VANCOUVER, British Columbia, Aug. 09, 2018 (GLOBE NEWSWIRE) -- Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”) is pleased to report financial and operating results for the second quarter and first half of 2018.
“Our cash balance increased by more than $72 million through the quarter to $142.5 million as a result of our improved production at lower costs,” said Joseph Ovsenek, President & CEO of Pretivm. “In the first half of the year, we’ve reached steady state production, fully implemented our grade control program and met our production guidance. We intend to build on this positive momentum for the remainder of the year, firmly establishing Pretivm as a premier high-grade gold producer.”
Second Quarter 2018 Summary
Production of 111,340 ounces of gold.
Revenue of $146.5 million on 115,309 ounces of gold sold.
Total cost of sales $86.4 million or $749 per ounce of gold sold1.
AISC1 of $648 per ounce of gold sold.
Net earnings of $31.1 million ($0.17 per share).
Adjusted earnings1 of $47.0 million ($0.26 per share).
Cash and cash equivalents of $142.5 million as at June 30, 2018.
Achieved first half 2018 guidance with a total of 187,029 ounces of gold produced at an AISC of $783 per ounce of gold sold.
Second Quarter Production Overview
Production totaled 111,340 ounces of gold and 118,205 ounces of silver.
Mill feed grade averaged 14.9 grams per tonne gold for the quarter.
Gold recoveries averaged 97.7%.
Process plant throughput averaged 2,604 tonnes per day for total of 236,990 tonnes of ore.
Mine development averaged over 740 meters per month during the quarter to prepare additional stopes which will allow for optimization of ore grades feeding the mill.
Gold production from March throughout the second quarter reflected the full integration of the operational grade control program. Grade control is critical for grade prediction and the refinement of stope shapes, which results in reduced dilution and optimized grade to the mill.
Second Quarter Financial Overview
Revenue of $146.5 million was generated from mine operations.
The Company sold 115,309 ounces of gold at an average realized price1 of $1,278 per ounce generating $147.4 million in revenue. The Company sold 118,366 ounces of silver generating $1.6 million in revenue.
Treatment costs and refining charges associated with concentrate sales, in the amount of $4.3 million, were included within concentrate revenue. The average London Bullion Market Association AM and PM market price over the quarter ended June 30, 2018 was $1,306 per ounce.
Total cost of sales was $86.4 million or $749 per ounce of gold sold.
Total cash cost was $548 per ounce of gold sold and AISC was $648 per ounce of gold sold.
Sustaining capital expenditures amounted to $3.2 million (including $1.1 million deferred development costs incurred during production).
Earnings from mine operations were $60.1 million.
Net earnings were $31.1 million or $0.17 per share.
Adjusted earnings1 were $47.0 million or $0.26 per share.
Cash generated from operating activities was $77.3 million.
Cash and cash equivalents were $142.5 million as at June 30, 2018 increasing $86.2 million from $56.3 million at December 31, 2017. The Company has working capital of $133.2 million excluding the current portion of long-term debt as at June 30, 2018 compared to $40.6 million as at December 31, 2017.
Application to increase production rate
On December 20, 2017, the Company submitted an application to the BC Ministry of Energy, Mines and Petroleum Resources and the BC Ministry of Environment and Climate Change Strategy to increase the Brucejack Mine production rate to 3,800 tonnes per day. The increase would result in an annual average production rate of 1.387 million tonnes, up from 0.99 million tonnes (a daily average of 3,800 tonnes from 2,700 tonnes). Based on preliminary engineering, the capital cost to increase the mill capacity is estimated to be less than $25 million. The approval process is expected to be completed by year end.
