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.
Tighter Antimony Supply
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.
U.S.-Based Antimony Project
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.
Expected Stock-Moving Events
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.
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Disclosures for H.C. Wainwright & Co., Perpetua Resources Corp., Aug. 22, 2024
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.
Tighter Antimony Supply
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.
U.S.-Based Antimony Project
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.
Expected Stock-Moving Events
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.
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Disclosures for H.C. Wainwright & Co., Perpetua Resources Corp., Aug. 22, 2024
, Antimony Co. in US to Benefit from China’s Export Controls
