Perpetua Resources Reports Financial Developments, Appoints New CEO, and Advances Stibnite Gold Project

Perpetua Resources Corp. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable increase in cash and cash equivalents, rising to $11.2 million from $3.2 million at the end of 2023. Receivables also surged to $8.8 million, up from $3.2 million, reflecting increased grant income primarily from the Department of Defense (DOD).

For the three months ended September 30, 2024, exploration expenses reached $14.5 million, a 67% increase from $8.7 million in the same period of 2023. Over the nine-month period, exploration expenses totaled $31.5 million, up 52% from $20.7 million in the prior year. The operating loss for the third quarter was $16.5 million, compared to $9.6 million in 2023, while the nine-month operating loss increased to $36.8 million from $29.6 million.

Despite these losses, the net loss for the three months ended September 30, 2024, was $3.6 million, an increase from $2.6 million in the same period last year. However, the nine-month net loss decreased to $10.2 million from $14.9 million in 2023, attributed to a $12.3 million increase in grant income and a $5 million reduction in Clean Water Act (CWA) settlement expenses.

The company reported grant income of $12.6 million for the third quarter and $23.7 million for the nine months, significantly higher than the previous year's figures. This increase is largely due to funding under a Technology Investment Agreement (TIA) with the DOD, which has now reached a total of $59.2 million. As of September 30, 2024, the company had $20 million remaining under the TIA for reimbursement of eligible costs.

Perpetua Resources also noted a liquidity forecast indicating that available cash resources could be exhausted by the second quarter of 2025. The company is actively exploring strategic funding opportunities, including equity issuance and government funding, to address these challenges. Additionally, the company has engaged financial advisors to evaluate potential financing options.

In terms of operational developments, the company appointed Jonathan Cherry as the new President and CEO, focusing on advancing the Stibnite Gold Project. The U.S. Forest Service published the Final Environmental Impact Statement (FEIS) for the project, with a Draft Record of Decision (DROD) issued on September 6, 2024, marking a significant step in the permitting process.