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 (NYSE, TSX: PGV) reported its 2019 results and production outlook for 2020 on Wednesday, revealing that it expects to produce 325,000 to 365,000 oz. gold a year while it mines the Valley of the Kings zone, a significant drop from the 525,000 oz. long-term output rate forecast last year.
Pretium said the change in the production outlook is due to lower estimated gold grades.
Gold production of 354,405 oz. from the Brucejack mine last year at all-in sustaining costs (AISC) of $888 per oz. is in line with earlier forecasts.
The miner said it expects to release an updated life of mine plan by the end of March, which will include a resource and reserve update for Brucejack.
Pretium said the change in the production outlook is due to lower estimated gold grades
Last year, the mine generated $184.2 million in free cash flow, allowing the company to reduce its total debt by $180.4 million.
This year, with 325,000 oz. to 365,000 oz. of gold expected, AISCs are forecast at $910 to $1,060 per oz. which includes costs related to ongoing lateral development and one-time sustaining capital items.
The NI 43-101 compliant report updated reserves for Brucejack to 16 million tonnes at 12.6 g/t gold for a total of 6.4 million oz., primarily comprised of the 5.8-million oz. Valley of the Kings zone.
Pretium also said its is planning a leadership transition. Meanwhile, Joseph Ovsenek will remain at the helm.
At market close Wednesday, Pretium’s stock was down over 21%. The day’s trades reached nine million, over seven times the average daily volume. The company has a $1.3 billion market capitalization.
(A version of this article first appeared in the Canadian Mining Journal)
