Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Shares of Phoenix Copper Ltd (LON: PXC) are up 81.5% over the past month, fueled by the discovery of sulphide mineralisation at its Empire mine in Idaho.
The mining company announced on July 14, triggering the current rally for almost three weeks.
Phoenix Copper’s share prices had been trading in a wide range for most of the year following last year’s rally fueled by rising copper prices.
Despite global copper prices barely moving, the latest rally has occurred, but the rally phase seems to be losing steam.
Phoenix Copper has not made any major announcements that could be cited as reasons for the massive runup in its share price. The last news from the company included the formation of an ESG committee with board-level authority.
Ryan McDermott, Chief Executive Officer, commented: “We are excited to announce that we have intercepted 12.6 metres of intense sulphide mineralisation in HQ-core hole KXD21-02, part of the planned 4,500-metre, 2021 Deep Sulphide drilling programme for the Empire Mine in Idaho. Our geologists have visually identified a mix of sulphides that include, but are not limited to, chalcopyrite, chalcocite, galena, argentiferous galena, bornite, sphalerite, and molybdenite occurring in hole number KXD21-02.”
The company also entered into an earn-in agreement with First Cobalt Idaho after receiving a $50,000 payment and issuing 200,000 unrestricted shares to the company.
Some experts are warning that commodity prices might have peaked over the medium term, which could lead to the shares of commodity producers falling over the coming weeks as inflation subsides.
The above concerns, coupled with the parabolic shape made by the Phoenix shares, make me extremely cautious in buying the company’s shares at current prices due to the high likelihood of a significant pullback.
*This is not investment advice.
Phoenix Copper share price.
Phoenix Copper shares are up 81.5% over the past month, are they headed higher?
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