Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”)
announces results for the fourth quarter and full year 2019, with
2019 gold production of 354,405 ounces at an all in sustaining
cost1 (“AISC”) of $888 per ounce of gold sold. Free cash flow1 for
2019 was $184.2 million and total debt decreased by $180.4 million
compared to year-end 2018 (See Key Operating Metrics and Key
Financial Metrics tables below.)
“In 2019, we beat the upper end of our revised
gold production guidance and the lower end of our AISC guidance of
350,000 ounces and $900 per ounce of gold sold,” said Joseph
Ovsenek, President and CEO of Pretivm. “In addition, we
substantially exceeded our debt reduction target. Brucejack
continues to be consistently profitable and a strong cash
generator.”
Pretivm also announces its 2020 guidance, a
preliminary outlook for ongoing gold production in the Valley of
the Kings and a leadership transition plan for the role of
President and CEO.
2020 Guidance
2020 Production and Financial Guidance
Gold production at the Brucejack Mine for 2020
is expected to be in the range of 325,000 to 365,000 ounces. The
production rate for 2020 is expected to be 3,800 tonnes per day
with average annual gold grade ranging between 7.6 grams per tonne
to 8.5 grams per tonne at a targeted gold recovery of 97%. The
midpoint of 2020 gold production guidance is slightly below 2019
actual production.
The AISC1 for 2020 is expected to range from
$910 to $1,060 per ounce of gold sold with cash costs expected to
range from $725 to $830 per ounce of gold sold. AISC estimates
include costs associated with continued lateral development at a
rate of approximately 1,000 meters per month through 2020. Lateral
development will focus on opening the mine on the 1080 Level and
Brucejack Fault Zone in the first half and stope development in the
second half of 2020. The increased development should provide
sufficient access to build the stope inventory required to allow
mining operations to optimize stope blending and provide
alternative stopes for mining if required. In addition, AISC
includes costs associated with a high-density reverse circulation
drill program to increase the volume of grade information necessary
to enhance mine planning and optimize gold production. This program
is scheduled to commence in the second quarter of 2020.
The AISC for 2020 also includes approximately
$20 million for a number of one-time sustaining capital
expenditures and costs related to growth-oriented expenses, which
together total approximately $55 to $60 per ounce of gold sold.
2020 Free Cash Flow Forecast
Free cash flow1 for 2020 is expected in the
range of $100 million to $170 million at a gold price of $1,450 per
ounce. The Company is targeting debt reduction in the range of $80
million to $150 million for 2020.
Preliminary Production Outlook Beyond
2020
The Company is providing preliminary guidance
for post-2020 gold production in the Valley of the Kings in advance
of the release of the updated Life of Mine plan and updated Mineral
Resource and Mineral Reserve estimates for the Brucejack Mine,
which are expected to be disclosed by March 31, 2020 as previously
announced.
Based on preliminary data available to date,
foreseeable average annual gold production while mining in
Brucejack’s Valley of the Kings is currently expected to be in a
range comparable with the gold production guidance range for
2020.
This preliminary updated production outlook (the
“Preliminary Production Outlook”) supersedes the previously
published April 2019 Valley of the Kings Life of Mine average
annual gold production estimate of approximately 525,000 ounces
(see News Release of April 4, 2019). The change is primarily a
result of a reduction in estimated gold grade.
Readers are cautioned that the Preliminary
Production Outlook is by definition preliminary in nature and
subject to further adjustment as other key metrics, such as tonnes,
grade and costs, are finalized.
2020 Technical Updates
Pretivm expects to disclose a full technical
update for the updated Life of Mine plan, which includes the Valley
of the Kings, by March 31, 2020. The updates are being prepared in
accordance with National Instrument 43-101 Standards of Disclosure
for Mineral Projects (“NI 43-101”).
