Perpetua Resources Corp.'s (PPTA:TSX; PPTA:NASDAQ) 2021 Modified Mine Plan for its Stibnite gold-antimony project in Idaho was approved by the U.S. Forest Service (USFS), reported Cantor Fitzgerald analyst Mike Kozak in a September 5 research note. The USFS completed the final environmental impact statement and will be issuing a draft record of decision (DROD) on the project.
"Note the Stibnite gold-antimony project's positive DROD comes nine days before China's antimony export controls are expected to come into effect," Kozak wrote, referring to September 15.
70% Upside Implied
Kozak reiterated Cantor's US$13.75 per share target price on the U.S.-based explorer-developer. This one-year target reflects a potential return for investors of 70%, given the share price at the time of the report of about US$8.09 per share.
Perpetua remains a Speculative Buy.
Derisking Milestone Achieved
Getting Stibnite authorized by the USFS, Kozak highlighted, was a "critical derisking milestone achieved" for Perpetua and the project.
Extensive work has led up to this point, including 14 years of scientific study and community engagement, eight years of federal permitting under the National Environmental Policy Act and 150 days of formal public comment periods. During the latter, about 28,000 letters were received and their content addressed.
Next Steps in Process
After the USFS publishes the DROD in the Federal Register on September 6, there will be a 45-day objection period followed by a 45-day resolution period, Kozak reported.
Then the final record of decision would be published, completing the federal permitting process, and this is expected in Q4/24.
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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.
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Disclosures for Cantor Fitzgerald, Perpetua Resources Corp., September 5, 2024
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Disclosures as of September 5, 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.
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