Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”)
announces operating and financial results for the third quarter and
first nine months 2020 (see “Key Operating Metrics” and “Key
Financial Metrics” tables below).
“Brucejack continues to deliver strong cash flow
and we remain on target to meet our annual production, free cash
flow and AISC guidance,” said Jacques Perron, President and Chief
Executive Officer of Pretivm. “In the first nine months of the
year, the mine produced just over 259,000 ounces of gold generating
$448.0 million in revenue and $191 million in free cash flow.”
2020 Guidance
2020 Production Guidance Maintained
The Company produced 259,443 ounces of gold
during the first nine months 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 in the fourth
quarter 2020 at an average rate of approximately 3,500 tonnes per
day due to planned maintenance and an increased focus on waste
management from increased lateral development with the objective of
operating at the nominal rate of 3,800 tonnes per day at the end of
the quarter. 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 97.0%.
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 Maintained
Total cash costs1 and all-in sustaining costs
(“AISC”) were $763 and $971 per ounce of gold sold, respectively,
for the first nine months of 2020. Management expects to achieve
our total cash costs guidance range of $750 to $860 per ounce of
gold sold and AISC guidance range of $960 to $1,120 per ounce of
gold sold.
AISC estimates 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 enhanced COVID-19 protocols, infill definition
diamond drilling and a high-density test reverse circulation (“RC”)
drilling grade control program to increase the volume of grade
information necessary to enhance mine planning and optimize gold
production.
Sustaining capital expenditures for the year, a
component of AISC, are expected to be between $30.0 and $33.0
million, which includes additional definition drilling and mill
building repairs. Other capital expenditures include approximately
$10.0 to $15.0 million in expansion capital expenditures and
approximately $10.0 million for regional exploration.
2020 Free Cash Flow Forecast Maintained
Free cash flow for the first nine months of 2020
was $191.4 million at an average realized gold price1 of $1,758 per
ounce. We expect to achieve our 2020 free cash flow forecast range
of $205 million to $275 million which was based on an average
realized gold price of $1,800 per ounce.
While operating under the COVID-19 safety
protocols, the Company will focus on preserving liquidity in the
form of cash and cash equivalents and reducing the amount
outstanding under its existing Loan Facility.
Impact of COVID-19
The Company’s primary commitment is the safety
and health of its workforce and neighbouring communities in
northwest British Columbia. There were no cases of COVID-19
identified at the Brucejack Mine as of October 29, 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; and BC
Ministry of Health, BC Centre for Disease Control: Protecting
Industrial Camp Workers, Contractors, and Employers Working in the
Agricultural, Forestry, and Natural Resource Sectors During the
COVID-19 Pandemic (July 28, 2020). The Company has developed
management plans to mitigate the spread of COVID-19 and protect the
well-being of its employees, communities and other
stakeholders.
The Company incurred $6.8 million of additional
production costs to date in 2020 related to employee salaries,
travel costs, contractors and consultants to sustain operations
with enhanced safety measures in effect. As the threat of COVID-19
remains a risk, the Company expects these costs to continue to be
incurred to safely sustain operations.
_____________________________1 Refer to the
“Non-IFRS Financial Performance Measures” section at the end of
this news release for reconciliation.
Third Quarter
and First Nine Months
2020 Operating and Financial
Highlights
Key Operating Metrics
|
3 months ended Sep.
30, |
|
9 months ended
Sep. 30, |
|
|
2020 |
2019 |
|
2020 |
2019 |
|
Gold produced
(oz) |
86,136 |
88,227 |
|
259,443 |
258,168 |
|
Head grade (g/t
gold) |
8.6 |
9.1 |
|
8.4 |
8.9 |
|
Gold Recovery
(%) |
97.6 |
97.0 |
|
96.9 |
96.9 |
|
Silver produced
(oz) |
130,975 |
124,958 |
|
364,233 |
368,989 |
|
Gold sold
(oz) |
81,068 |
90,713 |
|
257,576 |
258,100 |
|
Silver sold (oz) |
104,242 |
108,250 |
|
302,524 |
309,666 |
|
Ore mined (wet
tonnes) |
344,063 |
325,228 |
|
1,054,331 |
970,659 |
|
Mining rate
(tpd) |
3,740 |
3,535 |
|
3,848 |
3,556 |
|
Ore milled (dry
tonnes) |
325,420 |
309,754 |
|
997,821 |
929,047 |
|
Mill throughput
(tpd) |
3,537 |
3,367 |
|
3,642 |
3,403 |
|
Abbreviations: t (tonnes), tpd (tonnes per day), g/t (grams per
tonne), Au (gold) and oz (ounces).
