RE:D-day minus 1Mostly yes, yes, yes, but you can't compare PVG to these other long term producers. Maybe in a year or so you can start complaining if they've had a few quarters of full production and proved up the estimates, yet still trade at a substantial discount to their 'producer' peers.
Also, why are you bothering to defend it now? Wait a day then start pumping with hard data.
DaveG99 wrote: In 2013, within months of the start of commercial production, Detour Gold, a 625K oz producer, was forced to raise $176mm in new shares and $135 million in debt. It’s share price plummeted from $20 to $4 due to capital shortfalls, share dilution and a declining gold price by December of that year.
DGC grades were and are less one gram a tonne and all in sustaining costs remain above $1100/oz.
Although PVG is behaving like DGC since February when the final capital raise was completed, it has nothing in common – except to inspire the horrible memory and fear of those invested in – or analysts that recommended - that stock.
Some may look at Rubicon, another complete failure, as a comparison. But that company never did enough drilling or engage consultants to develop a fesability study, because most of the mill was already in place from a prior operator.
These nightmares of Canadian mining are haunting Pretium, keeping some mining analysts from covering this stock. The result has been low liquidity and a ridiculous discount compared to gold producers like ABX,GG and AEM and even DGC, four years later.
From PVG’s feasability study, we learn that more than half the metal is in 5% of the ore. A look at the drilling app on the website shows these areas have been intensly drilled and defined; the block sample confirmed the findings; more drilling since then has defined the mine sequence.
Results tomorrow may be below the mine plan, but not because of some shortfall of high-grade or capital, the factors that sunk DGC.
The lack of confidence we are seeing this moment is more likely shell-shocked analysts and investors, who are unable to trust themselves anymore after these two disasterous ramp-ups. Rather than risk it, they are just avoiding it, leaving algos and shortsellers to set the price.