Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ) offers favorable gold project economics and increasing strategic support from state and federal stakeholders, according to a February 2 research note from Roth MKM analyst Mike Niehuser.
The Stibnite Gold Project in central Idaho is slated to receive its Final Record of Decision from the U.S. Forest Service in October 2024. Additional review is ensuring the process can withstand potential litigation threats before final approval.
Perpetua has aligned project plans with the Nez Perce Tribe through a US$5 million habitat restoration agreement, demonstrating broad local support.
Importantly, Stibnite has also attracted government sponsorship to revive domestic antimony production for defense uses. The Department of Defense awarded over US$30 million in project funding from 2022 to 2023, with the potential for additional support.
"Given the current level of support for the project, we believe a multiple of ~0.35x NPV5% is justified. Following the ROD, PPTA will update project economics and capital costs, which should result in an adjustment to our price target," Niehuser commented.
Niehuser maintains a Buy rating and US$7.25 price target on the critical minerals company.
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Disclosures for Roth MKM, Perpetua Resources Corp., February 2, 2024
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Disclosures: Shares of Perpetua Resources Corp. may be subject to the Securities and Exchahange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
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