PGEZF - Stillwater Critical Minerals

🧭 Project Overview

• Flagship Asset: Stillwater West, Montana, USA

• Resource Base: ~1.8 billion pounds of nickel equivalent

• Metals: Nickel, copper, platinum, palladium, cobalt, rhodium, iridium, ruthenium, chromium, tellurium

• Recent Milestones:

• Closed CA$7M LIFE offering (July 2025)

• Mobilized drill rigs to Stillwater West (June 2025)

• Welcomed U.S. Executive Order prioritizing domestic mineral production

Stillwater is operating as a typical junior explorer—lean on cash, no debt, and reliant on equity financing (e.g., the CA$7M LIFE offering in July 2025) to fund its drill programs and advance toward a PEA.

✅ Positives

🇺🇸 Strategic U.S. Location

• Located in a pro-mining jurisdiction with strong support from Montana’s congressional delegation

• Benefits from the U.S. Defense Production Act, which prioritizes domestic critical mineral development for national security

🏗️ Established Mining Infrastructure

• Adjacent to Sibanye-Stillwater’s active operations, providing access to skilled labor, roads, power, and processing expertise

• Decades of geological data and proven production history in the district enhance exploration efficiency

🌍 Geopolitical Advantage

• U.S.-based supply of critical minerals like nickel, cobalt, and PGEs reduces reliance on foreign sources (e.g., Russia, China, South Africa)

• Aligns with global push for energy transition and EV supply chain security

🧪 Geological Richness

• Hosts 10 critical minerals including nickel, copper, cobalt, platinum group elements, and gold

• Geological setting comparable to South Africa’s Bushveld Complex, with large-scale magmatic sulfide targets identified across 20 km of strike

⚠️ Challenges

🏞️ Environmental & Permitting Complexity

• Despite federal support, U.S. permitting can be lengthy and complex, especially in ecologically sensitive areas

• Montana’s rugged terrain and potential for local opposition may slow development

💸 Remote Location

• While adjacent to existing mines, the broader region is rural and remote, which can increase logistics and labor costs

• Seasonal weather may impact year-round drilling and construction

🧾 Regulatory Uncertainty

• Federal incentives are helpful, but policy shifts or changes in administration could affect funding or permitting timelines

🧭 Strategic Summary

Stillwater’s Montana location is a major strategic asset, offering proximity to infrastructure, alignment with U.S. critical mineral policy, and a rich geological setting. However, the company must navigate environmental permitting and rural logistics to reach production.

💵 Financial Overview (USD)

Metric	Value
Share Price	~$0.16
Market Cap (intraday)	~$40.8 million
Cash (Dec 2024)	~$41,207
Debt	$0 (debt-free)
EPS (TTM)	-$0.01
Net Income (TTM)	-$2.85 million
PE Ratio	Not applicable (negative EPS)

As of August 2025, Stillwater Critical Minerals is targeting initial production at Stillwater West by 2028–2029, contingent on successful completion of economic studies, permitting, and funding initiatives.

🗓️ Timeline to Production

Phase	Estimated Timing	Notes
Drilling & Resource Expansion	Ongoing (2024–2026)	Active drill program underway; geophysical targets being tested
Preliminary Economic Assessment (PEA)	Expected by mid-2026	Will define project economics and guide engineering studies
Permitting & Engineering	2026–2028	Accelerated by U.S. Executive Order invoking Defense Production Act
Construction & Commissioning	2028–2029	Subject to funding and final feasibility study outcomes
Initial Production	Late 2028 to early 2029	Targeted for Stillwater West in Montana

⚡ Government Support

• A March 2025 Executive Order prioritized domestic mining of critical minerals, including nickel, copper, and platinum group metals.

• Stillwater is working with U.S. agencies to accelerate permitting and access federal funding channels.

📈 Modeled NPV Scenario (2028 Start)

While Stillwater has not yet released a formal Preliminary Economic Assessment (PEA), analysts and peer comparisons suggest the following hypothetical valuation:

Assumption	Value
Nickel Equivalent Resource	~1.8 billion lbs
EV/lb Benchmark (peer average)	~$0.10–$0.15 USD/lb
Implied Enterprise Value (EV)	~$180–270 million USD
CapEx Estimate	~$250–300 million USD (early-stage)
NPV (after-tax, 8% discount)	~$150–200 million USD (modeled)
IRR (Internal Rate of Return)	~18–25% (based on peer analogs)

This assumes a 2028 production start, favorable permitting, and stable commodity prices. A formal PEA expected in 2026 will refine these numbers.

⚠️ Permitting Risks

1. Environmental Review Delays

   • NEPA process can be lengthy, especially in ecologically sensitive areas

2. Local Opposition or Litigation

   • Rural Montana communities may raise concerns over land use or water impact

3. Federal Policy Shifts

4. Changes in administration could affect funding or regulatory priorities

🛡️ Mitigation Strategies

• Executive Order Support:

  
  

  The March 2025 Executive Order invokes the Defense Production Act, streamlining permitting and unlocking federal funding

• Strategic Partnerships:

  
  

  Collaborations with Cornell University, Lawrence Berkeley National Lab, and the U.S. Geological Survey bolster credibility and technical support

• Community Engagement:

  
  

  Participation in events like Montana Mining Day and regional summits builds local goodwill and transparency

• Federal Funding Applications:

  
  

  Submitted white papers and grant requests under ARPA-E and DPA Title III to accelerate development

📈 Stock Performance

• 52-Week Range: $0.06 – $0.23

• Volume (Aug 5): ~307,000 shares

• Beta: ~1.36 (moderate volatility)