Shares of Phoenix Copper Limited (LON:PXC) experienced a significant increase of 26.7% during mid-day trading on Tuesday, rising to a high of GBX 3.20 before closing at GBX 2.85. This surge in stock price comes after approximately 5,980,536 shares changed hands, marking a remarkable 251% increase in trading volume compared to the average daily volume of 1,703,313 shares. The stock had previously closed at GBX 2.25.
In terms of financial metrics, Phoenix Copper holds a debt-to-equity ratio of 5.51, with a quick ratio of 13.42 and a current ratio of 0.65. The company has a market capitalization of approximately £7.24 million, a price-to-earnings ratio of -0.91, and a beta of 1.75. Its fifty-day moving average stands at GBX 2.47, while the two-hundred-day moving average is GBX 3.16.
Insider Purchases Indicate Confidence
Recent insider trading activity has drawn attention to Phoenix Copper. On December 11, 2023, insider Catherine Evans acquired 1,420,719 shares at an average price of GBX 2 per share, totaling approximately £28,414.38. Another insider, Marcus Edwards-Jones, also purchased 1,000,000 shares for a total investment of £20,000. Over the last ninety days, insiders have collectively bought a total of 3,520,719 shares, valued at around $7,041,438. Currently, insiders own 2.29% of the company’s stock.
This activity suggests a growing confidence among insiders regarding the company’s future prospects. Such purchases often indicate that those with the most intimate knowledge of the company’s operations expect positive developments ahead.
Company Overview and Future Focus
Phoenix Copper Limited operates primarily in North America, focusing on both base and precious metal exploration and development. The company’s projects are located near Mackay, Idaho, within the Alder Creek mining district. Notably, this district includes historical mining sites such as the Empire, Horseshoe, White Knob, and Blue Bird Mines, which produced copper at head grades of 6-8% until operations ceased in the 1940s.
The company’s primary objective is to bring an open pit containing copper oxides at the Empire site into production. The management plans to use the cash flow generated from this operation to further explore the potential copper sulphide deposit located beneath the surface.
The recent rise in share price and insider purchases provide a glimpse into the potential for growth within Phoenix Copper, as the company works to leverage its historical assets for future success. Investors and analysts alike will be watching closely to see how these developments unfold in the coming months.
