Pretium Resources Inc. (PVG:TSX; PVG:NYSE) announced in a news release its Q1/20 results.
With operations unaffected by COVID-19, according to the company, Pretium produced 82,888 ounces of gold at its Brucejack mine at an all-in sustaining cost (AISC) of $996 per ounce of gold sold. The number of tons milled during Q1/20 was 345,139, or 3,793 tons per day.
Steady production from Brucejack is generating significant cash flow, $41.8 million in Q1/20, Pretium reported. The Canadian company had $40.6 million in cash at the end of the quarter.
To improve liquidity, Pretium drew down $16 million from the revolving portion of its loan facility. "The company will focus on liquidity rather than discretionary debt reduction until the restrictions related to the COVID-19 pandemic have been lifted," the release noted.
Overall, Pretium stated that it is on track to meet guidance for production, AISC and free cash flow. Production for 2020 is estimated to be 325,000–365,000 ounces of gold. AISC is projected to be $910–$1,060 per ounce of gold sold. Free cash flow is forecasted to be $100–170 million based on a $1,450 per ounce average gold price.
As for the coronavirus, there were no confirmed cases among workers at Brucejack as of April 30, 2020. Only personnel needed to produce gold at the mine are continuing to work. The company stated that it has followed and will continue to follow the related governmental guidelines that are in place.
Due to limited people on site resulting from COVID-19, the company delayed the start of the reverse circulation grade control drill program. Along with expansion drilling, all capital projects have been temporarily suspended.
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