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TICKERS: PPTA

China's New Export Rules Positive for US Co. with Antimony Mine
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For this past-producing operation in Idaho, being advanced toward a restart, "permitting [is] potentially imminent," noted a Cantor Fitzgerald report.

In a positive development for Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ), owner of the largest antimony reserve in the U.S., China will begin placing export controls on antimony starting Sept. 15, 2024, reported Cantor Fitzgerald analyst Mike Kozak in an Aug. 22 research note. China produces about half of the world's antimony.

"[The] U.S. must reshore its antimony supply chain. . .now," wrote Kozak.

A Speculative Buy

Given the announcement by China's Ministry of Commerce, Cantor reiterated its Speculative Buy rating and CA$18.25 per share one-year target price on Perpetua, noted Kozak.

The return to target from the company's current price of CA$11.94 is 57%.

Antimony's Role in Defense

Antimony is a strategic metal with numerous military applications, including ammunition, infrared missiles, night vision goggles, and flame retardants, noted Kozak. To support the U.S. ammunition industrial production base during WWII and the Korean War, Perpetua's 100%-owned Stibnite mine in Idaho produced antimony during the 1940s and 1950s.

Kozak pointed out that in the Ministry of Commerce's announcement, it said the government is against any countries using products from China "to engage in activities that undermine China's national sovereignty, security, and development interests." This wording seems to refer to the use of antimony for military purposes, the analyst wrote.

Permitting Catalysts Nearing

Today, reported Kozak, Perpetua is advancing Stibnite toward production of gold and antimony via an open-pit mining operation, and the project now is in the permitting stage.

The next steps in the process are to be done by the federal regulatory agency involved, the U.S. Forest Service (USFS), and are expected to be completed soon. The USFS has targeted Q3/24 for publication of its final environmental impact statement and a draft record of decision and Q4/24 for release of its final record of decision.


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Important Disclosures:

  1. 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.
  2. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee.
  3. 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 Cantor Fitzgerald, Perpetua Resources Corp., Aug. 22

The opinions, estimates and projections contained in this report are those of Cantor Fitzgerald Canada Corporation. (“CFCC”) as of the date hereof and are subject to change without notice.

Cantor makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; however, Cantor makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this report or its contents. Information may be available to Cantor that is not herein. This report is provided, for informational purposes only, to institutional investor clients of Cantor Fitzgerald Canada Corporation, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. This report is issued and approved for distribution in Canada, CFCC., a member of the Investment Industry Regulatory Organization of Canada ("IIROC"), the Toronto Stock Exchange, the TSX Venture Exchange and the CIPF. This report is has not been reviewed or approved by Cantor Fitzgerald & Co., a member of FINRA. This report is intended for distribution in the United States only to Major Institutional Investors (as such term is defined in SEC 15a-6 and Section 15 of the Securities Exchange Act of 1934, as amended) and is not intended for the use of any person or entity that is not a major institutional investor. Major Institutional Investors receiving this report should effect transactions in securities discussed in the report through Cantor Fitzgerald & Co.

Non US Broker Dealer 15a-6 disclosure: This report is being distributed by (CF Canada/CF Europe/CF Hong Kong) in the United States and is intended for distribution in the United States solely to “major U.S. institutional investors” (as such term is defined in Rule15a-6 of the U.S. Securities Exchange Act of 1934 and applicable interpretations relating thereto) and is not intended for the use of any person or entity that is not a major institutional investor. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. It is prohibited for distribution to non-institutional clients including retail clients, private clients and individual investors. Major Institutional Investors receiving this report should effect transactions in securities discussed in this report through Cantor Fitzgerald & Co. This report has been prepared in whole or in part by research analysts employed by non-US affiliates of Cantor Fitzgerald & Co that are not registered as broker-dealers in the United States.

These non-US research analysts are not registered as associated persons of Cantor Fitzgerald & Co. and are not licensed or qualified as research analysts with FINRA or any other US regulatory authority and, accordingly, may not be subject (among other things) to FINRA’s restrictions regarding communications by a research analyst with a subject company, public appearances by research analysts, and trading securities held by a research analyst account.

Potential conflicts of interest

The author of this report is compensated based in part on the overall revenues of Cantor, a portion of which are generated by investment banking activities. Cantor may have had, or seek to have, an investment banking relationship with companies mentioned in this report. Cantor and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. Although Cantor makes every effort possible to avoid conflicts of interest, readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.

Disclosures as of August 22, 2024

Cantor has provided investment banking services or received investment banking related compensation from Perpetua Resources Corp. within the past 12 months. The analysts responsible for this research report do not have, either directly or indirectly, a long or short position in the shares or options of Perpetua Resources Corp. The analyst responsible for this report has not visited the material operations of Perpetua Resources Corp. No payment or reimbursement was received for related travel costs.

Analyst certification

The research analyst whose name appears on this report hereby certifies that the opinions and recommendations expressed herein accurately reflect his personal views about the securities, issuers or industries discussed herein.

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