Blueprint
August 9,
2018
|
News Release
18-11
|
Pretivm Reports Second Quarter 2018 Results
Brucejack delivers on guidance; building a strong cash
position
Vancouver,
British Columbia, August 9, 2018; Pretium Resources Inc.
(TSX/NYSE:PVG) (“Pretivm” or the “Company”)
is pleased to report financial and operating results for the second
quarter and first half of 2018.
All amounts are in US dollars unless otherwise noted. This release
should be read in conjunction with the Company’s Financial
Statements and Management’s Discussion and Analysis available
on the Company’s website and on SEDAR.
“Our
cash balance increased by more than $72 million through the quarter
to $142.5 million as a result of our improved production at lower
costs,” said Joseph Ovsenek, President & CEO of Pretivm.
“In the first half of the year, we’ve reached steady
state production, fully implemented our grade control program and
met our production guidance. We intend to build on this positive
momentum for the remainder of the year, firmly establishing Pretivm
as a premier high-grade gold producer.”
Second Quarter 2018 Summary
●
Production of
111,340 ounces of gold.
●
Revenue of $146.5
million on 115,309 ounces of gold sold.
●
Total cost of sales
$86.4 million or $749 per ounce of gold sold1.
●
AISC1 of $648 per ounce of
gold sold.
●
Net earnings of
$31.1 million ($0.17 per share).
●
Adjusted
earnings1
of $47.0 million ($0.26 per share).
●
Cash and cash
equivalents of $142.5 million as at June 30, 2018.
●
Achieved first half
2018 guidance with a total of 187,029 ounces of gold produced at an
AISC of $783 per ounce of gold sold.
Second Quarter Production Overview
●
Production totaled
111,340 ounces of gold and 118,205 ounces of silver.
●
Mill feed grade
averaged 14.9 grams per tonne gold for the quarter.
●
Gold recoveries
averaged 97.7%.
●
Process plant
throughput averaged 2,604 tonnes per day for total of 236,990
tonnes of ore.
1 Refer to the “Non-IFRS Financial
Performance Measures” section at the end of this news
release.
●
Mine development
averaged over 740 meters per month during the quarter to prepare
additional stopes which will allow for optimization of ore grades
feeding the mill.
Gold
production from March throughout the second quarter reflected the
full integration of the operational grade control program. Grade
control is critical for grade prediction and the refinement of
stope shapes, which results in reduced dilution and optimized grade
to the mill.
Operating Results
|
Three months ended June 30,
|
Six months ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined
|
t
|
248,506
|
-
|
516,845
|
-
|
Mining rate
|
|
2,731
|
-
|
2,855
|
-
|
|
|
|
|
|
|
Ore
milled
|
t
|
236,990
|
-
|
498,433
|
-
|
Head
grade
|
|
14.9
|
-
|
11.9
|
-
|
Recovery
|
|
97.7
|
-
|
97.4
|
-
|
Mill
throughput
|
|
2,604
|
-
|
2,754
|
-
|
|
|
|
|
|
|
Gold ounces
produced
|
|
111,340
|
-
|
187,029
|
-
|
Silver ounces
produced
|
|
118,205
|
-
|
212,935
|
-
|
|
|
|
|
|
|
Gold ounces
sold
|
|
115,309
|
-
|
183,960
|
-
|
|
|
118,366
|
-
|
202,600
|
-
|
The following
abbreviations were used above: t (tonnes), tpd (tonnes per day),
g/t (grams per tonne), Au (gold) and oz (ounces).
(1) No comparative
data as the mine commenced commercial production as of July 1,
2017.
|
Second Quarter Financial Overview
●
Revenue of $146.5
million was generated from mine operations.
●
The Company sold
115,309 ounces of gold at an average realized price2 of $1,278 per ounce generating $147.4
million in revenue. The Company sold 118,366 ounces of silver
generating $1.6 million in revenue. Treatment costs and refining
charges associated with concentrate sales, in the amount of $4.3
million, were included within concentrate revenue. The average
London Bullion Market Association AM and PM market price over the
quarter ended June 30, 2018 was $1,306 per ounce.
●
Total cost of sales
was $86.4 million or $749 per ounce of gold sold.
●
Total cash
cost was $548 per
ounce of gold sold and AISC was $648 per ounce of gold
sold.
●
Sustaining capital
expenditures amounted to $3.2 million (including $1.1 million
deferred development costs incurred during
production).
