Buying a Gold Project Developer

Perpetua Resources (PPTA) is developing the Stibnite Gold Project in Idaho. PPTA published a Feasibility Study in December 2020 that calculates an after tax Net Present Value of $1.32 Billion at a five percent discount rate with a payback period of 2.9 years and an IRR of 22.3%. It just closed a $57.5 million offering which will be used to continue permitting, early restoration and field operations, engineering and design along with general corporate purposes. The share price has been in decline after an unexpected change of the technical and management team and delays in the permitting process. The stock price has now approached the offering price and presents a compelling opportunity.

This stock could be an eventual 4-5 bagger at $1800 gold if permitting proceeds according to the new plan and if there are no unfavorable corporate events. There is even more potential if the price of gold increases significantly. The permitting process should be helped along with favorable ESG optics as the project involves significant remediation of historical mining activities and includes the future production of antimony which would present the US and its allies with a local source. And antimony is finding new potential uses including in novel battery designs.

  • Bought Tranche #1 of PPTA @ 5.24
    Filled at: Aug 27, 2021 9:31:09 AM EDT

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