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Mining Phoenix covered


Phoenix Global Mining

 

AIM miner Phoenix Global Mining, which listed in June, is now being researched by house broker Brandon Hill Capital.

The start of coverage comes as Phoenix focusses on bringing the previously producing Empire Copper Mine in Idaho, US, back into production.

In its first report, Brandon Hill has valued the copper heap leach operation, based on the existing ore resource which gives a ten year mine life NPV 8% of US$36.3m unfinanced, with an IRR of 29% on a 100% of project basis. This valuation represents a Phoenix Global Mining share price of 12p based on the miner’s 80% ownership of the copper SX/EW project, which compares favourably to the current 3.5p share price.

It added that crucially, with strengthening copper prices and significant opportunity to increase the mine’s current resource and improve recoveries, additional upside undoubtedly remains.

With a current price of 3.50p (at the time of writing), Phoenix has a market cap of £8m.