REG - Phoenix Copper Ltd - Final results for the year ended 31 December 2024
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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
(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
The mineral reserves reported herein for the Empire project have been
estimated in a manner consistent with the NI 43-101 Committee of Mineral
Reserves International Reporting Standards ("CRIRSCO"), of which both
the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") and
Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (the "JORC Code") are members.
2024 PFS - Summary of Economic Results
The economic analysis of the base case scenario for the Empire open-pit mine
uses metal prices of $4.45/lb for copper, $2,325/oz for gold and $27.25/oz for
silver. The economic model shows a pre-tax NPV7.5 of $87.86 million using a
$22.59/tonne NSR cut-off, as well as a pre-tax IRR of 46.4%. Table 1
summarises the projected cashflow, NPV at varying rates, IRR, years of
positive cash flows to repay the negative cash flow ("Payback Period"), and
multiple of positive cash flows compared to the maximum negative cash flow
("Payback Multiple") on both after-tax and before-tax bases.
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
The metal prices used in the PFS economic analysis were based on near-term
trailing averages at the time the PFS was being written and were considered to
be conservative. While the current price of copper is similar to that used
in the PFS analysis, the price of precious metals has increased considerably,
gold in particular. There is no guarantee that metal prices will maintain
their current levels, but in the event that metal prices remain at current
levels during open pit production, the Company could expect to see an increase
of roughly $50 million in pre-tax cumulative net cashflow and a roughly $30
million increased NPV7.5%. The Company will be reevaluating the metal prices
as part of the detailed engineering work, and if determined prudent will
reoptimize the economics using updated metal prices.
PFS - Metallurgy and Process Design
3,502 feet (1,067 metres) of core from the Empire copper oxide deposit was
sampled and evaluated for the metallurgical recovery of copper, gold, and
silver. The results of the metallurgical test work, as presented in the PFS,
show that a crush-grind-flotation-tank leach milling process provides the
optimum metal recoveries for the cost. The flotation-leaching circuit that has
been designed for the Empire open pit ore has a much smaller footprint than a
classic heap leach design, allowing for the processing plant to be sited on
the Company's patented (private) mining claims near the open pit. The
proximity of the plant to the open pit will reduce overall operating costs by
reducing the ore haulage distance. The improved haulage cycle-time gained
from the shortened haulage distance also allows for the use of smaller, less
expensive haul trucks.
In addition to the cost benefits of a smaller footprint plant sited on private
land, the flotation-leaching circuit will be capable of processing sulphide
material currently being explored elsewhere on the Empire property. From an
environmental permitting standpoint, siting the processing plant on private
land should help to simplify the overall permitting process.
The flotation + leaching metallurgical recovery results and reserve pit
optimization parameters are shown in the table below. Optimization of the
processing circuit is ongoing.
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
Red Star - High grade silver Inferred Resource
Red Star is a high-angle silver-lead vein system hosted in andradite-magnetite
and located 330-metres north-northwest of the Empire oxide pit. Red Star was
identified from a 20-metre wide surface outcrop across a skarn structure.
In May 2019, the Company announced a small maiden Inferred sulphide resource
of 103,500 tonnes, containing 577,000 ounces of silver, 3,988 tonnes of lead,
957 tonnes of zinc, 338 tonnes of copper, and 2,800 ounces of gold, as
summarized in the table below.
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
Navarre Creek Gold Claim Block
During the summer of 2023, 28 reverse-circulation drill holes were completed
into four (4) target areas within the 16.18 square kilometer Navarre Creek
gold claim block. Drilling at two of the four target areas resulted in the
identification of continuous, low-grade gold mineralization ranging from 4.5
metres to 22.9 metres thick in the Lehman Creek target area, and anomalous
silver and antimony along a structure in the west fork of Navarre Creek.
The initial assays from the two Navarre Creek targets showed low-grade
mineralization worthy of further investigation. As a result, an additional 400
acres of unpatented mining claims were staked to the south-west of the Lehman
Creek fault target, expanding our Navarre Creek claim block to 197 unpatented
claims covering 4,070 acres.
