Pretivm Reports Second Quarter 2018 Results

by pmnationtalk on August 10, 2018209 Views

Brucejack delivers on guidance; building a strong cash position

VANCOUVER, British Columbia, Aug. 09, 2018 — Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”) is pleased to report financial and operating results for the second quarter and first half of 2018.

All amounts are in US dollars unless otherwise noted. This release should be read in conjunction with the Company’s Financial Statements and Management’s Discussion and Analysis available on the Company’s website and on SEDAR.

“Our cash balance increased by more than $72 million through the quarter to $142.5 million as a result of our improved production at lower costs,” said Joseph Ovsenek, President & CEO of Pretivm. “In the first half of the year, we’ve reached steady state production, fully implemented our grade control program and met our production guidance. We intend to build on this positive momentum for the remainder of the year, firmly establishing Pretivm as a premier high-grade gold producer.”

Second Quarter 2018 Summary

  • Production of 111,340 ounces of gold.
  • Revenue of $146.5 million on 115,309 ounces of gold sold.
  • Total cost of sales $86.4 million or $749 per ounce of gold sold1.
  • AISC1 of $648 per ounce of gold sold.
  • Net earnings of $31.1 million ($0.17 per share).
  • Adjusted earnings1 of $47.0 million ($0.26 per share).
  • Cash and cash equivalents of $142.5 million as at June 30, 2018.
  • Achieved first half 2018 guidance with a total of 187,029 ounces of gold produced at an AISC of $783 per ounce of gold sold.1Refer to the “Non-IFRS Financial Performance Measures” section at the end of this news release.

Second Quarter Production Overview

  • Production totaled 111,340 ounces of gold and 118,205 ounces of silver.
  • Mill feed grade averaged 14.9 grams per tonne gold for the quarter.
  • Gold recoveries averaged 97.7%.
  • Process plant throughput averaged 2,604 tonnes per day for total of 236,990 tonnes of ore.
  • Mine development averaged over 740 meters per month during the quarter to prepare additional stopes which will allow for optimization of ore grades feeding the mill.

Gold production from March throughout the second quarter reflected the full integration of the operational grade control program. Grade control is critical for grade prediction and the refinement of stope shapes, which results in reduced dilution and optimized grade to the mill.

Operating Results

Three months ended June 30, Six months ended June 30,
2018 2017(1) 2018 2017(1)
Ore mined t 248,506 516,845
Mining rate tpd 2,731 2,855
Ore milled t 236,990 498,433
Head grade g/t Au 14.9 11.9
Recovery % 97.7 97.4
Mill throughput tpd 2,604 2,754
Gold ounces produced oz 111,340 187,029
Silver ounces produced oz 118,205 212,935
Gold ounces sold oz 115,309 183,960
Silver ounces sold oz 118,366 202,600
The following abbreviations were used above: t (tonnes), tpd (tonnes per day), g/t (grams per tonne), Au (gold) and oz (ounces).
(1) No comparative data as the mine commenced commercial production as of July 1, 2017.

Second Quarter Financial Overview

  • Revenue of $146.5 million was generated from mine operations.
  • The Company sold 115,309 ounces of gold at an average realized price1 of $1,278 per ounce generating $147.4 million in revenue. The Company sold 118,366 ounces of silver generating $1.6 million in revenue. Treatment costs and refining charges associated with concentrate sales, in the amount of $4.3 million, were included within concentrate revenue. The average London Bullion Market Association AM and PM market price over the quarter ended June 30, 2018 was $1,306 per ounce.
  • Total cost of sales was $86.4 million or $749 per ounce of gold sold.
  • Total cash cost was $548 per ounce of gold sold and AISC was $648 per ounce of gold sold.
  • Sustaining capital expenditures amounted to $3.2 million (including $1.1 million deferred development costs incurred during production).
  • Earnings from mine operations were $60.1 million.
  • Net earnings were $31.1 million or $0.17 per share.
  • Adjusted earnings1 were $47.0 million or $0.26 per share.
  • Cash generated from operating activities was $77.3 million.
  • Cash and cash equivalents were $142.5 million as at June 30, 2018 increasing $86.2 million from $56.3 million at December 31, 2017. The Company has working capital of $133.2 million excluding the current portion of long-term debt as at June 30, 2018 compared to $40.6 million as at December 31, 2017.

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