The Life of Mine plan and Mineral Reserve
estimate is being prepared by Tetra Tech Canada Inc. and the
Mineral Resource estimate is being prepared by Ivor W.O. Jones,
M.SC., P.Geo., FAusIMM, CP(Geo) of Ivor Jones Pty Ltd., each of
whom is a “Qualified Person” as defined by NI 43-101 and
independent of Pretivm. In addition, Optiro Pty Ltd. has been
retained to review the updated Mineral Resource estimate.
A webcast technical session with management is
expected to follow the release of these updates and will also
provide an overview of the reconciliations for Mineral Reserve and
Mineral Resource estimates, updated geological interpretation and
mining initiatives among other things.
Leadership Transition Plan
Pretium’s Board of Directors has initiated an
external search for a new President and CEO. Joseph Ovsenek has
agreed to continue to serve as President & CEO while the search
is underway.
“The Board offers its deepest thanks to Joe for
his critical role in advancing Brucejack to production as a safe
and profitable mine,” said Richard O’Brien, Chairman of Pretivm.
“We are grateful that Joe will assist with the transition
process by remaining in place until a new President and CEO is
appointed, and on behalf of the entire Pretivm team, we wish him
well in his next endeavour.”
Added Mr. Ovsenek, “I would like to thank the
members of Pretivm’s team and its contractors for all that they
have accomplished in making Brucejack an outstanding mine.”
Mr. Ovsenek has been President and CEO since
2017, President since 2015 and Executive Vice-President and Chief
Development Officer from 2011 to 2015.
In other management changes, Warwick Board, Vice
President, Geology and Chief Geologist, has resigned to pursue a
new opportunity. The Company wishes him well in his next endeavour
and thanks him for his contribution over more than seven years,
including his work on advancing our understanding of the complex
geology of the Valley of the Kings.
_____________________1 Refer to the “Non-IFRS Financial
Performance Measures” section at the end of this news release for
reconciliation.
Fourth Quarter and Full-Year 2019 Operating and
Financial Highlights
Key Operating Metrics
|
3 months ended Dec. 31, |
|
Year ended Dec. 31, |
|
|
2019 |
2018 |
|
2019 |
2018 |
|
Gold produced
(oz) |
96,237 |
96,342 |
|
354,405 |
376,012 |
|
Head grade (g/t
Au) |
8.3 |
11.5 |
|
8.7 |
11.9 |
|
Ore mined (wet
tonnes) |
388,744 |
283,136 |
|
1,359,403 |
1,055,208 |
|
Mining rate
(tpd) |
4,225 |
3,078 |
|
3,724 |
2,891 |
|
Ore milled (dry
tonnes) |
373,954 |
267,048 |
|
1,303,001 |
1,005,603 |
|
Mill throughput
(tpd) |
4,065 |
2,903 |
|
3,570 |
2,755 |
|
Recovery
(%) |
96.8 |
97.0 |
|
96.9 |
97.3 |
|
Silver produced
(oz) |
147,988 |
113,886 |
|
516,977 |
422,562 |
|
Gold sold
(oz) |
93,248 |
89,011 |
|
351,348 |
367,428 |
|
Silver sold (oz) |
110,774 |
82,380 |
|
420,440 |
372,090 |
|
Abbreviations: t (tonnes), tpd (tonnes per day), g/t (grams per
tonne), Au (gold) and oz (ounces).
