Pretium Resources Inc(NYSE: PVG) stock fell over 2% on August 11th, 2017 leading to a total fall of over 15.4% in the last four weeks (Source: Google finance). Working capital was a deficit of US$12.9 million as at June 30, 2017 which comprises liabilities of US$12.4 million. On the other hand, the group expects to reverse this deficit from gold production ramp up.
The group reported that the first gold was poured at the Brucejack Mine on June 2017 and that the flotation and gravity circuits were operational. They produced 8,510 ounces of gold during commissioning in June from low-grade stockpiles and development muck. Pretium Resources announced that commercial production was achieved at the Brucejack Mine under the terms of the credit agreement among Pretivm and its lenders. The process plant at Brucejack processed 70,805 tonnes of ore in June for an average of 2,360 tonnes per day. During grade ramp-up in July 16,882 ounces of gold were produced from stockpiles, development muck and the introduction of stope ore.
Brucejack Mine reached finishing date this month under the terms of the credit agreement among Pretivm and its lenders. During the month of July the process plant processed 83,667 tonnes of ore for an average rate of 2,699 tonnes per day.
The grade of the ore improved with commercial production as the group’s focus on optimizing recoveries in the gravity and flotation circuits paid off. Gold-silver doré is now being produced in the gold room and flotation concentrate is being bagged. Doré and flotation concentrate production enhanced while gold-silver inventory has accumulated.
Meanwhile, the group reported a private placement of 329,000 flow-through common shares of the Company for total gross proceeds of C$5.0 million, at a price of C$15.20 per flow-through share which was completed in two tranches, June 30 and July 14, 2017. They intend to use these proceeds of for the 2017 regional grass-roots exploration program.
Pretium Resources stock has a 75.1% with an analyst’s consensus target price of $14.5 as per two analysts (Source: tipranks.com). On the other hand, investors need to be cautious on the stock given the volatile gold prices and weak sentiment on the stock which lost over 29% in the last six months.