Pretium Resources Inc. (PVG, Financial) beat concensus for net profit by 1 cent in the fourth quarter by posting net profit of 7 cents per share. It also beat on revenue by $23.62 million by posting revenue of $107.1 million.
The performance will likely trigger a market appreciation over the next days of trading in the stock.
The stock is very cheap, according to the chart powered from GuruFocus: Pretium Resources is trading below the 200, 100 and 50-SMA lines and the current share price of $6.57 per share is only 40 cents above the 52-week low of $6.17 per share.
From the last market valuation to the 52-week high of $12.44 per share, there is a room for nearly 90% to be filled. The gap with the average target price of $13.66 per share speaks even louder. Analysts are predicting a 108% stock appreciation for the 52 weeks of trading
As of March, all five analysts recommend buying shares of Pretium Resources Inc. This means that a small part of Wall Street is highly confident on Pretium Resources’ (PVG, Financial) promise “to achieve steady-state gold production by mid-to-late 2018.”
Among full fiscal year 2017 financial results, the following is worth a mention: A mine operating margin of 30% generated through 2017 a cash inflow of $73.321 million, which was a positive turnaround from 2016.
The company closed full fiscal 2017 with cash of $56.3 million available on hand and with $293 million in long-term debt. Due to the completion of Brucejack Mine’s construction, the cash on hand decreased by 60.3% compared to Dec. 30, 2016.
Disclosure: I have no positions in any security mentioned in this article.
