Phoenix Copper Shares Plunge 45 Percent Following Suspension of Chairman and Finance Chief

Phoenix Copper Ltd has witnessed a sharp decline in its share price, falling 45 per cent to 1.1 pence, following the immediate suspension of its executive chairman and chief financial officer. The US-focused base and precious metals producer disclosed the development in a stock exchange announcement that sent shockwaves through the market.

The company confirmed that chairman Marcus Edwards-Jones and chief financial officer Richard Wilkins have been placed under suspension. The board has initiated investigations into allegations concerning the recent conduct of both executives, as well as certain historic payments made to Lloyd Edwards-Jones S.A.S., the firm’s former corporate finance adviser.

Phoenix Copper stated that the investigative process is being conducted with input from its professional advisers. The company has committed to issuing a further announcement upon completion of the investigation.

In response to the suspensions, the company has implemented interim financial oversight arrangements whilst progressing the appointment of an interim chief financial officer. These transitional measures will be supported by Catherine Evans, chair of the audit committee, alongside chief executive Ryan McDermott and other board members and senior management.

The company has elected to outsource the company secretary role to a corporate services firm recommended by its advisers during the ongoing investigation period.

Compounding the situation, Phoenix Copper disclosed concerns regarding its financial position. The company indicated it possesses limited working capital and, absent additional funding, believes its current cash balances will only suffice to meet ongoing obligations until early in the second quarter of 2026.

Management is currently evaluating a range of short-term and longer-term funding options and has pledged to update shareholders on its fundraising strategy in due course. Discussions with Riverfort Global Opportunities PCC Limited concerning the terms of a short-term loan facility remain ongoing, with shareholders to be updated once those negotiations conclude.

The suspension of two senior executives, coupled with the revelation of cash constraints, represents a significant challenge for Phoenix Copper at a critical juncture. The outcome of the investigation and the success of fundraising efforts will prove instrumental in determining the company’s near-term trajectory.