The document discusses Pretivm's Brucejack Mine, which has been generating cash since start-up in November 2019. It provides cautionary statements regarding the use of forward-looking information in the presentation. It also notes that certain technical and scientific information is derived from Pretivm's NI 43-101 technical report on the Brucejack Gold Mine from April 2019.
2. 2
Cautionary Statement
Forward-Looking Information
This Presentation contains “forward-looking information” and “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 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 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: the estimation of Mineral Reserves and Resources, including the updates thereto; realization of Mineral Reserve and Resource estimates; our estimated life of
mine and life of mine plan for the Brucejack Mine; production and processing estimates; capital, sustaining and operating cost estimates and timing thereof; estimated economic results of
the Brucejack Mine, including net cash flow and net present value; the expected grade of gold and silver production; predicted metallurgical recoveries for gold and silver; geological and
mineralization interpretations; development of the Brucejack Mine; the Brucejack Mine production rate and the ramp-up to 3,800 tonnes per day production rate; capital modifications
and upgrades, underground development, and estimated expenditures and timelines in connection therewith, including with respect to the ramp-up to 3,800 tonnes per day production
rate; our planned mining (including mining methods), expansion, exploration and development activities, including our infill, expansion and underground exploration drill programs
and our grassroots exploration program, and the results, costs and timing thereof; timelines and similar statements relating to the economic viability of the Brucejack Mine, including
mine life, total tonnes mined and processed and mining operations; production and cost guidance; our operational grade control program, including plans with respect to our infill drill
program and our local grade control model; grade reconciliation, updated geological interpretation and mining initiatives with respect to the Brucejack Mine; our operational strategy;
our future operational and financial results, including estimated cash flows, and the timing thereof; payment of our debt and other obligations, including the source of funds and timing
thereof; the future price of gold and silver; our liquidity and the adequacy of our financial resources; our intentions with respect to our capital resources; results, analyses and
interpretations of exploration and drilling programs; timing, receipt, and anticipated effects of, and anticipated capital costs in connection with approvals, consents and permits under
applicable legislation; litigation matters; environmental matters; our effective tax rate and the recognition of our previously unrecognized income tax attributes; statements regarding
United States dollar cash flows, currency fluctuations and the recurrence of foreign currency translation adjustments; plans regarding our compensation policy and practices; and
management and board of directors succession plans. Forward-looking information is 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 information, including, without limitation, those related to: uncertainty as to the
outcome of legal proceedings; the effect of indebtedness on cash flow and business operations; the effect of restrictive covenants in our agreements; our ability to satisfy commitments
under our Offtake Agreement; assumptions regarding expected capital costs, operating costs and expenditures, production schedules, economic returns and other projections; our
production and production cost estimates, including the accuracy thereof; commodity price fluctuations, including gold price volatility; 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; our ability to maintain or increase our
annual production of gold at the Brucejack Mine or discover, develop or acquire Mineral Reserves for production; dependency on the Brucejack Mine for our future operating revenue;
the development of our properties; general economic conditions; the inherent risk in the mining industry; and significant governmental regulations, including environmental regulations;
and such other risks, uncertainties and factors as are identified in our Annual Information Form dated March 28, 2019, Form 40-F dated March 28, 2019, most recently filed MD&A and
other applicable disclosure documents as filed in Canada on SEDAR at www.sedar.com and in the United States through EDGAR at the United States Securities and Exchange
Commission’s (“SEC”) website at www.sec.gov (collectively, the “Pretivm Disclosure Documents”). This list is not exhaustive of the factors that may affect any of our forward-looking
information. Our forward-looking information is 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 information contained in this Presentation, we have made certain assumptions about, among other
