Company News

BUZZ-Pretium Resources: Credit Suisse downgrades after poor mining results

(Updates share price, adds Credit Suisse downgrade)

** Canadian miner’s U.S.-listed shares down 26 pct at $7.98, hits near 6-month low

** Pretium says its Brucejack mine produced 70,281 ounces of gold in Q4, sees H1 2018 production between 150,000oz and 200,000oz

** Says grades mined were about 75-80 pct below expected, partly due to grade control system, which remains out of operation

** Pretium says it now expects to achieve steady state production by mid-to-late 2018 due to grade control system delay, missing the target of 2017 end

** Credit Suisse downgrades stock to “neutral” from “outperform” due to “operational volatility,” cuts PT to $10 from $13.50

** CS estimates implied grade of 8.64g/tonne in Q4, down from ~10.50g/tonne in Q3; says Q4 results and H1 2018 forecast below estimated

** Toronto-listed shares down 25.9 pct at C$9.96; had risen 38.5 pct in 2017 (Reporting by Karan Nagarkatti)