On Thursday, H.C. Wainwright adjusted its outlook on Perpetua Resources (NASDAQ:PPTA), increasing the price target to $10.50 from the previous $10.00, while retaining a Buy rating on the stock. The adjustment followed Perpetua Resources' announcement of its fourth quarter and full-year 2023 financial results on March 27.
The company reported a net loss of $18.8 million, or $0.30 per share for the year, marking an improvement from the $28.7 million, or $0.46 per share loss reported in 2022. Perpetua Resources' financial performance was characterized by a significant increase in exploration expenses, which rose by 57% year-over-year to $29.9 million, along with $5.0 million spent on lawsuit expenditures.
However, the financial strain was partially alleviated by $21.1 million in grant income received over the course of the year, a substantial increase from the $75,000 obtained in 2022. Despite ending the year with a modest $3.2 million in cash and cash equivalents, this figure does not reflect the impact of a recent $8.5 million royalty agreement.
Furthermore, Perpetua has been conditionally awarded up to $34.6 million in additional funding under its existing Technology Investment Agreement through the Defense Production Act. This potential funding would bring the total Defense Production Act funding for the company to $59.4 million.
The analyst from H.C. Wainwright reiterated the Buy rating and cited the aforementioned funding prospects as the primary reason for the increased price target, indicating a positive outlook on Perpetua Resources' financial position and future.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.