PPX Mining's Strategic Turnaround and Operational Momentum Position It as a High-Conviction Junior Mining Play

In 2025, the junior mining sector has witnessed a rare confluence of macroeconomic tailwinds and operational execution, with PPX Mining Corp. emerging as a standout case study. The company's strategic debt resolution, coupled with tangible operational progress and a favorable gold price environment, has positioned it as a compelling high-conviction investment. For investors seeking exposure to a de-risked, production-focused gold-silver project in a geopolitically stable jurisdiction, PPX's trajectory offers a compelling risk/reward profile.

Debt Resolution: A Foundation for Sustainable Growth

PPX's recent debt restructuring efforts have been nothing short of transformative. Over the past six months, the company has retired over $2.2 million in obligations through a combination of equity settlements, debt conversions, and maturity extensions. Notably, in July 2025, PPX settled $1.375 million in liabilities by issuing 12.5 million shares at $0.11 per share and $168,000 in employee-related debt via 1.85 million shares. These actions not only reduced leverage but also aligned shareholder interests with long-term value creation.

The restructuring with RIVI Opportunity Fund LP further solidified PPX's financial stability. By extending debt maturity to December 2026, the company synchronized its liabilities with the projected completion of the Igor beneficiation plant—a 350 tn/day oxide gold processing facility in La Libertad, Peru. This alignment has eliminated near-term liquidity risks, allowing management to focus on capital-efficient execution. Additionally, the conversion of $250,000 in convertible debt at a 75% discount to the July 8 settlement price ($0.04 per share) preserved liquidity while reducing the equity overhang.

These measures have created a leaner balance sheet, with over 19.9% of shares now held by RIVI, ensuring alignment with institutional investors while maintaining PPX's corporate independence. The cumulative effect is a company no longer burdened by survival-driven capital allocation but one that can channel resources into high-impact projects.

Operational Momentum: From Exploration to Production

PPX's Igor Project has become a cornerstone of its growth narrative. The Callanquitas gold-silver deposit, part of the Igor complex, has delivered exceptional drilling results, including a 32.35-meter intercept grading 2.00 g/t Au and a 4.06-meter intercept at 1.99 g/t Au. Metallurgical tests have confirmed an 88% gold recovery rate, validating the project's economic viability. These results, combined with the completion of geotubes testing for the plant, underscore the transition from exploration to operational readiness.

The construction of the CIL (Carbon-in-Leach) and flotation plant is nearing completion, with a $1.8 million third tranche secured in June 2025 to finalize major components. The plant's expected cost reductions and scalability will directly enhance margins, particularly as the company transitions from heap leaching to more efficient processing methods. With the final construction permit obtained in September 2024, the project remains on track for completion by late 2025 or early 2026—a timeline that aligns with the extended debt maturity and ensures capital is deployed judiciously.

Meanwhile, the amended silver royalty agreement with Silver Crown Royalties Inc. (SCRI) has provided critical funding. A $833,000 partial payment was received in July 2025, with the remaining $637,000 due by December 31, 2025. This structure not only defers cash outflows but also increases the royalty percentage and payable ounces, enhancing long-term revenue streams.

Gold Price Tailwinds: A Macro-Driven Catalyst

The broader gold market has provided a powerful tailwind for PPX. Gold prices surged to multi-year highs in 2025, driven by central bank demand (notably from China and India) and geopolitical tensions in key producing regions. reveal a 45% increase from $1,950/oz in January 2025 to over $2,830/oz by August 2025. This surge has amplified the economic value of PPX's high-grade deposits, particularly as its heap leach operations are among the lowest-cost in the sector.

Moreover, the company's dual focus on gold and silver positions it to benefit from both base and precious metal price cycles. The recent $1.47 million Net Profit Interest payment from the Igor Project highlights the cash-generating potential of its assets, even in a high-cost environment. With gold prices projected to remain elevated due to inflationary pressures and central bank buying, PPX's low-cost structure and scalable operations are well-positioned to outperform peers.

Investment Thesis: A High-Conviction Play

PPX's transformation from a debt-laden entity to a production-focused company is underscored by its 133% share price increase in the first half of 2025—a stark contrast to the 11.9% growth of the BVL mining index. This outperformance reflects investor confidence in its strategic clarity and operational execution.

Key catalysts for the next 12 months include:
1. Completion of the CIL and flotation plant by late 2025, which will reduce costs and unlock production scalability.
2. Resource expansion at Callanquitas through Q3 2025 drilling, which could extend mine life and increase reserves.
3. Gold price momentum, which remains supported by macroeconomic fundamentals.

For investors, the risk/reward profile is compelling. While junior miners inherently carry operational and commodity price risks, PPX's debt resolution, asset quality, and alignment with gold price trends mitigate these concerns. The company's ability to execute on its capital-efficient roadmap—without diluting shareholders—further enhances its appeal.

Conclusion: A Strategic Buy for the Long-Term

PPX Mining's strategic turnaround has created a rare combination of financial discipline, operational momentum, and macroeconomic tailwinds. As the company transitions from construction to production, its focus on low-cost, high-grade gold-silver extraction positions it to capitalize on the current bull market. For investors with a 12- to 18-month horizon, PPX represents a high-conviction play in a sector where execution and timing are paramount.

Investment Recommendation: Buy with a long-term horizon, targeting key catalysts such as plant completion and gold price trends. Monitor quarterly production updates and debt reduction progress for further validation.