Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF) hailed a transformative year and said it is nearing the completion of the permitting process for the Empire open-pit mine in Idaho, USA that is planned to have among the industry's lowest carbon emissions per tonne of copper produced.
The AIM-listed explorer published results for the 2021 calendar year, showing a year-end cash balance of US$13.1mln, having raised a gross US$26mln by way of subscription, placing and open offer during the period.
Investment in Empire was increased to US$26.1mln from US$14.8mln the year before as the mine’s open pit feasibility model was completed and land holdings increased by 2,317 acres to 8,034 acres.
This showed pre-production capital expenditure payback in less than two years, with gross revenue of US$836mln calculated over 10 years and US$43mln cash flow in year one based on a US$3.60 per lb copper price.
Executive chairman Marcus Edwards-Jones hailed the “an exciting and transformative year” for the company, in particular that it is “now in the permitting and development phase of the Empire open-pit mine, as well as making progress in revealing the potentially world-class porphyry system we believe to be the source of the mineral resources we have already identified”.
He added: “As we near the completion of the permitting process for the Empire open-pit mine, we will continue to emphasise our compliance with the best levels of industry practice.”
As well as 76% of Idaho’s electricity being generated from renewables, Edwards-Jones said the proposed Empire aerial tramway “would generate more electricity than it uses, as the loaded ore buckets descending from the open-pit to the processing plant pull the empty ones back up the hill, dispensing with the need for haulage trucks, with the associated noise, dust and water consumption, diesel, and a 3.5-mile haul road”.
Carbon emissions per tonne of copper produced at Empire “will be among the industry's lowest”, he said, with gold and silver at the mine able to be extracted using ammonium thiosulphate, rather than cyanide, potentially making the precious metals permitting process much simpler.
Regarding the timetable and funding, Edwards-Jones said “several” investors in the US and overseas have expressed interest in participating in a debt instrument to fund the entire capital expenditure needed to put the Empire open-pit mine into production.
At a copper price of $4 per lb, the current preliminary economic assessment model shows revenues in the first 12 months of production of over US$100 million, significantly higher than our estimates for pre-production capital expenditure.
“This should enable us to keep our promise of getting into production without issuing further equity,” he said, with any further announcements to be made in due course.