Empire Mine Expansion - Horseshoe, Whiteknob, and Windy Devil
The Horseshoe, Whiteknob, and Windy Devil claim blocks, located immediately
north of the Empire Mine project, are situated within the core of the Empire
mineralization and remain attractive exploration targets. The core Empire
claim group has grown to 8,434 acres (34.13 sq kms) by expanding north to the
former Horseshoe and Whiteknob Mines and onto Windy Devil. This expansion
covers approximately 30 historic adits, shafts and prospects, which exhibit
geology and mineralogy similar to Red Star, and which will be the subject of
further exploration going forward.
Idaho Cobalt Belt - Redcastle and Bighorn Projects
The Company owns two strategically located properties on the Idaho Cobalt Belt
in Lemhi County, Idaho - Redcastle and Bighorn. The Redcastle property is
held by Borah Resources, our 100% owned, Idaho registered subsidiary. In May
2021, the Redcastle holding was signed to an earn-in agreement with Electra
Battery Materials Corporation, the Toronto-based owner of the Iron Creek
Cobalt Mine, which shares a common border with the Redcastle property. The
earn-in agreement with Electra Battery Materials on the Company's Redcastle
cobalt project was renewed and extended in mid-2024.
The Bighorn property, located on the northern end of the Idaho Cobalt Belt, is
held by Salmon Canyon Resources, another 100% owned, Idaho registered
subsidiary. Bighorn is situated east of the historic Salmon Canyon copper
cobalt underground mine and shares a common border with New World Resources'
Colson cobalt-copper project.
In addition to copper, cobalt is a critical metal for electric vehicles and
global electrification projects. Cobalt deposits are rare, particularly in
first world jurisdictions. The Company's cobalt projects are located in the
USA's only prospective cobalt region, the Idaho Cobalt Belt, approximately 100
miles north of the Empire Mine. In 2018 we announced the results of our 2017
reconnaissance program of 46 surface grab samples, which gave cobalt values
ranging from 2 ppm to 0.31% cobalt.
Outlook
Copper, gold, and silver prices are testing new ground and are remaining well
above the prices used for the Empire mineral reserves estimation and for the
reserve pit optimization and economics in the PFS. The current White House
administration recognizes the importance of domestic metals production, as
well as the development of domestic energy sources and domestic manufacturing
in general, all of which creates a demand for the very minerals that we will
produce on our Idaho projects.
We believe we have simplified the overall permitting process by siting the
open pit and processing facility on private land. Our energy is currently
focused on completing all of the necessary detailed engineering required to
submit a plan of operations and successfully permit and construct the open pit
mine. Additionally, and whilst we finalise further construction and
development financing, we have identified the sources for the equipment and
supplies necessary to complete construction and proceed into operation and
mineral production.
In the meantime, we also continue plan development for our exploration
properties to ensure those projects can be executed upon receiving the
necessary resources.
Key Performance Indicators ("KPIs")
To date, the Group has focused on the delivery of the project evaluation work
programs to assess the available mineral reserves and resources and the
extraction methods to apply, each within the available financial budgets. This
work will continue until the relevant feasibility studies are completed, and
final construction commences.
At that stage, the Group will consider and implement appropriate operational
performance measures and related KPIs as the objective of recommencing
commercial production at the Empire Mine nears fruition.
Conclusion
The Company's focus in 2024 was to complete and publish an inaugural mineral
reserve statement and PFS for the Empire open pit. Both reports were completed
and published, memorializing the extensive geological and engineering efforts
of the Phoenix team. The Company has now taken the information developed for
the mineral reserve and the PFS, applied it to the detailed engineering, and
ultimately into a plan of operations. Additionally, the team is developing an
exploration plan for the high-grade sulphide mineralization below the open
pit. Although we have seen some funding delays, our Idaho projects continue to
move forward. Our team of engineers, geoscientists, and industry consultants
continue to do an excellent job moving the Company into the next stage of
development.
As I have said before, and will continue to say, thank you to all of our
professional staff, consultants and advisors, all of whom work tirelessly to
accomplish our common goal of metal production. And I would like to thank
our community liaisons, shareholders, and directors for their considerable
support.
Ryan McDermott
Chief Executive Officer
16 June 2025
Consolidated income statement Year Year
Ended Ended
31 December 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 Year
Ended Ended
31 December 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
The financial statements were approved by the Board of Directors and
authorized for issue on 16 June 2025.
