Key Takeaways
- Perpetua Resources shares rose 10% today after the U.S. Army awarded it up to $40 million over 36 months to study producing tungsten at its Stibnite project in Idaho.
- Perpetua has to match the Army’s money, but its share of the first 18-month phase is about $9 million, a small bill for a company that ended 2025 with $714 million in cash and short-term investments.
- Stibnite itself is the bigger cost: Perpetua had negative free cash flow of $118 million in 2025 and still has no revenue.
- Only the first phase is committed, so the drilling and test results from that phase will decide whether tungsten becomes a real part of Stibnite.
Perpetua Resources (PPTA) is up 10% today after adding a second critical mineral to its Stibnite project in Idaho: tungsten.
After Monday’s close, the company announced a 36-month award of up to $40 million from the U.S. Army’s Defense Ordnance Technology Consortium. The money is for a study of whether Stibnite, best known for its antimony and gold, can produce tungsten concentrate too.
“Resilient mineral solutions start here in America,” said CEO Jon Cherry.
That’s the pitch. According to the company, the U.S. hasn’t mined tungsten commercially since 2015 and imports all of it.
What the Army is paying for
- Up to $40 million from the Army over 36 months
- Perpetua matches the Army’s money, so the full program could reach $80 million
- The first 18-month phase should cost about $18 million, split evenly
- Only that first phase is committed, and each later phase needs its own approval
The work focuses on the tungsten beneath the Hangar Flats pit. It includes drilling to define a resource and tests on an existing 550-kilogram sample grading 9.2% antimony and 4.2% tungsten. It also covers permitting a decline, which is a tunnel down to the mineralization.
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Perpetua can cover its half
So the headline number is only half the bill, and Perpetua has no revenue to pay the other half. But it has the cash. Perpetua ended 2025 with $714 million in cash and short-term investments, up from $44.1 million a year earlier.
Its share of the first phase, about $9 million, is roughly 1% of that.
Stibnite itself is what really eats cash. Perpetua’s free cash flow went from negative $14.6 million in 2024 to negative $118 million in 2025.
Even if Perpetua matches the full $40 million, spread over three years that’s about $13 million a year. That’s roughly a tenth of what it burned in 2025.
A cheap shot at tungsten
Perpetua says historical production and recent exploration suggest Stibnite could be one of the world’s highest-grade tungsten sources. The government also keeps paying to find out what Stibnite holds: with this award, its critical-mineral awards to Perpetua total $126 million since 2022.
Of course, this is a feasibility study, and the Army has only committed to phase one.
My take: Perpetua can easily afford its half, so this is a cheap shot at a second metal the Army clearly wants. The drilling and test results from the 18-month first phase will show whether tungsten adds real value or stays a footnote to antimony and gold.
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