What is the expected impact on Lifezone’s earnings per share (EPS) and cash‑per‑share metrics in the near term?

Impact on EPS and cash‑per‑share

The $60 million bridge loan adds a sizable, non‑dilutive cash infusion to Lifezone’s balance sheet. In the near‑term, this will raise cash‑per‑share (CPS) sharply, because the cash proceeds are recorded as a one‑time increase to the company’s cash balance without issuing additional shares. Consequently, the “cash‑per‑share” metric—cash divided by the outstanding share count—will rise immediately, improving the company’s liquidity profile and giving the Kabanga Nickel project a runway to meet upcoming development milestones.

The earnings‑per‑share (EPS) effect will be modestly negative in the short run. The bridge loan carries interest (and possibly a small upfront fee), which will be recorded as an expense in the upcoming quarters, reducing net income and therefore EPS. However, because the financing is debt‑based rather than equity‑based, the dilution effect is nil, and the EPS impact will be limited to the interest burden (a relatively small line‑item compared with Lifezone’s current loss‑making status). In other words, EPS may dip marginally (a few cents per share at most) until the project begins generating revenue, at which point the high‑grade nickel resource is expected to drive a meaningful EPS upside.

Trading implications

The infusion improves Lifezone’s liquidity and reduces financing‑risk premiums, which typically supports the share price. Expect modest upside on the news—particularly on the “cash‑per‑share” boost—while the EPS drag is limited and offset by a stronger balance sheet. Traders could consider a short‑to‑mid‑term bullish stance, targeting the next technical resistance (around $2.30–$2.40) with a stop‑loss near the current support ($1.80‑$1.90) to hedge against any unforeseen increase in interest expense or project delays. Monitoring upcoming SEC filings for the exact interest rate and fee structure will refine the EPS impact estimate.