Speculative Buy Half Alert for Perpetua Resources (PPTA)
We’re doing things a little differently this month since there’s potential for a stock-moving announcement tomorrow that could impact this month’s new addition, which is a speculative mining stock.
Therefore, I’m adding a half-sized position in this speculative company today at the current price of 10.7.
My hope is that this will give you a chance to either start a position this afternoon or have a little more time to consider the opportunity before buying shares tomorrow.
Here is a very brief description of the company, along with a note on why I’m buying a half stake today instead of just waiting until tomorrow.
The company is Perpetua Resources (PPTA). It has a market cap under $800 million.
Perpetua is a start-up mining company focused on the exploration, site restoration and redevelopment of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho.
The Stibnite Gold Project is located in one of the most historic mining districts in Idaho. But it was abandoned in 1997.
Perpetua Resources has been working for the last seven years to get the project going again, and final approval from the U.S. Forest Service could come as early as tomorrow.
Then again, that decision could come a day or a week from now. We don’t know for sure. It depends on what’s going on at the Forest Service.
I also don’t know for sure if the project will be approved or if more work will be required to achieve that milestone. Finally, I don’t know if eventual approval would make PPTA shares jump higher right away or if it would lead to a temporary “sell the news” type event.
For sure, this is a speculative stock. And the timing makes it a little more of a speculation.
The reasons why I’m jumping in will become clearer tomorrow when you’ll get my full report.
But in a nutshell, the price of gold is trading near all-time highs and antimony, which is used in many defense, tech and energy applications, is a critical mineral with production controlled by China, Russia and Turkey.
The U.S. has been trying to get domestic production of antimony going again.
Yesterday, a Chinese Commerce Ministry directive stated, “In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted.”
This development ramps up trade tensions between China and the U.S. and puts further pressure on the U.S. to secure domestic production of antimony, of which there currently is none.
Perpetua Resources could supply up to 35% of domestic demand once things get rolling in a year or two, if its project is approved.
Again, this is a speculative stock and the timing makes it more so. But it’s an opportunity I’ve been following for a while. Starting with a half stake will give us some wiggle room if shares pull back and/or get us into the name if shares rally.
With the Forest Service’s decision due any day now, and the potential for the Stibnite Project to grow in scope over the coming decade, it’s one I’m willing to roll the dice on now. BUY HALF
My full report will come your way tomorrow. Here is the chart.
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