The Brucejack mine
The stock of Canadian gold miner Pretium Resources (Pretivm) surged 25% on Thursday, as the company announced its second-quarter results and said that its free cash flow guidance for the entire year had been achieved in only the first six months.
In the first six months of the year, the owner of the Brucejack mine in British Columbia produced 173 307 oz of gold, generating $293.1-million in revenue and $124.6-million in free cash flow, at an average realised gold price of $1 677/oz.
The second quarter’s free cash flow was a record $82.7-million, reported CEO Jacques Perron on Thursday.
With improved gold prices, Pretivm increased its free cash flow forecast for 2020 to between $205-million and $275-million based on an average gold price of $1 800/oz. This compares with a prior forecast of $100-million to $170-million based on an average gold price of $1 450/oz.
The company expected to meet its 2020 gold production guidance at the Brucejack mine of 325 000 oz to 365 000 oz. Production would continue for the remainder of 2020 at an average rate of about 3 500 t/d owing to planned shutdowns and an increased focus on waste management from accelerated lateral development.
The average annual gold grade is expected to remain in the guidance range between 7.6 g/t and 8.5 g/t at an average gold recovery of 97%.
But Perron said that no quarter could be considered a success, unless it was accomplished safely. The loss of one of our employees, announced a few days ago, is a tragic reminder of the importance of safety in all mine operations. Our thoughts are with the employee’s family and loved ones. We will work tirelessly to ensure a safe workplace for everyone at Brucejack, which will directly support our efforts to operate efficiently and profitably.”
Pretivm's stock closed at C$16.65 a share - up more than a quarter on the previous day's closing price of $13.25 a share.