On behalf of the Board
Richard V L Wilkins
Director
Consolidated statement of changes in equity Ordinary shares Share premium Retained loss Foreign exchange Total Non-controlling interest Total equity
translation reserve
$ $ $ $ $ $ $
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
Significant non-cash transactions:
During the year an amount of $541,230 (2023: $412,716) was credited to the
retained loss in respect of the charge for share-based payments, of which
$475,902 (2023: $393,725) has been capitalised into mining property.
Interest and fees of $746,478 (2023: $294,100) arising from borrowings have
been capitalised into mining property. An amount of $4,909,796 arising from an
issue of ordinary shares in lieu of an arrangement fee (2023: $nil) of which
$306,862 was allocated against the carrying value of the 10-year Copper Bond
liability and the remaining balance of $4,602,934 was expensed in the income
statement.
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 -
The fair-value adjustment on financial assets arises from the Group's
investment in Toronto-based Electra Battery Materials Corporation which are
stated at fair-value through profit and loss.
The impairment loss in respect of bond issue expenses arises from the value of
shares issued by the Company to a bondholder, as an arrangement fee, which
were classified as other receivables pending allocation to the net carrying
value of future bonds to be subscribed for. This subscription is no longer
expected to take place.
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 -
The capitalisation rates are based upon the utilisation of the related
borrowings and the finance costs arising from short-term borrowings and
10-year Copper Bonds. Finance costs include interest calculated using the
effective interest rate method. There are no related foreign exchange
differences.
7 Loss per share 31 December 31 December
2024 2023
$ $
Loss attributable to the parent used in calculating basic and diluted loss per (6,225,246) (1,535,494)
Share
Number of shares
Weighted average number of shares for the purpose of basic earnings 169,554,296 123,483,143
per share
Weighted average number of shares for the purpose of diluted earnings 169,544,296 123,483,143
per share
Basic loss per share (US cents per share) (3.67) (1.24)
Diluted loss per share (US cents per share) (3.67) (1.24)
Basic earnings per share amounts are calculated by dividing net loss for the
year attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during the year.
Where the Group has incurred a loss in a year the diluted earnings per share
is the same as the basic earnings per share.
The Company has potentially issuable shares of 22,644,509 (2023: 15,446,457)
all of which relate to the potential dilution in respect of warrants and share
options issued by the Company.
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
Mining property assets relate to the past producing Empire Mine copper - gold
- silver - zinc project in Idaho, USA. The Empire Mine has not yet recommenced
production and no depreciation has been charged in the statement of
comprehensive income. There has been no impairment charged related to the mine
construction and related resources in any period due to the early stage in the
Group's project to reactivate the mine. However, the market capitalisation of
the Group is below the carrying value of the mining asset, which is an
indicator of impairment. Management performed an impairment assessment and
concluded that an impairment is not required. The write off amount of $296,524
(2023: $nil) relates to motor vehicles which have been scrapped in the year.
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
Exploration and evaluation expenditure relates to the Bighorn and Redcastle
properties on the Idaho Cobalt Belt in Idaho, USA and initial costs relating
to the potential acquisition of mining rights in a producing copper project in
the western USA. The Bighorn property is owned by Salmon Canyon Resources Inc.
The Redcastle property is owned by Borah Resources Inc. Both companies are
wholly owned subsidiaries of KPX Holdings Inc, a wholly owned subsidiary of
the parent entity, and each of which are registered and domiciled in Idaho.
The Redcastle property is subject to an Earn-In Agreement with First Cobalt
Idaho, a wholly owned subsidiary of Electra Battery Materials Corporation of
Toronto, Canada.
10 Other receivables
31 December 31 December 2023
2024
$ $
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
There were no receivables that were past due or considered to be impaired.
There is no significant difference between the fair value of the other
receivables and the values stated above.
Preliminary bond issue expenses relate to the 10-Year Copper Bonds and will be
deducted from the proceeds of the bonds proportionately by tranche of issue of
the bonds and amortised to finance expenses over the expected life of each
tranche of bonds issued.
Other receivables include an advanced payment of $1,133,926 in respect of a
potential investment in mining operations in the western USA. Subject to
additional funding, the Company intends to continue discussions regarding this
potential investment with a view to agreeing an earn-in or such other similar
arrangement.
11 Financial assets
31 December 31 December
2024 2023
$ $
Quoted investments 14,257 4,191
Quoted investments represent 11,111 shares in Toronto-based Electra Battery
Materials Corporation. The shares have been valued at market price as at 31
December 2024. A fair value gain of $10,066 (2023: a loss of $14,372) has been
taken to other operating income/expenses.
