Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ) announced in a press release that it had received CA$34.6 million in funding through the Defense Production Act’s Title III technology investment agreement (TIA) on the condition that it will advance its permits and construction. Perpetua’s Stibnite Gold Project is the focus of this interest because it contains antimony, an important ingredient in the production of munitions, which is mostly found overseas in Russia, China, and Tajikistan.
Laurel Sayer, the President and CEO of Perpetua, commented, “This latest award from the Department of Defense brings us a step closer to realizing our vision for the Stibnite gold project. Establishing a domestic source of the critical mineral antimony is more important than ever, and we stand ready to responsibly produce critical resources here at home and help strengthen America’s national and economic security.”
The company stated that under the TIA, it will be able to request reimbursement through June 30 for costs related to environmental baseline monitoring, as well as costs related to construction readiness and environmental or technical studies.
Gold Holding Steady
On February 8, 2024, The Gold Newsletter reported that gold has maintained a steady course at CA$2,000 despite attempts to short the commodity. The report identified buyers on the Chinese market as a powerful driver of gold, who seem to be breaking past trends by buying when prices are high.
Katusa Research also seemed bullish on gold in a report from February 7, 2024. According to the report, in addition to interest from Asian markets, gold has been driven by central bank buying. However, the report commented that gold’s future will be determined by whether or not the economy recovers without a recession, “While a soft landing would require less easing from central banks and leave gold largely flat (albeit with upside potential), a harder landing would see gold going higher.”
294% Return
Mike Niehuser of Roth M.K.M. reviewed the company as a “buy” for potential investors with a target share price of US$7.25. Niehuser reported several factors working in the company’s favor, including support form the Nez Perce Tribe, and US$30 million in project funding for the Stibnite Gold Project from the Department of Defense.
On January 5, 2024, Mike Kozak with Cantor Fitzgerald rated Perpetua as a “speculative buy” with a target share price of CA$16.50 per share, with a potential return on investment of 294%. This is in spite of permitting delays for the Stibnite Gold Project caused by changes in requirements by the U.S. Forest Service. However, he commented, “This is a minor permitting setback and likely already priced into Perpetua’s shares. When in production, Stibnite will be one of the Top 5 largest gold mines and the single largest antimony mine in the United States.”
According to the company’s most recent investor presentation, Perpetua expects to finalize an EIS by Q2 of 2024 and reach a Final Record of Decision by Q4 of 2024. Additionally, the company expects to receive ancillary permits and project financing in either late 2024 or early 2025, and reach a construction decision by 2025. Perpetua intends to achieve commercial operations in 2028.
Ownership and Share Structure
Refinitiv reports that management and insiders own approximately 0.38% of the company. According to Refinitiv, Director Christopher James Robinson owns 0.09% of the company with 0.06 million shares, while CFO Jessica Marie Largent owns 0.09% of the company with 0.06 million shares, President and CEO Laurel Sayer owns 0.08% of the company with 0.05 million shares, Vice President of Permitting Alan Douglas Haslam owns 0.05% of the company with 0.03 million shares, David L. Deisley owns 0.02% of the company with 0.01 million shares, General Counsel L. Michael Bogert owns 0.02% of the company with 0.01 million shares, Vice President of External Affairs Mckinsey Margaret Lyon owns 0.01% of the company with 0.01 million shares, Director Robert Alan Dean owns 0.01% of the company with 0.01 million shares, Human Resources Manager Tanya Dawn Nelson owns 0.01% of the company with less than 0.01 million shares.
A strategic investor, Paulson & Co. Inc., owns 38.63% of the company with 24.77 million shares.
According to Refinitiv, institutions own approximately 26.66% of the company, as Kopernik Global Investors, L.L.C. owns 8.19% of the company with 5.25 million shares, Sun Valley Gold, L.L.C. owns 7.28% of the company with 4.67 million shares, Krilogy Financial L.L.C. owns 2.60% of the company with 1.67 million shares, BlackRock Institutional Trust Company, N.A., owns 2.54% of the company with 1.63 million shares, B. Riley Financial, Inc. owns 2.29% of the company with 1.47 million shares, Eidelman Virant Capital owns 1.49% of the company with 0.96 million shares, Franklin Advisors, Inc., owns 0.85% of the company with 0.54 million shares, Earth Resource Investment Group owns 0.73% of the company with 0.47 million shares, and State Street Global Advisors (U.S.) owns 0.69% of the company with 0.44 million shares.
Refinitiv reports that there are 64.12 million shares outstanding and 63.88 million free float traded shares, while the company has a market cap of CA$179.67 million and trades in the 52 week period between CA$3.56 and CA$7.32.
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