I²R heat is generated in the central metallic conductor and flows radially outward through the insulation to the surroundings. The conductor colour shows its temperature (blue = cool, orange-red = near the limit).
$$I_{max}=\sqrt{\dfrac{\Delta T}{R_{ac}\,R_{th}}},\qquad R_{ac}=\frac{\rho(T)}{A}$$
The ampacity I_max is the current at which I²R Joule heating just raises the conductor to its insulation temperature limit. ΔT: allowable temperature rise, R_ac: conductor resistance at the operating temperature, R_th: thermal resistance, A: conductor cross-section.
$$\rho(T)=\rho_{20}\,\bigl(1+\alpha\,(T_{limit}-20)\bigr)$$
Resistivity at the operating (limit) temperature. ρ₂₀: resistivity at 20 °C, α: temperature coefficient, T_limit: insulation temperature limit (XLPE 90 °C / PVC 70 °C).
$$R_{th}=\frac{1}{h_{eff}\,\pi\,d_{cond}},\qquad \Delta T=T_{limit}-T_{a}$$
Thermal resistance R_th from the conductor to the surroundings and the allowable temperature rise ΔT. h_eff: effective heat-transfer coefficient (set by the installation method), d_cond: equivalent conductor diameter, T_a: ambient temperature.