Pretivm Reports Third Quarter Results
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 10, 2017) - Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) ("Pretivm" or the "Company") is pleased to report financial and operating results for the third quarter ended September 30, 2017.
In the news release all quoted figures are in USD$ unless otherwise noted. The Company uses the following non-IFRS measures: total cash costs, all-in sustaining costs ("AISC"), average realized gold price, average realized margin, adjusted earnings (loss), and adjusted earnings (loss) per basic share. Refer to the Company's Management Discussion and Analysis and the "Non-IFRS Financial Performance Measures" section at the end of this news release for an explanation and discussion of these non-IFRS measures.
Third Quarter 2017 Overview
- Commercial production was declared at the Brucejack Mine at the onset of the third quarter and announced on July 3, 2017.
- Production totaled 82,203 ounces of gold and 83,233 ounces of silver.
- Mill feed grade averaged 10.5 grams per tonne gold.
- Gold recoveries averaged 96.5%.
- Process plant throughput averaged 2,840 tonnes per day for a total of 261,262 tonnes of ore.
- Cash and cash equivalents was $53.8 million, with a working capital surplus of $7.2 million as at September 30, 2017 which was an improvement from the working capital deficit of $12.9 million as at June 30, 2017.
- Revenue of $70.9 million was generated on sale of 55,413 of gold and 19,848 ounces of silver.
- Total cost of sales was $44.9 million or $810 per ounce of gold sold. Total cash cost was $656 per ounce of gold sold and AISC was $788 per ounce of gold sold. As gold sales catch-up with production, total cash costs and AISC per ounce sold are expected to decrease.
- Earnings from mine operations were $26.0 million.
- Net loss was $7.0 million. Adjusted earnings were $8.3 million.
- Cash generated by operations was $47.5 million.
|Three and nine(1) months ended September 30,|
|Head grade||g/t Au||10.5||-|
|Gold ounces produced(2)||oz.||82,203||-|
|Silver ounces produced||oz.||83,233|
|Gold ounces sold||oz.||55,413||-|
|Silver ounces sold||oz.||19,846||-|
|The following abbreviations were used above: t (tonnes), tpd (tonnes per day), g/t (grams per tonne), Au (gold) and oz (ounces).|
|(1)||As commercial production commenced on July 1, 2017 operating results for the nine and three-months ended September 30, 2017 were equivalent.|
|(2)||Gold ounces produced for the nine-months ended September 30, 2017 excludes 8,510 ounces produced in the pre-commercial production period.|
Gold and silver production
During the three months ended September 30, 2017, the Brucejack Mine produced 82,203 ounces of gold and 83,233 ounces of silver from low-grade stockpiles, development muck and stope ore. There is no comparable information as the Brucejack Mine achieved commercial production on July 1, 2017.
In July, the mill feed was predominantly from low-grade stockpiles and development muck. As the mine ramp-up progressed through the quarter, more stope ore was fed directly to the mill which improved our production results.
During the quarter, the Company sold 55,413 ounces of gold and 19,846 ounces of silver. As at September 30, 2017, there were 7,984 ounces of gold doré and 26,493 ounces of gold in concentrate in finished goods. These ounces will be sold in the fourth quarter of 2017.
During the three months ended September 30, 2017, a total of 271,534 tonnes of ore was mined, equivalent to mining rates of 2,951 tonnes per day.
Underground development continued to advance through the third quarter and subsequently reached design-level production. Long-hole drilling is currently drilling off stopes at a rate of approximately 230 meters per day. Currently 8 stopes are operational, 3 stopes are available for drilling and an additional 31 stopes are in various stages of being developed.
During the three months ended September 30, 2017, a total of 261,262 tonnes ore, equivalent to a throughput rate of 2,840 tonnes per day, was processed.
The mill feed grade was 10.5 grams per tonne gold and recovery was 96.5%. We continue to review the mill process to optimize recoveries. We plan to complete the implementation of a grade control system with the target of achieving steady-state production by the end of 2017.
With the grade ramping up and the mill now exclusively processing stope ore, production of doré and flotation concentrate has increased. All of the main operating units in the mill building are performing as expected, and the plant is consistently operating at nameplate capacity of 2,700 tonnes per day or better. Optimization of the gold recovery process is ongoing and the start-up issues encountered within the gold room have been addressed.
During the nine months ended September 30, 2017, the Company spent $5.0 million on sustaining capital. Sustaining capital expenditures included the paste booster station, the grade control sampling station and gravity lab and normal course deferred development costs incurred during production. All development costs to build new ventilation raises and ramps that enable the Company to physically access ore underground are capitalized.
2017 Exploration Program
The 2017 regional grass-roots exploration program was designed to follow-up on the results from the 2016 program and evaluate priority areas identified on our extensive property as far as 20 kilometers east of the Brucejack Mine. Prospecting, sampling, surveying and mapping completed as part of the 2017 program were delayed due to the late snow melt. Results continue to be compiled to refine drill targets for testing in 2018.
Lyle Morgenthaler, B.A.Sc., P.Eng., Chief Mine Engineer, Pretium Resources Inc. is the Qualified Person ("QP") responsible for Brucejack Mine development. Kenneth C. McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, Pretium Resources Inc. is the QP responsible for the 2017 regional grass-roots exploration program.
|Three months ended September 30,||Nine months ended September 30,|
|(In thousands of US dollars, except per share or per oz)||2017||2016||2017||2016|
|Earnings from mine operations(1)||$||25,963||-||25,963||-|
|Net loss for the period||$||(6,975||)||(15,115||)||(13,733||)||(52,648||)|
|Per share - basic||$/share||(0.04||)||(0.08||)||(0.08||)||(0.30||)|
|Per share - diluted||$/share||(0.04||)||(0.08||)||(0.08||)||(0.30||)|
|Adjusted earnings (loss) (1)||$||8,294||(2,816||)||(973||)||(4,455||)|
|Per share - basic (1)||$/share||0.05||(0.02||)||(0.01||)||(0.03||)|
|Total cash and cash equivalents||$||53,774||178,494||53,774||178,494|
|Total cash costs (1)||$/oz||656||-||656||-|
|All-in sustaining costs (1,2)||$/oz||788||-||-||-|
|Average realized price (1)||$/oz||1,281||-||1,281||-|
|Average realized cash margin (1)||$/oz||625||-||625||-|