Strategic Exit or Market Timing? Fund Walks Away from $26M Mining Stock Bet Despite 129% Surge

The Move

On November 13, Dallas-based Anson Funds Management filed with the SEC to confirm a complete withdrawal from Perpetua Resources Corp (NASDAQ:PPTA). The institutional fund offloaded approximately 2.15 million shares in the third quarter, with the divested position valued near $26.1 million based on quarterly pricing metrics. This represents a significant portfolio recalibration for a position that previously occupied 3.8% of the fund’s total assets under management.

Why the Timing Matters

At first glance, exiting a stock that has climbed roughly 129% over the trailing year seems counterintuitive. The company’s shares handily outpace the broader S&P 500, which gained approximately 16% in the same timeframe. By Thursday’s close, Perpetua traded at $24.21 per share.

However, context reveals why this decision may reflect prudent portfolio management rather than panic selling. The company remains pre-revenue and capital-intensive, relying heavily on successful execution across multiple fronts: permitting approvals, debt financing arrangements, and construction timelines. Recent developments—including strategic equity raises in October and additional funding rounds—have meaningfully increased shareholder dilution risks and operational complexity.

Perpetua’s Current Standing

Current Metrics:

• Stock price: $24.21
• Market valuation: $2.95 billion
• Net income (trailing twelve months): Negative $44.29 million

The mining company specializes in precious metals and antimony extraction, with its flagship asset being the Stibnite Gold Project located in Idaho. This represents the company’s primary development initiative, focused on establishing U.S.-based supply chains for strategic metals serving industrial clients and commodity markets.

Portfolio Context After the Exit

Anson Funds’ top five holdings following the PPTA liquidation reveal a concentrated, specialized investment approach:

• NASDAQ:QUBT ($98.93 million / 11.2% AUM)
• NASDAQ:ASST ($88.13 million / 10.0% AUM)
• NASDAQ:ORBS ($75.21 million / 8.5% AUM)
• NASDAQ:SLMT ($66.67 million / 7.6% AUM)
• NASDAQ:MTCH ($48.49 million / 5.5% AUM)

Real Progress, Escalating Complexity

Perpetua’s 129% rally reflects tangible milestones at the Stibnite project. The company has advanced development stages, secured preliminary U.S. EXIM financing considerations reaching approximately $2 billion, and successfully raised hundreds of millions through equity offerings since mid-year.

Yet this progress introduces new pressures. Stock volatility intensified markedly in recent weeks—shares fell roughly 17% in a single month, following a steeper 25% decline in October. For a diversified fund managing downside risk across a portfolio, this volatility, combined with increased capital demands and timeline dependencies, warrants a complete reposition.

The Takeaway

Anson Funds’ complete exit doesn’t necessarily signal declining confidence in Perpetua’s long-term potential or the Stibnite project’s strategic importance. Rather, it reflects a calculated decision that the risk-reward profile had shifted materially following October’s funding activities and equity dilution. When a stock’s fundamental risk parameters change—particularly for pre-revenue, capital-dependent enterprises—rotating exposure represents disciplined capital allocation, even when the security remains in significant positive territory against recent benchmarks.

The quarter-million-plus dollar exit demonstrates how institutional managers continuously recalibrate holdings based on evolving risk profiles, not merely backward-looking performance metrics.