Gold prices edge higher on raised Fed rate cut hopes
Chris Robison, a director at Perpetua Resources Corp. (NASDAQ:PPTA), a $562 million market cap mining company, recently purchased 10,000 common shares of the company. The shares were acquired at a weighted average price of $8.43, with individual transaction prices ranging from $8.28 to $8.62. This acquisition brings Robison’s total holdings to 70,000 shares, held indirectly through a revocable trust. The transaction, reported on February 21, underscores Robison’s continued investment in the company. According to InvestingPro data, the stock has fallen 17% in the past week and shows oversold conditions, while analyst price targets range from $16 to $25, suggesting significant upside potential. Get access to 8 more exclusive ProTips and comprehensive analysis with InvestingPro.
In other recent news, Perpetua Resources has received significant attention following the U.S. Forest Service’s approval of its Stibnite Gold Project in Idaho. This approval marks the end of an eight-year review process and allows the company to advance towards a construction decision, with plans to finalize permits and secure financing. The Stibnite Gold Project is notable for its substantial reserves, including 4.8 million ounces of gold and 148 million pounds of antimony, and is expected to produce 450,000 ounces of gold annually in its first four years. The project is also anticipated to meet about 35% of the U.S. demand for antimony within its initial six years, which is crucial given recent global supply chain challenges.
In light of these developments, H.C. Wainwright has raised its price target for Perpetua Resources to $25.00, maintaining a Buy rating on the stock. National Bank also highlighted the project’s potential to become a key domestic source of antimony, with an outperform rating and a C$22 price target. The approval has been welcomed by local communities, with expectations of creating 550 jobs and injecting over one billion dollars into Idaho’s economy. Perpetua Resources has also partnered with U.S. Antimony Corporation to test antimony concentrate, aiming to establish a fully domestic supply chain for this critical mineral.
This collaboration is part of broader efforts to reduce reliance on foreign sources and bolster U.S. supply chains. As the company moves forward, investors remain focused on its next steps, including the anticipated construction phase and further contributions to the local economy.
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