Pretium Resources' (TSX: PVG) flagship asset, the Brucejack gold mine in northwestern British Columbia, reached steady-state production on schedule in the second quarter of 2018, one year after the mine's first gold pour.
In the first half of 2018, Brucejack produced 187,000 gold oz. at all-in sustaining costs of US$783 per oz., well in line with the company's guidance. Head grade averaged 11.9%, while the gold recovery rate was 97.7%.
First-half revenue totaled US$235 million with net earnings of US$52 million.
Pretium's cash position grew from US$70 million to US$143 million in the second quarter as a result of increased production at lower costs.
For the rest of 2018, Pretium is focused on building that cash position, refinancing its US$350 million credit facility and buying back its 8% precious metals stream (first opportunity this December). The company expects Brucejack to produce 200,000 to 220,000 gold oz. at all-in sustaining costs of US$710 to US$770 per ounce in the second half.
Pretium Resources' stock is currently valued at $12.22 per share with a 52-week range of $7.94 to $15.17. The company has a $2.2 billion market capitalization.