Shares of Pretium Resources Inc. (PVG, Financial) tumbled 26.51% yesterday, Jan. 23, to $7.93 on the New York Stock Exchange following gold production ramp-up results at Brucejack Mine. These results refer to the first six-month period of operations in northwest British Columbia. Brucejack is a high-grade gold underground mine that is located not far from the village of Stewart.
The company also updated its shareholders with operating results for the last quarter of 2017.
In the last quarter of 2017, Pretium Resources produced 70,281 ounces of gold. The production of gold resulting from the first six months of ramp-up at Brucejack Mine totaled 152,484 ounces.
With yesterday's fall, the stock bottomed to near the price of Aug. 15, 2017. But it is not the lowest over the trailing 12 months, since the 52-week low is $7.75 per share. For the 52-weeks through Jan. 23, Pretium Resources lost 25.61% and underperformed the VanEck Vectors Gold Miners ETF (GDX, Financial) by 26.74%. The 52-week high is $12.53.
Source: Yahoo Finance
The miner aims to steadily produce the yellow metal starting sometime in the second half of 2018. This is the catalyst to watch for this gold stock that, after the tumble of yesterday, is now trading plainly below the 200, 100 and 50-SMA lines.
If this catalyst works out, acquiring shares of Pretium Resources today means that within the following 52 weeks of trading you can experience an amazing 77% upside to $14.01 per share. The price of $14.01 per share is the mean of an estimates range of $10 to $16.50.
At Brucejack, the mining company expects to produce between 150,000 ounces and 200,000 ounces of gold in the first six months of 2018, totaling an output ranging between 302,000 ounces and 352,000 ounces of gold for the first entire year of production ramp-up.
As of today, Pretium Resources has a recommendation rating of 2, which means Buy.
Disclosure: I have no positions in any security mentioned in this article.
