Final results for the year ended 31 December 2024
16/06/2025 15:20
RNS Number : 0448N
Phoenix Copper Limited
16 June 2025
16 June 2025
Phoenix Copper Limited
("Phoenix", the "Company", or the "Group")
Final audited results for the year ended 31 December 2024
Notice of Annual General Meeting
Phoenix Copper Limited (AIM: PXC; OTCQX ADR: PXCLY), the AIM quoted, USA focused base and precious metals emerging producer and exploration company, is pleased to announce its audited results for the year ended 31 December 2024 (the "Year"). All references to $ are United States Dollars.
Highlights
Corporate & Financial
- Investment in Empire Mine increased to $43.77 million (2023: $38.43 million)
- Group reports loss of $6.27 million (2023: loss of $1.57 million) after charging an exceptional $4.60 million write-down of bond issue expenses
- Year-end Group net assets of $40.93 million (2023: $37.19 million)
- Company loans to Idaho operating subsidiaries increased to $38.83 million (2023: $32.54 million)
- Authorised class of $300 million floating rate corporate copper bonds created. Initial $5 million drawn down during the Year, and bonds listed on The International Stock Exchange ("TISE") in the Channel Islands. Letter of Intent to subscribe for a further $75 million signed in June 2025
- Placing, subscription and retail offer to raise $3.52 million completed in January 2024, and equity placings to raise $1.07 million completed post-period end
- $2 million unsecured short-term loan refinanced into 18-month unsecured term loan in March 2024
- Andre Cohen retired as a director and joined the Advisory Board
- Paul de Gruchy, VP of Investor Relations, also joined the Advisory Board
Operational
- Empire Mine open-pit mineral resources upgraded to mineral reserves. Inaugural mineral reserve statement published
- Proven & Probable mineral reserves of 10.1 million tonnes containing 109,487,970 pounds ("lbs") of copper, 104,000 ounces ("oz") of gold and 4,654,500 oz of silver (66,467 tonnes of copper equivalent metal)
- Mineral reserves estimated using assay data from 485 drill holes, extensive geological modelling, metallurgical recovery test work, geotechnical evaluation, and mine design
- Empire Mine open-pit Pre-Feasibility Study ("PFS") published. Pre-tax cumulative net free cash flow of $153 million over 8-year mine life; total cash costs of $2.44/lb
- Life of mine production of 40,424 tonnes copper, 40,161 oz gold and 1.76 million oz silver
- Initial Empire Mine open-pit equipment delivered to site, including two pre-owned ball mills and a fully equipped assay laboratory, purchased at significant discounts to the price of the same equipment when new
- Areas of significant and consistent mineralisation identified at the Navarre Creek gold claim block. 20 additional mining claims totalling 400 acres staked
- Earn-In Agreement on the Redcastle cobalt property renewed with Electra Battery Materials
The Company also announces that the Annual General Meeting ("AGM") will be held at The Washington Hotel, 5 Curzon Street, London W1 5HE on 27 June 2025 at 11.00 BST.
The Notice of AGM and Forms of Proxy were despatched to shareholders and made available on the Company's website at https://phoenixcopperlimited.com on 13 June 2025.
The Company's Annual Report and Consolidated Financial Statements for the year ended 31 December 2024, and the 2024 Sustainability Report, will also be available on the website from 17 June 2025.
CHAIRMAN'S STATEMENT
Dear Shareholders
While we are not in the business of creating a political chat forum, it would be unrealistic to say that we are not monitoring current events with huge interest. We have been hoping for some time that the US would react to the fact that around 45% of its annual refined copper consumption is imported. We are therefore very encouraged that the Trump Administration has decided to address this issue and take steps to increase domestic production of critical minerals, and copper in particular.
At the time of writing, our main basket of metals is trading at or close to historically high prices. As mentioned before, due to Covid and the Ukraine war's disruptions, we took the opportunity to redraft the Pre-Feasibility Study (''PFS'') for our Empire open-pit copper, gold and silver project in Idaho USA, streamlining it into a more compact and efficient process. The PFS that we published in September 2024 has been worth the wait, generating net (after repaying capex) pre-tax cashflow of $153 million over an 8-year mine life, using $4.45/lb copper, $2,325/oz gold and $27.25/oz silver. This compares with initial capital expenditure of $62.6 million, and also produces a 5% Net Present Value ('NPV') of $105 million and Internal Rate of Return ('IRR') of 46%. If we adjust the precious metal prices to current ($3,350/oz gold and $34.50/oz silver), the net pre-tax cashflow increases to $204 million, the NPV to $143 million and the IRR to 57%.