Key Financial Metrics
|
3 months ended Dec. 31, |
|
Year ended Dec. 31, |
|
In thousands
of USD, except for per ounce data |
2019 |
2018 |
|
2019 |
2018 |
|
Revenue |
135,484 |
108,596 |
|
484,540 |
454,556 |
|
Cost of sales
($) |
89,627 |
72,479 |
|
333,157 |
303,927 |
|
Cost of sales ($/oz of
gold sold1) |
961 |
814 |
|
948 |
827 |
|
Earnings from mine
operations ($) |
45,857 |
36,117 |
|
151,383 |
150,629 |
|
Net earnings
($) |
20,049 |
2,847 |
|
40,917 |
36,620 |
|
Net earnings
($/share) |
0.11 |
0.01 |
|
0.22 |
0.20 |
|
Adjusted earnings
($)1 |
33,124 |
20,177 |
|
100,688 |
99,349 |
|
Adjusted earnings
($/share)1 |
0.18 |
0.11 |
|
0.55 |
0.54 |
|
Cash generated by
operating activities ($) |
66,133 |
42,886 |
|
225,073 |
197,244 |
|
Free cash flow
($)1 |
49,747 |
40,127 |
|
184,248 |
169,910 |
|
AISC
($/oz)1 |
866 |
784 |
|
888 |
764 |
|
Average realized price
($/oz)1 |
1,480 |
1,253 |
|
1,405 |
1,277 |
|
Average realized cash
margin ($/oz)1 |
726 |
594 |
|
662 |
608 |
|
Long-term debt
($)2 |
|
|
|
397,253 |
475,911 |
|
Cash & cash equivalents ($) |
|
|
|
23,174 |
45,407 |
|
- Refer to the “Non-IFRS Financial Performance Measures” section
at the end of this news release.
- As at December 31, 2019, long-term debt does not include the
current portion of the Company’s Loan Facility (defined below) in
the amount of $66,667 (2018 – $78,385).
Fourth Quarter and Full-Year 2019 Production
Overview
- Production totaled 96,237 ounces of
gold and 147,988 ounces of silver in the fourth quarter 2019. Gold
production was similar to the comparable period in 2018 when 96,342
ounces of gold and 113,886 ounces of silver were produced. Annual
2019 production totaled 354,405 ounces of gold and 516,977 ounces
of silver. Annual 2018 production was slightly higher with 376,012
ounces of gold and 422,562 ounces of silver produced. Gold
production was reduced in 2019 due to a decrease in head grade
offset by an increase in tonnes milled.
- In the fourth quarter, 388,744
tonnes of ore were mined, equivalent to a mining rate of 4,225
tonnes per day compared to 283,136 tonnes of ore, equivalent to a
mining rate of 3,078 tonnes per day in the comparable period in
2018. In 2019, 1,359,403 tonnes of ore were mined, equivalent to a
mining rate of 3,724 tonnes per day compared to 1,055,208 tonnes of
ore, equivalent to a mining rate of 2,891 tonnes per day in the
comparable period in 2018. As planned at the outset of 2019,
production was ramped-up through 2019 and by the end of the fourth
quarter the mine was supplying the mill at 3,800 tonnes per day on
a consistent basis.
- In the fourth quarter, a total of
373,954 tonnes of ore, equivalent to a throughput rate of 4,065
tonnes per day, were processed. This was an increase from the
comparable period in 2018, in which a total of 267,048 tonnes of
ore, equivalent to a throughput rate of 2,903 tonnes per day, were
processed. In 2019, a total of 1,303,001 tonnes of ore, equivalent
to a throughput rate of 3,570 tonnes per day, were processed. This
was an increase from the comparable period in 2018, in which a
total of 1,005,603 tonnes of ore, equivalent to a throughput rate
of 2,755 tonnes per day, were processed. The tonnes of ore
processed increased in 2019 as a result of the production ramp-up
to a target of 3,800 tonnes per day following receipt of our
amended permits in late 2018. We successfully achieved mill
throughput of 3,800 tonnes per day in the fourth quarter of
2019.
- The mill feed grade averaged 8.3
grams per tonne gold for the fourth quarter of 2019 compared to
11.5 grams per tonne gold in the fourth quarter of 2018. Production
in the fourth quarter of 2019 focused on maximizing tonnes to the
mill and all stopes above a cut-off grade of approximately 5.0
grams per tonne gold that were immediately available were mined and
processed. For 2019, the mill feed grade averaged 8.7 grams per
tonne gold compared to 11.9 grams per tonne gold in the comparable
period in 2018. The decrease in mill feed grade in the 2019 periods
was the result of the mine progressing through lower grade areas
and processing immediately available stopes that met the grade
cut-off.