Key Financial Metrics
|
3 months ended Sep.
30, |
|
9 months ended
Sep. 30, |
|
In thousands of USD, except
for per ounce data |
2020 |
2019 |
|
2020 |
2019 |
|
Revenue |
154,876 |
132,735 |
|
448,003 |
349,056 |
|
Cost of sales
($) |
92,209 |
86,150 |
|
288,269 |
243,530 |
|
Cost of sales ($/oz of
gold sold)1 |
1,137 |
950 |
|
1,119 |
944 |
|
Earnings from mine
operations ($) |
62,667 |
46,585 |
|
159,734 |
105,526 |
|
Net earnings
($) |
31,175 |
6,259 |
|
69,672 |
20,868 |
|
Net earnings
($/share) |
0.17 |
0.03 |
|
0.37 |
0.11 |
|
Adjusted earnings
($)1,2 |
50,863 |
34,024 |
|
125,910 |
67,564 |
|
Adjusted earnings
($/share)1,2 |
0.27 |
0.18 |
|
0.68 |
0.37 |
|
Cash generated by
operating activities ($) |
83,371 |
77,813 |
|
228,040 |
158,940 |
|
Free cash flow
($)1 |
66,809 |
65,126 |
|
191,359 |
134,501 |
|
Production
cost
($/milled dry
tonne) |
192 |
181 |
|
189 |
178 |
|
AISC
($/oz)1 |
1,016 |
878 |
|
971 |
896 |
|
Average realized price
($/oz)1 |
1,935 |
1,486 |
|
1,758 |
1,378 |
|
Long-term debt
($)3 |
368,061 |
413,222 |
|
368,061 |
413,222 |
|
Cash & cash
equivalents ($) |
175,009 |
16,583 |
|
175,009 |
16,583 |
|
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: gain (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 September 30, 2020, long-term
debt does not include the current portion of the Company’s Loan
Facility in the amount of $66.7 million. In the comparable period
in 2019, long-term debt does not include the current portion of the
Company’s Loan Facility in the amount of $64.4 million.
Third Quarter
2020 Production
Overview
- As previously
announced, the Company reported a fatality resulting from an
incident that occurred on July 31, 2020 at the Brucejack Mine. The
tragic incident occurred during maintenance at a support facility
on surface. The safety and well-being of our workforce is our most
important core value and we have renewed our commitment to improve
our safety performance.
- Production
totaled 86,136 ounces of gold and 130,975 ounces of silver in the
third quarter 2020. In the comparable period in 2019 production
totalled 88,227 ounces of gold and 124,958 ounces of silver.
Increased tonnes processed in the third quarter 2020 offset the
higher gold grade in the third quarter 2019. COVID-19 did not
directly affect third quarter 2020 gold production or sales.
- At the end of
the third quarter, 4,223 ounces of gold doré and 3,808 ounces of
gold in concentrate were recorded in finished goods inventory at a
cost of $1,038 per ounce, which includes depreciation and
depletion.
- In the third
quarter, a total of 325,420 tonnes of ore, equivalent to a
throughput rate of 3,537 tonnes per day, were processed. This was
an increase from the comparable period in 2019, in which a total of
309,754 tonnes of ore, equivalent to a throughput rate of 3,367
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, a temporary compassionate
suspension of activity after the fatality, a focus on lateral
development and stope availability. In the comparable period in
2019, the mill was in 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 8.6 grams per tonne gold in the third quarter 2020
compared to 9.1 grams per tonne gold in the third quarter
2019.
