Federal permitting of Perpetua Resources Corp.'s (PPTA:TSX; PPTA:NASDAQ) Stibnite gold-silver-antimony project in Idaho is now delayed by three to nine months, reported Cantor Fitzgerald analyst Mike Kozak in a January 2, 2024 research note.
"This is a minor permitting setback and likely already priced into Perpetua's shares," Kozak wrote. "When in production, Stibnite will be one of the Top 5 largest gold mines and the single largest antimony mine in the United States."
Nearly 300% Return Projected
Following the news, Cantor maintained its target price on the U.S. mining company of CA$16.50 per share, Kozak noted. Now, in comparison, it is trading at about CA$4.19 per share.
The difference between these two share prices implies a significant return of 294% for investors.
Perpetua remains a Speculative Buy.
New Timeline, Need for Cash
The reason for the delay, Kozak reported, is a change in the U.S. Forest Service's (USFS) timeline for publishing three key documents.
Originally, the USFS indicated the final environmental impact statement (FEIS) and a draft record of the decision would be ready in December 2023, but now guides to Q2/24 for both. The difference is three to six months. Perpetua indicated that a review of the FEIS by a cooperating agency is nearly done.
Also, the USFS pushed back the release of the subsequent final record of the decision to Q4/24, six to nine months later than its initial time of March 2024.
Kozak pointed out Perpetua will likely need additional funds to complete the permitting process, given the delay. As of September 30, 2023, the company had US$7.1 million in cash.
New Board Member
In other news, Kozak reported that Perpetua appointed a mining professional with extensive experience to its board of directors, Andrew Cole.
His 35 years in the industry include the role of general manager of two of Barrick Gold Corp.'s mines, Goldstrike in Nevada and Donlin Creek in Alaska.
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- [ 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.
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Disclosures for Cantor Fitzgerald, Perpetua Resources Corp., January 2, 2024
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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 January 2, 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
