What happened
Shares of Pretium Resources Inc. (PVG) rallied more than 13% by 10:45 a.m. EDT on Monday after the gold miner reported strong production results at its Brucejack Mine.
So what
Pretium Resources announced that its Brucejack Mine, in British Columbia, produced about 187,000 ounces of gold in the first half of 2018, toward the high end of its 150,000-to-200,000-ounce guidance range. After producing 75,689 ounces of gold during the first quarter, the company accelerated its pace in the second quarter, producing 111,340 ounces.
Image source: Getty Images.
That acceleration should continue in the second half of the year as Pretium expects to produce 200,000 to 220,000 ounces of gold, which would bring its full-year total to between 387,000 and 407,000 ounces. Further, the company anticipates that its all-in sustaining costs will range between $710 to $770 an ounce during the second half, which is an improvement from the range of $700 to $900 an ounce it anticipated for the first half.
Now what
While Pretium Resources had some issues ramping up production at Brucejack toward the end of 2017, those problems appear to be in the rearview mirror. Because of that, production should continue growing, which could take the company's profits along with it, as long as gold prices cooperate. That growth could continue pushing shares higher. However, with just one operating mine, Pretium Resources is a higher-risk gold stock, which is why investors might want to consider buying one of these top-tier gold miners instead.
