Make Kitco Your Homepage

Pretium Resources reports higher 1Q profit

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Pretium Resources Inc. (TSX: PVG, NYSE: PVG) posted a higher profit in the first quarter as gold production rose modestly from a year ago and prices were also higher, the company reported late Thursday.

The company, which operates the Brucejack Mine in British Columbia, listed adjusted earnings of $25.9 million, or 14 cents per share, up from $16.5 million, or 9 cents, in the same period of 2019. Net earnings were $6.2 million, or 3 cents, compared to $4.2 million, or 2 cents, in the first quarter of 2019.

Pretium said operations at Brucejack have continued through the global COVID-19 pandemic, with no confirmed cases at the mine. Production was 82,888 ounces of gold during the first quarter, up from 79,180 from the same period a year ago, and the company said it expects to achieve its 2020 gold production guidance of 325,000 ounces to 365,000 ounces. Pretium also produced 123,926 ounces of silver.

“Gold production increased primarily due to an increase in tonnes milled offset by a decrease in head grade,” said the company’s earnings release. The company processed 345,139 metric ton of ore, equivalent to a throughput rate of 3,793 per day, up from the year-ago tally of 295,122 tons, or 3,279 per day.

The all-in sustaining cost was $996 per ounce of gold sold. The company said it expects to achieve its 2020 AISC guidance of $910 to $1,060 per ounce.

First-quarter free cash flow was $41.8 million at an average realized gold price of $1,605 per ounce, Pretium said. This was up from free cash flow of $35 million and an average price of $1,319 in the same period of 2019.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.