This is no mean achievement. The copper equivalent grade of 0.66% is higher than the global "in production" grade of 0.53% and significantly higher than the estimated 0.39% for mines under development. Relative costs are also competitive. Total cash costs at Empire, including royalties, are forecast at $2.44/lb. These compare favourably with Cerro Verde and Copper Mountain ($2.58), Morenci ($2.66), Bagdad ($2.73) and Olympic Dam ($2.88), to name a few (source: S & P Capital IQ, copper total cash cost 2024). Our place beckons amongst western copper producers.
On the global stage, we are always keeping an eye on China, consuming as they do approximately 50% of the world's copper. It is reassuring to see strong growth rates still prevailing in electric vehicles (''EVs''), with recent rates of 18% showing no signs of slowing down. The Chinese EV market is forecast by some to grow as high as $780 billion between now and 2029 from its current $377 billion. However, there are newer consumers to consider. Annual copper consumption per capita in India is now close to 1kg, compared with a global average of 3.2kg or more than 7kg in China and the US. It is notable that in 2023, India consumed 1.5 million tonnes, a 16% increase from 2022, while China consumed 13 million tonnes.
Artificial intelligence and the gig economy are also emerging as key drivers of growth in demand. One gigawatt of power for a new data centre requires in excess of 25,000 tonnes of cabling. Sixteen GW of AI data centre-related capacity is likely to be added in the US by 2026, which will need 400,000 tonnes of copper - equivalent to the output of a major mine, costing $3.2 billion at current prices. With Microsoft reportedly spending $115 billion in this space, it is insignificant by comparison.
The jury may still be out on EVs, but not on solar, hydropower and wind. Solar requires between 2.45 and 7 tonnes of cable per megawatt, hydro 4 tonnes, onshore wind 2.5 to 6.4 tonnes and offshore 10.5 tonnes. While overhead high-tension cables are made from aluminium, submerged or buried cables are nearly always made from copper.
On the supply side, refined copper production has not grown much since 2016, and new mines are needed to replace depletion from existing mines. Global grades of copper reserves were higher than 1% in the 1980s. This figure has fallen to below 0.4%, which has raised costs, as more than twice the amount of rock has to be processed for the same amount of metal.
Many mining companies have boosted their reserves when the copper price was rising by rebooking lower grade waste rock as reserves, as the higher price made them economic to mine. This process has largely come to an end, and there is a distinct lack of new discoveries of the size to deal with the extra demand outlined above.
Many companies have also preferred to spend money on share buybacks and buying competitors rather than starting new projects.
There are some significant copper deposits that remain unexploited, since it has become increasingly difficult to obtain permits and funding for them. Although the situation may change under the Trump Administration, we are still looking at several years before we see any production from the likes of Resolution or Twin Rivers.
As a result, our bullish stance on copper remains intact.
Although it is disappointing that the $80 million subscription for our corporate copper bonds, signed in June last year, remains only $5 million drawn down, I am pleased to report that we have signed a Letter of Intent with an accredited US investor to subscribe for the additional $75 million. This subscription, which is subject to the preparation and execution of definitive legal documentation, including the bond subscription letter, will enable us to complete construction and proceed into production at the Empire open-pit mine. We are hopeful that we will be able to commence drawdown on this additional funding later this month or early next.
Finally, I would like to thank all of you who have remained with us for your patience under trying circumstances. We appreciate that it has not been an easy ride and are ever grateful for your support.
Marcus Edwards-Jones
Executive Chairman
16 June 2025
CHIEF EXECUTIVE OFFICER'S REPORT
The Company marked several notable achievements in 2024, including the publication of copper, gold, and silver mineral reserves in the Empire Open Pit, the Empire Open Pit Pre-Feasibility Study ("PFS"), and the receipt of the grinding mills at our Mackay, Idaho lay down yard. The mining industry as a whole also marked a couple of notable milestones over the past 12 months, here in the US with the inauguration of a pro-mining White House administration, and globally with record copper and gold prices.
The inaugural Empire mineral reserves statement was published in May and reported economically viable Proven & Probable reserves of 10.1 million tonnes containing 109,487,970 lbs of copper, 104,000 ounces ("oz") of gold and 4,654,400 oz of silver, for a total of 66,467 copper equivalent metric tonnes ("mt").
The Company's PFS was published in September. The modelling and engineering in the PFS resulted in an 8-year open pit mine life producing payable metal of 89,094,705 copper lbs (40,424 mt), 40,161 oz gold, and 1,759,717 oz silver, with an estimated $62.6 million capex and total cash operating cost of $2.44/lb of copper equivalent metal, and pre-tax economics of US$87.86 million discounted net present value at 7.5% ("NPV7.5"), a 46.4% internal rate of return ("IRR"), and cumulative net free cashflow of US$152.98 million over the life of the mine.