things: our business and that no significant events will occur outside of our normal course of business; planned exploration and development activities and the costs and timing thereof;
future prices of gold and silver and other metal prices; the accuracy of our Mineral Resource and Mineral Reserve estimates; the geology and mineralization of the Brucejack Project;
operating conditions; capital and operating cost estimates; production and processing estimates; the results, costs and timing of future exploration and drilling; timelines and similar
statements relating to the economic viability of the Brucejack Project; timing and receipt of governmental, regulatory and third party approvals, consents, licenses and permits; obtaining
required renewals for existing approvals, consents, licenses and permits; the adequacy of our financial resources and our ability to raise any necessary additional capital on reasonable
terms; our ability to satisfy the terms and conditions of our debt obligations; commodity prices; currency exchange rates and interest rates; political and regulatory stability; requirements
under applicable laws; market competition; sustained labour stability and availability of equipment; positive relations with local groups; favourable equity and debt capital markets;
stability in financial and capital markets; and such other factors and assumptions as are set out in the Pretivm Disclosure Documents. The foregoing list of assumptions and factors is not
exhaustive. Although we believe that the assumptions inherent in the forward-looking information are reasonable, they are subject to significant business, social, economic, political,
regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual actions, events, conditions, results, performance or achievements to be
materially different from those projected in the forward-looking information. Forward-looking information is not a guarantee of future performance. There can be no assurance that
forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. We do not assume any
obligation to update forward-looking information, whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual
events and such forward-looking information, other than as required by applicable law. For the reasons set forth above, readers should not place undue reliance on forward-looking
information.
3. 3
Notes to Investors
Scientific and Technical Disclosure
Certain technical and scientific information contained herein relating to the Brucejack Project is derived from, and in some instances is an extract from, the Company’s National
Instrument 43-101 – Standards of Disclosure of Mineral Projects (“NI 43-101”) – technical report (the “2019 Report”) entitled “Technical Report on the Brucejack Gold Mine, Northwest
British Columbia” with an effective date of April 4, 2019 prepared for Pretivm by Ivor W.O. Jones, M.Sc., P.Geo., FAusIMM, CP(Geo) of Ivor Jones Pty Ltd., Mark Horan, P.Eng. of
Tetra Tech Canada Inc. (“Tetra Tech”), Jianhui (John) Huang, Ph.D., P.Eng. of Tetra Tech, Hassan Ghaffari, P.Eng. of Tetra Tech, Maritz Rykaart, Ph.D., P.Eng. of SRK Consulting
(Canada) Inc., Rolf Schmitt, M.Sc., P.Geo. of Environmental Resources Management, Alison Shaw, Ph.D., P.Geo. of Lorax Environmental Services Ltd., Hamish Weatherly, M.Sc.,
P.Geo. of BGC Engineering Inc. (“BGC”), Trevor Crozier, M.Eng., P.Eng. of BGC, Catherine Schmid, M.Sc., P.Eng. of BGC and Ed Carey, P.Eng. of BGC. The 2019 Report is the
only current NI 43-101 compliant technical report with respect to the Brucejack Project and supersedes all previous technical reports. Reference should be made to the full text of the
2019 Report, which has been filed with certain Canadian securities regulatory authorities pursuant to NI 43-101. The 2019 Report is available for review under the Company’s profiles
on SEDAR at www.sedar.com and EDGAR at the SEC’s website at www.sec.gov. Scientific and technical information in this Presentation not contained in the 2019 Report has been
reviewed, approved and verified by Kenneth C. McNaughton, M.A.Sc., P.Eng., our Vice President and Chief Exploration Officer, Lyle Morgenthaler, B.A.Sc., P.Eng., our Chief Mine
Engineer, Warwick Board, Ph.D., P.Geo, Pr.Sci.Nat., our Vice President, Geology and Chief Geologist, and Nicolas Scarcelli-Casciola, B.A.Sc., P.Eng., our Mine Planning Manager, each
of whom is a “Qualified Person” as defined in NI 43-101.
Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental,
permitting, legal, title, taxation, socio-economic, marketing, political or other relevant issues. There is no guarantee that all or any part of the mineral resource will be converted into
mineral reserves.
Technical disclosure set out in this Presentation has not been prepared in accordance with the requirements of United States securities laws and uses terms that comply with reporting
standards in Canada with certain estimates prepared in accordance with NI 43-101. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards
for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all Mineral Reserve and Mineral Resource
estimates contained in this Presentation have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System.
