34 / $185.17 |
196.5 / 205% Increase |
|
Internal Rate of Return |
46.4% / 40.2% |
98.4% / 86.6% |
52 / 46.4% Increase |
|
|
|
The 2026 Before Tax / After Tax results presented above have been internally estimated by the Company and have not been verified by the Company’s independent technical consultants or Qualified Person. The results of this comparison are illustrative only and are not intended to imply a change in the Empire open pit mineral reserve nor are they intended to imply a new or updated Empire open pit economic model.
The Company also refers to its ongoing discussions with the US based bond investor (the “Investor”), first announced on 12 June 2025. These discussions have taken longer than initially anticipated due to other transactions the Investor has been completing. Although there can be no certainty a definitive agreement will be reached with the Investor, the Directors look forward to finalising the discussions and progressing towards completion. The Company looks forward to providing shareholders with further updates as appropriate.
Contacts
|
Phoenix Copper Limited |
Ryan McDermott Paul de Gruchy Richard Wilkins |
Tel: +1 208 9547039 Tel: +44 7484 203 720 Tel: +44 7590 216 657 |
