Perpetua Resources Corp has released its unaudited condensed consolidated financial results for the first quarter ended March 31, 2024. Find out what these new numbers mean for future and anticipated projects.
Perpetua Resources Corp. (Nasdaq: PPTA) (TSX: PPTA) liberated its unaudited condensed consolidated financial results for the first quarter ended March 31, 2024. The Company is actively pursuing its strategic initiatives to provide the United States with a domestic source of antimony, a critical mineral, and to develop one of the nation's largest and richest open-pit gold mines, on a restored industrial wasteland. The Stibnite Gold Project is progressing through the National Environmental Policy Act (NEPA) permitting process and improving its construction readiness.
During this period, Perpetua Resources has maintained a strong safety and environmental record, with no reported lost-work incidents or environmental spills. Leadership improvements were highlighted by the appointments of Jonathan Cherry as new President and CEO and Jessica Largent, CFO, as Director.
The Company also entered into a new royalty agreement with Franco-Nevada Idaho Corporation, generating US$8.5 million in cash from net smelter return royalties on future payable silver production from the project properties . Additionally, it continued to advance constructability reviews, value engineering studies and detailed engineering.
Why gold?
Hubert Moolman's Gold and Silver Research Analysis praised gold on May 5.. Moolman wrote: “Not only is gold in a bull run, but it has also entered a phase that can be compared to a bank run (as previously explained) on the global financial system, with the US dollar financial system acting like the world banker. “
The preceding month, On April 8, Stockhead spoke with XM Australia CEO, Mr. Peter McGuire on the reasons for the increased demand for gold.
McGuire said: “With the Chinese stock market suffering and the ban on cryptocurrencies, the vehicle options for local investors to take advantage of are becoming very limited, and this may be one of the reasons for the increased demand for gold. Indeed, Shanghai benchmark gold has risen faster than international prices over the past two years. »
Catalysts for future growth
THE additional funding of US$34.4 million secured through amended technology investment agreement under Title III of the Defense Production Act represents a significant financial boost to Perpetua Resources, supporting its ongoing development activities at the Stibnite Gold Project.
Roth MKM analyst Mike Niehuser wrote: “The potential for financing through EXIM (Bank) significantly reduces the financing risk associated with the project (Stibnite), thereby increasing Perpetua's negotiating position with investors and potential strategic partners. »
This influx of capital is complemented by up to $1.8 billion in financing from the Export-Import Bank of the United States, highlighting strong government support and strengthening the financial viability of the project.
These funds are critical as they enable Perpetua Resources to continue its extensive preparatory work on the Stibnite Gold project, ensuring the project is aligned with environmental and regulatory standards and preparing for the upcoming construction phase.
Potential financial support from US bank EXIM, coupled with changes in strategic direction and the establishment of new financing through royalty agreements, positions the Company to effectively advance the Stibnite Gold Project.
These elements collectively enhance the company's ability to generate significant stakeholder value and solidify its position in the mining industry as it moves towards the final environmental impact assessment and draft account. expected decision.
Expert analysis
Roth MKM analyst Mike Niehuser wrote in an April 9 research note: about the target price, stating: “The potential for financing through EXIM (Bank) significantly reduces the financing risk associated with the project (Stibnite), thereby increasing Perpetua's negotiating position with potential investors and strategic partners.
As noted Cantor Fitzgerald analyst Mike Kozak in a research note dated February 12. Kozak emphasized that this additional financial support is expected to fully fund Perpetua's Stibnite Gold-Antimony Project until the federal permitting process is completed.
He also reiterated the U.S. Forest Service's timeline for this process, projecting the final environmental impact statement and a draft Record of Decision for the second quarter of FY24, followed by the final Record of Decision in the fourth quarter of last year.
Ownership and structure of shares
Refinitiv reports that management and insiders own about 0.38% of the company.
According to Refinitiv, director Christopher James Robinson owns 0.09% of the company, while CFO Jessica Marie Largent owns 0.13%, former president and CEO Laurel Sayer owns 0.14%, vice -President of Licensing Alan Douglas Haslam owns 0.09%, David L. Deisley owns 0.09%. 0.02%, General Counsel L. Michael Bogert owns 0.05%, Vice President of External Affairs Mckinsey Margaret Lyon owns 0.05%, Director Robert Alan Dean owns 0.01% and Chief Resource Officer Tanya Dawn Nelson owns 0.01%.
A strategic investor, Paulson & Co. Inc., owns 38.63% of the company.
According to Refinitiv, institutions own approximately 26.66% of the company, Kopernik Global Investors, LLC owns 8.19%, Sun Valley Gold, LLC owns 7.28%, Krilogy Financial LLC owns 2.6%, BlackRock Institutional Trust Company, NA, owns 2.77%. B. Riley Financial Inc. holds 2.32%, Eidelman Virant Capital 1.49%, Franklin Advisors Inc. 0.85%, Earth Resource Investment Group 0.73% and State Street Global Advisors (United States) 0.7 %.
Refinitiv reports that there are 64.12 million shares outstanding and 63.75 million shares floating traded. The company has a market capitalization of AU$680 million and trades over a 52-week period between CA$3.56 and CA$7.32.
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Important Disclosures:
- Perpetua Resources Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee of between US$4,000 and US$5,000.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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