Phoenix Copper. Share News (PXC)

(Sharecast News) - United States-focussed base and precious metals explorer and producer Phoenix Copper reported an increase in net assets in its final results on Wednesday, to $13.83m (£9.93m) from $10.56m in the prior year.
The AIM-traded firm said its net losses narrowed to $0.97m for the 12 months ended 31 December, from $1.13m a year earlier, as it raised a total of $4.65m in 2020, and another $26.75m since year-end.

Its investment in the Empire Mine in Idaho increased to $14.79m during the year, from $11.67m in 2019, and its loan to its operating subsidiary rose to $11.28m from $8.29m.

On the operational front at the Empire Mine, Phoenix said its updated measured and indicated open pit resource increased by 51% over 2019, containing 87,543 tonnes of copper, 43,871 tonnes of zinc, 238,400 ounces of gold and 7.6 million ounces of silver.

The in-situ value of open pit measured and Indicated resources totalled $1.4bn, plus $0.6bn of inferred resources.

Open pit mine pre-production capital expenditure came in at $52m, with payback in less than two years, while gross revenue over 10 years was set to be $836m, with a $43m post-tax cash flow in year one at a copper price of $3.60.

Phoenix reported the completion of environmental baseline studies for both the open pit and Red Star silver-lead deposit, with no critical issues identified, adding that an "environmentally friendly" non-toxic processing technology would be used to recover precious metals.

The 2021 drilling programme would focus on the Red Star silver-lead deposit, the Navarre Creek gold zone, and the historically-mined, high-grade Empire underground sulphide copper deposit.

"We are especially motivated by the upward trend in the copper price, and the positive effect it has had on our project," said chief executive officer Ryan McDermott.

"With the successful rollout of vaccination programs, the global interest in electrification and green metals, and what appears to be the signs of a return to 'normal', Phoenix is well positioned in terms of timing to transition seamlessly into development.

"We are also well financed as a result of the recent equity fund raising."

At 1125 BST, shares in Phoenix Copper were down 3.05% at 39.75p.