Pretium Q2 2018 update: there are things that don’t add up | Value Investing News

Pretium Q2 2018 update: there are things that don’t add up

  • Pretium has gone from complaining about the accuracy of the sample tower data, to saying that it would provide guidance at the end of 2017 and not do so, and now it is saying that it can predict production to within 5%.
  • Making some rough calculations (see “Brucejack mining costs” in this Google Sheet ), I estimate that Pretium’s costs (adjusted for Year 1 capex being higher than other years + corporate administrative costs) were:
  • If Pretium’s cash flows continue to be consistent with low $200s / tonne costs, and the grades truly are close to the reserve grade, then this mine will make a lot of money.
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