We have spent much of the past year sourcing equipment for the open pit operation, including a grinding circuit (ball mills) that were transported and offloaded in Mackay in the fall. We also purchased and transported two tailings filtration units to Mackay, as well as other lesser rolling stock and truck shop equipment. The Company has also invested in a mine office, core logging facility, and an equipment warehouse facility in Mackay, all of which will service the mine. Including the laboratory and assay equipment purchased from Auric in 2023, we are preparing the equipment and supplies necessary for mine construction and operation.
A new White House administration was voted into office in November and immediately positioned itself as pro-mining, pro-energy, and pro-industrial. The administration announced that it would attempt to fast- track federal mine permitting by utilizing a law created in 2015 known as "Fixing America's Surface Transportation Act - Title 41" (more commonly known as "FAST-41") to simplify and streamline the permitting process for a variety of business sectors, including mineral exploration and mining. Although FAST-41 does not alter any applicable statutory or regulatory requirements or laws and does not predetermine the outcome of any federal decision-making process with respect to infrastructure projects receiving program benefits, it is intended to promote more transparent timetables for the federal review process, and to reduce the duplicative processes encountered on complex projects that are subject to multiple federal agency reviews.
Based on the current FAST-41 requirements, Phoenix's Idaho projects do not meet the criteria for inclusion in the program. The Empire Open-Pit project does not meet the program's minimum investment/capital expenditure requirement. The Horseshoe-Windy Devil and Navarre Creek projects have required federal exploration permitting in the past and have not encountered exploration permitting delays and therefore do not need to be fast-tracked. Exploration of the Empire Copper Sulphides will be completed on private land and will not be subject to federal exploration permitting. Even though our Idaho projects do not meet the criteria for inclusion in the program, it is still advantageous to Phoenix to have an administration so willing to streamline and advance copper and other critical mineral projects. It is also a boost to the mining sector that the administration is fast-tracking energy and industrial projects, all of which use the same metals that will be mined at Empire.
While the Company hopes that the FAST-41 streamlined federal permitting process will eventually be applied to all mineral projects in the U.S., we are encouraged by the fact that the majority of our Idaho projects are either situated on privately-owned land or are in areas where favorable environmental conditions exist to support mineral exploration activities.
Copper reached an all-time high of $5.24/lb in March of this year. As I write this, the price is $4.52/lb with futures up 5% to $4.90/lb. Gold has climbed through $3,390/oz, closing in on April's all time high of $3500/oz, and silver has also surged to $34/oz. These metal prices are significant and exciting for Phoenix because the Empire mineral reserves host all three metals, and the crush-grind-flotation-tank leach-cementation circuit recently designed for processing Empire ore will recover all three metals. Copper, gold, and silver production is highlighted in the 2024 PFS and is made possible employing standard open-pit mining methods and the recently designed milling process. The processing facility has been engineered with a small enough footprint for siting on the Company's patented mining claims near the open pit. The proximity of the mill to the open pit reduces the haulage distance of the ore to the crusher, which requires a smaller mining fleet in terms of truck count and size, and thereby reduces both capital and operating costs. The mill will produce two pay streams, a copper, gold, silver concentrate stream and a cement copper stream, both of which will be shipped to market without the need of further processing or refining at the Empire site.
In addition to processing ore from the Empire open pit, the flotation circuit will be capable of recovering copper, gold, and silver as a concentrate from the high-grade sulphide vein material that exists below the open pit and was mined extensively until the early 1940s. The Empire team is currently finalizing a plan to advance the exploration of the deeper sulphide vein system with an eye on augmenting the open pit ore with feed from the higher-grade sulphide vein system below the pit. The planning includes driving an adit toward known sulphide mineralization and developing underground drilling stations along the length of the adit. Known sulphide mineralization includes the 8.38% copper interval intercepted in the 2021 core drilling program, which also assayed 1.31 grammes per tonne ("g/t") gold and 120 g/t silver. Historically mined grades from the sulphide vein system below the open pit were recorded as high as 8% copper, with smelter recoveries of the time recorded as averaging 3.64% copper, 1.64 g/t gold, and 54 g/t silver. Resources permitting, we hope to commence underground work later this year.
The Phoenix team is currently in the process of finishing detailed engineering for the mine and processing facility, sourcing equipment and supplies for mine construction, completing land surveys, and preparing a plan of operations with the new processing design to submit to the federal regulatory authorities. Archaeological surveying of the waste rock facility and access road will be completed this month. Although this work has slowed to some degree while we continue on the funding front, progress is being made, and the Company's Idaho assets are being well maintained.
