This firm owns a gold-antimony mine in Idaho, on which a record of decision is expected by year-end, noted an H.C. Wainwright & Co. report.
Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ) "stands to benefit" from China's imminent export restrictions on antimony once the company's past-producing Stibnite mine comes online, reported H.C. Wainwright & Co. analyst Heiko Ihle in an Aug. 22 research note.
"In general, we believe that tightening global supply elevates the strategic importance of the firm's U.S.-based Stibnite gold project," Ihle wrote.
51% Return Potential
The analyst noted that H.C. Wainwright reiterated its US$13.25 per share target price on the explorer-developer, now with a share price of about US$8.78.
The difference between these prices implies a 51% return for investors.
Perpetua remains a Buy, wrote Ihle.
As of Sept. 15, China will begin restricting its exports of antimony and related elements, reported Ihle, which includes banning "exporting antimony-related products without permission." Today, China produces about 48% of the global supply of antimony, an element used in several different products used by the military, such as infrared missiles and ammunition.
"Going forward, we anticipate tighter antimony supply across the globe," Ihle wrote.
Perpetua Resources owns a past-producing antimony mine in Idaho called Stibnite, where it is working on construction and preparation for state and federal permitting, wrote Ihle. The goal is for Stibnite to again produce antimony as well as gold.
The analyst highlighted that review of the Final Environmental Impact Statement (FEIS) by the cooperating agency is done and in the final stage.
"Looking ahead, we expect the company to potentially accelerate production plans as the company encounters increased interest from investors and other sources of funds," Ihle wrote.
The analyst pointed out that before China's recently announced export restrictions, the U.S. already had made a move to support Perpetua to offset China's dominance in critical metals production. This was in the form of a letter of interest from the U.S. Export-Import Bank for a loan of up to US$1.8 billion, Ihle reported, through its Make More in America Initiative and its China and Transformational Exports Program.
According to Ihle, expected upcoming catalyst include the U.S. Forest Service's biological assessment moving to the formal consultation stage and Perpetua receiving the final Section 401 water quality certification from the state of Idaho.
Also, the FEIS and draft record of decision are expected to be published in Q3/24, the final record of decision, in Q4/24.
"We reiterate continued news flow," Ihle wrote.
| Want to be the first to know about interestingCritical Metals andGold investment ideas?Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
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.Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.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.For additional disclosures, please click here.
Disclosures for H.C. Wainwright & Co., Perpetua Resources Corp., Aug. 22, 2024
This material is confidential and intended for use by Institutional Accounts as defined in FINRA Rule 4512(c). It may also be privileged or otherwise protected by work product immunity or other legal rules. If you have received it by mistake, please let us know by e-mail reply to [email protected] and delete it from your system; you may not copy this message or disclose its contents to anyone. The integrity and security of this message cannot be guaranteed on the Internet.
Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement of securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of its affiliates or subsidiaries within the past 12 months.
H.C. Wainwright & Co, LLC (the "Firm") is a member of FINRA and SIPC and a registered U.S. Broker-Dealer.
I, Heiko F. Ihle, CFA , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst's household has a financial interest in the securities of Perpetua Resources Corp. (including, without limitation, any option, right, warrant, future, long or short position).
As of July 31, 2024 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Perpetua Resources Corp..
Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The firm or its affiliates received compensation from Perpetua Resources Corp. for non-investment banking services in the previous 12 months.
The Firm or its affiliates did not receive compensation from Perpetua Resources Corp. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in Perpetua Resources Corp. as of the date of this research report.
The securities of the company discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is no guarantee of future results. This report is offered for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. This research report is not intended to provide tax advice or to be used to provide tax advice to any person. Electronic versions of H.C. Wainwright & Co., LLC research reports are made available to all clients simultaneously. No part of this report may be reproduced in any form without the expressed permission of H.C. Wainwright & Co., LLC. Additional information available upon request.
H.C. Wainwright & Co., LLC does not provide individually tailored investment advice in research reports. This research report is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person. Investors should seek financial advice regarding the appropriateness of investing in financial instruments and implementing investment strategies discussed or recommended in this research report.
H.C. Wainwright & Co., LLC's and its affiliates' salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies that reflect opinions that are contrary to the opinions expressed in this research report.
H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.
The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data on the company, industry or security discussed in the report. All opinions and estimates included in this report constitute the analyst's judgment as of the date of this report and are subject to change without notice.
Securities and other financial instruments discussed in this research report: may lose value; are not insured by the Federal Deposit Insurance Corporation; and are subject to investment risks, including possible loss of the principal amount invested.