Canadian standards, including NI 43-101, differ significantly from the requirements of the SEC under its Industry Guide 7 (“Guide 7”), and Mineral Reserve and Resource information
contained in this Presentation may not be comparable to similar information disclosed by United States companies reporting pursuant to Guide 7. In particular, and without limiting
the generality of the foregoing, the term “resource” does not equate to the term “reserves”. Under Guide 7, mineralization may not be classified as a “reserve” unless the determination
has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made and volumes that are not “reserves’
should not be disclosed. Among other things, all necessary permits would be required to be in hand or issuance imminent in order to classify mineralized material as reserves under
Guide 7. Accordingly, Mineral Reserves estimates included in this Presentation may not qualify as “reserves” under Guide 7. Guide 7’s current disclosure standards normally do not
permit the inclusion of information concerning “Measured Mineral Resources”, “Indicated Mineral Resources” or “Inferred Mineral Resources” or other descriptions of the amount of
mineralization in mineral deposits that do not constitute “reserves” by Guide 7 standards in documents filed with the SEC. United States investors should also understand that
“Inferred Mineral Resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or
any part of “Mineral Resources”, “Indicated Mineral Resources” or “Inferred Mineral Resource” will ever be upgraded to a higher category. Under Canadian rules, estimated
“Inferred Mineral Resources” may not form the basis of feasibility or pre-feasibility studies except in rare cases. Investors are cautioned not to assume that all or any part of the
“Mineral Resources”, “Measured Mineral Resources”, “Indicated Mineral Resources” or “Inferred Mineral Resource” reported in this Presentation exists or is economically or legally
mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, Guide 7 normally only permits issuers to report mineralization
that does not constitute “reserves” by Guide 7 standards as in-place tonnage and grade without reference to unit measures. Investors are specifically cautioned not to assume that all or
any part of the mineral deposits in these categories will ever be converted into Guide 7-defined mineral reserves. In addition, the definitions of “Proven Mineral Reserves” and
“Probable Mineral Reserves” under reporting standards in Canada differ in certain respects from the standards of Guide 7. Accordingly, information concerning mineral deposits set
forth or incorporated by reference herein may not be comparable with information made public by companies that report in accordance with Guide 7.
Non-IFRS Financial Performance Measures
This Presentation includes certain non-IFRS measures. The Company believes that these measures, in addition to measures prepared in accordance with International
Financial Reporting Standards (“IFRS”), provide readers an improved ability to evaluate the underlying performance of the Company and to compare it to information reported
by other companies. Management uses these measures for internal valuation for the period and to assist with planning and forecasting of future operations. 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
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. Refer to the
Company’s latest MD&A for further details, including an explanation, discussion and reconciliation of non-IFRS measures.
Currency
Unless otherwise indicated, all dollar values herein are in United States dollars.
4. 4
Brucejack Mine, British Columbia
Low-cost, high-margin mid-tier gold producer
Profitable every quarter since
start-up
Generated $437 M in cash since
July 2017
6.4 M oz gold Proven &
Probable Reserve
14 year mine life
Source: News Releases dated October 30, 2019 and refer to Company’s Financial Statements and MD&A
Technical Report on the Brucejack Gold Mine, Northwest British Columbia with an effective date of April 4, 2019
6. 6
Environment, Social & Governance
Aligning current sustainability
reporting with the Global Reporting
Initiative (GRI)
Launched 2018 Sustainability
Website (November)
Mutually beneficial relationships
with local communities
7. 7
Focused on Local Employment
Pretivm Employees as of October 31 2019
Pretivm’s Brucejack Mine Workforce:
91% British Columbia
50% Northwest British Columbia
30% First Nations
Brucejack
Mine
8. 8
Tailings Management Plan
No tailings dam
Approximately half the tailings used as paste backfill
Approximately half the tailings deposited at the bottom
of Brucejack Lake
9. 9
Governance: Board of Directors
Appointment of Two Independent Directors
Richard O’Brien
Previously CEO and President of Newmont Mining & Boart
Longyear
Assuming role of Board Chair on January 1, 2020
Jeane Hull
Previously Chief Operating Officer for Rio Tinto at the
Kennecott Utah Copper Mine
Professional Registered Engineer
10. 10
Brucejack Mine
Ninth Consecutive Quarter of Positive Earnings
Q3 2019 Summary
Source: See News Releases dated October 30, 2019 and refer to Company’s Financial Statements and MD&A.
