Phoenix Copper (AIM:PXC), the AIM-quoted, USA-focused base and precious metals developer, reported a loss of $1.21 million for the six months to 30 June, up from $0.76 million a year earlier.
Group net assets stood at $38.21 million at period-end, down from $40.68 million a year earlier, while investment in the Empire Mine in Idaho and other mining assets rose to $45.84 million from $44.27 million.
Cost-cutting and the sale of non-core assets in Mackay have extended the company's cash runway into the fourth quarter, and a short-term convertible loan note was repaid in full on 4 August.
"Phoenix's path to production is clear, provided we secure the funding we need", said interim chair Catherine Evans, noting continued confidential discussions including a letter of intent signed with a US-based investor.
Post-period, Phoenix awarded Hardrock Consulting a contract to update the Empire open-pit pre-feasibility study, which in 2024 outlined proven and probable reserves of 10.1 million tonnes containing 109.5 million lbs of copper, 104,000oz of gold and 4.65 million oz of silver.
That study used trailing average prices of $4.45/lb copper, $2,325/oz gold and $27.25/oz silver; as of 30 June, copper traded at $6.33/lb, gold at $4,348/oz and silver at $68.11/oz, prices management said should significantly improve on the original study's cumulative net free cash flow of $153 million over an eight-year mine life.
News Intelligence what this means for the company
Phoenix Copper reported a widened H1 loss of $1.21m (up 59% year-on-year) and net assets of $38.21m, but extended its cash runway into Q4 through cost-cutting and asset sales. The company is updating its Empire Mine feasibility study as copper, gold and silver prices have surged well above 2024 study assumptions ($6.33/lb copper vs $4.45/lb, $4,348/oz gold vs $2,325/oz, $68.11/oz silver vs $27.25/oz), which management expects should materially improve the original study's $153m cumulative net free cash flow projection. A convertible loan was repaid in full on 4 August, and the company is pursuing funding discussions including a letter of intent with a US-based investor to reach production.
The widening loss and declining net assets ($2.47m erosion year-on-year) reflect pre-revenue development burn, but the price environment has shifted decisively in Phoenix's favour since the 2024 study—a refreshed feasibility study could materially strengthen project economics and funding prospects. Execution risk remains: the company must secure funding to advance Empire toward production, and the Q4 cash runway deadline creates near-term pressure on capital raising.
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