- Gold recovery for the fourth
quarter of 2019 was 96.8% compared to 97.0% in the comparable
period in 2018. Gold recovery for the year ended December 31, 2019
was 96.9% compared to 97.3% in the comparable period in 2018. We
continue to review the mill process to optimize recoveries.
- Mine development advanced at a rate
of approximately 976 meters per month during the fourth quarter
2019 and averaged approximately 937 meters per month over the year.
This was a significant increase over the rate of mine development
in the previous year which averaged approximately 820 meters per
month during the fourth quarter 2018 and averaged approximately 790
meters per month over the year. Mine development advanced at an
accelerated rate throughout 2019 to support the production rate
ramp-up to 3,800 tonnes per day.
Fourth Quarter and Full Year 2019 Financial
Overview
- In the fourth quarter, the Company
generated revenue of $135.5 million compared to revenue of $108.6
million in the fourth quarter 2018. Revenue in the fourth quarter
of 2019 includes a $1.4 million gain on trade receivables at fair
value related to provisional pricing adjustments. The Company
generated $484.5 million in revenue in 2019 compared to $454.6
million in 2018. Revenue in 2019 includes a $6.6 million gain
on trade receivables at fair value related to provisional pricing
adjustments compared to a $3.1 million loss in 2018.
- In the fourth quarter 2019, the
Company sold 93,248 ounces of gold, at an average realized price of
$1,480 per ounce generating $132.3 million in revenue from
contracts with customers. In the comparable period in 2018, the
Company sold 89,011 ounces of gold, at an average realized price of
$1,253 per ounce generating $107.2 million in revenue from
contracts with customers. The average London Bullion Market
Association AM and PM market price over the three months ended
December 31, 2019 was $1,482 (2018 – $1,227) per ounce of
gold.
- In 2019, the Company sold 351,348
ounces of gold, at an average realized price of $1,405 per ounce
generating $471.4 million in revenue from contracts with customers.
In the comparable period in 2018, the Company sold 367,428 ounces
of gold, at an average realized price of $1,277 per ounce
generating $452.3 million in revenue from contracts with customers.
The average London Bullion Market Association AM and PM market
price over the year ended December 31, 2019 was $1,393 (2018 -
$1,269) per ounce of gold.
- Total cost of sales for the fourth
quarter 2019 were $89.6 million or $961 per ounce of gold sold
compared to $72.5 million or $814 per ounce of gold sold in the
comparable period in 2018. Total cost of sales increased
primarily due to higher production costs for additional development
and drilling as well as the higher depreciation and depletion
charges resulting from the April 2019 Valley of the Kings Life of
Mine update.
- Total cost of sales for 2019 were
$333.2 million or $948 per ounce of gold sold compared to $303.9
million or $827 per ounce of gold sold in 2018. Total cost of sales
includes production costs, depreciation and depletion, royalties
and selling costs.
- Total cash costs1 for the fourth
quarter 2019 were $692 per ounce of gold sold compared to $610 per
ounce of gold sold in the comparable period in 2018. Total cash
costs increased due to higher production costs for additional
development and drilling.
- Total cash costs for 2019 were $680 per ounce of gold sold
compared to $623 per ounce of gold sold in 2018. Total cash costs
increased due to higher production costs for additional development
and drilling and lower gold ounces produced and subsequently sold
in the period.
- AISC for the fourth quarter 2019
totaled $866 per ounce of gold sold compared to $784 per ounce of
gold sold in the comparable period in 2018. AISC for 2019 totaled
$888 per ounce of gold sold compared to $764 per ounce of gold sold
in 2018. AISC increased due to higher production costs for
additional drilling and higher treatment and refinery charges due
to increased volumes of concentrate shipped.
- Sustaining capital expenditures in
the fourth quarter amounted to $3.3 million (including $0.6 million
deferred development costs incurred during production) and for the
full year 2019 amounted to $22.9 million (including $2.1 million
deferred development costs incurred during production). This
compares to $3.7 million in the fourth quarter 2018 and full year
2018 sustaining capital of $16.5 million.
