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Gold Company Secures Department of Defense Funding Moving into 2024

Source: Streetwise Reports 01/05/2024

Perpetua Resources Corp. has released the highlights of its performance in 2023. Read on to see why analysts like this company’s stock.

Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ) announced in a press release that it has several milestones to look forward to in 2024, as well as reflecting on the company’s performance in 2023. Perpetua reported that it is continuing to progress the Stibnite gold project through the permitting process under the National Environmental Policy Act as the company moves toward a construction decision and the next phase of the project.

Perpetua reports several encouraging points of performance information, including no environmental spills or lost-time incidents, the appointment of a vice-president of projects, and the settlement under the Clean Water Act with the Nez Perce Tribe. Additionally, the company reports that it secured US$15.5 million in funding from the Department of Defense and that it has completed pre-construction planning, scheduling, and the majority of early action restoration work on the project.

Laurel Sayer, the President and CEO of the project, commented, “Perpetua Resources accomplished several significant milestones in 2023 as we progress towards the next phase for the Stibnite gold project. We secured additional funding through the Department of Defense, completed preconstruction planning and scheduling for the project, strengthened our board and leadership team, and continued to advance our environmental goals. I believe our recent achievements further strengthen the Stibnite gold project’s strategic value to U.S. critical mineral development, and we look forward to a record of decision in 2024.”

Gold and Battery Metals Well Positioned for 2024

Perpetua is involved in gold exploration on the Stibnite gold project. Stewart Thomson of 321 Gold reports that 2024 might be a good year for gold; Thomson stated, “In the coming year, will positions bought now rise to a juicy profit or not? The answer is most likely a resounding yes.”

Analyst Rick Mills with Ahead of the Herd believes that 2024 will be the year for gold. Mills cited several factors in gold’s rise, including buying by central banks, and the actions of the Federal Reserve. Mills also stated that sections of the international community, such as Russia and Saudi Arabia, are looking for other currencies as they seek to break away from the U.S. dollar. A weaker dollar tends to propel gold values upwards.

Potential 129% Return

Mike Niehuser with ROTH Capital Partners reviewed the company on August 30, 2023, and rated it as a “Buy” for potential investors with a target share price of US$7.25 and a potential return on investment of 129%.

Niehuser cited a number of factors in his positive assessment of the company, including a settlement with the Nez Perce tribe, the hiring of a specialist in mining development, and the classification of antimony as a critical mineral.

Technical analyst Clive Maund reviewed the company positively on February 9, 2023, and commented that it was “very likely that the pattern will soon break to the upside, leading to a move of similar magnitude to that proceeding the Flag, and the charts suggest that breakout is imminent.”

The company also has a number of catalysts to report, according to its investor presentation, including a Final EIS and Draft Record of Decision expected in Q2 of 2024, a Final Record of Decision expected in Q4 of 2024, along with ancillary permits and project financing at the end of 2024 or in early 2025, and a construction decision in 2025.

Ownership and Share Structure

[OWNERSHIP_CHART-10820]

Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 0.37% of the company. According to Reuters, CFO Jessica Marie Largent owns 0.09% of the company with 0.06 million shares, Director Christopher James Robinson owns 0.08% of the company with 0.05 million shares, President and CEO Laurel Sayer owns 0.08% of the company with 0.05 million shares, VP of Permitting Alan Douglas Haslam owns 0.05% of the company with 0.03 million shares, Director 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, VP 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, and Human Resources Manager Tanya Dawn Nelson owns 0.01% of the company with less than 0.01 million shares.

Reuters reports that institutional investors own approximately 66.09% of the company, as Paulson & Co. Inc. owns 39.14% of the company with 24.77 million shares, Kopernik Global Investors, LLC, owns 8.30% of the company with 5.25 million shares, Sun Valley Gold, LLC, owns 7.51% of the company with 4.75 million shares, BlackRock Institutional Trust Company, N.A., owns 2.57% of the company with 1.63 million shares, Krilogy Financial, Inc., owns 2.38% of the company with 1.51 million shares, B. Riley Financial, Inc., owns 2.32% of the company with 1.47 million shares, Eidelman Virant Capital owns 1.51% of the company with 0.96 million shares, Franklin Advisors, Inc., owns 0.86% of the company with 0.54 million shares, Russell Investments Trust Company owns 0.76% of the company with 0.48 million shares, and Earth Resource Investment Group owns 0.74% of the company with 0.47 million shares.

According to Reuters, there are 63.27 million shares outstanding with 63.06 million free float traded shares, while the company has a market cap of CA$207.93 million and trades in the 52-week period between CA$3.32 and CA$7.32.

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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. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: PPTA:TSX; PPTA:NASDAQ,
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