Hedge funds slash bullish wagers on gold over Trump election win
Hedge funds and other large speculators boosted net-long positions by 11% to 197,362 as of Nov. 12, the lowest in 14 weeks.
Pretium Resources, the owner and operator of the Brucejack gold mine near Stewart, B.C., has arranged to buy back the mine’s royalties currently held by Osisko Gold Royalties.
Pretium will make a payment of $31.2 million to Osisko on Sept. 30, 2019, and the balance on Nov. 30, 2019. The total cash purchase price to Pretium will be $41.3 million.
Osisko chairman and CEO Sean Roosen said, “Since acquiring the Orion portfolio in 2017, we now have received approximately $164.3 million from Pretium, including proceeds from the buyback of the stream and sale of the offtake as well as cash margins to date from the offtake, compared to a book value of approximately $147.3 million for our investment in Pretium.”
Osisko says it will use the proceeds of the sales for additional investments. Osisko’s 2019 guidance included 500 gold equivalent oz. from the Brucejack project in the fourth quarter of this year.
(This article first appeared in the Canadian Mining Journal)
