The company's President and CEO Jacques Perron remarked, "Brucejack delivered another profitable quarter with record free cash flow...In the first six months of the year the mine produced 173,307 ounces of gold generating $293.1 million in revenue and $124.6 million in free cash flow, surpassing our full-year free cash flow target."
"However, no quarter at Pretivm is considered a success unless it is accomplished safely. The loss of one of our employees, announced a few days ago, is a tragic reminder of the importance of safety in all mine operations. Our thoughts are with the employee's family and loved ones. We will work tirelessly to ensure a safe workplace for everyone at Brucejack," CEO Perron added.
Pretium Resources advised that it is maintaining its FY/20 production guidance. The company stated that it produced 173.3 Koz Au during H1/20 and expects to meet FY/20 gold production guidance at the Brucejack Mine of 325-365 Koz Au. The firm expects that for the rest of 2020 production will average around 3,500 tpd and average annual gold grade to remain between 7.6 and 8.5 g/t at an average gold recovery of 97%.
For H1/20, the firm reported total cash costs of $766 per oz Au sold and all-in sustaining costs (AISC) of $950 per oz Au sold. For H2/20 the firm expects total cash costs to be in the range of $750-860 per ounce of gold sold and AISC to be in the range of $960-1,120 per ounce of gold sold.
The firm indicated that in Q2/20 it produced 90,419 oz Au and 109,332 oz Ag, compared to 90,716 oz Au and 135,797 oz Ag in Q2/19. The company highlighted that in May 2020, "the Brucejack Mine achieved a major milestone with the safe and profitable production of its one millionth ounce of gold since the first gold pour in 2017."
The company reported that in Q2/20, it generated $166.6 million in revenue compared to $113.2 million in Q2/19. The firm noted that the revenue increase was mostly due to higher gold prices and higher gold ounces sold in the period.
In Q2/20 the company sold 96,047 oz Au at an average realized price of $1,738 per ounce, versus 85,953 oz Au at an average realized price of $1,319 per ounce in Q2/19. AISC for Q2/20 totaled $911 per oz Au sold, compared to $940 per oz Au sold in Q2/19.
The company posted net earnings in Q2/20 of $32.3 million, compared to $10.4 million in Q2/19 and adjusted earnings of $49.2 million, compared to $17.0 million over the same period.
The company stated that the 2020 regional exploration program on its Bowser Claims is currently underway. The program plans for around 10,000 meters of drilling and is scheduled to continue through the summer. The program will also include drilling at the Koopa (1,500 m), Hanging Glacier (1,200 m) and East Snowfield (1,000 m) zones all located near Brucejack.
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