●
Earnings from mine
operations were $60.1 million.
●
Net earnings were
$31.1 million or $0.17 per share.
●
Adjusted
earnings1
were $47.0 million or $0.26 per share.
1 Refer to the “Non-IFRS Financial
Performance Measures” section at the end of this news
release.
●
Cash generated from
operating activities was $77.3 million.
●
Cash and cash
equivalents were $142.5 million as at June 30, 2018 increasing
$86.2 million from $56.3 million at December 31, 2017. The Company
has working capital of $133.2 million excluding the current portion
of long-term debt as at June 30, 2018 compared to $40.6 million as
at December 31, 2017.
The
Company continues to evaluate options to refinance the credit
facility and repurchase the precious metals stream.
Financial Results
|
Three
months ended June 30,
|
Six
months ended June 30,
|
In thousands of USD, except for per ounce data
|
|
|
|
|
|
|
|
|
|
|
Revenue(1)
|
$
|
146,478
|
-
|
235,900
|
-
|
Earnings from mine operations (1,2)
|
$
|
60,070
|
-
|
76,904
|
-
|
Net
earnings (loss) for the period
|
$
|
31,097
|
(2,495)
|
23,039
|
(6,758)
|
Per
share - basic
|
$/share
|
0.17
|
(0.01)
|
0.13
|
(0.04)
|
Per
share - diluted
|
$/share
|
0.17
|
(0.01)
|
0.13
|
(0.04)
|
|
|
|
|
|
Adjusted earnings (loss) (2)
|
$
|
47,048
|
(3,178)
|
52,845
|
(9,267)
|
Per share - basic (2)
|
$/share
|
0.26
|
(0.02)
|
0.29
|
(0.05)
|
|
|
|
|
|
Total
cash and cash equivalents
|
$
|
142,495
|
55,311
|
142,495
|
55,311
|
Cash
generated from (used by) operating activities
|
$
|
77,276
|
(4,824)
|
101,995
|
(7,557)
|
Total
assets
|
$
|
1,731,950
|
1,649,593
|
1,731,950
|
1,649,593
|
Long-term debt (3)
|
$
|
292,330
|
616,101
|
292,330
|
616,101
|
|
|
|
|
|
Total cash costs (1,2)
|
$/oz
|
548
|
-
|
657
|
-
|
All-in sustaining costs (1,2)
|
$/oz
|
648
|
-
|
783
|
-
|
|
|
|
|
|
Average realized price (1,2)
|
$/oz
|
1,278
|
-
|
1,276
|
-
|
Average realized cash margin (1,2)
|
$/oz
|
730
|
-
|
619
|
-
|
(1) No comparative data
as the mine commenced commercial production as of July 1,
2017.
(2)
Refer to the "Non-IFRS Financial Performance
Measures" section for a
reconciliation of these amounts.
(3) Long-term debt does not include the current
portion of the Company’s senior secured credit facility in
the amount of $393,531 as at June 30, 2018.
|
Delivering on First Half 2018 Guidance
Production
totaled 187,029 ounces of gold and 212,935 ounces of silver
delivering on our first half 2018 production guidance of 150,000 to
200,000 ounces of gold.
Total
cost of sales, which includes production costs, depreciation and
depletion, royalties and selling costs was $159.0 million or $864
per ounce of gold sold and total cash cost was $657 per ounce of
gold sold. AISC was $783 per ounce of gold sold within our first
half 2018 AISC guidance range of $700 to $900 per ounce of gold
sold.
Second Half 2018 Outlook
H2 2018 production guidance
Gold
production at the Brucejack Mine for the second half of 2018 is
expected in the range of 200,000 to 220,000 ounces, for total 2018
gold production of 387,000 to 407,000 ounces.
H2 2018 financial guidance
All-in
sustaining costs for the second half of 2018 are expected to range
from $710 to $770 per ounce gold sold. All-in sustaining costs do
not include the estimated $25 million of capital cost required to
increase the mill capacity to 3,800 tpd (see Organic Growth Opportunities below). As
production has now reached steady state at the Brucejack Mine, an
increased focus will be placed on operational efficiency to reduce
costs.
