Perpetua Resources Corp. has reported its financial results for the first quarter of 2025, revealing significant developments and challenges in its operations. The company's vision is to provide the United States with a domestic source of the critical mineral antimony, develop one of the largest and highest-grade open pit gold mines in the country, and restore an abandoned brownfield site. The following are key highlights from the first quarter of 2025:
- Zero lost time incidents or reportable environmental spills.
- The USFS issued the Final Record of Decision (“ROD”) for the Project.
- Successful completion of basic engineering and cost update for the Project.
- Executed procurement contract with Idaho Power for critical long-lead power line items.
- Welcomed Executive Order to strengthen American mineral production and reduce U.S. reliance on foreign nations for its mineral supply.
However, the company is facing challenges related to permitting and legal actions. Claims have been filed against the USFS, USDA, and other federal agencies by several organizations alleging violations of NEPA and other federal laws in the regulatory process. The claimants seek to vacate the ROD, FEIS, Final Biological Opinions, and Project approvals and enjoin any further implementation of the Project. The company believes the federal permitting process was conducted thoroughly and completely by the relevant federal regulatory agencies, but there is no assurance that the ROD, FEIS, and other Project approvals will be upheld upon judicial review.
The company's CWA Section 404 permit application, proposed Compensatory Mitigation Plan, and associated financial assurance remain under review by the Army Corps. The Section 404 permit is the last remaining federal permit required to be issued prior to a construction decision. Perpetua expects the permit to be issued in the second quarter of 2025.
In terms of ancillary permitting updates, the company is focused on advancing the Project towards a construction decision, including finalizing the remaining federal and state permits and securing project financing. Recent permitting updates include the issuance of the final cyanidation permit, approval of the cyanidation facility permanent closure plan, reclamation plan, and associated financial assurance model estimate, and the issuance of certain water rights by the Idaho Department of Water Resources.
The company is also advancing construction readiness activities in parallel with the permitting process. This includes hiring key subject matter experts, executing construction manager general contractor agreements, and entering into agreements for procurement of long lead equipment required to increase the electrical capacity to the plant.
In terms of funding, the company has been awarded government funding under Title III of the DPA and the Prototype Other Transaction authority of the DOD. During the three months ended March 31, 2025, the company recognized $6.1 million as grant income related to the Title III funding and $281,739 as grant income related to the Prototype Other Transaction authority funding.
The company's net loss for the three months ended March 31, 2025, was $8.2 million compared with a net loss of $2.9 million for the same period in 2024. The increase in expenses was primarily driven by higher exploration expenses, environmental liability expenses, and professional fees.
Looking ahead, the company's latest liquidity forecast indicates that available cash resources for expenses not eligible for reimbursement under the DPA funding are expected to be exhausted in the third quarter of 2025. The company continues to explore various funding opportunities, including the issuance of additional equity, new debt, government funding, and other financing or strategic opportunities.
The company's forward-looking information is subject to the risk factors and assumptions contained in the “Cautionary Note Regarding Forward-Looking Statements” section. Today the company's shares have moved -1.83% to a price of $14.46. For more information, read the company's full 10-Q submission here.
