Pretivm Resources Inc. (PVG)

[silver100]

Globe says Citigroup's Hacking keen on Pretium

2014-12-18 08:04 ET - In the News

The Globe and Mail reports in its Thursday, Dec. 18, edition that Citigroup analyst Alexander Hacking has resumed coverage on Pretium Resources ($6.21) with a "buy" rating. The Globe's Luke Kawa, Darcy Keith, Tim Shufelt and Jody White write in the Eye On Equities column that Mr. Hacking targets the shares at $7.50. Mr. Hacking says Pretium is sitting on a crown jewel of a gold deposit and makes for an attractive takeout target. Mr. Hacking is bullish on the company's flagship gold project, Brucejack, which is located in British Columbia. Mr. Hacking says, "Brucejack remains one of the most interesting and unique gold projects in the world given its low-risk geography, large size and high grade." The analyst cautions, however, that the weak state of equity and financing markets could lead to higher-than-anticipated dilution for current shareholders as the company seeks cash for full construction of this project. He also says that it may take time for a potential suitor to warm to the idea of purchasing the company, as gold miners remain skittish on acquisitions following mistakes made at the top of the market. CIBC rated Pretium "sector outperformer" in the Eye column on June 26. It was then worth $8.55.

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