Perpetua Resources(PPTA) - 2025 Q1 - Quarterly Report

Financial Performance - The net loss for the three months ended March 31, 2025, was $8.2 million, compared to a net loss of $2.9 million for the same period in 2024, indicating an increase in loss of approximately 178%[19] - The basic loss per share increased from $0.05 in Q1 2024 to $0.12 in Q1 2025, reflecting a deterioration in financial performance[19] - The company’s consolidated net loss is the primary measure used to assess profitability, which informs operating cash flow decisions on a monthly basis[80] - The net loss for the three months ended March 31, 2025, was $8.2 million, an increase of $5.3 million compared to a net loss of $2.9 million for the same period in 2024, primarily due to a $6.5 million increase in exploration expenses[98] Exploration Expenses - Exploration expenses rose significantly to $13.1 million for the three months ended March 31, 2025, compared to $6.6 million in the prior year, reflecting an increase of approximately 99%[19] - Exploration expenses for the three months ended March 31, 2025, totaled $13.1 million, which is $6.5 million (99%) higher than the $6.6 million reported in 2024, driven by increases in engineering, permitting, and consulting costs[102] - The total exploration costs for the three months ended March 31, 2025, amounted to $13,094,429, a significant increase from $6,572,460 in the same period of 2024, reflecting a 99% increase[81] Cash and Assets - Total assets decreased from $117.6 million as of December 31, 2024, to $111.5 million as of March 31, 2025, representing a decline of approximately 5.5%[17] - Cash and cash equivalents decreased from $44.1 million at the beginning of the period to $19.1 million at the end of the period, a reduction of approximately 56.6%[23] - As of March 31, 2025, the company had cash and cash equivalents of approximately $19.1 million, with an additional $3.9 million remaining available for reimbursement under the TIA until June 16, 2025[110] - The company anticipates that available cash resources will be exhausted by Q3 2025 without additional financing, raising concerns about its ability to meet ongoing obligations[28] Shareholder Equity - The company reported a total shareholders' equity of $102.6 million as of March 31, 2025, down from $108.9 million at the end of 2024, a decrease of approximately 5.8%[17] - The weighted average common shares outstanding increased from 64.1 million in Q1 2024 to 70.6 million in Q1 2025, an increase of approximately 10.5%[19] Strategic Initiatives - The company is exploring various strategic and funding opportunities, including potential equity issuance and government funding, to support its operations[28] - The Company has engaged RBC Capital Markets and Endeavour Financial to assist in evaluating potential strategic and financing opportunities, including a $1.8 billion Letter of Interest from U.S. EXIM[28] - The company has engaged RBC Capital Markets and Endeavour Financial to explore strategic and financing opportunities, including a potential $1.8 billion debt financing from U.S. EXIM[114] Grant Income - Grant income for the three months ended March 31, 2025, totaled $6,383,390, an increase from $5,169,738 in the same period of 2024[76] - The Company received $6.1 million as grant income related to the Department of Defense funding during the three months ended March 31, 2025, with an expectation to recognize approximately $3.9 million in remaining funds[93] - The Company recognized $6.1 million as grant income related to the TIA during the three months ended March 31, 2025, and was reimbursed $6.2 million for certain costs incurred under the TIA[113] - For the three months ended March 31, 2025, the Company recognized $281,739 as grant income related to the OTIA and anticipates an additional $1.9 million in the second quarter of 2025[94] Settlement Agreements - The Company recognized an expense of $5 million related to a settlement agreement with the Nez Perce Tribe, with $2 million paid towards this obligation as of March 31, 2025[71] - A settlement agreement with the Nez Perce Tribe involves total payments of $5.0 million over four years, including $4.0 million for water quality improvement projects[129] - As of March 31, 2025, the current portion of the settlement was $1.0 million, with the remaining $2.0 million classified as long-term[129] Environmental and Regulatory Matters - The Company is focused on finalizing the remaining permits for the Stibnite Gold Project to support a construction decision expected in 2025[84] - The Company’s CWA Section 404 permit application is under review, with expectations for issuance in the second quarter of 2025[89] - The environmental reclamation liability balance at the end of March 31, 2024, was $700,412, with no work performed on early action items during the three months ended March 31, 2025[61] Capital Expenditures - Anticipated expenditures for fiscal year 2025 are approximately $67.5 million, including $12.9 million for permitting the Stibnite Gold Project and $29.3 million for detailed engineering and design work[121] - The estimated capital costs to develop the Stibnite Gold Project are approximately $2,215 million as of the fourth quarter of 2024[121] - The company expects to make a construction decision for the Stibnite Gold Project in 2025, which may significantly increase capital expenditures[121] Internal Controls and Legal Matters - The company's disclosure controls and procedures were evaluated as effective as of March 31, 2025[124] - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended March 31, 2025[125] - A putative federal class action lawsuit was filed against the company, alleging violations of the Exchange Act regarding capital expenditures for the Stibnite Gold Project[132] - The company believes the federal permitting process for the Stibnite Gold Project was conducted thoroughly and completely[131]