The Team is also making progress building an underground development plan for drilling the sulphide targets below the open pit reserve, resources permitting. The Navarre Creek gold exploration property and the Redcastle and Bighorn cobalt exploration properties are being well maintained and are positioned for exploration activities to continue once the detailed engineering and plan of operations are completed at Empire and resources permit. The earn-in agreement with Electra Battery Materials on the Company's Redcastle cobalt project was also renewed and extended in mid-2024.
2024 Empire Proven and Probable Mineral Reserves
A Proven and Probable reserve estimate was completed by Hardrock Consulting in April 2024 and reported for the polymetallic Empire Mine open pit oxide deposit. The estimate reports Proven and Probable reserves in the Empire open-pit oxide deposit of 10,097,000 tonnes containing 49,677 mt of copper, 104,000 oz of gold, and 4,654,400 oz of silver, for a combined 66,467 mt of copper equivalent metal. It was estimated using assay data from 485 drill holes, extensive geological modelling, metallurgical recovery test work, geotechnical evaluation, and mine design.
Mineral Reserve Statement for Empire Mine, after Hard Rock Consulting April 2024
Fully diluted tonnes at a Net Smelter Return ("NSR") cut-off of $22.59/tonne
| Classification | Tonnes | Copper | Gold | Silver | Copper Equivalent | |||||
| (x1000) | % | lb (x1000) | gpt | oz (x1000) | gpt | oz (x1000) | % | lbs (x1000) | tonnes | |
| Proven | 7,515 | 0.49 | 81,070.56 | 0.38 | 90.9 | 14.42 | 3,483.70 | 0.68 | 111,995.20 | 50,815 |
| Probable | 2,582 | 0.5 | 28,417.41 | 0.16 | 13.2 | 14.1 | 1,170.70 | 0.61 | 34,498.69 | 15,652 |
| Proven + Probable | 10,097 | 0.49 | 109,487.97 | 0.32 | 104 | 14.34 | 4,654.40 | 0.66 | 146,493.89 | 66,467 |
| Project Evaluation Overview | After Tax | Before Tax |
| Cumulative Net Cashflow | $132.44 | $152.98 |
| NPV @ 5.0%; (millions) | $89.55 | $105.44 |
| NPV @ 7.5%; (millions) | $73.75 | $87.86 |
| NPV @ 10.0%; (millions) | $60.71 | $73.29 |
| Internal Rate of Return | 40.2% | 46.4% |
| Payback Period | 1.66 | 1.41 |
| Payback Multiple | 2.92 | 3.21 |
| Benefit Cost Ratio | 7.61 | 8.87 |
| Initial Capital | $62.60 | $62.60 |
| Max. Neg. Cashflow (millions) | -$69.09 | -$69.09 |
| Reserve Pit Optimization Parameters (Metric tons) | Units | Cu | Au | Ag |
| Commodity Prices | $/oz or $/lb | $4.00 | $1,788 | $24.00 |
| Flotation Process Recoveries | ||||
| Flotation _ Cu Concentrate | % | 33.0% | 50.0% | 36.0% |
| Concentrate (Payables) | ||||
| Flotation_ Cu Concentrate (Au Payable based on grade) | % | 95.0% | 90-97% | 95.0% |
| Cementation Process Recoveries | ||||
| Cementation (Total Copper Recovery after Flotation) | % | 90.0% | 0.0% | 0.0% |
| Treatment/Refining Charges | ||||
| Copper Con. Refining | Ag $/oz | 0.40 | ||
| Copper Con. Refining | Au $/oz | 4.00 | ||
| Copper Con. Trucking & Shipping $/t conc | wet | $80.00 | ||
| Copper Con. Treatment $/t conc | wet | $90.00 | ||
| Copper Cementation Shipping $/lb | Cu $/lb | $0.04 | ||
| Copper Cementation Shipping $/lb | Cu $/lb | $0.02 | ||
| Operating Costs | ||||
| Mining Cost - Surface | $/t mined | $2.56 | ||
| Mining Cost - Incremental Increase for each 20ft depth | $/t mined | $0.018 | ||
| Processing Cost | $/t milled | $18.74 | ||
| G&A | $/t milled | $2.20 | ||
| Total Ore cost $/t milled | $/t milled | $20.94 | ||
| Pit Slope Assumptions | Five sectors were modelled based on core logging with inter-ramp angles ranging from 42º to 45º | |||
| Class | tonnes | Ag | Ag | Au | Au | Pb | Pb | Zn | Zn | Cu | Cu |
| (x1000) | g/t | oz | g/t | oz | % | lb | % | lb | % | lb | |
| (x1000) | (x1000) | (x1000) | (x1000) | (x1000) | % | (x1000) | |||||
| Inferred | 103.56 | 173.4 | 577.3 | 0.851 | 2.8 | 3.85 | 8,791.20 | 0.92 | 2,108.80 | 0.33 | 745 |
| Consolidated income statement | Year Ended 31 December | Year Ended 31 December | ||
| 2024 | 2023 | |||
| Continuing operations | Note | $ | $ | |
| Revenue | 4 | - | - | |
| Exploration & evaluation expenditure | (12,394) | (28,839) | ||
| Gross loss | (12,394) | (28,839) | ||
| Administrative expenses | (1,596,931) | (1,564,759) | ||
