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Pretium Resources Inc.

Pretium Resources Inc. is creating value through gold at its high-grade, advanced-exploration-stage Brucejack project. Located in northern British Columbia, Brucejack offers the potential for near-term gold production in an area of permitted gold mining. Brucejack hosts a significant, undeveloped, high-grade gold resource. Gold resources in the Valley of the Kings total 4.9 Moz Indicated (8.9 Mmt grading 17.3 g/t gold) and 10.4 Moz Inferred (12.7 Mmt grading 25.5 g/t gold). A feasibility study on the Brucejack high-grade gold opportunity is underway.

Expert Comments:

Joe Reagor, ROTH Capital Partners (5/11/15)
"On May 7, 2015, Pretium Resources Inc. announced its financial results for Q1/15; the quarter was another productive quarter, in our view, as the company moves closer to a construction decision on its Brucejack project. We are maintaining our Buy rating and $13 price target."

"Pretium Resources Inc. is a favorite Canadian junior with a near-term gold project. Pretium is more of a mid cap, but because it is in the development stage and doesn't have revenues, we put it in the junior basket. . .Pretium has derisked Brucejack but still has two hurdles remaining. The company needs federal permitting, which is expected to take 150 days from the receipt of the environmental permits, and it needs to complete the financing process. Part of the reason we like this company so much is that it is now so close to the finish line. There has been an overhang on Pretium's valuation since Strathcona Mineral Services stepped away during bulk sampling in October 2013. When Strathcona stepped away, Pretium was only 2 Kt into a 10 Kt bulk sample. The remaining 8 Kt came in above expectations and demonstrated that Brucejack does have significant gold-production capabilities. Pretium got 5,800 oz gold out of 10 Kt, and its target was only 4,000 oz. Brucejack is not "nuggety" in the sense of how we understand that term in the U.S. and Canada. The deposit structure is more similar to that which we see in islands in the Pacific Ocean, which makes sense because geologists tell us that part of British Columbia was an island before it joined the mainland. Brucejack has high-grade veinlets and thus manifests quite variable gold grades. There will be pockets with a low-grade halo and then a spike of visible gold will appear. [Pretium will deal with this variability] by employing large-scale bulk mining in order to capture all the gold.

The company raised CA$81M in equity in January. We expect that the rest [of the $747M capex] will be raised through a combination of bank debt and a gold-streaming agreement, perhaps 50% bank debt and 25% gold streaming, which wouldn't leave much in the form of equity to be raised. We're pretty confident that we'll see that in the next two to three months. We would also note that because of the weakness of the Canadian dollar, the capex might be reduced by as much as 20% in U.S. dollar terms. Should Pretium break ground in July, that would put it on a timeframe of Q1/17 for first production. . .we don't really expect a takeover unless it was to happen before financing is completed, and that's expected pretty soon. To buy Pretium and develop Brucejack would cost about $1.5–1.8B all told, and that would be a big risk for a major to take on in this environment." read more >

Joe Mazumdar, Canaccord Genuity (5/10/15)
"Pretium Resources Inc.'s next significant catalyst likely will be the federal approval (Q3/15 estimate) for the Brucejack high-grade gold project (northwest British Columbia) followed by financing. We revised our development timeline and funding assumptions to accommodate our optimism on the schedule and the lower forecast cash position. We now anticipate commercial production by Q4/17 (H1/18 previously) in-line with company guidance. We maintain our Speculative Buy rating as our target price implies a 20–25% return at current levels."

Jeff Wright, H.C. Wainwright & Co. (4/6/15)
"On Apr. 2, 2015, Pretium Resources Inc. announced an agreement with the Nisga'a Nation. . .with respect to the company's Brucejack project. . .outlining job and contracting opportunities for the Nisga'a Nation, as well as education, training and financial compensation. . .we do not expect the financial agreement between the two parties to have a significant impact on the overall economics of the high-grade project. . .both parties are expected to work together on finalizing the permitting process, which we believe should be completed sometime in Q2/15. . .we are increasing our price target to $12.00 from our previous price target of $11.00 per share."

Dan Rollins, RBC Capital Markets (4/2/15)
"The signing of a cooperation and benefits agreement with the Nisga'a Nation highlights the support Pretium Resources Inc.'s Brucejack project has from key stakeholders. Overall, we believe the agreement with the Nisga'a Nation as well as recent approval of the environmental impact assessment (EIA) by the government of British Columbia bodes well for approval of the EIA by the government of Canada. . .the company should be in a position to start mobilizing construction teams to site in order to commence construction this summer."

"There's a lot to be said if you can get underway with a smaller operation and then expand. Pretium Resources Inc., for example, is looking at starting with a smaller operation, a good tactical move for any company that requires a big-dollar capital expenditure check to get started." read more >

More Expert Comments

Experts Commenting on This Company

Ralph Aldis, Portfolio Manager, Gold and Natural Resources – U.S. Global Investors
Doug Casey, CEO / Chair – Casey Research
Jeff Clark, Senior Editor – Casey Research
Adrian Day, Founder – Adrian Day Asset Management
Vivien Diniz, Author Resource Investing News
Michael Fowler, Senior Mining Analyst – Loewen, Ondaatje & McCutcheon
Raymond Goldie, Analyst – Salman Partners
Ash Guglani, Analyst – Salman Partners
Ovais Habib, Analyst – Scotia Capital
Frank Holmes, Chairman – U.S. Global Investors
Louis James, Analyst – Casey Research
Jeff Killeen, Analyst – CIBC World Markets
James Kwantes Resource Opportunities
Pierre Lassonde, President – Franco-Nevada Corp.
Chen Lin What Is Chen Buying? What Is Chen Selling?
Douglass Loud, Executive Director – Greystone Asset Management, LLC.
Joe Mazumdar, Sr. Analyst – Canaccord Genuity
Jeffrey Mosseri, President – Greystone Asset Management, LLC.
Charles Oliver, Senior Portfolio Manager – Sprott Asset Management
Keith Phillips, Managing Director – Cowen & Co.
Joe Reagor, Analyst – ROTH Capital Partners
Dan Rollins, Analyst – RBC Capital Markets
Lawrence Roulston – Metallica Development Fund Ltd., Quintana Resources Capital ULC
Rick Rule, Chairman – Sprott Global Resource Investments Ltd.
David H. Smith, Analyst – Silver-Investor.com
Jeff Wright, Managing Director, Senior Research Analyst – H.C. Wainwright & Co.

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
Pretium Resources Inc. Content