Perpetua Resources Corp. (NASDAQ: PPTA)

Sector: Basic Materials Industry: Other Precious Metals & Mining CIK: 0001526243
Market Cap 2.49 Bn
P/B 4.68
P/E -56.16
P/S 0.00
ROIC (Qtr) -14.53
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 48,706.00
Debt/Equity (Qtr) 0.00
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About

Perpetua Resources Corp., known by its ticker symbol PPTA, is a company operating in the mining industry, specifically engaged in the exploration and potential redevelopment of the Stibnite Gold Project in Idaho, USA. The company's primary business involves exploring, evaluating, and potentially redeveloping three mineral deposits within the Stibnite Gold Project - Hangar Flats, West End, and Yellow Pine deposits. The Stibnite Gold Project is a significant deposit, housing an estimated 4.6 million ounces of gold, 34.6 million ounces of silver, and...

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Investment thesis

Bull case

  • Healthy cash reserves of 469.54M provide 9640.36x coverage of short-term debt 48706, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 544.89M provides 11187.27x coverage of total debt 48706, indicating robust asset backing and low credit risk.
  • Cash reserves of 469.54M provide robust 43.11x coverage of current liabilities 10.89M, indicating strong short-term solvency.
  • Cash reserves of 469.54M provide solid 234.77x coverage of other non-current liabilities 2M, indicating strong liquidity.
  • Cash position of 469.54M represents healthy 1.05x of working capital 449.26M, demonstrating strong operational liquidity.

Bear case

  • Investment activities of (16.52M) provide weak support for R&D spending of 69.96M, which is -0.24x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (44.35M) shows concerning coverage of stock compensation expenses of 3.54M, with a -12.51 ratio indicating potential earnings quality issues.
  • Free cash flow of (60.87M) provides weak coverage of capital expenditures of 16.52M, with a -3.68 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (44.29M) show weak coverage of depreciation charges of 129817, with a -341.15 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (44.35M) barely covers operating expenses of 2.77M with a -15.99 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Other Precious Metals & Mining
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HL Hecla Mining Co/De/ 13.92 Bn 43.35 9.78 275.80 Mn
2 TFPM Triple Flag Precious Metals Corp. 7.13 Bn 34.87 20.73 14.50 Mn
3 PPTA Perpetua Resources Corp. 2.49 Bn -56.16 0.00 0.05 Mn
4 ASM Avino Silver & Gold Mines Ltd 1.28 Bn 82.71 20.45 3.38 Mn
5 MUX McEwen Inc. 1.25 Bn -104.83 7.51 127.73 Mn
6 MTA Metalla Royalty & Streaming Ltd. 0.74 Bn -347.30 96.23 8.77 Mn
7 NEWP New Pacific Metals Corp 0.58 Bn -195.22 0.00 0.00 Mn
8 ELE Elemental Royalty Corp 0.30 Bn -829.72 18.50 0.00 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.75 0.38
EV to Cash from Ops. EV/CFO -46.06 46.96
EV to Debt EV to Debt 41,947.28 3,165.55
EV to EBIT EV/EBIT -46.13 -95.38
EV to EBITDA EV/EBITDA -27.03 4.86
EV to Free Cash Flow [EV/FCF] EV/FCF -33.56 31.14
EV to Market Cap EV to Market Cap 0.82 0.86
EV to Revenue EV to Revenue 0.00 13.34
Price to Book Value [P/B] P/B 4.68 6.32
Price to Earnings [P/E] P/E -56.16 -125.76
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.56
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -10.52
Dividend per Basic Share Div per Share (Qtr) 0.00 0.02
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 3.93
Interest Coverage Int. cover (Qtr) 0.00 9.92
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -317.58 -825.54
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 4,088.36 689.03
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -3.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -215.18 85.08
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -59.36 150.70
EBIT Growth (1y) % EBIT 1y % (Qtr) -215.18 97.21
EBT Growth (1y) % EBT 1y % (Qtr) -215.18 107.49
EPS Growth (1y) % EPS 1y % (Qtr) -127.27 129.12
FCF Growth (1y) % FCF 1y % (Qtr) -497.12 414.62
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 41.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.15
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 43.11 9.29
Current Ratio Curr Ratio (Qtr) 42.25 12.32
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.07
Interest Cover Ratio Int Coverage (Qtr) 0.00 9.92
Times Interest Earned Times Interest Earned (Qtr) 0.00 9.92
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -110.37
EBIT Margin % EBIT Margin % 0.00 -125.82
EBT Margin % EBT Margin % 0.00 -136.05
Gross Margin % Gross Margin % 0.00 27.60
Net Profit Margin % Net Profit Margin % 0.00 -140.71