TRADE INSTRUCTIONS

Date: March 7, 2018
Name: Pretium Resources
Symbol: PVG (NYSE)
Type: Open
Limit: Buy below $7.50

TRADE TARGETS

Holding Period: 5 months
Target Return: 46.7%
Annualized Return: 112%
Target Price: $11
Stop Loss Level: $6

COMPANY DESCRIPTION

Pretium Resources Inc. acquires, explores for, and develops precious metal resource properties in the Americas. It primarily explores for gold, silver, and copper deposits. The company owns 100% interests in the Brucejack project comprising 4 mining leases and 6 mineral claims covering an area of 3,304 hectares located in northwestern British Columbia; and the Snowfield project consisting of 1 mineral claim covering an area of 1,217 hectares located in northwestern British Columbia. Pretium Resources Inc. was incorporated in 2010 and is headquartered in Vancouver, Canada. Link to company website.

TRADE RATIONALE       

Pretium is one of our favorite small gold miners. The stock sold off sharply in late January due to announcement of fourth-quarter production figures deemed to be disappointing. The company is about eight months into production at its Brucejack mine, and the ramp-up is slower than analysts had expected.

We think the recent price decline presents a buying opportunity. Miners very often experience small obstacles in the early life of their mines. Even if the ramp-up isn’t going perfectly, the outlook for the mine, or the company, does not change. We expect the share price to rebound.

NOTE: This stock is optionable