| Other operating expenses | 5 | (4,592,868) | (14,372) | |
| Loss from operations | (6,202,193) | (1,607,970) | ||
| Finance income | 12,110 | 34,196 | ||
| Finance costs | 6 | (58,209) | - | |
| Loss before taxation | (6,248,292) | (1,573,774) | ||
| Tax on loss on ordinary activities | (23,817) | - | ||
| Loss for the year | (6,272,109) | (1,573,774) | ||
| Loss attributable to: | ||||
| Owners of the parent | (6,225,246) | (1,535,494) | ||
| Non-controlling interests | (46,863) | (38,280) | ||
| (6,272,109) | (1,573,774) |
| Loss per share attributable to owners of the parent: | ||||
| Basic and diluted EPS expressed in US cents per share | 7 | (3.67) | (1.24) |
| Consolidated statement of comprehensive income | Year Ended 31 December | Year Ended 31 December | ||
| 2024 | 2023 | |||
| $ | $ | |||
| Loss for the year | (6,272,109) | (1,573,774) |
| Total comprehensive income attributable to: | |||
| Owners of the parent | (6,225,246) | (1,535,494) | |
| Non-controlling interests | (46,863) | (38,280) | |
| (6,272,109) | (1,573,774) |
| Consolidated statement of financial position | ||||||
| 31 December | 31 December | |||||
| 2024 | 2023 | |||||
| Note | $ | $ | ||||
| Non-current assets | ||||||
| Property, plant and equipment - mining property | 8 | 43,770,586 | 38,432,522 | |||
| Intangible assets | 9 | 362,740 | 356,805 | |||
| 44,133,326 | 38,789,327 | |||||
| Current assets | ||||||
| Trade and other receivables | 10 | 3,224,947 | 1,434,280 | |||
| Financial assets | 11 | 14,257 | 4,191 | |||
| Cash and cash equivalents | 879,476 | 283,721 | ||||
| 4,118,680 | 1,722,192 | |||||
| Total assets | 48,252,006 | 40,511,519 | ||||
| Current liabilities | ||||||
| Trade and other payables | 12 | 813,339 | 426,723 | |||
| Borrowings and other liabilities | 13 | 1,986,502 | 2,238,501 | |||
| 2,799,841 | 2,665,224 | |||||
| Non-current liabilities | ||||||
| Borrowings | 13 | 3,868,832 | - | |||
| Provisions for other liabilities | 14 | 657,702 | 657,702 | |||
| 4,526,534 | 657,702 | |||||
| Total liabilities | 7,326,375 | 3,322,926 | ||||
| Net assets | 40,925,631 | 37,188,593 | ||||
| Equity | ||||||
| Ordinary shares | 15 | - | - | |||
| Share Premium | 54,858,134 | 45,390,217 | ||||
| Retained loss | (13,893,274) | (8,209,258) | ||||
| Foreign exchange translation reserve | (18,588) | (18,588) | ||||
| Equity attributable to owners of the parent | 40,946,272 | 37,162,371 | ||||
| Non-controlling interests | (20,641) | 26,222 | ||||
| Total equity | 40,925,631 | 37,188,593 | ||||
| Consolidated statement of changes in equity | Ordinary shares | Share premium | Retained loss | Foreign exchange translation reserve | Total | Non-controlling interest | Total equity | |
| $ | $ | $ | $ | $ | $ | $ | ||
| At 1 January 2023 | - | 44,878,927 | (7,086,480) | (18,588) | 37,773,859 | 64,502 | 37,838,361 | |
| Loss for the year | - | - | (1,535,494) | - | (1,535,494) | (38,280) | (1,573,774) | |
| Total comprehensive income for the year | - | - | (1,535,494) | - | (1,535,494) | (38,280) | (1,573,774) | |
| Shares issued in the period | - | 511,290 | - | - | 511,290 | - | 511,290 | |
| Share issue expenses | - | - | - | - | - | - | - | |
| Share-based payments | - | - | 412,716 | - | 412,716 | - | 412,716 | |
| Total transactions with owners | - | 511,290 | 412,716 | - | 924,006 | - | 924,006 | |
| At 31 December 2023 | - | 45,390,217 | (8,209,258) | (18,588) | 37,162,371 | 26,222 | 37,188,593 |
| At 1 January 2024 | - | 45,390,217 | (8,209,258) | (18,588) | 37,162,371 | 26,222 | 37,188,593 | |
| Loss for the year | - | - | (6,225,246) | - | (6,225,246) | (46,863) | (6,272,109) | |
| Total comprehensive income for the year | - | - | (6,225,246) | - | (6,225,246) | (46,863) | (6,272,109) | |
| Shares issued in the period | - | 9,957,115 | - | - | 9,957,115 | - | 9,957,115 | |
| Share issue expenses | - | (489,198) | - | - | (489,198) | - | (489,198) | |
| Share-based payments | - | - | 541,230 | - | 541,230 | - | 541,230 | |
| Total transactions with owners | - | 9,467,917 | 541,230 | - | 10,009,147 | - | 10,009,147 | |
| At 31 December 2024 | - | 54,858,134 | (13,893,274) | (18,588) | 40,946,272 | (20,641) | 40,925,631 |
| Consolidated statement of cash flows | 31 December | 31 December |
| 2024 | 2023 | |
