NEM vs PVG Optimistic 3rd party blurb
Newmont Mining vs. Pretium Resources
Newmont Mining (NEM) and Pretium Resources (PVG) are both gold mining companies trading on the NYSE, but they are quite different. I believe that PVG is a buy and NEM is a sell.
FOR IMMEDIATE RELEASE
PRLog (Press Release) - Oct 22, 2012 -
Newmont Mining vs. Pretium Resources ??
Newmont Mining (NEM) is a worldwide mining company with proven management is HQ’d in the USA with over 40 million ounces in proven gold resources operating within basically secure mining situations in North & South America, South Asia and Africa. Pretium Resources (PVG), with proven management is a Canadian exploration and gold & silver mining company with over 30 million ounces of gold plus 50 million ounces of silver in measured and indicated gold resources located in secure British Columbia. I expect PVG to go into limited production within 2 years and full production within 5 years (in my opinion). NEM sells for approximately $55 per share on the NYSE. PVG sells for around $13 per share on the NYSE. Recent drilling results for PVG have shown as much as 45,000 grams of gold per ton in the Valley of the Kings zone and is continuing to add reserves. This is one of the highest grades of gold ever drilled world-wide in recent memory. Newmont, by comparison is continuing to use up its reserves.
NEM pays an annual dividend of $1.40 per share per year. PVG does not pay dividends yet since they are not yet in production. NEM annual EPS is about $3.94. PVG has no earnings yet. Based upon my latest calculations PVG could earn in excess of $18 per share once in full production within 5 years. Using the same PE ratio of GOLD (25), I estimate that PVG’s price potential could reach $450; if not diluted by additional share issuances. I believe that PVG is dramatically undervalued with the potential to rise in price by a factor of 34 times its current selling price on the NYSE. In addition, with a short interest of approximately 1 million shares, this short squeeze should be something to behold! The time for PVG’s rise could be very close. I expect the shares of PVG to rise after this pre-election sell-off has run its course. NEM appears to be fully priced at current gold prices and will only go up $ for $ with gold prices. PVG can go up 34 times in price from here and then go up $ for $ with gold prices. A spread might make sense; long PVG and short NEM or own PVG outright.