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Dates of Permitting Idaho Mine Pushed Back

Source: Mike Kozak 01/05/2024

The delay by the U.S. Forest Service is minor, but the mining company will likely have to secure additional funds to see the process to completion, noted a Cantor Fitzgerald report.

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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Important Disclosures:

  1. [ 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.
  2. [Doresa Banning] wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  3. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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Disclosures for Cantor Fitzgerald, Perpetua Resources Corp., January 2, 2024

Disclaimers The opinions, estimates and projections contained in this report are those of Cantor Fitzgerald Canada Corporation. (“CFCC”) as of the date hereof and are subject to change without notice. Cantor makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; however, Cantor makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this report or its contents. Information may be available to Cantor that is not herein.

This report is provided, for informational purposes only, to institutional investor clients of Cantor Fitzgerald Canada Corporation, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. This report is issued and approved for distribution in Canada, CFCC., a member of the Investment Industry Regulatory Organization of Canada (“IIROC”), the Toronto Stock Exchange, the TSX Venture Exchange and the CIPF. This report is has not been reviewed or approved by Cantor Fitzgerald & Co., a member of FINRA. This report is intended for distribution in the United States only to Major Institutional Investors (as such term is defined in SEC 15a-6 and Section 15 of the Securities Exchange Act of 1934, as amended) and is not intended for the use of any person or entity that is not a major institutional investor. Major Institutional Investors receiving this report should effect transactions in securities discussed in the report through Cantor Fitzgerald & Co.

Non US Broker Dealer 15a-6 disclosure: This report is being distributed by (CF Canada/CF Europe/CF Hong Kong) in the United States and is intended for distribution in the United States solely to “major U.S. institutional investors” (as such term is defined in Rule15a-6 of the U.S. Securities Exchange Act of 1934 and applicable interpretations relating thereto) and is not intended for the use of any person or entity that is not a major institutional investor. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. It is prohibited for distribution to non-institutional clients including retail clients, private clients and individual investors. Major Institutional Investors receiving this report should effect transactions in securities discussed in this report through Cantor Fitzgerald & Co. This report has been prepared in whole or in part by research analysts employed by non-US affiliates of Cantor Fitzgerald & Co that are not registered as broker-dealers in the United States. These non-US research analysts are not registered as associated persons of Cantor Fitzgerald & Co. and are not licensed or qualified as research analysts with FINRA or any other US regulatory authority and, accordingly, may not be subject (among other things) to FINRA’s restrictions regarding communications by a research analyst with a subject company, public appearances by research analysts, and trading securities held by a research analyst account.

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

( Companies Mentioned: PPTA:TSX; PPTA:NASDAQ,
)

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