12 Trade and other payables
31 December 31 December 2023
2024
$ $
Trade payables 730,126 410,448
Other payables 83,213 16,275
813,339 426,723
All trade and other payables are payable on demand or have payment terms of
less than 90 days. The Group is not exposed to any significant currency risk
in respect of its payables.
13 Borrowings
31 December 31 December 2023
2024
$ $
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 31 December 2023
2024
$ $
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
Short-term borrowings
In 2023 the Group entered a short-term unsecured funding arrangement of
$2,000,000, with an initial fixed 4% coupon, which was subsequently modified
on several occasions. On 2 March 2024 the Company refinanced the facility into
an 18-month term loan, repayable over 15 months following an initial 90-day
repayment holiday. Since the year end the loan has been extended to 30 August
2025, unless the Company redeems the loan earlier. The loan remains unsecured
and attracts interest at 15% per annum. The loan is potentially convertible,
by the lender, into approximately 7.2 million new ordinary shares in the
Company at a fixed subscription price of 20 pence per share.
Deferred consideration
In April 2021 the Group entered into an agreement with Mackay LLC to acquire
1% of the 2.5% net smelter royalty payable on mining leases on the Empire Mine
in Idaho, USA. The amount outstanding as at 31 December 2023 of $190,000 was
paid in the year.
10-year Copper Bonds
On 27 December 2023 the Company created a class of corporate copper bonds
("Bonds") in an authorised amount of $300 million. $110 million in principal
value of Bonds were issued and deposited with The Bank of New York Mellon as
Settlement Agent, pending onward transfer to Bonds investors.
The Bonds are not convertible, are secured on the Group's interests in the
Empire open pit mine and are listed on The International Stock Exchange in the
Channel Islands ("TISE"), under the ticker PHCOUSDN.
During the period the Company agreed an initial subscription for $80 million
of Bonds from an investor. The initial drawdown of $5 million of Bonds was
made in the year at a discount of $250,000 which will be amortised over the
remaining life of the bonds issued.
The Company paid an arrangement fee of $4.96 million, settled by the issue of
33,884,031 ordinary shares of no par value to the Bond holder at a fair-value
of 11.5 pence per share in lieu of an arrangement fee. $0.31 million has
been allocated proportionately against the first $5 million of Bonds issued.
The balance of $4.60 million was recognised initially in other receivables
pending allocation against future Bonds issues of up to $75 million. This
subscription from the Bond holder is no longer expected to take place and the
remaining balance has been expensed.
Additionally the Company agreed a drawdown fee, conditional upon the drawdown
by the Company of further tranches of Bonds, by way of warrants to subscribe
at no cost for a further 22.59 million of new ordinary shares. These warrants
have not vested and will now lapse.
$1.34 million of other Bond issue expenses are carried forward to be amortised
against the issue of further Bonds when drawn
The Bonds have a final maturity of ten years with Bond investor option to
request redemption at principal value after six years, and the Company's
option to offer early redemption at a 10% premium to principal value after
five years. The Bonds will remain listed on TISE until the earlier of
redemption or maturity.
The Bonds pay a floating rate coupon subject to a minimum of 8.5% per annum
and a maximum of 20%. The floating rate coupon is calculated as to the higher
of a copper price coupon linked to the copper price on the London Metal
Exchange, or an interest rate coupon linked to the US Federal Discount Rate.
The coupon is only payable on the principal value of Bonds drawn down.
14 Provisions
31 December 31 December 2023
2024
$ $
Royalties payable 657,702 657,702
657,702 657,702
The provision of $657,702 arises from a business combination in 2017 and
comprises potential royalties payable in respect of future production at the
Empire Mine. This liability will only be payable if the Empire Mine is
successfully restored to production and will be deducted from the royalties
payable. The amount of the provision will be reassessed as exploration work
continues and on commencement of commercial production.
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
The Company does not have an authorised capital and is authorised to issue an
unlimited number of no-par value shares of a single class.
In the year the Company issued 72,255,570 ordinary shares at an average issue
price of $0.14 per share to raise $9.96 million gross, before share-issue
expenses, including $1.49 million to repay short-term borrowings and $4.91
million in lieu of an arrangement fee for 10-year Copper Bond issue expenses.
