Perpetua Resources (PPTA) Q2 2024 earnings summary

Executive summary

• Advanced permitting and construction readiness for the Stibnite Gold Project, with significant progress in environmental review, ancillary permitting, and a focus on supplying domestic antimony and gold while restoring a brownfield site.

• Awarded up to $34.4 million in additional Department of Defense (DOD) funding, bringing total TIA funding to $59.2 million for project-related studies and permitting.

• Entered an $8.5 million silver royalty agreement with Franco-Nevada to support liquidity.

• Settled Clean Water Act litigation with the Nez Perce Tribe, agreeing to $5 million in payments over four years.

• Achieved zero lost time incidents or reportable environmental spills in Q2 2024.

Financial highlights

• Net loss for Q2 2024 was $3.7 million, down from $7.7 million in Q2 2023, mainly due to higher grant income and absence of CWA settlement expense.

• Net loss for the six months ended June 30, 2024 was $6.6 million, compared to $12.3 million in the prior year period.

• Exploration expenses increased 66% year-over-year to $10.5 million in Q2 2024, driven by higher engineering and consulting costs.

• Grant income rose to $8.5 million in Q2 2024 and $13.6 million for the first half, reflecting expanded DOD funding.

• Cash and cash equivalents were $1.9 million as of June 30, 2024, with $7.6 million in receivables, mostly from DOD grants.

Outlook and guidance

• Anticipates publication of the Final Environmental Impact Statement and Draft Record of Decision in Q3 2024, with a Final Record of Decision expected in Q4 2024.

• Expects to recognize approximately $15 million in additional grant income in Q3 2024.

• Forecasts 2024 expenditures of $48 million, with $40 million expected from DPA reimbursements.

• Current liquidity for non-DPA eligible expenses projected to be exhausted in Q4 2024 without additional financing.

• Ongoing construction readiness and permitting activities are reimbursable under DPA funding.