Nice Blurb from Roger Wiegand on Gold RptDon't Be A Lemming: ?Roger Wiegand's Method of Precious Metals Investing (10-Oct)
RW: One of our favorites is Pretium Resources Inc. (PVG:TSX; PVG:NYSE). We know the management. We know the property. Robert Quartermain is the president and CEO of the company. He completed very successful development projects with Silver Standard Resources Inc. (SSO:TSX; SSRI:NASDAQ). He bought these Pretium properties from Silver Standard and is building up Pretium. Next door is Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) with 42 million ounces (Moz) gold Proven. There is no senior miner in that district. I believe that a senior will come in and buy Seabridge and Pretium all in a package. I think that it's looking like probably a minimum size of 50 Moz gold, if not more. Pretium is well financed and has extremely strong management with great experience. It went in there with a plan this last summer, with 50 geologists and engineers, three helicopters, and it was planning 70,000 meters of drilling. The company continues to find glory holes in that property. When Pretium bought it from Silver Standard, many glory holes were proven already and on the books by top geologists. Of course, Bob Quartermain is a geologist as well. We think that one could be at least a double or triple.
TGR: Regarding geopolitical risk, overall, Canada is a low risk jurisdiction, but portions of British Columbia might be riskier than some people are comfortable with. Is the political climate of B.C. better than most investors think?
RW: I think that the question about having problems with political situations was more of a concern in past years, maybe even as recent as a year or two ago. But a lot of that is starting to fade away. I think much has to do with the fact that communities are looking for jobs. The mining industry is labor intensive. Consequently, if they can start up a mine and be successful, it's a real plum for the local community economically. Political pressure that drives job creation and tax revenue to the province is an advantage for the Pretium property.
TGR: Pretium already has a large market cap; do you still think there's an upside?
RW: Pretium has many advocates. A top New York analyst several months ago, when the stock was around $8?-9/share, did a fine report and was looking for a price on the shares of around $33/share. We're looking at a price of about $38/share. We're not that far from where he is.