Momentum Stock Watch: Pretium Resources Inc. (PVG)

Company Profile:

Pretium Resources Inc. acquires, explores for, and develops precious metal resource properties in the Americas. The company primarily explores for gold, silver, and copper deposits. Its principal project is the Brucejack project that consists of 4 mining leases and 6 mineral claims covering an area of 3,304 hectares located in northwestern British Columbia. The company was incorporated in 2010 and is headquartered in Vancouver, Canada.

Recent News:

On Dec. 2, 2019, the company has paid the final US$20 million tranche under the Offtake Repurchase Agreement (see news release dated September 16, 2019). With the 100% repurchase of the Offtake Agreement, all components of the 2015 construction financing package are now extinguished.

For the third quarter 2019, the company reported revenue of $132.7 million on 90,713 ounces of gold sold and Net earnings of $6.3 million ($0.03 per share). The Company has now achieved and surpassed the initial debt repayment target of $140 million and is on track to repay $180 million of debt in 2019.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

PVG’s strengths can be seen in its strong solvency compared with its peers. Its revenue has increased significantly over recently years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, MACD is trying to cross back up and the RSI stands at 52.41 with positive bias. We rate Pretium Resources Inc. (PVG) a STRONG BUY.