Since the year end the Company has issued a further 27,353,208 ordinary shares
at $0.045 including 22,500,000 ordinary shares from equity placing and
4,853,208 ordinary shares issued to a provider of short-term borrowings.
The ordinary shares in the Company have no par value. All ordinary shares have
equal voting rights in respect of shareholder meetings. All ordinary shares
have equal rights to dividends and the assets of the Company.
The Company has issued warrants to subscribe for additional shares. Each
warrant provides the right to the holder to convert one warrant into one
ordinary share of no-par value at exercise prices ranging from £0 to £0.385.
At 31 December 2024 the number of warrants in issue was 16,419,509 (2023:
9,221,457).
The Company has issued options to subscribe for additional shares to the
directors and senior employees of the Group. Each option provides the right to
the holder to subscribe for one ordinary share of no par-value, subject to the
vesting conditions, at exercise prices ranging from £0.17 to £0.50. On 31
December 2024 the number of options in issue was 6,225,000 (2023: 6,225,000).
Since the year end all the options have lapsed.
Since the year end a further 2,565,934 warrants have been issued at an
exercise price of £0.07, and 3,775,000 warrants with exercise prices ranging
from £0.18 to £0.50 have lapsed.
16 Share-based payments
The Company has in issue 16,419,509 (2023: 9,221,457) warrants to subscribe
for additional share capital of the Company. Each warrant entitles the holder
to subscribe for one ordinary equity share in the Company. The right to
convert each warrant is unconditional.
The Company has issued 6,225,000 (2023: 6,225,000) share options to directors
and senior employees of the Group. Each share option entitles the holder to
subscribe for one ordinary equity share in the Company once the vesting
conditions have been satisfied. No new share options were issued or amended
in the year ended 31 December 2024. Since the year-end these options have
lapsed.
In the periods presented the Company has operated an equity-settled share
based incentivisation schemes for employees.
Equity-settled share-based payments are measured at fair-value (excluding the
effect of non-market-based vesting conditions) as determined through use of
the Black-Scholes technique, at the date of issue. The warrants were issued as
exercisable from the date they were issued and there are no further vesting
conditions applicable.
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
The total share-based payment charge for all warrants and options in the year
was $541,230 of which $65,328 has been charged to profit and loss and $475,902
allocated to Mining Property (2023: $412,716, $18,991 and $393,725
respectively). The share-based payment charge was calculated using the
Black-Scholes model. All warrants issued vest immediately on issue. Share
options vest up to a 36-month period from the date of issue, or on the
achievement of certain vesting milestones.
Volatility for the calculation of the share-based payment charge in respect of
both the warrants and the share options issued was determined using the
historic volatility calculated over a year period by reference to movements in
the Company's quoted share price on AIM.
The inputs into the Black-Scholes model for the warrants and share options
issued were as follows:
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 -
On 2 February 2024 the Company issued 1,602,827 warrants with an exercise
price of £0.115, the share price on the date of issue was £0.114 and the
fair-value of each warrant was £0.04. Issued fully vested.
On 2 March 2024 the Company issued 3,300,874 warrants with an exercise price
of £0.20, the share price on the date of issue was £0.118 and the fair-value
of each warrant was £0.03. Issued fully vested.
On 16 May 2024 the Company issued 1,550,905 warrants with an exercise price of
£0.20, the share price on the date of issue was £0.22 and the fair-value of
each warrant was £0.08. Issued fully vested.
On 30 September 2024 the Company issued 4,100,000 warrants with an exercise
price of £0.20, the share price at the date of issue was £0.10 and the
fair-value of each warrant was £0.02.
In the year 423,913 warrants of £0.12 were exercised and 2,932,641 warrants
with an average price of £0.39 lapsed.
In the year 3,482,500 warrants with exercise prices ranging from £0.30 to
£0.50 were modified to be exercisable at £0.20.
The warrants issued are all exercisable from the date of issue. The average
volatility for the warrants issued was 108.5%.
No share options were issued or amended in the year. The number of outstanding
share options are exercisable between £0.30 to £0.34.
The expected life of the outstanding warrants and options is up to 1 year.
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
The share- based payment charge has been simultaneously credited to retained
deficit.
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.
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. END FR GZGMVDVNGKZMRecent news on Phoenix Copper
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