-
Gold recovery for the third quarter 2020 averaged 97.6% compared to
97.0% in the comparable period in 2019.
- In the third
quarter, 344,063 wet tonnes of ore were mined, equivalent to a
mining rate of 3,740 tonnes per day. In the comparable period in
2019, 325,228 wet tonnes of ore were mined, equivalent to a mining
rate of 3,535 tonnes per day.
- We continued our
lateral development at a targeted rate of approximately 1,000
meters per month. During the three months ended September 30, 2020,
a total 3,086 meters of lateral development and 263 meters of
vertical development were completed.
- During the third
quarter 2020, diamond drilling activity continued with four diamond
drills on site conducting infill and resource drilling. Infill
diamond drilling targeted reserves proximal to mine infrastructure
to build stope inventory and provide flexibility for near term
mining. Over the quarter, 34,265 meters of infill diamond drilling
were completed.
- Infill diamond
drilling in the fourth quarter 2020 will continue 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 2021.
- Resource
expansion drilling also commenced in the third quarter 2020.
Approximately 5,050 meters were completed to the north toward the
West Zone to target Inferred Resources and previously intersected
mineralization outside of the current Mineral Resource.
- The test RC
drilling grade control program was introduced in staged phases,
with the first drill in operation at the beginning of the second
quarter on the 1080-meter level. Two additional RC drills were
commissioned and commenced drilling during the third quarter. A
total of 30,870 meters of test RC drilling were completed in the
third quarter 2020.
Third Quarter
2020 Financial Overview
- In the third
quarter, the Company generated revenue of $154.9 million, which
included $155.9 million of revenue from contracts with customers
plus a loss on trade receivables at fair value related to
provisional pricing adjustments of $1.0 million. During the
comparable period in 2019, the Company generated revenue of $132.7
million which included $130.9 million of revenue from contracts
with customers plus a gain on trade receivables at fair value
related to provisional pricing adjustments of $1.8 million. The
increase in revenue in the third quarter 2020 was primarily the
result of higher gold prices realized on ounces sold partially
offset by lower gold ounces sold due to lower production and the
timing of sales.
- In the third
quarter 2020, the Company sold 81,068 ounces of gold at an average
realized price of $1,935 per ounce, generating $153.2 million in
revenue from contracts with customers. In the comparable period in
2019, the Company sold 90,713 ounces of gold at an average realized
price of $1,486 per ounce, generating $129.1 million in revenue
from contracts with customers. The average London Bullion Market
Association AM and PM market price over the three months ended
September 30, 2020 was $1,909 (2019 – $1,472) per ounce of
gold.
- Total cost of
sales for the third quarter 2020 was $92.2 million or $1,137 per
ounce of gold sold2 compared to $86.2 million or $950 per ounce of
gold sold in the comparable period in 2019. Cost of sales increased
primarily due to higher production costs for additional lateral
development, definition drilling, the impact of COVID-19 safety
protocols ($2.1 million), as well as higher depreciation and
depletion expenses. Cost of sales per ounce of gold sold also
reflect lower volumes sold in the quarter.
- In the third
quarter, production costs, after adjustments for changes in
inventories, were $59.0 million compared to $55.1 million in the
comparable period in 2019. Production costs increased in respect of
contractors, supplies and consumables due to additional lateral
development and definition drilling. Production costs also
increased due to the impact of COVID-19 safety protocols, mainly
for employee salaries and travel costs in the amount of $2.1
million in the quarter.
- Total cash costs
for the third quarter 2020 were $755 per ounce of gold sold
compared to $640 per ounce of gold sold in the comparable period in
2019. Total cash costs increased due to higher production costs for
additional lateral development and definition drilling as well as
employee salaries and travel costs associated with COVID-19 safety
protocols. Total cash costs per ounce of gold sold also increased
due to lower gold ounces sold in the period.
- AISC for the
third quarter 2020 totaled $1,016 per ounce of gold sold compared
to $878 per ounce of gold sold in the comparable period in 2019.
