Perpetua Resources (PPTA) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: N/A
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: N/A
• EPS Growth: 25.69%
• Country: US
• Employees: 36
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): -0.22
• Shares Outstanding: 71,262,344
• 10 Day Avg. Volume: 1,323,080
• 30 Day Avg. Volume: 1,196,094
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): 19.30
• P/FCF Ratio: 20.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.08
• Price Target Upside: 40.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Perpetua Resources presents a mixed picture. The strong technical momentum could attract speculative interest, but financial fundamentals are weak, with no revenue and reliance on financing for cash flow. The stock's valuation is unappealing due to the lack of profitability and dividend yield. Investors should be cautious of the overbought technical indicators and consider the company's long-term revenue generation challenges.

Positive Factors

Institutional Investment

Continued interest from institutional investors is anticipated as the domestic antimony supply remains scarce while the Stibnite project becomes more de-risked.

Permitting

The United States Forest Service issued its Final Record of Decision, authorizing Perpetua's mine plan for the Stibnite Gold project, marking a major permitting milestone.

Strategic Interest

The project is of great interest to the Department of Defense to secure a domestic source of military grade antimony.

Negative Factors

Commodity Price Risk

Risks include commodity price risk, operating and technical risk, financial risk, and political risk.

Dilution

Recent financing has led to a slight dilution of the company's NAV as the price of the financing came in below the value per share.

Financial Performance

The firm reported a larger net loss of $3.6M, or ($0.05) per share, during the quarter.

Perpetua Resources Business Overview & Revenue Model

Company Description

Perpetua Resources Corp. engages in the mineral exploration activities in the United States. The company primarily explores for gold, silver, and antimony. Its principal asset is the 100% owned Stibnite gold project located in Valley County, Idaho. The company was formerly known as Midas Gold Corp. and changed its name to Perpetua Resources Corp. in February 2021. Perpetua Resources Corp. was incorporated in 2011 and is headquartered in Boise, Idaho.

How the Company Makes Money

Perpetua Resources makes money primarily through the exploration, development, and future production of gold and antimony from the Stibnite Gold Project. The company's revenue model is centered around the extraction and sale of these valuable minerals. Key revenue streams will include the sale of gold, which is one of the most sought-after precious metals, and antimony, which is used in various industrial applications such as flame retardants and batteries. Perpetua Resources' earnings are influenced by global commodity prices, mining output, and operational efficiencies. Significant partnerships, regulatory approvals, and investments also play crucial roles in the company's potential profitability and financial success.

Perpetua Resources Financial Statement Overview

Summary

Perpetua Resources faces significant challenges with a lack of revenue generation and persistent operational losses. While the company maintains a strong equity position and low leverage, the reliance on financing activities to cover cash flow deficits could pose risks. The positive shift in net income is a highlight, but sustainable revenue growth is crucial for long-term viability.

Income Statement

Perpetua Resources has reported no revenue over the past years, limiting the ability to calculate standard income metrics like gross or net profit margins. The company has shown improvement in net income from significant losses in previous years to a positive figure in the latest report, which is promising. However, the lack of revenue remains a significant concern for overall growth and profitability.

Balance Sheet

The company's balance sheet shows a strong equity position relative to its total assets, with a consistently positive stockholders' equity, indicating financial stability. The debt-to-equity ratio is very low, reflecting low leverage and financial risk. However, the absence of revenue and ongoing operational losses could pressure future equity if not addressed.

Cash Flow

Perpetua Resources has shown negative operating cash flow, indicative of ongoing operational challenges. Despite negative free cash flow, the company has improved its liquidity position significantly through financing activities, which might not be sustainable in the long term. The cash flow from operations compared to net income highlights a challenging cash position.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-981.91K	-61.29K	-58.92K	-284.41K
	EBIT
0.00	40.27K	-29.33M	41.29M	29.96M
	EBITDA
0.00	-17.79M	-24.09M	-23.33M	-29.51M
	Net Income Common Stockholders
14.48M	-18.77M	-28.71M	-35.95M	-220.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.10M	3.23M	22.67M	47.85M	25.04M
	Total Assets
117.61M	83.09M	99.45M	124.50M	98.13M
	Total Debt
28.29K	27.90K	70.45K	69.99K	9.83M
	Net Debt
-44.08M	-3.20M	-22.60M	-47.78M	-15.21M
	Total Liabilities
8.75M	10.79M	13.61M	12.90M	40.50M
	Stockholders Equity
108.86M	72.30M	85.83M	111.60M	57.63M
Cash Flow		Free Cash Flow
-11.89M	-21.64M	-25.23M	-28.97M	-29.34M
	Operating Cash Flow
-11.89M	-21.19M	-24.71M	-28.65M	-28.81M
	Investing Cash Flow
5.67M	-449.80K	-465.84K	-3.33M	-245.51K
	Financing Cash Flow
47.15M	2.20M	0.00	54.79M	36.57M

Perpetua Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPTA, the sentiment is Positive. The current price of 14.3 is above the 20-day moving average (MA) of 11.76, above the 50-day MA of 10.50, and above the 200-day MA of 9.76, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 70.80 is Negative, neither overbought nor oversold. The STOCH value of 84.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPTA.

Perpetua Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTAL	58 Neutral	$731.44M	―	-53.93%	―	―	―
MUX	57 Neutral	$418.53M	3.61	-8.76%	―	4.96%	-182.95%
PPTA	53 Neutral	$1.02B	―	-15.99%	―	―	25.69%
GROY	52 Neutral	$255.71M	―	-0.63%	―	186.18%	-125.58%
Sector *	49 Neutral	$1.96B	-1.42	-21.96%	3.81%	0.71%	-27.38%
TMC	45 Neutral	$846.54M	―	-667.42%	―	―	-3.49%
IE	41 Neutral	$893.66M	―	-40.01%	―	-25.67%	44.72%