Organic Growth Opportunities
Application to increase production
rate
On
December 20, 2017, the Company submitted an application to the BC
Ministry of Energy, Mines and Petroleum Resources and the BC
Ministry of Environment and Climate Change Strategy to increase the
Brucejack Mine production rate to 3,800 tonnes per day. The
increase would result in an annual average production rate of 1.387
million tonnes, up from 0.99 million tonnes (a daily average of
3,800 tonnes from 2,700 tonnes). Based on preliminary engineering,
the capital cost to increase the mill capacity is estimated to be
less than $25 million. The approval process is expected to be
completed by year end.
Exploration drilling for resource expansion and porphyry
source
The
underground exploration drilling conducted to evaluate the
potential extension of the Valley of the Kings to the east while
assessing the potential for a porphyry source at depth was
successfully completed (see news release dated June 18, 2018). Two
holes, both over 1,500-meters in length and drilled east from the
Valley of the Kings intersected alteration, veining, and
mineralization throughout, confirming the presence of
Brucejack-style mineralization starting from the eastern edge of
the Valley of the Kings to beneath the Flow Dome Zone. Anomalous
copper and molybdenum mineralization intersected at depth in both
holes indicate proximity to porphyry-style mineralization at
depth.
These
drill results, along with a follow-up surface geophysical program
and mineral chemistry evaluation, will be used for planning a
future underground drill program focused on resource expansion
of the Valley of the Kings to the east.
Lyle
Morgenthaler, B.A.Sc., P.Eng., Chief Mine Engineer, Pretium
Resources Inc. is the Qualified Person (“QP”)
responsible for Brucejack Mine development. Warwick Board, Ph.D.,
P.Geo, Pr.Sci.Nat., Vice President, Geology and Chief Geologist,
Pretium Resources Inc. is the QP responsible for the Brucejack Mine
grade control program and the Brucejack Mine exploration
drilling.
Regional grass-roots exploration
The
2018 regional grass-roots exploration program which includes
geophysical studies, continued regional prospecting and mapping and
diamond drilling on several high priority gold targets is currently
underway. The 2018 program follows up on the comprehensive regional
exploration that has previously been completed on the 1,250-square
kilometer, wholly-owned property. To date, the program has resulted
in the identification of several distinct areas that have the
potential to host mineralized zones similar to the Valley of the
Kings and Eskay Creek deposits.
Subsequent
to the end of the quarter, a private placement of 227,273
flow-through common shares of the Company at a price of C$13.20 per
flow-through share was completed on July 25, 2018 for total gross
proceeds of approximately C$3.0 million. The proceeds of the
private placement of flow-through common shares are being used to
fund a portion of the 2018 grass-roots exploration
program.
Kenneth
C. McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, Pretium
Resources Inc. is the QP responsible for the regional grass-roots
exploration program.
Our
unaudited condensed consolidated interim Financial Statements and
Management’s Discussion and Analysis for the three and six
months ended June 30, 2018 are filed on SEDAR and available on our
website at www.pretivm.com.
Webcast and Conference Call
The
webcast and conference call to discuss the second quarter 2018
operational and financial results will take place Friday, August
10th, 2018
at 8:00 am PT (11:00 am ET).
Webcast
and conference call details:
Friday, August 10, 2018 at 8:00 am PT (11:00 am ET)
|
Webcast
|
www.pretivm.com
|
Toll
Free (North America)
|
1-800-319-4610
|
International
and Vancouver
|
604-638-5340
|
A
recorded playback will be available until August 24,
2018:
Toll
Free (North America)
|
1-800-319-6413
|
Access
Code
|
2187
|
About Pretivm
Pretivm
is emerging as the premier low-cost intermediate gold producer with
production at the high-grade underground Brucejack Mine in northern
British Columbia now at steady state.
For
further information contact:
Joseph
Ovsenek
President &
CEO
|
Troy
Shultz
Manager, Investor
Relations
&
Corporate
Communications
|
Pretium
Resources Inc.
Suite
2300, Four Bentall Centre, 1055 Dunsmuir Street
PO Box
49334 Vancouver, BC V7X 1L4
(604)
558-1784
invest@pretivm.com
(SEDAR
filings: Pretium Resources Inc.)
Non-IFRS Financial Performance Measures
The
Company has included certain non-IFRS measures in this new release.
Refer to the Company’s MD&A for an explanation and
discussion of non-IFRS measures. The Company believes that these
measures, in addition to measures prepared in accordance with IFRS,
provide investors an improved ability to evaluate the underlying
performance of the Company and to compare it to information
reported by other companies. The non-IFRS measures are intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with International Financial Reporting IFRS. These
measures do not have any standardized meaning prescribed under
IFRS, and therefore may not be comparable to similar measures
presented by other issuers.