- Earnings from mine operations were
$45.9 million in the fourth quarter 2019 compared to $36.1 million
in the fourth quarter 2018. Full year 2019 earnings from mine
operations were $151.4 million compared to $150.6 million in
2018.
- Net earnings were $20.0 million in
the fourth quarter 2019 compared to $2.8 million in the fourth
quarter 2018 with the increase primarily a result of higher gold
prices, decrease in interest and finance expense and decrease in
loss on financial instruments at fair value. Full year 2019 net
earnings were $40.9 million compared to $36.6 million in 2018.
- Adjusted earnings were $33.1
million in the fourth quarter 2019 compared to $20.2 million in the
fourth quarter 2018. Full year 2019 adjusted earnings were $100.7
million compared to $99.3 million in 2018.
- Cash generated from operating
activities in the fourth quarter 2019 was $66.1 million compared to
$42.9 million in the fourth quarter 2018. Full year 2019 cash
generated from operating activities was $225.1 million compared to
$197.2 million in 2018.
- Free cash flow generated in the
fourth quarter 2019 was $49.7 million compared to $40.1 million in
the fourth quarter 2018. Full year 2019 free cash flow was $184.2
million, an increase over the $169.9 million generated in
2018.
- Average realized cash margin in the
fourth quarter 2019 was $726 per ounce of gold sold compared to
$594 per ounce of gold sold in the fourth quarter of 2018. Full
year 2019 average realized cash margin was $662 per ounce of gold
sold compared to $608 per ounce of gold sold in 2018.
- Cash and cash equivalents were
$23.2 million as at December 31, 2019 compared to $45.4 million at
December 31, 2018.
- The Company repaid $98.0 million of
its $480 million senior secured loan facility (the “Loan Facility”)
and paid $82.4 million to repurchase 100% of its gold offtake
obligation using cash generated from operations, reducing total
debt by $180.4 million. Our outstanding balance on the Loan
Facility is $382.0 million.
_____________________1 Refer to the “Non-IFRS Financial
Performance Measures” section at the end of this news release for
reconciliation.
Regional Grassroots
Exploration
The 2019 exploration program included 19,850
meters of drilling, completed by four drills. Drilling focused on
testing high-priority targets across the Bowser Property, including
a potential Eskay Creek style volcanogenic massive sulphide (“VMS”)
system in the A6 Zone, a structurally controlled intrusion-related
gold system at the Koopa Zone, a porphyry copper-gold system in the
Haimila Zone, and Brucejack-style epithermal system in the Tuck and
American Creek Zones. The most promising results of the 2019
program were encountered at the A6 Zone.
A6 Zone
The A6 Zone is located approximately 14
kilometers northeast of the Brucejack Mine. Drilling in 2019
included 17 drill holes totaling 8,340 meters and identified a
buried rhyolite dome capped by a mudstone unit locally anomalous in
arsenic and mercury. The rhyolite dome is up to 200 meters
thick, at least 500 meters wide and 2 kilometers long, and remains
open to the north and south. The rhyolite is intensely sericite
altered, hosts pyrite stringer zones, and locally hosts anomalous
copper and silver values. In two drill holes peripheral to
the rhyolite, narrow intersections of high-grade silver and copper
mineralization were found. The highest grade assay result was from
drill-hole BR-038 which intersected 2,890 grams per tonne silver,
0.95 grams per tonne gold, and 1.81% copper over 1.50 meters (see
news release dated September 16, 2019).
2020 Regional Exploration
The 2020 regional exploration program is
expected to primarily focus on exploration for VMS mineralization
at the A6 Zone, for intrusion related gold mineralization at the
Koopa Zone, and for epithermal and porphyry related gold
mineralization elsewhere on the property.
Qualified Persons
Lyle Morgenthaler, B.A.Sc., P.Eng., Chief Mine
Engineer, Pretium Resources Inc. is the Qualified Person (“QP”) as
defined in NI 43-101 responsible for Brucejack Mine development,
and has reviewed and approved the scientific and technical
information contained in this news release relating thereto.
