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Alberto Abaterusso
Alberto Abaterusso
Articles (1382) 

Pretium Resources Tumbles on 1st-Quarter Production

Miner expects a meaningful improvement in gold output in the 2nd quarter

April 15, 2018 | About:

Pretium Resources Inc. (NYSE:PVG) tumbled 4.53% to $7.17 on April 13, two days after the miner released production results for the first quarter of fiscal 2018.

Due to steady growth in the production of gold for the three months through March 31, Pretium Resources reported a production volume of 75,689 ounces of gold from its Brucejack Mine.

The mine, which is located in Canada, produced 15,143 ounces in January, 27,636 ounces in February and 32,910 ounces of gold in March. The gold grade also improved from 5.1 grams per ton of ore in January to 10.9 grams per ton in March. The average grade for the quarter was 9.1 grams per ton of ore. In the first three months of 2018, Brucejack milled 261,443 tons of ore and recovered the yellow metal at a 96.8% rate.

The miner extracts the precious metal through underground mining techniques. During the first six months of operating ramp-up, which started last summer, Brucejack Mine produced 154,484 ounces of gold.

The mine is still in a ramp-up operating phase and the company expects production to reach a steady rate sometime in the second half of 2018. This is the catalyst to watch in 2018 as a significant improvement in the gold output of the mine is expected for the second quarter of the current year.

In a statment, President and CEO Joseph Ovsenek commented: “We remain on track to deliver on our H1 2018 production guidance of 150,000 to 200,000 ounces of gold at AISC of $900-$700 per ounce of gold sold.”

Pretium Resources' stock is still trading cheaply since the share price is mimicking the 50-day simple moving average line and is far below the 200 and 100-day simple moving average lines.


The 52-week range of $6.17 to $12.44 is also an indication of reasonable price. If you establish a position at current valuations, you may experience an over 90% appreciation within the next 52 weeks of trading. The average target price is $13.66, and the recommendation rating is 2 out of a total of 5.

Disclosure: I have no positions in any security mentioned in this article.

About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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