Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ) received more funding, in the amount of US$34.6 million ($34.6M), from the U.S. Department of Defense to continue advancing its Stibnite gold-antimony project in Idaho, reported Roth MKM analyst Mike Niehuser in a February 13 research note.
"Funding mitigates the preconstruction and environmental activities," Niehuser wrote. "Also, this reduces financial risk, as Perpetua anticipates a Decision of Record (DOR) [on Stibnite] at year-end."
142% Gain Implied
Given the news, ROTH reiterated its US$7.25 per share price target on the U.S.-based mining firm, wrote Niehuser, noting an increase in the target is probable after an upcoming event.
"Following the Record of Decision, Perpetua will update project economics and capital costs, which should result in an adjustment to our price target," the analyst purported.
The Idaho-based company is currently trading at about US$2.99 per share. From here, the return to target represents a return for investors of 142%.
Perpetua is still a Buy.
Domestic Antimony Supply Wanted
Niehuser pointed out that this latest non-dilutive capital installment takes the total amount the DOD has awarded to Perpetua to date to about US$75M.
"This demonstrates the importance of the project to the military and its willingness to advance the project," Niehuser commented.
Once up and running, Stibnite would be the only U.S.-based supplier of antimony, produced as a byproduct, given most of the metal comes from China, Russia, and Kazakhstan, noted the analyst. During its mine life, Stibnite could meet about 35% of domestic antimony demand on average.
Antimony is used in a wide range of products used by the Armed Forces, including weapons, munitions, equipment, and materials, from grenades to night vision goggles. Some of the many other applications of antimony are large storage batteries, flame retardants, wind turbines, solar panels, cell phones, semiconductors, plastics, and cable sheathing. The metal is also in demand because it makes alloys corrosion-resistant.
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Important Disclosures:
- Perpetua Resources Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Disclosures for Roth MKM, Perpetua Resources Corp., February 13, 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 Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2024. Member: FINRA/SIPC.
