Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”)
announces operating and financial results for the second quarter
and first-half 2020 (see “Key Operating Metrics” and “Key Financial
Metrics” tables below).
“Brucejack delivered another profitable quarter
with record free cash flow,” said Jacques Perron, President and
Chief Executive Officer of Pretivm. “In the first six months of the
year the mine produced 173,307 ounces of gold generating $293.1
million in revenue and $124.6 million in free cash flow, surpassing
our full-year free cash flow target.”
“However, no quarter at Pretivm is considered a
success unless it is accomplished safely. The loss of one of our
employees, announced a few days ago, is a tragic reminder of the
importance of safety in all mine operations. Our thoughts are with
the employee’s family and loved ones. We will work tirelessly to
ensure a safe workplace for everyone at Brucejack, which will
directly support our efforts to operate efficiently and
profitably.”
1 Refer to the “Non-IFRS Financial Performance Measures” section
at the end of this news release for reconciliation.
2020 Guidance
2020 Production Guidance Maintained
The Company produced 173,307 ounces of gold
during the first half of 2020 and expects to meet 2020 gold
production guidance at the Brucejack Mine of 325,000 ounces to
365,000 ounces. Production is planned to continue for the remainder
of 2020 at an average rate of approximately 3,500 tonnes per day
due to planned shutdowns and an increased focus on waste management
from accelerated lateral development. The average annual gold grade
is expected to remain in the guidance range between 7.6 grams per
tonne and 8.5 grams per tonne at an average gold recovery of
97%.
Management believes 2020 production guidance
remains achievable assuming there is no new significant impact on
operations at the Brucejack Mine, including due to the novel
coronavirus (“COVID-19”) pandemic. We have taken precautions to
mitigate the risk of COVID-19. However, the COVID-19 pandemic and
any future emergence and spread of similar pathogens could have a
material adverse impact on our business, operations and operating
results, financial condition, liquidity and market for our
securities.
2020 Financial Guidance Updated
Total cash costs and all-in sustaining costs
(“AISC”) were $766 and $950 per ounce of gold sold, respectively,
for the first half of 2020. Annual financial guidance for 2020 has
been updated to include costs for COVID-19 protocols, which are
expected to remain in place for the remainder of 2020, of
approximately $15.0 million and additional drilling of
approximately $6.5 million. Accordingly, we have adjusted our cash
costs guidance upwards to a range of $750 to $860 per ounce of gold
sold from $725 to $830 per ounce of gold sold and AISC guidance
upwards to a range of $960 to $1,120 per ounce of gold sold from
$910 to $1,060 per ounce of gold sold.
AISC estimates continue to include costs
associated with lateral development at a rate of approximately
1,000 meters per month through 2020. In addition, the AISC
estimates include costs associated with a high-density reverse
circulation (“RC”) drilling grade control program and definition
drilling to increase the volume of grade information necessary to
enhance mine planning and optimize gold production.
Sustaining capital expenditures for the year are
expected to be approximately $40.0 million, an increase from $30.0
million, primarily due to additional definition drilling and mill
building repairs. Other capital expenditures include approximately
$15.0 million in expansion capital expenditures and approximately
$10.0 million for regional exploration.
2020 Free Cash Flow Forecast Updated
Free cash flow for the first half of 2020 was
$124.6 million at an average realized gold price1 of $1,677 per
ounce. With improved gold prices, our free cash flow forecast for
2020 has been modified to a range of $205 million to $275 million
based on an average gold price of $1,800 per ounce. This compares
with our prior forecast of $100 million to $170 million based on an
average gold price of $1,450 per ounce. If gold prices were to
decrease to $1,600 per ounce, the low end of our free cash flow
forecast would be $175 million.
During the quarter, as a precautionary measure
in response to the continuing operational risks related to
COVID-19, the Company drew down $16.0 million of the revolving
portion of the Loan Facility to increase available liquidity. The
Company will focus on preserving liquidity while we operate under
the COVID-19 safety protocols.
Impact of COVID-19
The Company’s primary commitment is the safety
and health of our workforce and neighbouring communities in
northwest British Columbia. There were no cases of COVID-19
identified at the Brucejack Mine as of August 5, 2020.
Throughout the COVID-19 pandemic, the Brucejack
Mine has operated continuously under the guidance and directives
provided by Ministry of Energy, Mines and Petroleum Resources
Guidance to Mining and Smelting Operations during COVID-19 (March
23, 2020); and Northern Health COVID-19: Interim Guidelines for
Industrial Camps (March 25, 2020). The Company has developed
management plans to mitigate the spread of COVID-19 and protect the
well-being of our employees, communities and other
stakeholders.