AISC increased for the same reasons as total cash costs, higher
sustaining capital expenditures and costs associated with the
departure of a former executive. AISC was partially offset by
higher silver by-product credits and lower treatment and refinery
charges. Costs associated with COVID-19 safety protocols and the
departure of an executive impacted AISC by $42 per ounce of gold
sold.
- In the third
quarter, the Company incurred $9.2 million on sustaining capital
expenditures compared to $8.0 million the comparable period in
2019. Significant sustaining capital expenditures during the period
included capitalized development costs ($1.7 million), the purchase
of underground drills ($1.1 million) and mill building repairs
($0.8 million).
- Net earnings in
the third quarter 2020 were $31.2 million ($0.17 per share)
compared to $6.3 million ($0.03 per share) in the third quarter
2019. Adjusted earnings1 were $50.9 million ($0.27 per share) in
the third quarter 2020 compared to $34.0 million ($0.18 per share)
in the third quarter 2019. The increase is primarily due to higher
gold prices realized on ounces sold, a decrease in the gain (loss)
on financial instruments at fair value, a decrease in deferred
income tax expense partially offset by an increase in production
costs due to higher volumes of ore processed, costs due to COVID-19
and higher depreciation and depletion expense.
- Cash and cash
equivalents were $175.0 million as at September 30, 2020 increasing
by $151.8 million from $23.2 million as at December 31, 2019.
- Over the first
nine months 2020, the Company repaid $50.0 million of its senior
secured loan facility (the “Loan Facility”). As at September 30,
2020, the outstanding balance on the Loan Facility was $348.0
million.
_____________________________1 Refer to the “Non-IFRS Financial
Performance Measures” section at the end of this news release for
reconciliation.
Regional Grassroots
Exploration
The 2020 regional exploration program on the
Company’s Bowser Claims has been completed and is now awaiting
assay results. The exploration program evaluated several distinct
zones that have the potential to host a high-grade, epithermal
related gold systems, porphyry copper-gold deposits and
volcanogenic massive sulphide deposits.
The 2020 program included drilling at the
Hanging Glacier Zone, located 4.5 kilometers northwest of
Brucejack, the A6 Zone, located approximately 14 kilometers
northeast of Brucejack, the Koopa Zone, located 30 kilometers
east-southeast of Brucejack, and the Haimila Zone, located 25
kilometers southeast of Brucejack. At Hanging Glacier, 9,800 meters
of drilling was completed to test an area where assay results from
soil and prospecting samples returned anomalous gold values. To
follow up on the results of the 2019 program, 11,900 meters of
drilling was completed at A6 to target volcanogenic massive
sulphide mineralization. In 2019, drilling at Koopa intersected
wide intervals of low-grade, structurally-controlled
epithermal-style gold mineralization. In 2020, 2,200 meters of
drilling was completed to target deeper, potentially higher-grade
parts of the system. At East Snowfield, 1,000 meters of drilling
was completed to test a high-grade gold structure intersected
during previous drilling campaigns. At Haimila, 780 meters of
drilling was completed to test porphyry copper-gold style
alteration and veining identified at surface.
The grassroots exploration program completed
during the summer also included 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.
Patrick Godin, P.Eng., Pretivm’s Vice President
and Chief Operating Officer is the QP responsible for the regional
grassroots 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 nine months ended
September 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
third quarter 2020 operating and financial results and updates will
take place
Friday,
October 30, 2020 at
8:00 am
PT
(11:00
am ET).
Webcast and conference call details:
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|
Friday, October
30, 2020 at
8:00 am
PT
(11:00
am ET) |
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|
Webcast |
www.pretivm.com |
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Toll Free (North America) |
1-800-319-4610 |
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International and
Vancouver |
604-638-5340 |
A recorded playback will be available until November 13,
2020:
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Toll Free (North America) |
1-800-319-6413 |
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Access Code |
5192 |
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 anticipated 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; the ability of our new
executives to successfully transition 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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