TICKERS: PVG

Good News Pouring In for a British Columbia Miner

Source:

Once again analysts are talking about this British Columbia mining company that just announced its first gold pour.

In a June 21 press release, Pretium Resources Inc. (PVG:TSX; PVG:NYSE) announced its 100% owned Brucejack Mine had its first gold pour and "that the flotation and gravity circuits are now operational. In addition, gold-silver flotation concentrate is being produced and bagged, with initial shipments scheduled."

In a June 21 report, BMO Capital's Andrew Kaip followed up on his May 1 report by explaining that "the focus for PVG now turns towards the ramp-up to commercial production. We currently model commercial production at the end of Q3/17, but note that following the announcement, PVG could declare commercial production earlier than expected."

Kaip concluded by pointing out that "saleable shipments, even if for lower-grade material, will provide early-stage cash flow for the company. With Q2/17 results upcoming, financial reporting will provide an indication on how PVG is tracking towards its budget." He rates Pretium as an Outperform with a target price of $19.50.

Eric Zaunscherb, an analyst with Canaccord Genuity, stated in a June 21 report that the gold pour "is a major milestone for the company as it has been working diligently to bring the project into commercial production, a declaration expected in the back half of this year." Zaunscherb points out that in his May 1 report he highlighted "management's view that the production of gold concentrate and doré in the coming weeks was on track; this current announcement is in line with expectations."

Zaunscherb concludes "that the share-price dip of late is likely a good buying opportunity "and that "Pretium currently trades at a normalized P/NAV (5%) of 0.61x, a premium to covered development companies at 0.52x. In our opinion the premium is justified due to the project's scalability (exploration upside), low sovereign risk and the potential appeal as an M&A target." He maintains a Speculative Buy rating with a target price of $17.50.

In a May 17 interview with Gold Report, Louis James, editor of the International Speculator, highlighted that Pretium "is on the verge of pouring its first bar of gold" and pointed out that regardless of critics worried about Pretium's methods that the "bulk sample produced something like 60% more gold than was expected based on the model." He summarized "that the company was not being risky or cavalier; in fact, it was being conservative" and thought that "we're about to find out if I'm right."

Pretium is currently trading at around $9.39.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family 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 Inc. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
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 one week after the publication of the interview or article.




The Silver and Gold Summit

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe