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Message: Pretium Resources Up 6.5% in US Pre-Market As Posts Q3 Beat, Provides Second Half Guidance

 

2018-11-09 08:23:54 AM ET (MT Newswires)
   
   

08:23 AM EST, 11/09/2018 (MT Newswires) -- Pretium Resources Inc. (TSX/NYSE:PVG) was at last look up 6.5% in US pre-market after it reported overnight Thursday adjusted earnings of US$26.3 million or $0.14 per share compared to a median forecast of near $0.11. It beat the Zacks Consensus Estimate of $0.08 per share.

Production totaled 92,641 ounces of gold and 95,741 ounces of silver compared to 82,203 ounces of gold and 83,233 ounces of silver in the third quarter 2017. Year to date 2018 production totaled 279,670 ounces of gold and 308,676 ounces of silver. It said the sequence of the mine plan and the availability of stopes for optimal blending are the main drivers of its gold production. PVG anticipates narrowing the range of grade variability as development advances.

In its second half 2018 outlook, PVG said gold production at the Brucejack Mine is expected in the range of 200,000 to 220,000 ounces, for total 2018 gold production of 387,000 to 407,000 ounces. With production of 92,641 ounces of gold in the third quarter, PVG said it "on track" to meet the lower end of its H2 2018 production guidance.

Also, all-in sustaining costs for the second half of 2018 are expected to range from $710 to $770 per ounce gold sold. With its AISC of $709 per ounce gold sold in the third quarter, PVG said it is on track to meet its H2 2018 AISC guidance. "As production has reached steady state at the Brucejack Mine, an increased focus has been placed on operational efficiency to reduce costs."

PVG added it remains on track to repurchase 100% of the precious metals stream and refinance the existing construction credit facility during the fourth quarter without issuing equity.

"Brucejack delivered another profitable quarter in a declining gold price environment, which speaks to the robust economics of the mine," said Joseph Ovsenek, President & CEO. "We have generated significant earnings from mine operations every quarter since achieving commercial production, and have built a cash balance of over $190 million. We remain on track to refinance our construction debt facility and repurchase the precious metals stream by year-end without issuing equity."

Price: 9.63, Change: +0.11, Percent Change: +1.16

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