Support is Good Sign for Restart of U.S. Gold-Antimony Mine

Source: Mike Niehuser 10/25/2024

The project should receive a positive final record of decision despite who wins the U.S. presidential election, purported a Roth MKM report.

Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ), whose Idaho-based gold-antimony project continues getting federal, state, and local support, had its share price increased to US$15 by Roth MKM, Managing Director Mike Niehuser reported in an Oct. 22 research note.

“[The company's unique potential to produce antimony for clean energy and national defense applications has the support of both parties in the U.S. Senate," Niehuser wrote. "The Department of Energy and the Department of Defense support domestic production of critical metals, including antimony."

45% Return Implied

Roth's US$15 per share target price is based on 0.35x net asset value discounted at 5% in the 2020 feasibility study at US$2,350 per ounce gold, noted Niehuser. In comparison, Perpetua was trading at the time of the report at about US$10.38 per share.

The difference between these prices suggests a potential return for investors of 45%.

Perpetua remains a Buy.

Positive Final Decision Likely

Support for restarting operations at Stibnite is "near unanimous," asserted Niehuser. Certainly, Perpetua's plan includes restoring the environment and fish spawning areas damaged by historical mining at the property, and this represents a "once-in-a-generation opportunity to resolve environmental issues," he wrote.

Given the bipartisan federal support for Stibnite, the upcoming presidential election should not hinder Perpetua from receiving the final record of decision on it, expected by year-end, Niehuser wrote. Changes in U.S. Forest Service personnel are not going to happen, so it will not be an influencing factor either. There likely is support from allied nations, too, given that China, Russia, and Tajikistan produce about 90% of the world's antimony supply.

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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.
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Disclosures for Roth MKM, Perpetua Resources Corp., October 22, 2024

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

Source: https://www.streetwisereports.com/article/2024/10/25/support-is-good-sign-for-restart-of-u-s-gold-antimony-mine.html