Pershing Gold Corp. (PGLC:NASDAQ; PGLC:TSX) has been working swiftly to advance the Relief Canyon project in Pershing County, Nevada. The company announced that its focus is on the Prefeasibility Study (PFS) and restart of the mine. Stephen D. Alfers, Pershing's president, CEO and executive chairman, stated, "Early this year the Company plans to publish a third-party Pre-Feasibility Study on Relief Canyon. This study is expected to continue to bolster the confidence in the Relief Canyon project."
According to the company, "the PFS is a key step to allow the Company to define reserves at Relief Canyon under Canadian NI 43-101 and is expected to provide a higher degree of confidence in the Relief Canyon project."
Some of the key components of the PFS are economic analyses, including a "detailed capital and operating cost comparison of contract versus self-mining" and a "detailed capital and operating cost comparison of truck stacking versus conveyor stacking of crushed and agglomerated ore on the leach pad." CEO Alfers said that the company's main focus for 2017 "will be re-starting the Relief Canyon mine."
Analyst Heiko Ihle of Rodman & Renshaw noted in a Jan. 10 research report that Pershing continues to "aggressively advance the Relief Canyon Project, which we feel should enter production during 4Q17. We continue to expect the firm to release a Pre-Feasibility Study (PFS) on the project during 1Q17, and think the economic analysis should pave the way towards a positive production decision shortly thereafter."
Ihle added that "we do not foresee a prolonged construction period and continue to believe the project could enter production in later this year. . .the odds of a positive production decision are likely at this stage, and we feel the release of a positive PFS should serve as a near-term de-risking event for the firm."
Pershing is moving ahead with permitting. The Nevada Division of Environmental Protection (NDEP) "issued the Reclamation Permit for Phase I expansion of the Relief Canyon Mine. With the receipt of this permit, along with the Bureau of Land Management ("BLM") approval of the Relief Canyon Mine Expansion announced in August of 2016, Pershing Gold has received the principal permits to initiate the restart and expansion of the Relief Canyon Mine."
Bhakti Pavani, analyst with Euro Pacific Capital, noted in her Jan. 10 company update that "this is one of the key permits as it allows the Company to restart production and expansion of the Relief Canyon mine."
The company is awaiting water pollution control and air quality permits. The company stated that on Dec. 21, 2016, "NDEP issued a public notice stating that they had made the tentative decision to approve Pershing Gold's application to modify and renew the current Water Pollution Control Permit," and that it expects that the "NDEP will issue the air quality permits in the first quarter of 2017."
Pavani noted that Pershing completed on Dec. 8 "an underwritten equity offering raising gross proceeds of $7.5MM (~$7MM net proceeds)." In addition, Pershing "entered into a $20 million non-binding credit facility with Sprott Resource Lending. . .the equity financing and an availability of a credit facility have not only improved PGLC's liquidity but also allow a seamless transition of an exploration project into production."
The elements seem to be falling into place for moving quickly into production. Ihle concluded that "we think Relief Canyon is primed for production and expect the project to be one of, if not the next project to enter production in Nevada."
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1) Patrice Fusillo 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.
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Disclosures from Rodman & Renshaw, Pershing Gold Corp., Company Update, Jan. 10, 2017
I, Heiko F. Ihle, CFA and Jake Sekelsky , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of (including, without limitation, any option, right, warrant, future, long or short position).
As of December 31, 2016 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Pershing Gold Corporation.
Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The Firm or its affiliates did receive compensation from Pershing Gold Corporation for investment banking services within twelve months before, and will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in Pershing Gold Corporation as of the date of this research report.
Disclosures from Euro Pacific Capital, Pershing Gold Corp., Company Update, Jan. 10, 2017
Euro Pacific expects to receive or intends to seek compensation for investment banking services from all companies under research coverage within the next three months. Euro Pacific or its officers, employees or affiliates may execute transactions in securities mentioned in this report that may not be consistent with the report’s conclusions.
Within the last twelve months, Euro Pacific has received compensation for investment banking services from Pershing Gold. This research contains forward looking statements made pursuant to the safe harbor provision of Private Securities Litigation Act of 1995.
Regulation Analyst Certification ("Reg AC") — Bhakti Pavani
The views expressed in this report (which include the actual rating assigned to the company as well as the analytical substance and tone of the report) accurately reflect the personal views of the analyst(s) covering the subject securities. An analyst's sector is the universe of companies for which the analyst provides research coverage. Accordingly, the rating assigned to a particular stock represents solely the analyst's view of how that stock will perform over the next 12 months relative to the analyst's sector average.
No part of the compensation of the analyst preparing this report was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such analyst in this report.