| $ | $ | |
| Cash flows from operating activities | ||
| Loss before tax | (6,248,292) | (1,573,774) |
| Adjustments for: | ||
| Share-based payments | 65,328 | 18,991 |
| Impairment of motor vehicles included in mining property | 296,524 | - |
| Impairment of bond issue expenses | 4,602,934 | - |
| Finance costs payable | 58,209 | - |
| Corporate taxes paid | (23,817) | - |
| Fair value adjustment to financial asset | (10,066) | 14,372 |
| (1,259,180) | (1,540,411) | |
| (Increase)/decrease in trade and other receivables | (2,600,032) | 100,226 |
| Increase/(decrease) in trade and other payables | 328,405 | (97,245) |
| Net cash used in operating activities | (3,530,807) | (1,537,430) |
| Cash flows from investing activities | ||
| Purchase of intangible assets | (5,935) | (9,805) |
| Purchase of property, plant and equipment | (4,412,208) | (5,034,567) |
| Net cash used in investing activities | (4,418,143) | (5,044,372) |
| Cash flows from financing activities | ||
| Proceeds from the issuance of ordinary shares | 3,559,994 | 511,290 |
| Share issue expenses | (489,198) | - |
| Proceeds from short-term borrowings | 968,436 | 2,000,000 |
| Proceeds from issue of 10-Year Copper Bonds | 4,750,000 | |
| Repayment of deferred liability | (190,000) | (310,000) |
| Finance costs paid | (54,527) | - |
| Net cash generated from financing activities | 8,544,705 | 2,201,290 |
| Net increase/(decrease) in cash and cash equivalents | 595,755 | (4,380,512) |
| Cash and cash equivalents at the beginning of the year | 283,721 | 4,664,233 |
| Cash and cash equivalents at the end of the year | 879,476 | 283,721 |
| 1 | General information |
| Phoenix Copper Limited (the "Company") and its subsidiary undertakings (the "Group") are engaged in exploration and mining activities, primarily precious and base metals, primarily in North America. The Company is domiciled and incorporated in the British Virgin Islands on 19 September 2013 (registered number 1791533). The address of its registered office is OMC Chambers, Wickhams Cay 1, Road Town, Tortola VG1110, British Virgin Islands. The Company is quoted on London's AIM (ticker: PXC) and trades on New York's OTCQX Market (ticker: PXCLF; ADR ticker PXCLY). | |
| The subsidiaries of the Company are: | |
| Incorporated in the United States of America | |
| KPX Holdings Inc (100% equity holding) | |
| Subsidiaries of KPX Holdings Inc: | |
| Konnex Resources Inc (80% equity holding) | |
| Borah Resources Inc (100% equity holding) | |
| Lost River Resources Inc (100% equity holding) | |
| Salmon Canyon Resources Inc (100% equity holding) | |
| 2 | Going concern |
| The Group currently has no income and meets its working capital requirements through raising development finance. In common with many businesses engaged in exploration and evaluation activities prior to production and sale of minerals the Group requires funding in order to fully develop its business plan. The directors believe that the proceeds expected to be received from the further issue of 10-year Copper Bonds will be sufficient to cover projected construction costs for the Empire open pit mine, which will enable the Group to commence production and generation of income. The directors have prepared annual budgets and forecasts for the period through to 30 June 2026 in order to ensure that they have sufficient liquidity in place and that they comply with the terms and conditions of their obligations in relation to the ongoing development of the mining assets and the Group's environmental and other commitments. At the date of approval of these financial statements, the Group remains dependent on securing additional financing to fund its operations and meet its obligations as they fall due. Although the Group experienced delays in receiving certain bond funds, management is in advanced discussions with several potential investors to secure necessary financing for the development of the Empire open-pit mine. However, to date no binding agreement has been signed, and no additional funds have yet been received. Sensitivity analysis performed by the Group indicates that, in the absence of this financing, a cash shortfall could arise by August 2025, which would affect the Group's ability to meet key obligations, including interest payments and creditor settlements. In response, the directors have considered a number of contingency plans to manage liquidity in the event of a delay or failure to secure further bond financing. These include the deferral of discretionary expenditure, including directors' and advisory board fees and non-essential project costs, temporary suspension of certain capital expenditure activities, and a potential equity funding, which management believes is feasible based on preliminary investor discussions and historical shareholder support. The Group is also due to repay its short-term loan at the end of August 2025, and any delay in funding may impact its ability to meet this obligation. Management is actively considering options to address this, including refinancing or restructuring the loan. On 7 April 2025 the Company raised £300,000 and on 13 June 2025 an additional £500,000 from equity placings for working capital. These circumstances represent a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern. Nevertheless, the directors have a reasonable expectation that the Group will have adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statements. Accordingly, the directors believe it appropriate to adopt the going concern basis of accounting in preparing the financial statements. The financial statements do not include the adjustments that would result if the Group was unable to continue as a going concern. | |
| 3 | Basis of preparation |
| This preliminary information does not comprise full financial statements. The significant accounting policies and other information contained within this preliminary announcement has been extracted from the Group's audited financial statements a copy of which is available on the Company's website: www.pgmining.com. The financial information is presented in US dollars. |
| 4 | Revenue The Group is not yet producing revenues from its mineral exploration and mining activities. The Company charged its subsidiary entities $900,000 (2023: $900,000) in respect of management services provided. |
| 5 | Other operating expenses | 31 December | 31 December | |
| 2024 $ | 2023 $ | |||
| Fair-value adjustment on financial assets | 10,066 | (14,372) | ||
| Impairment loss in respect of bond-issue expenses | (4,602,934) | - | ||
| Net other operating expenses | 4,592,868 | - |
| 6 | Finance costs | 31 December | 31 December | |
| 2024 $ | 2023 $ | |||
| Finance costs | 618,918 | 231,701 | ||
| Amount capitalised into non-current assets - mining property | (560,709) | (231,701) | ||
| Net finance costs | 58,209 | - |
| 7 | Loss per share | 31 December | 31 December |
| 2024 $ | 2023 $ | ||
| Loss attributable to the parent used in calculating basic and diluted loss per Share | (6,225,246) | (1,535,494) | |
| Number of shares | |||
| Weighted average number of shares for the purpose of basic earnings per share | 169,554,296 | 123,483,143 | |
| Weighted average number of shares for the purpose of diluted earnings per share | 169,544,296 | 123,483,143 | |
| Basic loss per share (US cents per share) | (3.67) | (1.24) | |
| Diluted loss per share (US cents per share) | (3.67) | (1.24) |
| 8 | Non-current assets | Mining | |||
| property | |||||
| $ | |||||
| At 1 January 2023 | 33,104,230 | ||||
| Additions | 5,328,292 | ||||
| At 31 December 2023 | 38,432,522 | ||||
| At 1 January 2024 | 38,432,522 | ||||
| Additions | 5,634,588 | ||||
| Write off | (296,524) | ||||
| At 31 December 2024 | 43,770,586 |
| Net book value | |||||
| At 1 January 2023 | 33,104,230 | ||||
| At 31 December 2023 | 38,432,522 | ||||
| At 31 December 2024 | 43,770,586 |
| 9 | Intangible assets | |||
| Exploration and evaluation expenditure | ||||
| $ | ||||
| At 1 January 2023 | 347,000 | |||
| Additions | 9,805 | |||
| At 31 December 2023 | 356,805 | |||
| At 1 January 2023 | 356,805 | |||
| Additions | 5,935 | |||
| At 31 December 2024 | 362,740 | |||
| Net book value | |||||
| At 1 January 2023 | 347,000 | ||||
| At 31 December 2023 | 356,805 | ||||
| At 31 December 2024 | 362,740 |
| 10 | Other receivables | ||||
| 31 December 2024 | 31 December 2023 | ||||
| $ | $ | ||||
| Other receivables | 1,763,997 | 382,179 | |||
