Antimony Co. Evaluating Possible Partnerships

Source: Mike Niehuser 12/12/2024

Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ) is looking forward to the “award of the Final Record of Decision (FROD) based on the U.S. Forest Service (USFS) schedule. Following over six years of permitting, the project has bi-partisan support to produce antimony to meet the need for national defense,” according to a Roth MKM research note.

In a December 11, 2024 research note, Roth MKM analyst Mike Niehuser maintained a Buy rating on Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ) with a US$15.00 price target, citing progress on domestic antimony production partnerships and anticipated regulatory approvals.

According to the report, “PPTA anticipates the award of the Final Record of Decision (FROD) based on the U.S. Forest Service (USFS) schedule. Following over six years of permitting, the project has bi-partisan support to produce antimony to meet the need for national defense.”

On strategic partnerships, the analyst noted that “PPTA plans to complete metallurgical testing of its antimony concentrate with the United States Antimony Corp. (UAMY:NYSE) to establish a stable domestic supply chain for antimony.” The report added that “PPTA anticipates that together they could provide 40% of the nation’s need for antimony.”

The company has secured significant financial backing, as the Department of Defense (DoD) gave it US$75 million, and it was given a US$1.8 billion Letter of Interest from Export Import Bank of the United States (EXIM). Kozak also stated Perpetua may have eligibility when it comes to receiving funds from the China and Transformational Exports Program.

On leadership developments, the report noted that the company appointed Jon Cherry as CEO in March. Kozak pointed out Cherry’s 33 years in the industry, and how it may help PPTA with financing, construction, and operations, to get the project to production as fast as possible.

The analyst outlined several risk factors, including that “Natural resource companies are subject to significant political risk” and “Pre-revenue natural resource companies are dependent on available cash, marketable assets and the ability to borrow or sell equity into capital markets to fund development including exploration and construction.”

Regarding valuation, Niehuser wrote that the price target is “based on 0.36x NAV5% in the 2020 Feasibility Study sensitivity table with gold at US$2,350 per oz and antimony at US$3.50.” He added that “The project is scheduled by the USFS to receive the FROD in the coming weeks. This may lead to a positive re-rating of our price target, but also to increased volatility from the announcement.”

The share price at the time of the report of US$12.18 represents a potential return of 23% to Roth MKM’s US$15.00 target price.

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Disclosures for Roth MKM, Perpetua Resources Corp., December 11, 2024

Regulation Analyst Certification (“Reg AC”): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Disclosures: Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from Perpetua Resources Corp.. Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has managed or co-managed a public offering for Perpetua Resources Corp.. ROTH and/or its employees, officers, directors and owners own options, rights or warrants to purchase shares of United States Antimony Corporation stock. Roth or its affiliates beneficially own(s) 1% or more of an equity security of United States Antimony Corporation .

Our rating system attempts to incorporate industry, company and/or overall market risk and volatility. Consequently, at any given point in time, our investment rating on a stock and its implied price movement may not correspond to the stated 12- month price target. Ratings System Definitions – ROTH Capital employs a rating system based on the following: Buy: A rating, which at the time it is instituted and or reiterated, that indicates an expectation of a total return of at least 10% over the next 12 months. Neutral: A rating, which at the time it is instituted and or reiterated, that indicates an expectation of a total return between negative 10% and 10% over the next 12 months. Sell: A rating, which at the time it is instituted and or reiterated, that indicates an expectation that the price will depreciate by more than 10% over the next 12 months. Under Review [UR]: A rating, which at the time it is instituted and or reiterated, indicates the temporary removal of the prior rating, price target and estimates for the security. Prior rating, price target and estimates should no longer be relied upon for UR-rated securities. Not Covered [NC]: ROTH Capital does not publish research or have an opinion about this security. ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2024. Member: FINRA/SIPC.

( Companies Mentioned: PPTA:TSX; PPTA:NASDAQ, )

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