Perpetua Resources Corp. announced the commencement of detailed engineering studies with Ausenco Engineering USA South Inc. and signed a procurement contract with Idaho Power Company for powerline materials for the Stibnite Gold Project.
The company released its 2024 Financial Update, which reconfirmed robust project economics, indicating a $3.7 billion after-tax net present value (5%) and an after-tax internal rate of return exceeding 27% at spot prices.
However, the updated cash flow model revealed additional capital expenses of $952 million, representing more than a 75% increase over original estimates, which the company attributed to inflation, indirect costs, higher mining costs, and specific design decisions.
This significant increase in projected initial capital expenditure for the Stibnite Gold Project led to a federal class action lawsuit alleging that Perpetua made materially false and/or misleading statements and failed to disclose material adverse facts to investors.
The lawsuit claims that the company's previous suggestions of a mere 10% to 20% cost increase fell short of reality, causing Perpetua's stock price to fall $2.68, or 22.4%, to $9.29 per share on February 14, 2025.
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