01:44 PM EST, 01/23/2019 (MT Newswires) -- RBC Capital has reiterated its Outperform rating on Pretium Resources but trimmed TP by $2 to $12.
RBC remains constructive on the long-term potential of Pretium shares given the "underlying free cash flow potential, low jurisdictional risk, and large under-explored land package." The brokerage believes the risk/reward remains skewed to the upside, despite being tested as of late. The upcoming reserve/resource update is the most critical near-term catalyst for Pretium. Until released, potential investors are likely to remain on the sidelines.
RBC has also lowered its life-of-mine grade expectation for the VOK Zone at Brucejack to 12 g/t (from 14.5 g/t) following Q4/18 results (11.5 g/t) and challenges in delivering on the proven grade of 14.5 g/t. "The probability of delivering on the proven/probable grade of 16.1 g/t appears extremely low in our view."
Price: 9.12, Change: -0.05, Percent Change: -0.55
|