The Company incurred $4.7 million of additional
production costs during the quarter related to employee salaries
and travel costs to sustain operations with enhanced safety
measures in effect. As the threat of COVID-19 remains a risk, the
Company expects these costs to continue to be incurred to safely
sustain operations.
1 Refer to the “Non-IFRS Financial Performance
Measures” section at the end of this news release for
reconciliation.
Second Quarter and Half-Year 2020 Operating and
Financial Highlights
Key Operating Metrics
|
3 months ended Jun. 30, |
6 months ended Jun. 30, |
|
2020 |
2019 |
|
2020 |
2019 |
|
Gold produced
(oz) |
90,419 |
90,761 |
|
173,307 |
169,941 |
|
Head grade (g/t
gold) |
8.9 |
8.9 |
|
8.3 |
8.8 |
|
Gold Recovery
(%) |
96.7 |
96.9 |
|
96.6 |
96.9 |
|
Silver produced
(oz) |
109,332 |
135,797 |
|
233,258 |
244,031 |
|
Gold sold
(oz) |
96,047 |
85,953 |
|
176,508 |
167,387 |
|
Silver sold
(oz) |
83,642 |
104,442 |
|
198,282 |
201,416 |
|
Ore mined (wet
tonnes) |
352,594 |
337,044 |
|
710,268 |
645,431 |
|
Mining rate
(tpd) |
3,875 |
3,704 |
|
3,903 |
3,566 |
|
Ore milled (dry
tonnes) |
327,262 |
324,171 |
|
672,401 |
619,293 |
|
Mill throughput (tpd) |
3,596 |
3,562 |
|
3,695 |
3,422 |
|
Abbreviations: t (tonnes), tpd (tonnes per day), g/t (grams per
tonne), Au (gold) and oz (ounces).
Key Financial Metrics
|
3 months ended Jun. 30, |
6 months ended Jun. 30, |
In thousands
of USD, except for per ounce data |
2020 |
2019 |
|
2020 |
2019 |
|
Revenue |
166,567 |
113,202 |
|
293,127 |
216,321 |
|
Cost of sales
($) |
106,555 |
83,413 |
|
196,060 |
157,380 |
|
Cost of sales ($/oz of
gold sold)1 |
1,109 |
970 |
|
1,111 |
940 |
|
Earnings from mine
operations ($) |
60,012 |
29,789 |
|
97,067 |
58,941 |
|
Net earnings
($) |
32,260 |
10,443 |
|
38,497 |
14,609 |
|
Net earnings
($/share) |
0.18 |
0.06 |
|
0.21 |
0.08 |
|
Adjusted earnings
($)1,2 |
49,184 |
17,013 |
|
75,047 |
33,540 |
|
Adjusted earnings
($/share)1,2 |
0.26 |
0.09 |
|
0.40 |
0.18 |
|
Cash generated by
operating activities ($) |
92,131 |
41,183 |
|
144,669 |
81,127 |
|
Free cash flow
($)1 |
82,747 |
34,356 |
|
124,550 |
69,375 |
|
AISC
($/oz)1 |
911 |
940 |
|
950 |
905 |
|
Average realized price
($/oz)1 |
1,738 |
1,319 |
|
1,677 |
1,319 |
|
Average realized cash
margin ($/oz)1 |
951 |
550 |
|
868 |
561 |
|
Long-term debt
($)3 |
382,763 |
496,507 |
|
382,763 |
496,507 |
|
Cash & cash equivalents ($) |
124,734 |
34,281 |
|
124,734 |
34,281 |
|
The table contains quarterly information derived from the
Company’s unaudited quarterly condensed consolidated interim
financial statements.
- Refer to the “Non-IFRS Financial Performance Measures” section
at the end of this news release for reconciliation.
- Adjusted earnings are adjusted to exclude specific items not
reflective of the underlying operations, including: loss on
financial instruments at fair value, amortization of Loan Facility
(defined below) transaction costs, accretion on convertible notes,
and deferred income tax expense.
- As at June 30, 2020, long-term debt does not include the
current portion of the Company’s Loan Facility in the amount of
$66,667. In the comparable period in 2019, long-term debt does not
include the current portion of the Company’s Loan Facility and
Offtake Obligation in the amount of $75,069.