Kenneth C. McNaughton, M.A.Sc., P.Eng.,
Pretivm’s Vice President and Chief Exploration Officer is the QP
responsible for the regional grass-roots exploration program and
has reviewed and approved the scientific and technical information
in this news release related thereto.
Our audited consolidated Financial Statements
and MD&A for the years ended December 31, 2019 and 2018 are
filed on SEDAR and EDGAR and are available on our website at
www.pretivm.com.
Webcast and Conference
Call
The webcast and conference call to discuss the
fourth quarter and year-end 2019 operating and financial results
and updates will take place Wednesday, February 12, 2020 at 7:00 am
PT (10:00 am ET).
Webcast and conference call details:
Wednesday, February 12, 2020 at 7:00 am PT
(10:00 am ET) |
Webcast |
www.pretivm.com |
Toll Free (North America) |
1-800-319-4610 |
International and Vancouver |
604-638-5340 |
A recorded playback will be available until February 28,
2020:
Toll Free
(North America) |
1-800-319-6413 |
Access Code |
3844 |
About Pretivm
Pretivm is a low-cost intermediate gold producer with the
high-grade underground Brucejack Mine in northern British
Columbia.
For further information contact:Troy ShultzManager, Investor
Relations & Corporate Communications
Pretium Resources Inc.Suite 2300, Four Bentall Centre, 1055
Dunsmuir StreetPO Box 49334 Vancouver, BC V7X 1L4(604)
558-1784invest@pretivm.com(SEDAR filings: Pretium Resources
Inc.)
Non-IFRS Financial Performance
Measures
The Company has included certain non-IFRS
measures in this new release. Refer to the Company’s MD&A for
an explanation, discussion and reconciliation of non-IFRS measures.
The Company believes that these measures, in addition to measures
prepared in accordance with International Financial Reporting
Standards (“IFRS”), provide readers with an improved ability to
evaluate the underlying performance of the Company and to compare
it to information reported by other companies. The non-IFRS
measures are intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These measures do not
have any standardized meaning prescribed under IFRS, and therefore
may not be comparable to similar measures presented by other
issuers.
Forward-Looking Information
This news release contains “forward-looking
information”, “forward looking statements”, “future oriented
financial information” and “financial outlook” within the meaning
of applicable Canadian and United States securities legislation
(collectively herein referred to as “forward-looking information”),
including the “safe harbour” provisions of Canadian provincial
securities legislation and the U.S. Private Securities Litigation
Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act
of 1934, as amended, and Section 27A of the U.S. Securities Act of
1933, as amended. The purpose of disclosing future oriented
financial information and financial outlook is to provide a general
overview of management’s expectations regarding the anticipated
results of operations including cash generated therefrom and costs
thereof and readers are cautioned that future oriented financial
information and financial outlook may not be appropriate for other
purposes.
Wherever possible, words such as “plans”,
“expects”, “guidance”, “projects”, “assumes”, “budget”, “strategy”,
“scheduled”, “estimates”, “forecasts”, “anticipates”, “believes”,
“intends”, “modeled”, “targets” and similar expressions or
statements that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved, or the
negative forms of any of these terms and similar expressions, have
been used to identify forward-looking information. Forward-looking
information may include, but is not limited to, statements with
respect to: production and cost guidance, and our expectations
around achieving such guidance; our future operational and
financial results, including estimated cash flows (including free
cash flow forecasts) and the timing thereof; expectations around
grade of gold and silver production; the Brucejack Mine production
rate and gold recovery rate; capital modifications and upgrades,
underground development and anticipated benefits thereof, and
estimated expenditures and timelines in connection therewith,
including with respect to achievement of steady state production
of, 3,800 tonnes per day production rate; payment of debt,
operating and other obligations and commitments including timing
and source of funds; our mining (including mining methods),
expansion, exploration and development activities, including
longitudinal longhole stoping initiatives, the reverse circulation
drill program, our infill, expansion and underground exploration
drill programs and our grassroots exploration program, and the
results, costs and timing thereof; our operational grade control
program, including plans with respect to our infill drill program
and our local grade control model; grade reconciliation, updated
geological interpretation and mining initiatives with respect to
the Brucejack Mine; our management, operational plans and strategy;
capital, sustaining and operating cost estimates and timing
thereof; the future price of gold and silver; our liquidity and the
adequacy of our financial resources (including capital resources);
