Perpetua Resources Stock Jumps 115% on U.S. Critical Mineral Strategy

Perpetua Resources Soars 115% as U.S. Pushes for Antimony Independence

Perpetua Resources, a U.S. company mining a critical raw material, antimony, has caught analysts' attention. They see a 75% upside potential in the stock, with an average price target of €35 per share. The company's strategic importance, given the U.S.'s heavy reliance on China for antimony, has also drawn Washington's interest.

Perpetua Resources' stock has already surged by 115% since January 2023. The company's mine in the U.S. could significantly reduce the country's dependence on Chinese imports, which currently account for over 80% of its antimony supply. This strategic advantage has led to a substantial investment of over $60 million through the Defense Production Act, with potential additional funding of up to $1.8 billion.

The Stibnite project, Perpetua's flagship, is the largest proven antimony reserve in the U.S. It could supply roughly one-third of the nation's needs for years. Additionally, the project holds 4.2 million ounces of high-grade gold, with anticipated production costs averaging $435 per ounce in the first four years. Perpetua has also partnered with Ambri, a developer of liquid-metal batteries that rely on antimony as a key material.

Analysts praise Perpetua's potential, with the average price target at around €35 per share, indicating an upside of about 75%. The company's fit with Washington's current priorities, given its heavy reliance on China and strategic military applications, makes it a likely candidate for further government backing.

Perpetua Resources' strategic importance and promising financial outlook have positioned it as a key player in the U.S.'s push for self-sufficiency in critical raw materials. With significant government investment and a strong partnership, the company is well-placed to reduce the U.S.'s reliance on foreign supplies and secure its position in the market.