Perpetua Resources (PPTA) PT Lowered to $27.50 at H.C. Wainwright

H.C. Wainwright analyst Heiko Ihle lowered the price target on Perpetua Resources (NASDAQ: PPTA) to $27.50 (from $28.00) while maintaining a Buy rating.

The analyst commented: 'Although we view the firm’s current financials as largely irrelevant based on the company’s lack of production, we nonetheless note that the firm reported a net loss of $8.2M, or ($0.12) per share, during the quarter. This compares to a net loss of $2.9M, or ($0.05) per share, in 1Q24. PPTA received grant income of $6.4M ($5.2M in 1Q24) from the U.S. Department of Defense (DOD) that breaks down into $6.1M from the Defense Production Act (DPA) grant ($2.6M in 1Q24) and $0.3M from the DOD Ordnance Technology Consortium (DOTC) grant ($2.6M in 1Q24). In turn, the company spent $13.1M on exploration initiatives during the quarter, which equates to almost double the $6.6M that was spent on exploration work in 1Q24. Going forward, we expect the firm to continue increasing its exploration expenses as management looks to de-risk its flagship Stibnite Gold project. We remain confident in Perpetua and stress that the company remains a key player in securing a domestic critical mineral supply of antimony through the advancement and further de-risking of Stibnite. Reiterate Buy rating and adjust PT to $27.50 from $28.00."

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