What happened

Pretium Resources (NYSE:PVG) stock closed up 10.5% on Monday -- not because of anything that happened on Monday, however, but because of what it said on Friday.

On Friday, this gold and silver miner announced that Canada's BC Ministry of Energy, Mines and Petroleum Resources and BC Ministry of Environment and Climate Change Strategy have issued it "amended permits to increase the Brucejack Mine production rate to 3,800 tonnes per day."

And on Monday, investors finally got a chance to react to that news.

Gold nugget with other gold nuggets in the background

Pretium looks pretty good after receiving new permits to expand production. Image source: Getty Images.

So what

As Pretium explained, "The amended permits allow for a production increase to an annual rate of 1.387 million tonnes [of ore] from 0.99 million tonnes (daily average of 3,800 tonnes from 2,700 tonnes)."

Only "minor mill upgrades" costing less than $18.6 million will be required to facilitate the production increase, a small price to pay for a 40% increase in production at a mine that, through the first half of 2018, produced 187,000 ounces of gold and came close to maxing out guidance.

Now what

Pretium only became profitable just two quarters ago, but it's already got more than $31 million in trailing net income and $125 million in trailing free cash flow to its credit. The investment needed to expand production won't eat far into those profits, while helping to ensure the company grows earnings as fast as Wall Street wants to see.

In that regard, with earnings projected to more than quadruple from an expected $0.30 per share this year to more than $1.30 per share in 2020, Pretium at $8.20 a share looks like a bright, shiny prospect for gold investors.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.