(1) Non-IFRS performance measure. For reconciliation to IFRS measures refer to the Company’s MD&A.
88,227 ounces gold produced
$132.7 million in revenue
$878 per ounce sold AISC1
$34.0 million adjusted earnings1
$77.8 million cash generated
Reduced debt by $79.1 million
$398.7 million outstanding on loan
$0.18/share adjusted earnings1
11. 11
Q3 Ramp-Up Progress
Mining focused on:
» Progressing underground development to increase
access to the mine
» Increasing grade to the mill by refining stope
dimensions
Optimizing grade - with limited stope inventory-
resulted in reduction of tonnes available
Operational issues encountered in 2 stopes mid-
September
» Hang-up of a production stope
» Complications sequencing a stope
Lower than planned tonnes, grade and ounces in
September reduced Q3 gold production
12. 12
Q4 Ramp-Up
Production mining in Q4 is focused on maximizing
tonnes to the mill
All stopes above a cut off grade of ~5.0 g/t gold will be
mined and processed as they become available
Underground development planned to continue at a
rate of ~1,000m/month through year end
13. 13
Adjusted 2019 Ramp-Up Guidance
YTD 2019 2019 Guidance
Adjusted 2019
Guidance
Gold Production 258,168 oz 390,000 – 420,000 oz 340,000 - 350,000 oz
Total AISC1 $231.2 M $325 – 341 M $314 - 323 M
AISC/oz sold1 $896/oz $775 – 875/oz $900 – 950 /oz
All stopes above 5.0 g/t are being mined
2019 gold grade not representative of LOM grade
Source: See News Releases dated Oct 30, 2019 and refer to Company’s Financial Statements and MD&A.
(1) Non-IFRS performance measure. For reconciliation to IFRS measures refer to the Company’s MD&A.
Adjusted 2019 Production and AISC Guidance
14. 14
Improving Access to Reserves
Incline
1440
1410
1380
1350
1320
1290
1260
1230
1200
1140
1110
1080
1170
EW
Underground development rate: ~ 1,000m/month
All stopes above 5 g/ t are being mined & processed
Sept 2019 Underground Development
Section View Looking North
Underground
Development
Dec 31 2018
Sept 30 2019
Current Mining
Horizons 1200-1410
Measured and
Indicated Resource
15. 15(1) Production rate increase to 3,800 t/d from 2,700 t/d. See News Release dated Dec 21, 2018.
96.7% GOLD RECOVERY (LOM)
Mill Ramp-up Complete
Two Thirds of Total
Gold Production
One Third of Total
Gold Production
16. 16
Longitudinal Longhole Stoping
N
Domain 20
Current Underground
Development
Planned
Underground
Development
Typical
Transverse Stope
Typical
Longitudinal Stope
> 5 g/t drill
intersection
Underground
visible gold
High-grade corridors –
Domain definition in
progress
1170 M Level – Plan View
17. 17
Incorporating Longitudinal Longhole
Stoping
Mine along direction of high-grade corridors
where defined
Minimize stope dilution
Manage grade variability
Reduce development costs
Will be incorporated in updated Life of Mine
plan scheduled for release in Q1 2020
19. 19
Resource and Reserve Update
Resource and Reserve update based on phase 1
and phase 2 drilling
» 89,930 meters from 1,483 holes
New life of mine plan incorporating
longitudinal longhole stoping
Target completion Q1 2020
21. 21
Flow Dome Zone
Valley of the Kings
Reserve Expansion & Potential at Depth
6th Deep
Drill Hole1
Underground Development
EW
SU-666
9.0m @21.87 g/t Au
(Inc 0.5m @ 203 g/t Au
2.05m @2,100 g/t Au
(Inc 0.5m @ 8,600 g/t Au
OPEN
SU-657
OPEN
2015 Drilling3
2019 Deep Hole Drilling1
107.5m @5.56 g/t Au
(Inc 1.5m @185.5 g/t Au)
VU-1787
2018
Drilling2
VU-1785
VU-820VU-911
OPEN
VU-2019
Indicated Resource4
Measured Resource4
500 m
Au (g/t)
0.5-1.0
1.0-5.0
5.0-20.0
>20.0
Inferred Resource4
(1) 2019 Underground Exploration Drilling; see News Release dated June 5, 2019 & Sept 16, 2019.
(2) 2018 Underground Exploration Drilling; see News Release dated June 18, 2018
(3) 2015 Regional Drill program; see News Release dated Oct 8, 2015
(4) Outline of Measured, Indicated, and Inferred Mineral Resource, based on NI 43-101 dated Apr 4, 2019
22. 22
30 km
Regional exploration program; see News Release dated Sept 16, 2019 & June 5, 2019
5 km2018 Drill Hole Collar
BRUCEJACK
MINE
Koopa Zone
Canoe Zone
Lillianne Zone
Claim Outline
A6 Zone
Virginia K Zone
Bowser Regional Exploration
2019 Drill Target Areas
Tuck Zone
Haimila Zone
Over 1200 km2
Eskay Creek Mine
~20km NW
23. 23Regional exploration program; see News Release dated Sept 16, 2019 & June 5, 2019
Bowser Regional Exploration
A6 Zone
Stratigraphy
17 holes drilled in 2019
Drilling focused on
locating and delineating
the rhyolite-mudstone
contact, the same horizon
mined at Eskay Creek
Encouraging alteration
and pyrite stringers were
discovered 2,890 g/t silver
0.89 g/t gold
1.8% copper
Over 1.5m @ 187m
24. 24Source: See News Releases dated Oct 30, 2019 and refer to Company’s Financial Statements and MD&A.
Significant Cash Generation
Positive Cash Flow Since Start-Up
$77.8 million in Q3 2019
$158.9 million in 9 months 2019
$436.8 million in 9 quarters since start-up
25. 25
$0
$100
$200
$300
$400
$500
$600
Dec 2018 Mar 2019 Jun 2019 Sep 2019
$USD
Debt Reduction
Source: See News Release dated Dec 18, 2018, May 2, 2019, Aug 1, 2019 & Oct 30, 2019 and refer to Company’s Financial Statements and MD&A.
$550.0M $537.0M
$494.3M
182210230
250 250 233.3
Revolver
Term
$418.7M
182
216.7
79
7770
Offtake20
Repurchased 100% of Precious Metals Stream for $237 M (Dec 2018)
Refinanced Construction Debt with $480 M Syndicated Bank Loan
Facility (Dec 2018)
Variable interest: LIBOR + 2.5% to 3.5%
Maturity Dec 2022
Repurchase $82 M Offtake Agreement ($62 M paid Sep 2019)
26. 26
Near Term Catalysts
Steady production at 3,800 tonnes
per day
Brucejack potential at depth
Regional exploration
Resource and reserve update and
updated life of mine plan (Q1 2020)
28. 28
Shareholding & Analyst Coverage
(1) As of Nov 15, 2019; ownership calculated on an undiluted basis.
(2) As of Nov 15, 2019. Source: IPREO, Morningstar Inc. & SEDAR.
Top Shareholders(2)
(% S/O)
BlackRock Asset Management 13.5
Van Eck Associates 11.3
Letko, Brosseau & Associates 7.7
Rothschild Asset Management 3.2
BMO Asset Management 2.6
The Vanguard Group 2.5
Orion Mine Finance 2.5
Federated Global Investment 1.7
Pretivm Management 1.7
Equity Structure(1)
(shares in millions)
Issued & Outstanding 185.3
Fully Diluted 195.9
Market Cap (Nov 15, 2019) US$1.71B
Analyst Coverage
Alliance Global Partners Bhakti Pavani
B. Riley FBR Adam Graf
BMO Andrew Kaip
CIBC Anita Soni
Canaccord Kevin MacKenzie
Citi Alexander Hacking
Cormark Securities Richard Gray
Global Mining Research David Radclyffe
H.C. Wainwright Heiko F. Ihle
Numis Jonathan Guy
RBC Mark Mihaljevic
Roth Capital Partners Joseph Reagor
Scotiabank Ovais Habib
29. 29
Revenue
0
50,000
100,000
150,000
$0.0
$50.0
$100.0
$150.0
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019
GoldOuncesSold
MillionsUSD
Gold Ounces Sold Revenue
Q1 2018 – Q3 2019
Financial Performance
$132.7 M
Q3 2018 Q2 2019 Q3 2019
Gold Ounces Produced 92,641 oz 90,761 oz 88,227 oz
Gold Ounces Sold 94,458 oz 85,953 oz 90,713 oz
Average Realized Price1
$1,214/oz $1,319/oz $1,486/oz
Revenue $110.1 M $113.2 M $132.7 M
See News Release dated May 10/18, Aug 9/18, Nov 8/18, Feb 14/19 , May 2/19, Aug 1/19 & Oct 30/19 and refer to Company’s Financial Statements and MD&A.
(1) Non-IFRS performance measure. For reconciliation to IFRS measures refer to the Company’s MD&A.
30. 30
$0
$50
$100
$150
$200
$250
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019
$USD/Tonne
Mine general and
administrative
Surface Services
Processing
Mining
Financial Performance
Q3 2018 Q2 2019 Q3 2019
Mining $/t mined 91 93 96
Processing $/t milled 23 17 21
Surface Services $/t milled 43 25 26
Mine G&A $/t milled 45 33 34
Total Production Costs $/t milled 207 173 181
Source: See News Release dated May 10/18, Aug 9/18, Nov 8/18, Feb 14/19, May 2/19, Aug 1/19 & Oct 30/19 and refer to Company’s Financial
Statements and MD&A.
Production Cost per Tonne
Q1 2018 – Q3 2019
31. 31
Total Cash Cost Per Ounce Sold1
0
50,000
100,000
150,000
$0
$200
$400
$600
$800
$1,000
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019
GoldOuncesSold
$USD/OunceSold
Gold Ounces Sold Cash cost/Oz
Q1 2018 – Q3 2019
Financial Performance
$640/oz
Q3 2018 Q2 2019 Q3 2019
Cost of Sales $72.5 M $83.4 M $86.2 M
Per Ounce Sold1
$767/oz $970/oz $950/oz
Total Cash Costs1
$53.7 M $60.4 M $58.1 M
Per Ounce Sold1
$568/oz $702/oz $640/oz
See News Release dated May 10/18, Aug 9/18, Nov 8/18, Feb 14/19 , May 2/19, Aug 1/19 & Oct 30/19 and refer to Company’s Financial Statements and MD&A.
(1) Non-IFRS performance measure. For reconciliation to IFRS measures refer to the Company’s MD&A.
32. 32
Financial Performance
Net Earnings
Source: See News Releases dated Nov 8, 2018, Aug 2, 2019 & Oct 30, 2019 and refer to Company’s Financial Statements and MD&A.
(1) Deferred income tax expense includes an $8.1 M impact related to repurchase of offtake obligation.
(2) May not add due to interest and finance income and foreign exchange gain (loss) not disclosed.
