Perpetua Resources (PPTA) Update
Shares of Perpetua Resources (PPTA) closed down 13% yesterday, likely on speculation that there will be a delay in the final Record of Decision (ROD) for the Stibnite Project.
We have been expecting the ROD by the end of the year. However two new documents just appeared on the Forest Service’s website for the project that detail a number of objections received in October from various interest groups.
These two letters, written by Department of Agriculture staff members on 12/20, include suggested remedies to address the objections in some cases and simply refute objections in other cases.
I’ve reviewed the letters, and most of the suggested remedies seem relatively straightforward and administrative in nature. Others are more involved. Sorting out the details and, in some cases, related expense, could take some time.
For example, consider this remedy for one action item: “In the Stibnite Gold Project Compensatory Stream and Wetland Mitigation Plan, specify that six inches of growth media would be applied. Specify explicit conditions where deviations of this thickness could occur.”
I think it’s unlikely that Perpetua and the Forest Service will hammer out a plan for where to add “six inches of growth media” over the next week.
Based on these docs, it appears to me that the process is moving forward and the final ROD is more of a “when” not “if.” I hope Perpetua will put out a press release explaining the situation to investors.
Links to the two letters are here and here.
Keeping Perpetua Resources at BUY HALF.
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