our intentions with respect to our capital resources; capital
allocation plans; our financing activities, including plans for the
use of proceeds thereof; the estimation of Mineral Reserves and
Resources including any updates thereto; realization of Mineral
Reserve and Resource estimates; our estimated life of mine and life
of mine plan for the Brucejack Mine; production and processing
estimates; estimated economic results of the Brucejack Mine,
including net cash flow and net present value; predicted
metallurgical recoveries for gold and silver; geological and
mineralization interpretations; development of our Brucejack Mine
and timing thereof; results, analyses and interpretations of
exploration and drilling programs; timelines and similar statements
relating to the economic viability of the Brucejack Mine, including
mine life, total tonnes mined and processed and mining operations;
updates to our Mineral Reserves and Resources and life of mine plan
for the Brucejack Mine, and the anticipated effects and timing
thereof; timing, receipt, and anticipated effects of, and
anticipated capital costs in connection with, approvals, consents
and permits under applicable legislation; our executive
compensation policy, approach and practice; our relationship with
community stakeholders; litigation matters; environmental matters;
our effective tax rate and the recognition of our previously
unrecognized income tax attributes; new accounting standards
applicable to the Company, including methods of adoption and the
effects of adoption of such standards; statements regarding USD
cash flows, currency fluctuations and the recurrence of foreign
currency translation adjustments; management and board of directors
succession plans; and the impact of financial instruments on our
earnings. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance are not
statements of historical fact and may be forward-looking
information.
Forward-looking information is subject to a
variety of known and unknown risks, uncertainties and other factors
that could cause actual results, actions, events, conditions,
performance or achievements to materially differ from those
expressed or implied by the forward-looking information, including,
without limitation, those related to: uncertainty as to the outcome
of legal proceedings; the effect of indebtedness on cash flow and
business operations; the effect of restrictive covenants pursuant
to the Loan Facility; assumptions regarding expected capital costs,
operating costs and expenditures, production schedules, economic
returns and other projections; our production and production cost
estimates, including the accuracy thereof; commodity price
fluctuations, including gold price volatility; the accuracy of our
Mineral Resource and Reserve estimates (including with respect to
size, grade and recoverability) and the geological, operational and
price assumptions on which they are based; our ability to maintain
or increase our annual production of gold at the Brucejack Mine or
discover, develop or acquire Mineral Reserves for production;
dependency on the Brucejack Mine for our future operating revenue;
the development of our properties; our ability to raise enough
capital to mine, develop, expand or complete further exploration
programs on our mineral properties; our ability to generate
operating revenues in the future; failure of counterparties to
perform their contractual obligations; general economic conditions;
the inherent risk in the mining industry; the commercial viability
of our current and any acquired mineral rights; availability of
suitable infrastructure or damage to existing infrastructure;
transportation and refining risks; maintaining satisfactory labour
relations with employees and contractors; significant governmental
regulations, including environmental regulations; non-compliance
with permits that are obtained or delay in obtaining or failure to
obtain permits required in the future; increased costs and
restrictions on operations due to compliance with health, safety
and environmental laws and regulations; compliance with emerging
climate change regulation; adequate internal control over financial
reporting; various tax-related matters; potential opposition from
non-governmental organizations; uncertainty regarding unsettled
First Nations rights and title in British Columbia; uncertainties
related to title to our mineral properties and surface rights; land
reclamation requirements; our ability to identify and successfully
integrate any material properties we acquire; currency
fluctuations; competition in the mining industry for properties,
qualified personnel and management; our ability to attract and
retain qualified management and personnel; the ability of our new
executive to successfully transition into their new roles; some of
our directors’ and officers’ involvement with other natural
resource companies; potential inability to attract development
partners or our ability to identify attractive acquisitions;
compliance with foreign corrupt practices regulations and
anti-bribery laws; changes to rules and regulations, including
accounting practices; limitations in our insurance coverage and the
ability to insure against certain risks; risks related to ensuring
