Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”)
is pleased to report that it has delivered notice electing to
repurchase 100% of the callable 8% gold and silver stream at the
end of 2018. The stream was sold by Pretivm as part of the
construction financing package for the Brucejack Mine.
“Our quarter over quarter cash build since
start-up has allowed us to elect to repurchase the precious metals
stream without having to consider equity,” said Joseph Ovsenek,
President and CEO of Pretivm. “With more than 339,000 ounces
of gold produced at the Brucejack Mine in the first year of
operation, Pretivm is now established as a low-cost, intermediate
gold producer.”
Repurchase Precious Metals
Stream
An agreement to sell the precious metals stream
for US$150 million was part of the construction financing package
for the development of the underground Brucejack Mine (see news
release dated September 15, 2015). The Company has delivered
notice of its election to repurchase 100% of the precious metals
stream for US$237 million by December 31, 2018 to the holders of
the stream.
Refinance of Credit
Facility
The Brucejack Mine construction financing
package also included a US$350 million credit facility accruing
interest at a rate of 7.5% and due December 31, 2018. The
Company has the option to extend the maturity date of the credit
facility to December 31, 2019 on payment of 2.5% of the principal
and accrued interest by December 31, 2018. The Company is
evaluating proposals to refinance the credit facility by year
end.
Other 2018 Activities
H2 2018 Production and Cost Guidance
We continue to refine and update the grade
control model with the benefit of data from ongoing production. To
date, the updated grade control model is reconciling well to mill
production. As a result, the Company anticipates meeting
production guidance of 200,000 to 220,000 ounces of gold and all-in
sustaining cost1 guidance of $710 to $770 per ounce gold sold for
the second half of 2018, with production weighted more heavily in
the fourth quarter than the third quarter.
Reconciliation of the global resource model for
the Valley of the Kings against mill production for 2018 is
anticipated in early 2019.
Permitting
The approval process to increase the permitted
production rate at Brucejack to 3,800 tonnes per day from 2,700
tonnes per day is on track, with a decision expected later this
year.
Grass-roots Exploration
Grass-roots exploration in the Bowser claims
located approximately 20 kilometers to the southeast of the
Brucejack Mine is ongoing, with two drills turning. Assays
and results from the program are anticipated later in the Fall.
Warwick Board, Ph.D., P.Geo, Pr.Sci.Nat., Vice
President, Geology and Chief Geologist, Pretium Resources Inc. is
the Qualified Person (“QP”) responsible for Brucejack Mine
geological reconciliation.
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:
Joseph
OvsenekPresident & CEO |
Troy
ShultzManager, Investor Relations &Corporate
Communications |
Pretium Resources Inc. Suite 2300, Four Bentall Centre, 1055
Dunsmuir Street PO Box 49334 Vancouver, BC V7X 1L4 (604) 558-1784
invest@pretivm.com (SEDAR filings: Pretium Resources Inc.)
(1) All-In Sustaining Costs
All-in Sustaining Costs (“AISC”) is a non-IFRS
performance measure calculated as the sum of total cash costs,
sustaining capital expenditures, accretion on decommissioning and
restoration provision, treatment and refinery charges netted
against revenue, site share-based compensation, and corporate
administrative costs, all divided by the gold ounces sold to arrive
at a per ounce amount. The Company believes that this measure, in
addition to measures prepared in accordance with IFRS, provide
investors an improved ability to evaluate the underlying
performance of the Company and to compare it to information
reported by other companies. In addition, the Company believes that
AISC more fully defines the total costs associated with producing
gold. 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 Statements
This news release contains “forward-looking
information”, “forward looking statements”, “future oriented
financial information” and/or “financial outlooks” within the
meaning of applicable Canadian and United States securities
legislation (collectively herein referred to as “forward-looking
statements” or “forward-looking information”). The purpose of
disclosing future oriented financial information and financial
outlooks is to provide a general overview of management’s
expectations regarding the anticipated results of operations 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 statements and
information. 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 statements. Forward-looking information may
include, but is not limited to, information with respect to: the
Company’s precious metals stream, including the anticipated
repurchase thereof and the expected date of repurchase; the
Company’s credit facility and a possible refinancing thereof;
production and cost guidance (including without limitation, all-in
sustaining cost guidance); anticipated results of our operations;
our planned mining, exploration and development activities; our
operational grade control program, including plans with respect to
our infill drill program and our local grade control model; the
reconciliation of the global resource model for the Valley of the
Kings and the anticipated timing thereof; capital and operating
cost estimates; production and processing estimates; the future
price of gold and silver; the adequacy of our financial resources;
our intentions with respect to our capital resources; our financing
activities, including plans for the use of proceeds thereof; the
estimation of mineral reserves and resources including the 2016
Valley of the Kings Mineral Resource estimate and the Brucejack
Mineral Reserve estimate; realization of mineral reserve and
resource estimates; timing of further development of our Brucejack
Mine; costs and timing of future exploration and development;
results of future exploration and drilling and timing of such
results; capital and operating cost estimates; timelines and
similar statements relating to the economic viability of the
Brucejack Mine, including mine life, total tonnes mined and
processed and mining operations; timing, receipt, and anticipated
effects of approvals, consents and permits under applicable
legislation; our executive compensation approach and practice; our
relationship with community stakeholders; litigation matters;
environmental matters; and statements regarding USD cash flows
currency fluctuations and the recurrence of foreign currency
translation adjustments. Statements concerning mineral
resource estimates may also be deemed to constitute forward-looking
statements to the extent that they involve estimates of the
mineralization that will be encountered if the property is
developed. Forward-looking statements are subject to a variety of
known and unknown risks, uncertainties and other factors that could
cause actual events or results to materially differ from those
expressed or implied by the forward-looking statements, including,
without limitation, those related to: 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; uncertainties relating to
inferred mineral resources being converted into measured or
indicated mineral resources; commodity price fluctuations,
including gold price volatility; general economic conditions; the
inherent risk in the mining industry; significant governmental
regulations; currency fluctuations, and such other risks as are
identified in Pretivm’s Annual Information Form dated March 28,
2018, Form 40-F dated March 28, 2018 and other applicable
disclosure documents filed on SEDAR at www.sedar.com and in the
United States through EDGAR at the Security and Exchange
Commission’s website at www.sec.gov (collectively, the “Pretivm
Disclosure Documents”). Our forward-looking statements are 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 statements contained in this news release, we have
made certain assumptions about our business, including about our
exploration, development and production activities, and the
results, costs and timing thereof; timing and receipt of approvals,
consents and permits under applicable legislation; the
geopolitical, economic, permitting and legal climate that we
operate in; the price of gold and other commodities; exchange
rates; market competition; the adequacy of our financial resources,
and such other material assumptions as are identified in the
Pretivm Disclosure Documents. We have also assumed that no
significant events will occur outside of our normal course of
business. Although we believe that the assumptions inherent in the
forward-looking statements are reasonable as of the date of this
news release, forward-looking statements are not guarantees of
future performance and, accordingly, undue reliance should not be
put on such statements due to the inherent uncertainty therein. We
do not assume any obligation to update forward-looking statements,
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 statements. Neither the TSX nor the NYSE has
approved or disapproved of the information contained herein.
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