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Investing.com - RBC Capital initiated coverage on Perpetua Resources (NASDAQ:PPTA) with an Outperform rating and a $23.00 price target on Friday. The stock, currently trading at $15.87, has shown remarkable momentum with a 136% return over the past year, according to InvestingPro data.
The research firm highlighted that Perpetua’s Stibnite project in Idaho represents a large-scale, high-margin gold operation with strategically important antimony byproduct that enhances returns and supports funding efforts.
RBC Capital noted the project is fully permitted with financing advancing, and construction could begin in the second half of 2025, offering a short payback period at current spot prices despite capital expenditures exceeding $2.2 billion.
The firm pointed out that Perpetua Resources currently trades at approximately 25% discount to net asset value compared to peers, suggesting potential for valuation improvement as the company executes toward initial production targeted for the second half of 2028.
RBC Capital assigned a Speculative Risk designation alongside its Outperform rating for the stock.
In other recent news, Perpetua Resources Corp. has successfully completed a significant financial transaction, raising a total of approximately $474 million. This was achieved through a $325 million public offering of 24,622,000 common shares at $13.20 each and an additional $100 million private placement with Paulson & Co. Inc. The underwriters, led by National Bank Financial Inc. and BMO Capital Markets Corp., exercised their option to purchase an additional 3,693,300 shares, generating an extra $49 million in gross proceeds. These funds are earmarked for the development of the company’s Stibnite Gold Project in Idaho. The project aims to restore an abandoned mine site while producing valuable minerals such as gold and antimony. H.C. Wainwright has maintained its Buy rating for Perpetua Resources, setting a price target of $27.50 following the capital raise. The company’s financial strategy includes applying for up to $2 billion in financing from the Export-Import Bank of the United States, with the potential for debt financing to close in 2026. Perpetua Resources is also exploring additional financing options, including a guarantee arrangement and potential royalty or gold stream agreements.
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