Mining stock to watch: Pretium Resources Inc (NYSE: PVG)

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Pretium Resources Inc (NYSE: PVG) reported that Brucejack mine in British Columbia has produced 82.2K oz. of gold in Q3, beating analyst estimates. As a result, PVG stock soared more than 20% to a seven-month high. Brucejack mine is a high-grade gold mine for which Pretium got $540 million in 2015 in financing to develop the mine and start production this year.

Credit Suisse had expected production of 81,000 oz., while BMO analysts had forecast just 71,000 oz. and say they would be buyers of the stock on the news. On the production result, Scotiabank had upgraded shares to Outperform from Sector Perform. RBC analysts expect Brucejack to exit the year at steady production levels.

PVG says that in the third quarter, the mill feed grade and gold recoveries averaged 10.52 grams/metric ton and 96.49%, respectively. During the last two months of the quarter, the mill feed grade and gold recoveries averaged 12.36 grams/metric ton gold and 96.92%, respectively, as the mill transitioned to processing stope ore exclusively.

Moreover, In July, at the beginning of the third quarter, the mill feed was predominately from low-grade stockpiles and development muck and 16,882 ounces of gold were produced. However, as the ramp-up progressed, the mill began processing stope ore exclusively and an additional 65,321 ounces of gold were produced in the last two months of the quarter. The mill had processed a total of 261,262 tonnes of ore for the third quarter for an average of 2,840 tonnes per day. Further, the company had said the company says it expects to achieve positive working capital by the end of the third quarter due to increased production and sale from doré and flotation concentrate.

Additionally, the research analysts are expecting that PVG will report earnings of $0.16 per share when the firm issues their next quarterly report. This is the consensus earnings per share number according to data from Zack’s Research. Most recently PVG had posted quarterly earnings of $-0.01 which compared to the sell-side estimates of 0.09. The stock’s 12-month trailing earnings per share stands at $-0.09.

PVG stock has risen 33.37% in a year (source: Google Finance).

 

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