| Preliminary bond issue expenses | 1,338,471 | 882,814 | |||
| Prepaid expenses | 122,479 | 169,287 | |||
| 3,224,947 | 1,434,280 |
| 11 | Financial assets | ||||
| 31 December 2024 | 31 December 2023 | ||||
| $ | $ | ||||
| Quoted investments | 14,257 | 4,191 |
| 12 | Trade and other payables | ||||
| 31 December 2024 | 31 December 2023 | ||||
| $ | $ | ||||
| Trade payables | 730,126 | 410,448 | |||
| Other payables | 83,213 | 16,275 | |||
| 813,339 | 426,723 |
| 13 | Borrowings | ||||
| 31 December 2024 | 31 December 2023 | ||||
| $ | $ | ||||
| Current liabilities | |||||
| Short-term borrowings | 1,986,502 | 2,048,501 | |||
| Deferred consideration | - | 190,000 | |||
| 1,986,502 | 2,238,501 | ||||
| Non-current liabilities | |||||
| 10-year Copper Bonds | 3,868,832 | - | |||
| Total borrowings | 5,855,334 | 2,238,501 |
| Net debt reconciliation of cash flows | 31 December 2024 | 31 December 2023 | |||
| $ | $ | ||||
| At 1 January 2024 | 2,238,501 | 500,000 | |||
| New short-term borrowings | 968,436 | 2,000,000 | |||
| Proceeds of bonds issued net of discount | 4,750,000 | - | |||
| 5,718,436 | 2,000,000 | ||||
| Repayment of borrowings | (190,000) | (310,000) | |||
| Borrowings settled by the issue of share capital | (1,487,325) | - | |||
| Other non-cash movements | (369,751) | 48,501 | |||
| Interest paid | (54,527) | - | |||
| (2,101,603) | (261,499) | ||||
| At 31 December 2024 | 5,855,334 | 2,238,501 |
| 14 | Provisions | ||||
| 31 December 2024 | 31 December 2023 | ||||
| $ | $ | ||||
| Royalties payable | 657,702 | 657,702 | |||
| 657,702 | 657,702 | ||||
| 15 | Share capital | |||||
| Group and Company | Group and Company | |||||
| Number | Number | |||||
| 2024 | 2023 | |||||
| Number of ordinary shares of no par value | ||||||
| At the beginning of the year | 124,928,622 | 122,628,622 | ||||
| Issued in the year | 72,255,470 | 2,300,000 | ||||
| At the end of the year | 197,184,092 | 124,928,622 | ||||
| 16 | Share-based payments |
| Warrants issued | Weighted | 31 December | 31 December | ||
| Average | 2024 | 2023 | |||
| Exercise price | Number | Number | |||
| At the beginning of the year | £0.38 | 9,221,457 | 7,521,457 | ||
| Issued in the year | £0.12 | 1,602,827 | - | ||
| Issued in the year | £0.18 | - | 2,000,000 | ||
| Issued in the year | £0.20 | 8,951,779 | - | ||
| Issued in the year | £0.42 | - | 2,000,000 | ||
| Exercised in the year | £0.12 | (423,913) | - | ||
| Exercised in the year - average exercise price | £0.18 | - | (2,300,000) | ||
| Lapsed | £0.41 | (2,932,641) | - | ||
| At the end of the year | £0.19 | 16,419,509 | 9,221,457 |
| Share options issued | Weighted | 31 December | 31 December | ||
| average | 2024 | 2023 | |||
| Exercise price | Number | Number | |||
| At the beginning of the year | £0.34 | 6,225,000 | 6,225,000 | ||
| Issued in the year | £0.30 | - | - | ||
| At the end of the year | £0.34 | 6,225,000 | 6,225,000 |
| 31 December | 31 December | ||
| 2024 | 2024 | ||
| Warrants issued | Share options issued | ||
| Weighted average share price at grant date | £0.12 | - | |
| Weighted average exercise prices | £0.19 | - | |
| Weighted average expected volatility | 108.5% | - | |
| Expected life in years | 1.00 | - | |
| Weighted average contractual life in years | 1.00 | - | |
| Risk-free interest rate | 3.5% | - | |
| Expected dividend yield | - | - | |
| Fair-value of warrants granted (pence) | £0.04 | - |
| Share-based payments allocation of charge | 31 December | 31 December | |||
| 2024 | 2023 | ||||
| $ | $ | ||||
| Share options | - | 54,262 | |||
| Warrants including modification | 541,230 | 358,454 | |||
| Total charge | 541,230 | 412,716 | |||
| Allocation: | |||||
| Mining property | 475,902 | 393,725 | |||
| Administrative expenses | 65,328 | 18,991 | |||
| 541,230 | 412,716 |
| 17 | Events after the reporting date In June 2025 the Company signed a non-binding Letter of Intent with an accredited US investor to subscribe for $75 million of the Company's 10-year Copper Bonds. The subscription is subject to the preparation and execution of definitive legal documentation, including the bond subscription letter. In the same period, the Company also raised £800,000 from equity placings for working capital. |