New update at www.goldsilverdata.comPretium Resources (a new company that purchased their properties from Silver Standard) has a lot of upside potential. The have 60 million oz of gold and 250 million oz of silver at their Brucejack and Snowfield properties in Canada, although most of it is very low grade. They have excellent production growth potential long term, and they have one of the best management teams in the industry. I also like their strategy. They are going to mine the high grade deposits on the Brucejack property first (planned for 2016). Then they will attempt to grow the company.
The high grade VOK (Valley of Kings) and West Zone deposits at Brucejack have a feasibility study completed. The capex is $650 million, with projected all-in costs of only $500 per oz. Production is expected to be 400,000 oz the first 10 years. The low costs come from both the high grade (12 to 14 gpt) and silver offsets. With higher gold prices they are going to have substantial cash flow to expand production and/or buy another project.
They have one of the best CEOs in the business with Robert Quartermain, who built Silver Standard. He has 35 years of experience. This is his company to run and he plans to build it into a success. I like his chances. One thing Quartermain is know for is building shareholder value, which is what he did at Silver Standard, making many shareholders millionaires.
There was some controversy with this stock recently, when their contractor (Strathcona) quit and made an accusation that the Brucejack bulk sample did not have any reserves. This proved false, with the bulk sample meeting expectations. The stock crashed to $3 per share in October 2013.