Total cost of sales and cash costs
Total
cash costs is a common financial performance measure in the gold
mining industry but has no standard meaning. The Company reports
total cash costs on a gold ounce sold basis. The Company believes
that, in addition to measures prepared in accordance with IFRS,
such as revenue, certain investors can use this information to
evaluate the Company’s performance and ability to generate
operating earnings and cash flow from its mining operations.
Management uses this metric as an important tool to monitor
operating cost performance.
Total
cash costs include cost of sales such as mining, processing,
maintenance and site administration, royalties and selling costs
and changes in inventories less non-cash depreciation and
depletion, site share-based compensation and silver revenue divided
by gold ounces sold to arrive at total cash costs per ounce of gold
sold. Other companies may calculate this measure
differently.
The
following table reconciles these non-IFRS measures to the most
directly comparable IFRS measure disclosed in the financial
statements.
|
For
the three months ended
|
For the six months ended
|
In thousands of USD, except for per ounce data
|
|
|
|
|
|
|
|
|
|
Gold
ounces sold
|
115,309
|
-
|
183,960
|
-
|
|
|
|
|
|
Cost
of sales per ounce sold reconciliation
|
|
|
|
Cost
of sales
|
$86,408
|
$-
|
$158,996
|
$-
|
Cost
of sales per ounce of gold sold
|
$749
|
$-
|
$864
|
$-
|
|
|
|
|
|
Total cash costs reconciliation
|
|
|
|
|
Cost
of sales
|
$86,408
|
$-
|
$158,996
|
$-
|
Less:
Depreciation and depletion
|
(20,875)
|
-
|
(33,867)
|
-
|
Less:
Site share-based compensation
|
(689)
|
-
|
(1,240)
|
-
|
Less:
Silver revenue
|
(1,640)
|
-
|
(2,961)
|
-
|
Total cash costs
|
$63,204
|
$-
|
$120,928
|
$-
|
Total cash costs per ounce of gold sold
|
$548
|
$-
|
$657
|
$-
|
All-in sustaining costs
The
Company believes that AISC more fully defines the total costs
associated with producing gold. The Company calculates AISC as the
sum of total cash costs (as described above), sustaining capital
expenditures, accretion on decommissioning and restoration
provision, treatment and refinery charges netted against
concentrate revenue, site share-based compensation, and corporate
administrative costs, all divided by the gold ounces sold to arrive
at a per ounce amount.
Other
companies may calculate this measure differently as a result of
differences in underlying principles and policies applied.
Differences may also arise due to a different definition of
sustaining versus non-sustaining capital.
The
following table reconciles this non-IFRS measure to the most
directly comparable IFRS measure disclosed in the financial
statements.
|
For the
three months ended
|
For the
six months ended
|
In thousands of USD, except for per ounce data
|
|
|
|
|
Gold
ounces sold
|
115,309
|
-
|
183,960
|
-
|
All-in sustaining costs reconciliation
|
|
|
|
|
Total
cash costs
|
$63,204
|
$-
|
$120,928
|
$-
|
Sustaining capital expenditures (1)
|
3,153
|
-
|
7,624
|
-
|
Accretion
on decommissioning and
restoration
provision
|
141
|
99
|
296
|
182
|
Treatment
and refinery charges
|
4,229
|
-
|
8,120
|
-
|
Site
share-based compensation
|
689
|
-
|
1,240
|
-
|
Corporate administrative costs (2)
|
3,358
|
2,548
|
5,824
|
10,523
|
Total all-in sustaining costs
|
$74,774
|
2,647
|
$144,032
|
$10,705
|
All-in sustaining costs per ounce of gold sold
|
$648
|
-
|
$783
|
$-
|
(1) Sustaining capital
expenditures includes deferred development costs.
(2) Includes the sum
of corporate administrative costs per the statement of earnings
(loss) and comprehensive earnings (loss), excluding depreciation
within those figures.
Total cash costs and AISC reconciliation
Total
cash costs and AISC are calculated based on the definitions
published by the World Gold Council (“WGC”) (a market
development organization for the gold industry comprised of and
funded by 18 gold mining companies from around the world). The WGC
is not a regulatory organization.
Average realized price and average realized cash
margin
Average
realized price and average realized cash margin per ounce sold are
used by management and investors to better understand the gold
price and cash margin realized throughout a period.
