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Analyst Raises Target Price on Canadian Gold Producer, Expects Higher Grades
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Key points from the miner's company update at the Denver Gold Forum are summarized in a CIBC report.

Pretium's Brucejack Mine

In a Sept. 17 research note, CIBC analyst Anita Soni reported the highlights from the presentation by Pretium Resources Inc. (PVG:TSX; PVG:NYSE) President and CEO Joseph Ovsenek's at the recent 2019 Denver Gold Forum.

She also indicated that CIBC raised its target price on Pretium to CA$18 per share from CA$15.50 because "we continue to see consistent delivery of higher grades as a key catalyst for the stock."

Ovsenek noted the ramp-up and underground, longitudinal longhole stoping development are progressing well and Pretium is on track to reach 3,800 tons per day of mill throughput and mine production by late Q4/19, Soni relayed. Production guidance for 2019 remains at 390,000–420,000 ounces of gold at an all-in sustaining cost of CA$775–875 per ounce.

The company expects grades in H2/19 to be higher, averaging around 12 grams per ton. Grades in Q2/19 were similar to those in Q1/19. "Pretium delivered solid Q2/10 results with production up 15% quarter over quarter, driven by higher throughput," wrote Soni.

Another topic was exploration upside, for which the company is focused on Brucejack and Bowser, Soni wrote. Ovsenek said more value could be created by investing in Pretium's organic growth than by acquiring a marginal gold producer.

As for Pretium's financial situation, Ovsenek said the producer expects to generate strong free cash flow in the coming quarters. Spending priorities will be repaying debt, exploration, reinvestment in its assets and returning capital to shareholders.

CIBC has a Neutral rating on Pretium.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pretium Resources, a company mentioned in this article.

Disclosures from CIBC, Pretium Resources Inc., September 17, 2019

Analyst Certification:
Each CIBC World Markets Corp./Inc. research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst's personal views about the company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analysts employed outside the U.S. are not registered as research analysts with FINRA. These analysts may not be associated persons of CIBC World Markets Corp. and therefore may not be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Potential Conflicts of Interest:
Equity research analysts employed by CIBC World Markets Corp./Inc. are compensated from revenues generated by various CIBC World Markets Corp./Inc. businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets Corp./Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets Corp./Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.

In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets Corp./Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon.

Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

Important Disclosure Footnotes for Pretium Resources Inc. (GG)

CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Pretivm Resources Inc. in the next 3 months.

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