Pretium Resources reports higher 1Q profit
(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.