Q3 2018 Q2 2019 Q3 2019
Earnings from Mine
Operations
$37.6 M $29.8 M $46.6 M
Corporate
Administrative Costs
($3.1M) ($4.3 M) ($5.3 M)
Operating Earnings $34.5 M $25.5 M $41.3 M
Interest and Finance
Expense
($17.1 M) ($8.8 M) ($8.0 M)
Financial Instruments
at Fair Value
($7.3 M) ($3.5 M) ($4.4 M)
Taxes1
($0.8 M) ($2.6 M) ($23.3 M)
Net Earnings2
$10.7 M $10.4 M $6.3 M
33. 33
Cash Flow
Source: See News Releases dated May 2, 2019, Aug 1, 2019 & Oct 30, 2019 and refer to Company’s Financial Statements and MD&A.
(1) May not add due to rounding.
(2) Other is primarily proceeds from exercise of stock options in the amount of $5.1M (Q3 2019) and $7.3M (YTD 2019).
H1 2019 Q3 2019 YTD 20191
Cash on Hand (beginning) $45.4 M
Cash Generated from
Operations
$81.1 M $77.8 M $158.9 M
Repayment of Loan Facility ($64.7 M) ($16.7 M) ($81.3 M)
Repurchase of Offtake
Obligation
- ($62.4 M) ($62.4 M)
Interest ($15.3 M) ($7.0 M) ($22.3 M)
Capital Expenditures ($12.7 M) ($14.6 M) ($27.3 M)
Other2 $0.5 M $5.2 M $5.6 M
Cash on Hand (end) $16.6 M
YTD 2019 Cash Balance
34. 34
AISC Components
Source: See News Releases dated Oct 30, 2019 and refer to Company’s Financial Statements and MD&A.
(1) Non-IFRS performance measure. For reconciliation to IFRS measures refer to the Company’s MD&A.
YTD 2019
Adjusted 2019
Guidance
Gold Ounces Sold 258,100 oz 340,000 – 350,000 oz
Total Cash Costs1 $174.2 M $240 – 245 M
Sustaining Capital Expenditures $19.6 M $25 - 26 M
Treatment and Refinery Charges $16.4 M $22 - 23 M
Accretion on DRP, Site Share-Based
Compensation & Lease Obligations
$7.9 M $10 - 11 M
Corporate and Administrative $13.1 M $17 - 18 M
Total AISC1 $231.2 M $314 - 323 M
Per Ounce Sold1 $896/oz $900 – 950 /oz
35. 35
Brucejack Mine – Robust Economics
(1) Based on updated forecast of capital cost (see News Release dated February 3, 2017) and operating cost assumptions from the Feasibility Study and
Technical Report Update on the Brucejack Project, with an effective date of June 19, 2014
(2) NPV is discounted to Dec 31, 2015.
Low Case Base Case High Case
Gold Price (US$/oz) $1,100 $1,300 $1,500
Silver Price (US$/oz) $14.30 $16.90 $19.50
NPV(2) (5% US$M) Pre-Tax $2,670 $3,600 $4,540
After Tax $1,980 $2,590 $3,180
Net Cash Flow
(US$M)
Pre-Tax $3,620 $4,870 $6,130
After-Tax $2,630 $3,430 $4,220
Exchange Rate (US$:C$) 0.775 0.775 0.775
Economic Results by Metal Price (1)
Source: Technical Report on the Brucejack Gold Mine, Northwest British Columbia with an effective date of April 4, 2019
36. 36
Third Quarter 2019
Select Operating Results
Source: See News Releases dated Oct 30, 2019 and refer to Company’s Financial Statements and MD&A.
Three months ended September 30, Nine months ended September 30,
2019 2018 2019 2018
Ore mined (wet tonnes) t 325,228 255,227 970,659 772,072
Mining rate tpd 3,535 2,774 3,556 2,828
Ore milled (dry tonnes) t 309,754 240,122 929,047 738,555
Head grade g/t Au 9.1 12.4 8.9 12.0
Recovery % 97.0 97.4 96.9 97.4
Mill throughput tpd 3,367 2,610 3,403 2,705
Gold ounces produced oz 88,227 92,641 258,168 279,670
Silver ounces produced oz 124,958 95,741 368,989 308,676
Gold ounces sold oz 90,713 94,458 258,100 278,417
Silver ounces sold oz 108,250 87,110 309,666 289,710
The following abbreviations were used above: t (tonnes), tpd (tonnes per day), g/t (grams per tonne), Au (gold) and oz (ounces).