Average
realized price is calculated as revenue from contracts with
customers less silver revenue divided by gold ounces sold. Average
realized cash margin represents average realized price per gold
ounce sold less total cash costs per ounce sold.
The
following table reconciles this non-IFRS measure to the most
directly comparable IFRS measure disclosed in the financial
statements.
|
For the
three months ended
|
For the
six months ended
|
In thousands of USD, except for per ounce data
|
|
|
|
|
|
|
|
|
|
Revenue from contracts with
customers(1)
|
$149,057
|
$-
|
$237,646
|
$-
|
Less:
Silver revenue
|
(1,640)
|
-
|
(2,961)
|
-
|
Gold revenue(2)
|
$147,417
|
$-
|
$234,685
|
$-
|
Gold
ounces sold
|
115,309
|
-
|
183,960
|
-
|
Average realized price
|
$1,278
|
$-
|
$1,276
|
$-
|
Less:
Total cash costs per ounce of sold
|
(548)
|
-
|
(657)
|
-
|
Average realized cash margin per ounce of gold sold
|
$730
|
$-
|
$619
|
$-
|
(1) Revenue from
contracts with customers is recognized net of treatment costs and
refinery charges on revenue generated from concentrate sales in the
amount of $4,305 and $8,273 for the three and six months ended June
30, 2018, respectively. The portion of these treatment costs and
refinery charges related to gold concentrate sales were $4,229 and
$8,120 for the three and six months ended June 30, 2018,
respectively.
(2) Gold revenue
excludes the loss on trade receivables at fair value related to
provisional pricing adjustments in the amount of $2,579 and $1,746
for the three and six months ended June 30, 2018,
respectively.
Adjusted earnings (loss) and adjusted basic earnings (loss) per
share
Adjusted
earnings (loss) and adjusted basic earnings (loss) per share are
used by management and investors to measure the underlying
operating performance of the Company. Presenting these measures
helps management and investors evaluate earning trends more readily
in comparison with results from prior periods.
Adjusted
earnings (loss) is defined as net earnings (loss) adjusted to
exclude specific items that are significant, but not reflective of
the underlying operations of the Company, including: gain (loss) on
financial instruments at fair value, amortization on the
Company’s senior secured term credit facility, accretion on
convertible notes, impairment provisions and reversals and deferred
income tax expense (recovery). Adjusted basic earnings (loss) per
share is calculated using the weighted average number of shares
outstanding under the basic method of earnings (loss) per share as
determined under IFRS. The following table reconciles this non-IFRS
measure to the most directly comparable IFRS measure disclosed in
the financial statements.
|
For the
three months ended
|
For the
six months ended
|
In thousands of USD, except for per ounce data
|
|
|
|
|
|
|
|
|
|
Basic
weighted average shares outstanding
|
182,464,495
|
180,849,628
|
182,421,838
|
180,753,483
|
|
|
|
|
|
Adjusted earnings (loss) and adjusted basic earnings (loss) per
share reconciliation
|
|
|
|
|
|
|
Net
earnings (loss) for the period
|
$31,097
|
$(2,495)
|
$23,039
|
$(6,758)
|
Adjusted
for:
|
|
|
|
|
(Gain)
loss on financial instruments at
fair value
|
(3,581)
|
531
|
(944)
|
3,760
|
Amortization
of discount on senior secured
term credit facility
|
6,674
|
-
|
12,908
|
-
|
Accretion
on convertible notes
|
1,388
|
-
|
2,761
|
-
|
Deferred
income tax expense (recovery)
|
11,470
|
(1,214)
|
15,081
|
(6,269)
|
Adjusted earnings (loss)
|
$47,048
|
$(3,178)
|
$(52,845)
|
$(9,267)
|
Adjusted basic earnings (loss) per share
|
$0.26
|
$(0.02)
|
$0.29
|
$(0.05)
|
Additional non-IFRS financial measures
“Earnings
from mine operations” provides useful information to
management and investors as an indication of the Company’s
principal business activities before consideration of how those
activities are financed, sustaining capital expenditures, corporate
administrative costs, foreign exchange gains (losses), derivative
costs, interest and finance income and expense and
taxation.
“Working
capital” is defined as current assets less current
liabilities and provides useful information to management and
investors about liquidity of the Company.
Forward-Looking Statements
This
news release contains “forward-looking information”,
“forward looking statements”, “future oriented
financial information” and/or “financial
outlooks” within the meaning of applicable Canadian and
United States securities legislation (collectively herein referred
to as “forward-looking statements” or
“forward-looking information”). The purpose of
disclosing future oriented financial information and financial
outlooks is to provide a general overview of management’s
expectations regarding the anticipated results of operations and
costs thereof and readers are cautioned that future oriented
financial information and financial outlook may not be appropriate
for other purposes. Wherever possible, words such as
“plans”, “expects”, “guidance”,
“projects”, “assumes”,
“budget”, “strategy”,
“scheduled”, “estimates”,
“forecasts”, “anticipates”,
“believes”, “intends”,
“modeled’, “targets” and similar
expressions or statements that certain actions, events or results
“may”, “could”, “would”,
“might” or “will” be taken, occur or be
achieved, or the negative forms of any of these terms and similar
expressions, have been used to identify forward-looking statements
and information. Any statements that express or involve discussions
with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions or future events or
performance are not statements of historical fact and may be
forward-looking statements. Forward-looking information may
include, but is not limited to, information with respect to:
production and cost guidance; anticipated results of our
operations; our planned mining, exploration and development
activities; our operational grade control program, including plans
with respect to our infill drill program and our local grade
control model; capital and operating cost estimates; production and
processing estimates; the future price of gold and silver; the
adequacy of our financial resources; our intentions with respect to
our capital resources; our financing activities, including plans
for the use of proceeds thereof; the estimation of mineral reserves
and resources including the 2016 Valley of the Kings Mineral
Resource estimate and the Brucejack Mineral Reserve estimate;
realization of mineral reserve and resource estimates; timing of
further development of our Brucejack Mine; costs and timing of
future exploration and development; results of future exploration
and drilling; capital and operating cost estimates; timelines and
similar statements relating to the economic viability of the
Brucejack Mine, including mine life, total tonnes mined and
processed and mining operations; timing, receipt, and anticipated
effects of approvals, consents and permits under applicable
legislation; our executive compensation approach and practice; our
relationship with community stakeholders; litigation matters;
environmental matters; and statements regarding USD cash flows
currency fluctuations and the recurrence of foreign currency
translation adjustments. Statements concerning mineral resource
estimates may also be deemed to constitute forward-looking
statements to the extent that they involve estimates of the
mineralization that will be encountered if the property is
developed. Forward-looking statements are subject to a variety of
known and unknown risks, uncertainties and other factors that could
cause actual events or results to materially differ from those
expressed or implied by the forward-looking statements, including,
without limitation, those related to: the accuracy of our mineral
resource and reserve estimates (including with respect to size,
grade and recoverability) and the geological, operational and price
assumptions on which they are based; uncertainties relating to
inferred mineral resources being converted into measured or
indicated mineral resources; commodity price fluctuations,
including gold price volatility; general economic conditions; the
inherent risk in the mining industry; significant governmental
regulations; currency fluctuations, and such other risks as are
identified in Pretivm’s Annual Information Form dated March
28, 2018, Form 40-F dated March 28, 2018, MD&A and other
disclosure documents filed on SEDAR at www.sedar.com and in the
United States through EDGAR at the Security and Exchange
Commission’s website at www.sec.gov (collectively, the
“Pretivm Disclosure Documents”). Our forward-looking
statements are based on the assumptions, beliefs, expectations and
opinions of management on the date the statements are made, many of
which may be difficult to predict and beyond our control. In
connection with the forward-looking statements contained in this
news release, we have made certain assumptions about our business,
including about our exploration, development and production
activities, and the results, costs and timing thereof; timing and
receipt of approvals, consents and permits under applicable
legislation; the geopolitical, economic, permitting and legal
climate that we operate in; the price of gold and other
commodities; exchange rates; market competition; the adequacy of
our financial resources, and such other material assumptions as are
identified in the other Pretivm Disclosure Documents. We have also
assumed that no significant events will occur outside of our normal
course of business. Although we believe that the assumptions
inherent in the forward-looking statements are reasonable as of the
date of this news release, forward-looking statements are not
guarantees of future performance and, accordingly, undue reliance
should not be put on such statements due to the inherent
uncertainty therein. We do not assume any obligation to update
forward-looking statements, whether as a result of new information,
future events or otherwise, other than as required by applicable
law. For the reasons set forth above, prospective investors should
not place undue reliance on forward-looking statements. Neither the
TSX nor the NYSE has approved or disapproved of the information
contained herein.