In a news release, Vancouver-based Pretium Resources Inc. (PVG:TSX; PVG:NYSE) announced both operating and financial results for its third quarter and nine month period ended September 30, 2020.
Pretium Resources' President and CEO Jacques Perron commented, "Brucejack continues to deliver strong cash flow and we remain on target to meet our annual production, free cash flow and AISC guidance...In the first nine months of the year, the mine produced just over 259,000 ounces (259 Koz) of gold generating $448.0 million in revenue and $191 million in free cash flow."
The company noted that during the first nine months of 2020, it produced 259.443 Koz Au and that it anticipates that it will meets its FY/20 gold production guidance at the Brucejack Mine of 325-365 Koz. The firm said that it expects production in Q4/20 will average about 3,500 tonnes per day as daily capacity increases to around 3,800 tonnes per day near the end of the quarter. The company stated that average annual gold grade is likely to meet the guidance range of 7.6-8.5 g/t with an average gold recovery of 97.0%.
The company's management team expressed confidence that the 2020 production guidance for the Brucejack Mine remains on course as there have been no cases of COVID-19 identified at the property. The firm noted that in order to provide adequate safeguards it incurred $6.8 million in additional production costs so far in 2020 to implement enhanced safety measures.
Pretium reported that over the first nine months of 2020, total cash costs were $763 per ounce of gold sold, which is in line with its FY/20 estimates of $750-860. In addition, all-in sustaining costs (AISC) were $971 per ounce of gold sold, which is also on target with its FY/20 estimates of $960-1,120.
The firm added that Free cash flow for the first nine months of 2020 was $191.4 million at an average realized gold price of $1,758 per ounce and that it expects to meet its FY/20 forecast range of $205-$275 million, which was calculated using an $1,800 per ounce gold price.
The company pointed out that total production in Q3/20 was 86.136 Koz Au and 130.975 Koz Ag, compared to 88.227 Koz Au and 124.958 Koz Ag in Q3/19.
Pretium indicated that in Q3/20, it generated revenue after adjustments of $154.9 million, compared with $132.7 million in Q3/19. The firm stated that the year-over-year increase was due largely to higher gold prices realized.
The company stated that gold sales in Q3/20 totaled 81,068 ounces at an average realized price of $1,935 per ounce, which resulted in $153.2 million in revenue. For the same corresponding period in Q3/19, the firm sold 90,713 ounces of gold a the much lower price of $1,486 per ounce, which generated $129.1 million in contracted revenue.
The firm advised that in Q3/20, total cash costs and AISC were $755 and $1,016 per ounce of gold sold, respectively, versus $640 and $878 in Q3/19.
Pretium reported net earnings in Q3/20 of $31.2 million, or $0.17 per share, compared to $6.3 million, or $0.03 per share in Q3/19. The company said that in the same period, adjusted earnings were $50.9 million, or $0.27 per share, versus $34.0 million, or $0.18 per share, in the prior year's quarter. The firm claimed that this increase was mostly due once again to higher gold market prices.
Pretium advised that the 2020 regional exploration program that was carried out on its Bowser Claims is complete and that the firm has not yet received the assay results. The company indicated that the drill program included 9,800 meters at the Hanging Glacier Zone, 11,900 meters the A6 Zone, 2,200 meters at the Koopa Zone and 780 meters at the Haimila Zone. The firm stated that the grassroots exploration program consisted of prospecting, soil sampling, mapping and hyperspectral imaging.
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