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"We are building on our healthy cash position"

Pretium Resources (CN:PVG) has regained some favour with investors with improved production results as it continues to ramp up its Brucejack gold mine in British Columbia.
"We are building on our healthy cash position" "We are building on our healthy cash position" "We are building on our healthy cash position" "We are building on our healthy cash position" "We are building on our healthy cash position"

Pretium up almost 19% on Q1 production results

Staff reporter

Pretium shares had risen 24% on the release of its third quarter results last year but plunged in January on news of lower production in the fourth quarter and a delay to an expected decrease in costs.

Yesterday, the company's shares closed up 18.79% as it announced an increase in production for the March quarter, of 75,689 ounces of gold at an average mill feed grade of 9.1g/t.

This compares with 70,281oz produced in the December quarter at an all-in sustaining cost of US$893/oz sold, and 82,203oz in the September quarter at $788/oz, after commercial production was declared in July 2017.

President and CEO Joseph Ovsenek said the company was focused on continuing to increase grade to the mill in the second quarter, and remained "on track" to deliver its first-half guidance of 150,000-200,000oz at an all-in sustaining cost of US$700-$900/oz sold.

"We are building on our healthy cash position, and expect to achieve steady-state production by mid-to-late 2018," he said.

The company said it had increased the rate of underground development to 700m per month, up from the 420m outlined in the feasibility study, to improve access and build stope inventory.

It said the absence of operational grade control and limited stope optionality had contributed to low gold production during January.

Ovsenek said gold production had improved steadily through the first quarter due to implementing improvement initiatives.

The company had $40.6 million in working capital at the start of the year, excluding the current portion of long-term debt which totalled $365.9 million.

Its shares were trading around C$15 a year ago and closed up yesterday to $10.37, remaining about 28% lower year-to-date.