Second Quarter 2020 Production
Overview
- Production totaled 90,419 ounces of gold and 109,332 ounces of
silver in the second quarter 2020, on track to achieve 2020 annual
guidance. Gold production was similar to 2019, when 90,716 ounces
of gold and 135,797 ounces of silver were produced. COVID-19 did
not directly affect second quarter gold production.
- In May 2020, the Brucejack Mine achieved a major milestone with
the safe and profitable production of its one millionth ounce of
gold since the first gold pour in 2017.
- In the second quarter, a total of 327,262 tonnes of ore,
equivalent to a throughput rate of 3,596 tonnes per day, were
processed. This was an increase from the comparable period in 2019,
in which a total of 324,171 tonnes of ore, equivalent to a
throughput rate of 3,562 tonnes per day, were processed. During the
quarter, the mill operated below the permitted level of 3,800
tonnes per day due to scheduled and unscheduled maintenance, focus
on lateral development and stope availability. In the comparable
period in 2019, the mill was in the early phases of the planned
production ramp-up, following receipt of amended permits in late
2018 to increase the rate of production from 2,700 tonnes per day
to 3,800 tonnes per day.
- The mill feed grade averaged 8.9 grams per tonne gold for the
second quarter of 2020 equivalent to 2019.
- Gold recovery for the second quarter of 2020 was 96.7% compared
to 96.9% in the comparable period in 2019.
- In the second quarter, 352,594 wet tonnes of ore were mined,
equivalent to a mining rate of 3,875 tonnes per day. In the
comparable period in 2019, 337,044 wet tonnes of ore, equivalent to
a mining rate of 3,704 tonnes per day.
- We continued our lateral development at a targeted rate of
approximately 1,000 meters per month. During the three months ended
June 30, 2020, a total 3,224 meters of lateral development and 43
meters of vertical development were completed.
- The RC drilling grade control program was introduced in
staggered phases, with the first drill in operation at the
beginning of the second quarter on the 1080-meter level. Towards
the end of the quarter, as the equipment and personnel became
available, a second and third RC drill were commissioned and
commenced drilling on the 1140-meter level. A total of 22,164
meters of RC drilling were completed during the quarter.
- All diamond drilling activity was put on hold at the onset of
the COVID-19 pandemic at the end of the first quarter to limit
non-essential personnel at Brucejack. By the end of the second
quarter, diamond drilling activity had resumed with four diamond
drills on site conducting resource and infill drilling. Diamond
drilling in the second quarter targeted reserves proximal to mine
infrastructure to build stope inventory and provide flexibility for
near term mining.
- Infill diamond drilling in the second half of 2020 is planned
to progress west toward the Brucejack Fault Zone, to follow-up on
the 2019 infill drill program. The program is intended to support
mining in the first quarter of 2021. Drilling is also planned to
continue to the north toward the West Zone and will target Inferred
Resources and previously intersected mineralization outside of the
current Mineral Resource.
Second Quarter 2020 Financial
Overview
- In the second quarter, the Company generated revenue of $166.6
million, which included $164.7 million of revenue from contracts
with customers plus a gain on trade receivables at fair value
related to provisional pricing adjustments of $1.9 million. During
the comparable period in 2019, the Company generated revenue of
$113.2 million which included $109.1 million of revenue from
contracts with customers and a gain on trade receivables at fair
value related to provisional pricing adjustments of $4.1 million.
The increase in revenue was primarily the result of higher gold
prices and higher gold ounces sold in the period due to the timing
of production and subsequent sales.
- In the second quarter 2020, the Company sold 96,047 ounces of
gold at an average realized price of $1,738 per ounce, generating
$163.3 million in revenue from contracts with customers. In the
comparable period in 2019, the Company sold 85,953 ounces of gold
at an average realized price of $1,319 per ounce, generating $107.6
million in revenue from contracts with customers. The average
London Bullion Market Association AM and PM market price over the
three months ended June 30, 2020 was $1,711 (2019 – $1,309) per
ounce of gold.
- Total cost of sales for the second quarter 2020 was $106.6
million or $1,109 per ounce of gold sold1 compared to $83.4 million
or $970 per ounce of gold sold in the comparable period in 2019.
Cost of sales increased primarily due to higher production costs
for employee salaries and travel costs related to COVID-19
protocols, as well as higher depreciation and depletion
expenses.
