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Pretium achieves production guidance 'for the first time'

Canada-based gold miner Pretium Resources has heralded achieving annual production guidance for the first time as it unveiled its December quarter and 2020 production results.
Pretium achieves production guidance 'for the first time' Pretium achieves production guidance 'for the first time' Pretium achieves production guidance 'for the first time' Pretium achieves production guidance 'for the first time' Pretium achieves production guidance 'for the first time'

Pretium Resources’ Brucejack gold mine in British Columbia

Staff reporter

The company produced 347,743 ounces of gold for the year at its Brucejack mine in British Columbia, slightly above the midpoint of guidance of 325,000-365,000 ounces.

"For the first time in the company's history we have achieved our annual production guidance, demonstrating the hard work and perseverance of our team in light of the exceptional challenges we faced this year," president and CEO Jacques Perron said.

The 2020 guidance was lower than the previously anticipated 525,000oz which had been scrapped 12 months ago due to a drop in the estimated head grade.

Brucejack averaged 8.9g/t in the December quarter and 8.5g/t for the year, with grade tipped to average 7.5-8.5g/t in 2021.

Pretium expected similar output this year, putting 2021 guidance at 325,000-365,000oz and all-in sustaining costs at US$1,060-$1,190.

The company has been working to stabilise production at the nuggety deposit and has been investing in exploration, announcing a discovery in December at Hanging Glacier, 4km from Brucejack.

It plans to release its financial results for the fourth quarter and year after market close on February 26.

Pretium also said it made a discretionary debt payment of $160 million prior to year-end, reducing the outstanding amount of the revolving portion to $38 million.

It ended 2020 with cash and equivalents of $174.8 million, having sold its Snowfield gold project to Seabridge Gold in December for consideration including $100 million cash.

Pretium shares (TSX: PVG), which have ranged from C$6.25-$19.13 over the past year, closed down 0.7% to $13.30 yesterday, valuing it at $2.5 billion (US$2 billion).