The Gold Report - Mon, Sep 23, 2019

Analyst Raises Target Price on Canadian Gold Producer, Expects Higher Grades

Key points from the miner's company update at the Denver Gold Forum are summarized in a CIBC report.

Pretium's Brucejack Mine

In a Sept. 17 research note, CIBC analyst Anita Soni reported the highlights from the presentation by Pretium Resources Inc. (PVG:TSX; PVG:NYSE) President and CEO Joseph Ovsenek's at the recent 2019 Denver Gold Forum.

She also indicated that CIBC raised its target price on Pretium to CA$18 per share from CA$15.50 because "we continue to see consistent delivery of higher grades as a key catalyst for the stock."

Ovsenek noted the ramp-up and underground, longitudinal longhole stoping development are progressing well and Pretium is on track to reach 3,800 tons per day of mill throughput and mine production by late Q4/19, Soni relayed. Production guidance for 2019 remains at 390,000-420,000 ounces of gold at an all-in sustaining cost of CA$775-875 per ounce.

The company expects grades in H2/19 to be higher, averaging around 12 grams per ton. Grades in Q2/19 were similar to those in Q1/19. "Pretium delivered solid Q2/10 results with production up 15% quarter over quarter, driven by higher throughput," wrote Soni.

Another topic was exploration upside, for which the company is focused on Brucejack and Bowser, Soni wrote. Ovsenek said more value could be created by investing in Pretium's organic growth than by acquiring a marginal gold producer.

As for Pretium's financial situation, Ovsenek said the producer expects to generate strong free cash flow in the coming quarters. Spending priorities will be repaying debt, exploration, reinvestment in its assets and returning capital to shareholders.

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Pretium Resources. Click below for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pretium Resources, a company mentioned in this article.

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