the security and safety of information systems, including cyber
security risks; reputational risks; future sales or issuances of
our debt or equity securities; the trading price of our common
shares is subject to volatility due to market conditions; we are
limited in our ability to, and may not, pay dividends in the
foreseeable future; and certain actions under U.S. federal
securities laws may be unenforceable. This list is not exhaustive
of the factors that may affect any of our forward-looking
information. Although we have attempted to identify important
factors that could cause actual results, actions, events,
conditions, performance or achievements to differ materially from
those contained in forward-looking information, there may be other
factors that cause results, actions, events, conditions,
performance or achievements to differ from those anticipated,
estimated or intended. Our forward-looking information is
based on the assumptions, beliefs, expectations and opinions of
management on the date the statements are made, many of which may
be difficult to predict and beyond our control. In connection with
the forward-looking information contained in this news release, we
have made certain assumptions about, among other things: our
business and operations and that no significant event will occur
outside of our normal course of business and operations (other than
expressly set out herein); planned exploration, development and
production activities and the costs and timing thereof; future
price of gold and silver and other metal prices; the accuracy of
our Mineral Resource and Mineral Reserve estimates and related
information analyses and interpretations (including with respect to
any updates or anticipated updates); the geology and mineralization
of the Brucejack Project; operating conditions; capital and
operating cost estimates; production and processing estimates; the
results, costs and timing of future exploration and drilling;
timelines and similar statements relating to the economic viability
of the Brucejack Mine; timing and receipt of governmental,
regulatory and third party approvals, consents, licenses and
permits; obtaining required renewals for existing approvals,
consents, licenses and permits; the geopolitical, economic,
permitting and legal climate that we operate in; the adequacy of
our financial resources, and our ability to raise any necessary
additional capital on reasonable terms; our ability to satisfy the
terms and conditions of our debt obligations; commodity prices;
currency exchange rates and interest rates; political and
regulatory stability; requirements under applicable laws; market
competition; sustained labour stability and availability of
equipment; positive relations with local groups; favourable equity
and debt capital markets; and stability in financial capital
markets. Although we believe that the assumptions inherent in
forward-looking information are reasonable as of the date of this
news release, these assumptions are subject to significant
business, social, economic, political, regulatory, competitive and
other risks and uncertainties, contingencies and other factors that
could cause actual actions, events, conditions, results,
performance or achievements to be materially different from those
projected in the forward-looking information. The Company cautions
that the foregoing list of assumptions is not exhaustive. Other
events or circumstances could cause actual results to differ
materially from those estimated or projected and expressed in, or
implied by, the forward-looking information contained in this news
release.
Additional information about the risks and
uncertainties concerning forward-looking information and material
factors or assumptions on which such forward-looking information is
based is provided in our Annual Information Form and From 40-F,
each dated March 28, 2019, for the year ended December 31, 2018,
our MD&A for the years ended December 31, 2019 and 2018, and
our other disclosure documents as filed in Canada on SEDAR at
www.sedar.com and in the United States through EDGAR at the SEC’s
website at www.sec.gov (collectively, “the Pretivm Disclosure
Documents”).
Forward-looking information is not a guarantee
of future performance. There can be no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Forward-looking information
involves statements about the future and is inherently uncertain,
and our actual achievements or other future events or conditions
may differ materially from those reflected in the forward-looking
information due to a variety of risks, uncertainties and other
factors, including, without limitation, those referred to in this
news release and the Pretivm Disclosure Documents. For the reasons
set forth above, readers should not place undue reliance on
forward-looking information. We do not assume any obligation to
update forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
applicable law. For the reasons set forth above, prospective
investors should not place undue reliance on forward-looking
information. Neither the TSX nor the NYSE has approved or
disapproved of the information contained herein.
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