- In the second quarter, production costs, after adjustments for
changes in inventories, were $68.1 million compared to $57.2
million in the comparable period in 2019. Production costs include
mining, processing, surface services and other and mine general and
administrative costs.
- Total cash costs for the second quarter 2020 was $749 per ounce
of gold sold2 compared to $702 per ounce of gold sold in the
comparable period in 2019. Total cash costs increased due to higher
production costs related to employee salaries and travel costs
associated with COVID-19 safety protocols.
- AISC for the second quarter 2020 totaled $911 per ounce of gold
sold compared to $940 per ounce of gold sold in the comparable
period in 2019. AISC decreased primarily due to higher gold ounces
sold offset by increased total cash costs.
- In the second quarter, the Company incurred $5.2 million on
sustaining capital expenditures compared to $8.0 million the
comparable period in 2019. Significant sustaining capital
expenditures during the period included the construction of the new
bulk gravity lab ($1.0 million), the purchase of a 120-tonne crane
($0.9 million) and capitalized development costs ($0.7 million). In
the comparable period in 2019, sustaining capital expenditures were
focused on the purchase of underground drills and capitalized
development costs.
- Vertical development costs, including the costs to build new
ventilation raises and access ramps that enable the Company to
physically access ore underground on multiple mining levels, are
capitalized. All costs associated with lateral development to
access ore zones in preparation for mining are expensed.
- Earnings from mine operations were $60.0 million in the second
quarter 2020 compared to $29.8 million in the second quarter
2019.
- Net earnings in the second quarter 2020 were $32.3 million
compared to $10.4 million in the second quarter 2019 with the
increase primarily resulting from more ounces sold at higher gold
prices, a decrease in interest and finance expense offset by an
increase in production costs, depreciation and depletion expense
and deferred income tax expense.
- Adjusted earnings1 were $49.2 million in the second quarter
2020 compared to $17.0 million in the second quarter 2019.
- Cash generated from operating activities in the second quarter
2020 was $92.1 million compared to $41.2 million in the second
quarter 2019.
- Free cash flow1 generated in the second quarter 2020 was $82.7
million compared to $34.4 million in the second quarter 2019.
- Average realized cash margin1 in the second quarter 2020 was
$951 per ounce of gold sold compared to $550 per ounce of gold sold
in the second quarter of 2019.
- Cash and cash equivalents were $124.7 million as at June 30,
2020 increasing by $101.6 million from $23.2 million as at December
31, 2019.
- The Company repaid $16.7 million of its $480.0 million senior
secured loan facility (the “Loan Facility”). During the
quarter, as a precautionary measure to increase available
liquidity, the Company drew down $16.0 million of the revolving
portion of the Loan Facility. At the end of the second quarter 2020
the outstanding balance on the Loan Facility was $364.7
million.
1 Refer to the “Non-IFRS Financial Performance Measures”
section at the end of this news release for reconciliation.
Regional Grassroots
Exploration
The 2020 regional exploration program on the
Company’s Bowser Claims is currently underway with crew and
equipment mobilized to site. The exploration program is evaluating
several distinct zones that have the potential to host Eskay
Creek-style volcanogenic massive sulphide deposits and high-grade,
epithermal related gold systems.
The primary focus of the 2020 program is the A6
Zone, located approximately 14 kilometers northeast of Brucejack.
To follow up on the results of the 2019 program, 10,000 meters of
drilling is planned to target Eskay Creek-style volcanogenic
massive sulphide mineralization.
The 2020 program will also include drilling at
the Koopa Zone, located 30 kilometers east-southeast of Brucejack,
the Hanging Glacier Zone, located 4.5 kilometers northwest of
Brucejack, and the East Snowfield Zone, located 6 kilometers north
of Brucejack. In 2019, drilling at Koopa intersected wide intervals
of low-grade, structurally-controlled epithermal-style gold
mineralization. In 2020, 1,500 meters of drilling is planned to
target deeper, potentially higher-grade parts of the system. At
Hanging Glacier, 1,200 meters of drilling is planned to test an
area where assay results from soil and prospecting samples returned
anomalous gold values. At East Snowfield, 1,000 meters of drilling
is planned to test a high-grade gold structure intersected during
previous drilling campaigns.
The grassroots exploration program will continue
through the summer and also include soil sampling, prospecting,
regional mapping and hyperspectral imaging.
