Shares in Pretium Resources Inc (NYSE:PVG) tanked on Tuesday after the company announced disappointing production and cost forecasts from its Brucejack gold-silver mine in British Columbia.
During lunchtime trade the Vancouver-based producer was exchanging hands for $7.95 a share, down 26.3% on the New York Stock Exchange, in massive volumes of more than 10m shares traded. Pretium is now worth $1.9 billion down 37% from its year high hit early February.
In a statement Pretium said after six months of ramp-up at the Brucejack mine in the northwest of the Canadian province, production totaled 152,484 ounces of gold, but fourth quarter output was nearly 12,000 ounces below the prior quarter. Gold recoveries declined to 95.8% in the quarter compared to the previous three months.
Pretium said it expects steady state gold production at Bruecjack, its only operating mine, to be achieved in mid-to-late 2018.
Gold production at Brucejack for the first half of 2018 is expected in the range of 150,000 – 200,000 ounces, for total first year ramp-up gold production of 302,000 – 352,000 ounces.
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