Traders found fault with declining grades. Forecast production in 2020 is 3,800 tonnes per day with average annual gold grade ranging between 7.6 grams per tonne to 8.5 grams per tonne at a targeted gold recovery of 97%.
$PVG reported 354.4K oz @ AISC of $888/oz for 19. OK. Pres & CEO, J Ovsenek & Chief Geo W. Board are out. Wonder if it has something to do with the grade. 8.7 g/t reported vs a reserve grade of 12.5 g/t & 2020, 7.6 to 8.5 g/t. Implies a ~2.0MM oz trim to reserves. Hmmm….
— Ronald Stewart (@RonaldS_AuCu) February 12, 2020
$PVG Guides 2020 lower grade (7.6-8.5gpt vs 8.7 in 2019), lower production (325k to 365k or 345k midpoint vs 354.4k in 2019) & higher costs (AISC $910-$1060 or $985 midpoint vs $888 in 2019). This at the 3,800 tpd run rate. Updated LoM by 1Q but notes similar 2020 pdn run rate.
— High Grade ⚒ (@EconomicAlpha) February 12, 2020
Pretium’ Brucejack Mine has high variability of gold mineralization.
All-in-sustaining cost will climb from $888 ounce in 2019 to between $910 to $1,060 forecast in 2020.
“AISC estimates include costs associated with continued lateral development at a rate of approximately 1,000 meters per month through 2020. Lateral development will focus on opening the mine on the 1080 Level and Brucejack Fault Zone in the first half and stope development in the second half of 2020,” wrote the company in its outlook.
Gold production in 2020 is supposed to range of 325,000 to 365,000 ounces. In 2019 the company produced 354,405 ounces.