JPMorgan Chase (JPM) gave Perpetua Resources (PPTA) stock a shot in the arm on Monday after the financial firm announced a $75 million investment in the U.S. mining company. This will give JPMorgan Chase a 3% stake in Perpetua Resources via its 20,000 shares. The company can also expand this with warrants to acquire another $48 million worth of PPTA stock over the next three years.
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JPMorgan Chase’s interest in Perpetua Resources is part of its $1.5 trillion investment fund for U.S. national security. This marks the company’s first investment from this fund. Perpetua Resources was selected due to its planned U.S. antimony mine set to open in 2028. This will be the largest antimony mine in the U.S. and will supply over 35% of the country’s needs. It would also produce 450,000 ounces of gold annually, providing it with a dual revenue stream.
JPMorgan Chase is betting on Perpetua Resources due to the trade war between the U.S. and China. Antimony is among the minerals that China has banned from exporting to the U.S., resulting in supply constraints. This has boosted interest in U.S. production, with JPMorgan Chase CEO Jamie Dimon noting that “the United States has allowed itself to become too reliant on unreliable sources of critical minerals.”
Perpetua Resources Stock Movement Today
Perpetua Resources stock was up 1.89% on Monday, extending a 122.49% rally year-to-date. The company’s shares have also increased 138.24% over the past 12 months.
Traders interested in how the investment news affected JPM stock will note a 0.43% rally this morning. The shares have also increased 28.61% year-to-date and 33.23% over the past 12 months.
Is Perpetua Resources Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Perpetua Resources is Strong Buy, based on five Buy ratings over the past three months. With that comes an average PPTA stock price target of $28.86, representing a potential 20.55% upside for the shares.