37. 37
Third Quarter 2019
Select Financial Results
Source: See News Releases dated Oct 30, 2019 and refer to Company’s Financial Statements and MD&A.
Three months ended September 30, Nine months ended September 30,
In thousands of USD, except for per ounce data 2019 2018 2019 2018
Revenue $ 132,735 110,060 349,056 345,960
Earnings from mine operations $ 46,585 37,608 105,526 114,512
Net earnings for the period $ 6,259 10,734 20,868 33,773
Per share - basic $/share 0.03 0.06 0.11 0.19
Per share - diluted $/share 0.03 0.06 0.11 0.19
Adjusted earnings(1) $ 34,024 26,327 67,564 79,172
Per share - basic (1) $/share 0.18 0.14 0.37 0.43
Total cash and cash equivalents $ 16,583 190,318 16,583 190,318
Cash generated from operating activities 77,813 52,364 158,940 154,358
Total assets $ 1,579,105 1,771,543 1,579,105 1,771,543
Long-term debt (2) $ 413,222 140,357 413,222 140,357
Production costs (milled) $/t 181 207 178 211
Total cash costs (1) $/oz 640 568 675 627
All-in sustaining costs (1) $/oz 878 709 896 758
Average realized price (1) $/oz 1,486 1,214 1,378 1,284
Average realized cash margin (1) $/oz 784 601 639 612
(1) Refer to the "Non-IFRS Financial Performance Measures" section for a reconciliation of these amounts.
(2) Long-term debt does not include the current portion of the Company’s loan facility in the amount of $64,423 as at September 30, 2019. For the
comparable period in 2018, long-term debt does not include the current portions of the Company’s then outstanding credit facility and stream
obligation in the amount of $641,468.
38. 38
Mineral Reserve Estimate (LOM)
2019 Update
Category Tonnes
(mil)
Gold
(g/t)
Silver
(g/t)
Contained
Gold
(mil oz)
Silver
(mil oz)
Proven 1.4 7.2 383 0.3 17.4
Probable 1.5 6.5 181 0.3 8.6
Total P&P 2.9 6.9 279 0.6 26.0
Valley of the Kings1
West Zone2
(1) Source: see news release dated April 4, 2019
(2) Source: June 19, 2014 Feasibility Study & Mineral Reserve Updated, see news release dated December 15, 2016
Category Tonnes
(mil)
Gold
(g/t)
Silver
(g/t)
Contained
Gold
(mil oz)
Silver
(mil oz)
Proven 2.0 11.2 11.8 0.7 0.7
Probable 11.1 14.3 10.5 5.1 3.8
Total P&P 13.1 13.8 10.7 5.8 4.5
39. 39
Mineral Resource Estimate (LOM)
(1) See News Release dated April 4, 2019
(2) See News Release dated June 19, 2014
Category Tonnes
(mil)
Gold
(g/t)
Silver
(g/t)
Contained
Gold
(mil oz)
Silver
(mil oz)
Valley of the Kings – April 2019(1)
Measured 1.8 17.15 16.4 1.0 1.0
Indicated 11.9 17.15 15.4 6.6 5.9
M&I 13.7 17.15 15.5 7.6 6.8
Inferred 3.8 17.07 19.4 2.2 2.4
West Zone – Dec 2013(2)
Measured 2.4 5.85 347 0.5 26.8
Indicated 2.5 5.86 190 0.5 15.1
M&I 4.9 5.85 267 0.9 41.9
Inferred 4.0 6.44 82 0.8 10.6
40. 40
Brucejack Mine
PVG : TSX/NYSEpretivm.com
Pretium Resources Inc.
Suite 2300 – 1055 Dunsmuir St.
Four Bentall Centre
PO Box 49334
Vancouver, BC, Canada V7X 1L4
Phone: 604-558-1784
Fax: 604-558-4784
Toll-free: 1-877-558-1784
invest@pretivm.com