Pretium Resources Inc.

Pretivm is creating value through gold at its 100%-owned, advanced-stage Brucejack Project located in northern British Columbia. The high-grade gold opportunity at Brucejack, one of the largest and highest-grading undeveloped gold projects in the world, is the catalyst for near-term production, and our focus.

A feasibility study completed in June 2014 has outlined Proven and Probable mineral reserves in Brucejack’s Valley of the Kings comprising 6.9 million ounces of gold (13.6 million tonnes grading 15.7 grams per tonne gold). Pretivm is advancing Brucejack to production as a 2,700 tonnes per day underground mine.

All of the major regulatory permits required to begin development work on the high-grade underground gold mine at Brucejack have been issued, and commercial production is targeted to commence in 2017.

Expert Comments:

Last year, after Pretium Resources Inc. made its construction decision and announced its financing without any equity component, its stock value improved significantly despite a flat gold and silver price because there was short covering on the name. . .a lot of investors expected Pretium to be bought by now but the Rubicon situation has deterred companies from acquiring high-grade but highly variable deposits. Highly variable deposits are always difficult to estimate. Pretium's Brucejack has a unique geological structure that is more geologically similar to a Pacific Island than a traditional high-grade Canadian gold deposit. As such, a lot of Canadian producers have balked at acquiring Pretium—they'd rather let it prove itself in production and pay more later than have it underperform and be punished by the market. The company is in a holding pattern until it reaches production, but it trades at a healthy discount to its net asset value. . .if Pretium were able to get to the production levels and cash costs in the current mine model, it would be remarkably similar in size and cost level to what used to be Osisko Mining Corp.'s Canadian Malartic mine. Something close to that valuation would probably make the private equity folks very happy. It would be a multiple of what it paid for its investment. . .any large private equity investment in a company is usually a vote of confidence, but it's not to say that they were privy to anything that the rest of us weren't. Pretium is still using the same models and information. There may be confidentiality agreements to get additional information, but in a project of this nature, the vast majority of the information you want to know to make an investment is publicly available. Private equity is just confident that management is derisking it as much as it can before production." read more >

"Pretium Resources Inc. is getting there; 2017 is the expected date for Brucejack to be in production. It continues to put out very good drill holes. After the drama with the initial bulk sample in late 2013, it delivered 4 Koz as estimated. The company just released the fifth set of fan drill definitions and it is continuing to hit. I think it had one hole that was 20,000 g/t. One of the brokers jokingly suggested measuring in number of Rolexes per ton. I think Pretium is doing the right work to understand the geometry of the ore body. That's so important. Pretium is getting the right three-dimensional picture of the ore and its distribution. The great thing is it could literally mine here and repay all its capital in a modestly short period of time. Even after it depletes the high grade, it will still be a huge gold camp. Who knows where gold prices will be in 10 years? Maybe all that other 1 g/t gold will actually be worth something. . .working capital as of Sept. 30, 2015, was $432M. We should get an updated funding capital expenditure estimate for the project this quarter because there are other cost savings that will probably come in. Certainly, the exchange rate is very favorable. Sourcing the equipment with the market in a distressed state could lower prices as well. Pretium still has a little bit more funding to do, but I don't really look at that as a major headwind. I was very pleased with the deal that it did for this last set of funding where it negotiated with private equity. It also put a cap on the royalty. So the company has been very astute about trying to preserve the value for the shareholders, and the management team owns a lot of stock themselves. I'm pretty happy with what Pretium is doing." read more >

Eric Zaunscherb, Canaccord Genuity (1/12/16)
"Pretium Resources Inc. released the fifth round of results from the current infill drill program on the Valley of the Kings (VOK) gold deposit. . .highlight intersections from this round of results (all uncut) include 494.91 g/t over 21m including 20,287 g/t over 0.5m (VU-545), 477.29 g/t over 14.22m (VU-539) and 98.52 g/t over 18.99m (VU-537)."

Heiko Ihle, Rodman & Renshaw (12/16/15)
"On Dec. 15, 2015, Pretium Resources Inc. announced the completion of its 2015 regional exploration drilling program. . .we continue to like the firm's strategy of conducting exploration work at Brucejack, while continuing to advance the project towards production, which is currently expected to be reached on schedule in H2/17."

"Among juniors, Adrian Day sees a lot of companies doing good work in this market. 'Pretium Resources Inc. is advancing the Valley of the Kings project. The company had to raise new equity, but if a company has a good asset and is demonstrating that it's advancing the project without being wasteful, the market should give it credit for adding value.'" read more >

Kevin MacKenzie, Salman Partners (11/18/15)
"We are transitioning coverage of Pretium Resources Inc. with a Buy rating. . .we consider the company to be one of the premier gold developers within the industry, given its robust project economics, long reserve mine life and safe operating jurisdiction. As a result of the significant discount to Pretium's fundamental valuation, we feel that today's share price presents an attractive entry point for long-term investors."

More Expert Comments

Experts Following This Company

Ralph Aldis, Portfolio Manager, Gold and Natural Resources – U.S. Global Investors
Matt Badiali, Editor – Stansberry Research
Jayant Bhandari
Cheryl Brandon, Portfolio Manager – Waterton Global
Doug Casey, CEO / Chair – Casey Research
Jeff Clark, Senior Editor – Casey Research
Robert Cohen, VP and Portfolio Manager, GCIC Ltd. – Dynamic Funds
Brent Cook, Analyst, Geologist Exploration Insights
Adrian Day, Founder – Adrian Day Asset Management
Ash Guglani, Analyst – Salman Partners
Ovais Habib, Analyst – Scotia Capital
Wayne Hewgill, Analyst – Mackie Research Capital
Frank Holmes, Chairman – U.S. Global Investors
Heiko Ihle, Managing Director – H.C. Wainwright & Co., Rodman & Renshaw
Louis James, Analyst – Casey Research
James Kwantes Resource Opportunities
Pierre Lassonde, President – Franco-Nevada Corp.
Chen Lin What Is Chen Buying? What Is Chen Selling?
Douglass Loud, Executive Director – Axiom Capital
Kevin MacKenzie, Analyst – Salman Partners
Joe Mazumdar Exploration Insights
Brad Mills, Fund Manager/CEO – Plinian Capital
Bob Moriarty, Author 321 Gold
Jeffrey Mosseri, President, Director – Greystone Asset Management, LLC., Axiom Capital
Gwen Preston, Founder Resource Maven
Joe Reagor, Analyst – ROTH Capital Partners
Carsten Ringler, Founder – Ringler Research
Dan Rollins, Analyst – RBC Capital Markets
Lawrence Roulston – Metallica Development Fund Ltd., Quintana Resources Capital ULC
Rick Rule, Chairman – Sprott Global Resource Investments Ltd.
Florian Siegfried, Senior Portfolio Manager – AgaNola
Maria Smirnova, Analyst – Sprott Asset Management
David H. Smith, Analyst – Silver-Investor.com
Jay Taylor, Author Gold, Energy & Tech Stocks
David Thomas, Managing Parter – Resource Capital Funds
Dan Wilton – Pacific Road Capital Management
Paul Wong, Senior Portfolio Manager – Sprott Asset Management
Jeff Wright – Wolfpack Capital
Eric Zaunscherb, Analyst – Canaccord Genuity

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Investing Highlights
High-Grade Underground Gold Project in BC
Commercial Production Target 2017
Located in an Area of Permitted Mining