Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF) shares rose 11% in morning trading after it said it is edging closer to production and is looking to fund first production at the Empire Mine copper mine with minimum additional dilution to shareholders.
The comments came as the company, an emerging producer and exploration firm focused on base and precious metals in the USA, reported its results for the year ended 31 December 2022, showing an increase in its investment in the Empire Mine to US$33.10mln, up from US$26.12mln in the previous year.
The push towards production saw the group report a loss of US$1.57mln in 2022, compared to a US$969,250 loss in 2021, due to a non-cash related foreign exchange loss, while net assets rose to US$37.84mln.
The company's cash balance at the year-end stood at US$4.66mln, down from US$13.05mln in the previous year, and company loans to Idaho operating subsidiaries increased to US$30.61mln.
On the operational front, Phoenix Copper completed core drilling at the Empire open pit to support metallurgical recovery and process design using non-toxic ammonium thiosulphate (ATS). The company confirmed the continuity of open pit mineralization and encountered significant intercepts of copper, silver, and gold. ATS metallurgical testing is underway to support the recovery and processing of these metals.
Looking ahead, the company said a significant milestone in funding its move towards production is that it is nearing completion of an US$80mln issue of copper bonds due 2028-2032, which will be listed on The International Stock Exchange. The company expressed confidence in the successful subscription of the bond issue.
Marcus Edwards-Jones, the company's executive chairman, emphasized the favorable position Phoenix Copper holds in the mining sector and its commitment to clean energy.
He highlighted the use of ATS as an environmentally friendly alternative and expressed optimism about the company's gold, silver, and cobalt projects.
The company's commitment to sustainability was highlighted by the publication of its inaugural Sustainability Report in 2022, scoring an 'A' rating on the Digbee ESG Platform. Phoenix Copper also formed a Local Community Advisory Team as part of its ESG Program.
Phoenix Copper also announced that its Annual General Meeting will be held on 8 June 2023 at The Washington Hotel in London.
Around 8.50am, Phoenix Copper shares were up 11.4% at 24.50p.
-- Updates with share price --