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Tuesday, H.C. Wainwright maintained a Buy rating on Perpetua Resources (NASDAQ:PPTA), but lowered its price target to $27.50 from $28.00. The stock, currently trading at $11.74, has experienced a significant 21.7% decline over the past week, though InvestingPro data shows it maintains a "Good" financial health score. The adjustment follows Perpetua’s recent financial report which disclosed a net loss of $8.2 million, or $0.12 per share, compared to a net loss of $2.9 million, or $0.05 per share, in the first quarter of the previous year. According to InvestingPro, analysts expect the company to remain unprofitable this year, with consensus forecasts showing an EPS of -$0.29. Want deeper insights? InvestingPro offers 11 additional exclusive tips for PPTA.
The company received a total of $6.4 million in grant income from the U.S. Department of Defense during the quarter, a slight increase from $5.2 million received in the same period last year. The grants included $6.1 million from the Defense Production Act, a significant rise from $2.6 million in the first quarter of 2024, and $0.3 million from the DOD Ordnance Technology Consortium, which remains the same as the previous year’s grant.
Perpetua Resources has notably increased its investment in exploration, spending $13.1 million in the recent quarter, nearly doubling the $6.6 million expended in the first quarter of 2024. The company is expected to continue escalating its exploration expenses as it aims to de-risk its flagship Stibnite Gold project.
The analyst expressed confidence in Perpetua Resources’ role as a vital contributor to the United States’ critical mineral supply, particularly antimony, through the Stibnite project. Despite the reduction in the price target, the firm’s outlook remains positive, with expectations set on the advancement and de-risking of the project.
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