Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

News Update

TICKERS: PVG

Miner Gives Notice to Buy Back Gold and Silver Stream
News Update

Share on Stocktwits

Source:

The company also reported that it has achieved steady-state production at its mine.

Pretium's Brucejack Mine

Pretium Resources Inc. (PVG:TSX; PVG:NYSE) reported that it has delivered notice electing to repurchase 100% of the callable 8% gold and silver stream at the end of the year. The stream was sold by the company as part of the construction financing package for the Brucejack Mine in British Columbia.

"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 Pretium. "With more than 339,000 ounces of gold produced at the Brucejack Mine in the first year of operation, Pretium is now established as a low-cost, intermediate gold producer."

Pretium Resources has delivered notice of its election to repurchase 100% of the precious metals stream for $237 million by December 31, 2018 to the holders of the stream. The stream was originally sold for $150 million in 2015.

In addition, the financing package of the Brucejack Mine included a "$350 million credit facility accruing interest at a rate of 7.5% and due December 31, 2018." Pretium "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 noted that it is "evaluating proposals to refinance the credit facility by year end."

Pretium also noted that it anticipates meeting production guidance of 200,000 to 220,000 ounces of gold at all-in sustaining costs of $710 to $770 for the second half of 2018. It has applied to increase Brucejack's permitted production rate from 2,700 tonnes per day to 3,800 tonnes per day and expects a decision later this year.

[NLINSERT]

Disclosure:
1) John McPhaul compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Pretium Resources. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pretium Resources, a company mentioned in this article.





Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe