First Phosphate Sheds 8% as Investors Bank Profits Despite 861% Shareholder Surge
Published on 09/10/2026 at 13:50 | Editorial boerse-global.de
A wave of profit-taking washed over First Phosphate on Thursday, sending the Canadian phosphate developer's stock down 8.0% to EUR 1.22 even as the company's investor base swelled at an extraordinary pace and analysts trimmed risk assumptions on its flagship Quebec projects.
The pullback comes against a backdrop of remarkable gains. Since the start of the year, the shares have climbed 73%, and the retreat follows a period of intense capital-markets activity that has transformed the company's profile.
Shareholder Roll Grows Eightfold
Perhaps the most striking metric to emerge from First Phosphate's recent disclosures is the sheer scale of its investor expansion. As of this year's annual general meeting record date, the company counted 12,501 registered shareholders — up from just 1,301 a year earlier. That represents an 861% increase, a figure that underscores how quickly the phosphate explorer has moved onto the radar of both retail and institutional investors.
The growth coincides with a broader capital-markets push. Roughly a month ago, First Phosphate shifted its regulatory status, a move that broadened access for international investors. Since that milestone, the stock has at times added as much as 8.7%.
Governance Backing and Board Continuity
At the ordinary and extraordinary general meeting held on August 28, shareholders delivered overwhelming support for management's agenda. All five nominated directors were re-elected, each with approval rates above 95%, while voter participation exceeded 34% of eligible capital, according to media reports. The meeting also ratified a new advance notice policy governing board nominations, approved the existing equity-based compensation plan, and confirmed Davidson & Company LLP as auditor for the coming fiscal year.
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That structural continuity sets the stage for the next phase of development across First Phosphate's Canadian assets.
Feasibility Study Timeline Takes Shape
At the heart of the operational roadmap sits the Bégin-Lamarche project. CEO John Passalacqua outlined a detailed sequence of milestones in late August: management is targeting completion of a feasibility study by late 2026 or early 2027, with permit submissions and a final investment decision slated for the end of 2027.
Those targets build on an expanded mineral resource estimate for Bégin-Lamarche reported roughly two weeks ago — a development that has weighed on the share price, which has slipped 17.5% since that filing even as it strengthened the data foundation for the upcoming studies.
The project forms a cornerstone of First Phosphate's ambition to construct an integrated battery-materials supply chain in North America. To mark its listing on the Nasdaq Global Market — which accompanied the regulatory status change about a month ago — management representatives rang the opening bell in New York on August 13.
Analysts Trim Discount Rates on De-Risking Progress
External valuation work has begun to reflect these operational strides. On September 2, Emerging Growth Research published a report lowering the discount rate applied to the mine and phosphoric acid plant by 100 basis points. For the Bégin-Lamarche project, the rate was cut from 11.5% to 10.5%, while the planned phosphoric acid facility at Port Saguenay saw its rate reduced from 13.5% to 12.5%.
The analysts attributed the adjustment to sustained de-risking within the company's development plan, and identified the feasibility study — expected in early 2027 — as the key catalyst for future cash-flow valuation.
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LFP Demand and International Financing Interest
First Phosphate's long-term positioning aligns with the global shift toward lithium iron phosphate (LFP) batteries. Media reports project the LFP market will reach USD 103.18 billion by 2035, with the technology already commanding an 81% share of the battery market in 2026.
To serve that demand, the company secured far-reaching support around the 2026 G7 summit in June. Letters of intent covered potential financing and offtake arrangements, including guarantees of up to CAD 275 million from Denmark's Export and Investment Fund (EIFO), alongside agreements with Italian institutions SACE and Cassa Depositi e Prestiti for the Port Saguenay plant.
Federal Funding Bolsters Infrastructure
Government backing has reinforced the operational build-out. On August 7, First Phosphate finalized contracts for additional non-repayable federal contributions totaling CAD 4.84 million. The funds are earmarked for road access planning and construction of a 161-kilovolt power line serving the Bégin-Lamarche project — complementing a CAD 16.7 million grant announced in March 2026 to secure necessary infrastructure.
Despite Thursday's decline, the stock remains roughly 24% below its 52-week high of EUR 1.73, reached on August 24. The company's market capitalization currently stands at approximately EUR 286 million.
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