RE:RE:RE:NO !!!!!!!!!!!!!!!!!!!!!!!! Jon Case, a portfolio manager with CI Global Asset Management, said that a cross-section of the Brucejack mine looks as if someone took a shotgun and fired at the deposit.
“The gold seems to be deposited almost at random,” he said. “The nature of the geology makes it very difficult to estimate the total grade, and [to predict] what it’s going to look like on a quarter-by-quarter basis.”
Still, despite the variability, Mr. Case said that Brucejack has proven to be an extremely profitable operation, consistently generating high amounts of free cash flow, even if it’s not quite as spectacular as originally promised. And while it may be impossible for anyone to accurately predict the exact grade and volume of gold the mine will produce in the future, based on past performance, he believes it’s a safe bet Brucejack will continue to spin off lots of cash.
Joe Foster, a portfolio manager with New York-based VanEck, is even more bullish on Pretium. In fact, he thinks the company is being sold for too cheap a price, especially in light of the company recently making a promising new discovery that could add considerable life to the existing orebody.
“I don’t think this offer reflects the potential of the Pretium properties and the solid management,” he said. “I think you can justify a higher price.”
Both CI and VanEck own shares in Pretium.