Qualified Persons
Lyle Morgenthaler, B.A.Sc., P.Eng., Chief Mine
Engineer, Pretium Resources Inc. is the Qualified Person (“QP”) as
defined in National Instrument 43-101 Standards of Disclosure for
Mineral Projects 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 unaudited consolidated interim Financial
Statements and MD&A for the three and six months ended June 30,
2020 and 2019 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
second quarter 2020 operating and financial results and updates
will take place Thursday, August 6, 2020 at 8:30 am PT
(11:30 am ET).
Webcast and conference call details:
|
Thursday, August 6, 2020 at 8:30 am PT (11:30 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 August 20, 2020:
|
Toll Free (North
America) |
1-800-319-6413 |
|
Access Code |
4889 |
About Pretivm
Pretivm is an 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: the effects of the COVID-19 outbreak as a global
pandemic, including anticipating operational and financial impacts
and our response and contingency plans; production and financial
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 maintaining a
steady state production rate of, 3,800 tonnes per day; 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 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 Mineral Resources, including any
updates thereto; parameters and assumptions used to estimate
Mineral Reserves and Mineral Resources; realization of Mineral
Reserve and Mineral Resource estimates; our estimated life of mine
and life of mine plan for the Brucejack Mine; production and
processing estimates and estimated rates; 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 Mineral 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; payment of taxes, 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 United States dollar cash flows,
currency fluctuations and the recurrence of foreign currency
translation adjustments; management and board of directors
succession plans; the impact of financial instruments on our
earnings; and the fatal incident at the Brucejack Mine, the
investigation(s) of such incident and the findings and outcomes of
such investigation(s). 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 a pandemic and
particularly the COVID-19 outbreak as a global pandemic on the
Company’s business, financial condition and results of operations
and the impact of the COVID-19 outbreak on our workforce, suppliers
and other essential resources and what effect those impacts, if
they occur, would have on our business, financial condition and
results of 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, grade of gold,
milling recovery, cash flow and cost estimates, including the
accuracy thereof; commodity price fluctuations, including gold and
silver price volatility; the accuracy of our Mineral Resource and
Reserve estimates (including with respect to size, grade and mining
and milling recoverability) and the geological, operational costs
and price assumptions on which they are based; uncertainties
relating to inferred Mineral Resources being converted into
Measured or Indicated Mineral Resources; 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 and expansion of our operations;
our need or ability to raise enough capital to mine, develop,
expand or complete further exploration programs on our mineral
properties; our ability to generate operating revenues and cash
flow in the future; failure of counterparties to perform their
contractual obligations; general economic conditions; the inherent
risks 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, processing 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 renewing, failure to obtain or renew 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 and the detrimental effects of climate change; 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; maintaining our social license to operate;
uncertainties related to title to our mineral properties and
surface rights; land reclamation and mine closure requirements; our
ability to identify and successfully integrate any material
properties we acquire; currency exchange rate fluctuations;
competition in the mining industry for properties, qualified
personnel and management; our ability to attract and retain
qualified management and personnel; disruption from changes in
management team or failure to successfully transition new hires or
promoted employees into their 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; our
anti-takeover provisions could discourage potentially beneficial
third-party takeover offers; significant growth could place a
strain on our management systems; share ownership by our
significant shareholders and their ability to influence our
operations and governance and, in case of sales of our shares by
such significant shareholders, our share price; failure to comply
with certain terms of the convertible notes; 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; our ability to pay dividends in the foreseeable
future; and certain actions under United States 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 as
expressly set out herein); planned exploration, development and
production activities and the results, 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; stability in financial capital markets;
and the impact of the COVID-19 outbreak. 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 Form 40-F,
each dated February 21, 2020, for the year ended December 31, 2019,
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
Security and Exchange Commission’s (the “SEC”) 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.
Cautionary Notes to United States Investors
Disclosure regarding our mineral properties,
including with respect to Mineral Reserve and Mineral Resource
estimates, in this news release was prepared in accordance with NI
43-101. NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for all public disclosure
an issuer makes of scientific and technical information concerning
mineral projects. NI 43-101 differs significantly from the
disclosure requirements of the SEC generally applicable to United
States companies. For example, the terms “mineral reserve”, “proven
mineral reserve”, “probable mineral reserve”, “mineral resource”,
“measured mineral resource”, “indicated mineral resource” and
“inferred mineral resource” are defined in NI 43-101. These
definitions differ from the definitions in the disclosure
requirements promulgated by the SEC. Accordingly, information
contained in this news release will not be comparable to similar
information made public by United States companies reporting
pursuant to SEC disclosure requirements.
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