Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ), in the funding phase of its Stibnite gold-antimony project in Idaho, is preparing a formal debt financing application for submittal to the Export-Import Bank of the United States (EXIM), reported Mike Niehuser, managing director and senior research analyst at ROTH Capital Partners, in a March 13 research note.
"We view financing by EXIM to be the optimal source of debt financing," Niehuser wrote. "The terms may be preferable to conventional financing."
106% Return Potential
On the news, ROTH maintained its US$19 per share 12-month price target on Perpetua.
"This reflects our optimism for favorable financing terms from EXIM, the potential availability of additional sources of funding to balance the budget and additional exploration, adding resources which extend mine life and result in more robust project economics," explained Niehuser.
The Idaho-based explorer-developer's share price at the time of the report was about US$9.22. From this price, the return to target is 106%.
Perpetua remains a Buy.
Updated Capex Requirement
Last April, during the Biden Administration, EXIM, in a letter of interest to Perpetua, proposed US$1.8 billion (US$1.8B) in debt financing for advancement of the Stibnite project, reiterated Niehuser. This figure was based on capex, project viability and job creation outlined in the 2020 feasibility study.
In February of this year, however, the company updated the Stibnite budget, which resulted in a new capex amount of US$2.215 million, including contingency. The difference between the 2020 and 2025 totals is attributed to inflation, fixing contracts, own versus lease optimization, and contractor selection.
Fast, Fair Review Expected
ROTH expects EXIM to fairly review the higher loan amount, Niehuser wrote, based on updated project economics, revisited job creation figures and Executive Orders by the Trump Administration.
The senior analyst relayed that, according to Perpetua management, under the new administration, people have been added to the EXIM board to comprise a quorum sufficient for approving debt.
Further, ROTH expects EXIM will expedite the application given certain of President Donald Trump's recent and past executive orders, including:
- Unleashing American Energy (Jan. 20, 2025)
- Declaring a National Energy Emergency (Jan. 20, 2025)
- Addressing the Threat to the Domestic Supply Chain from Reliance on Critical Minerals from Foreign Adversaries and Supporting the Domestic Mining and Processing Industries (Sept. 30, 2020)
These directives show his commitment to bolstering the domestic supply of critical elements and recognizing the need to prioritize mining project permitting and metals production, processing, and refining.
Critical Nature of Antimony
Niehuser highlighted that the antimony supply in the U.S. and globally is in a growing deficit, in large part due to China.
The Asian country banned sales of antimony trisulfide to the U.S. and its allies, and it is a net importer of the metal for solar panel manufacturing. Thus, the Stibnite project is a critical potential source of antimony for the U.S.
Timeline of Future Events
Perpetua is expected to submit the debt financing application within the coming weeks, Niehuser reported. Once EXIM determines the application complete, a decision should come within 45 days.
Niehuser purported that if EXIM approves Perpetua's application, the mining company likely will tap other financing sources, potentially equity, grants, monetizing potential revenue streams or other vehicles, to cover all construction costs.
In the meantime, Perpetua will continue technical and other preconstruction work. Receipt of additional permits is expected by Q2/25E.
"In our opinion, Perpetua may close financing mid-year and move into construction, with production commencing in late 2028," wrote Niehuser.
Other Stock Data
Perpetua has 70.17 million shares outstanding. Its market cap is US$644.83 million. Its 52-week range is US$3.94−US$12.80 per share.
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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 Capital Partners, Perpetua Resources Corp., March 13, 2025
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: Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from Perpetua Resources Corp.. Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has managed or co-managed a public offering for Perpetua Resources Corp..
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 2025. Member: FINRA/SIPC.
