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Pretium plunges on year-end results

Kitco News

(Kitco News) - Golden Triangle miner, Pretium Resources, dropped 19% Wednesday to $10.26 after issuing its 2019 year-end results.

Traders found fault with declining grades. Forecast production in 2020 is 3,800 tonnes per day with average annual gold grade ranging between 7.6 grams per tonne to 8.5 grams per tonne at a targeted gold recovery of 97%. 

Pretium' Brucejack Mine has high variability of gold mineralization. 

All-in-sustaining cost will climb from $888 ounce in 2019 to between $910 to $1,060 forecast in 2020. 

"AISC estimates include costs associated with continued lateral development at a rate of approximately 1,000 meters per month through 2020. Lateral development will focus on opening the mine on the 1080 Level and Brucejack Fault Zone in the first half and stope development in the second half of 2020," wrote the company in its outlook. 

Gold production in 2020 is supposed to range of 325,000 to 365,000 ounces. In 2019 the company produced 354,405 ounces.

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