exhibit_99-1
April 2,
2020
|
News Release
20-04
|
Pretivm COVID-19 Response and Financial Position
Vancouver,
British Columbia, April 2, 2020; Pretium Resources Inc.
(TSX/NYSE:PVG) (“Pretivm” or the “Company”)
remains committed to the safety and health of our workforce and
neighbouring communities in northwest British Columbia. The
Brucejack Mine continues to operate under the strict guidance and
directives of federal, provincial and regional health authorities.
There are no confirmed cases of COVID-19 at Brucejack.
Brucejack Mine Operations
Brucejack Mine Personnel
A
significant number of steps have been taken to protect the site
workforce and limit the risk of COVID-19 exposure for crews, and in
turn their families and communities. In order to minimize the
number of individuals on site at Brucejack, only personnel
necessary to support gold production will continue to work at the
mine. Consequently, all capital projects and expansion drilling
have been placed on hold and crews have been demobilized. In order
to decrease the frequency of crew changes and travel required, crew
rotations for most departments have been increased to three weeks
on and three weeks off (or potentially three weeks on and one week
off, pending Ministry approval) from two weeks on and two weeks
off.
As
Brucejack is a remote mining operation, the risk to operations from
travel restrictions can be significant. Contingency plans are in
place should the number of employees available for operations be
limited. Mine operations will prioritize gold production over
development, and the mill will operate at reduced production rates
should the ore supply be insufficient to operate at 3,800 tonnes
per day on a continuous basis. Safety is and will remain the number
one priority.
Enhanced
health checks by qualified health professionals are being conducted
for all personnel prior to boarding transportation to and from
Brucejack, and additional crew buses are in service to ensure
social distancing during transit. Social distancing protocols are
in force at all site facilities, and “high-touch”
surfaces are being disinfected with increased
frequency.
Supplies and Inventory
At
present interruptions to the supply chain are not anticipated.
Grinding media is currently the limiting factor for Mill
consumables, and there is an approximately two-month supply on hand
with additional grinding media on order. For mining, emulsion for
blasting is the limiting factor as on site storage is limited to
approximately five to seven days of product depending on usage
levels. Deliveries are made on a scheduled basis to Brucejack from
a supplier located within British Columbia. Supply chains are being
monitored and increased inventory levels have been established with
supplies on order accordingly.
Dore and Concentrate Sales
Doré
and flotation concentrate sales are proceeding as planned without
any disruptions to date. With multiple off-takers for both
doré and flotation concentrate, no sales disruptions are
anticipated at this time.
COVID-19 Preparedness and Site Health Protocols
Brucejack’s
medical staff include remote-care nurses and advanced-care
paramedics under the guidance of two off-site physicians;
physicians are on-call to provide guidance or instruction to
on-site staff as needed. The site is equipped for emergency medical
evacuation, including cases suspected to be contagious.
Brucejack’s camp facilities support self-isolation. If any
individual experiences symptoms suggestive of COVID-19 (sore
throat, fever, sneezing, or coughing), the individual will remain
in quarantine for a proscribed duration and under the evaluation of
medical staff. An evacuation plan has been established to respond
to cases when directed by Northern Health (British Columbia), the
regional authority.
Clinic
staff are monitoring the COVID-19 crisis and are engaged with
Northern Health to continuously discuss and manage Pretivm’s
operational protocols.
Finance Update
At
March 31, 2020, cash on hand was approximately $40 million, with an
additional $16 million remaining undrawn on the revolving credit
facility. As a precautionary measure, a request was submitted to
draw down the remaining $16 million from the revolving credit
facility subsequent to the end of the quarter.
At this
time Pretivm has $183.3 million outstanding on the term credit
facility and, following the draw of $16 million, will have $200
million drawn and committed on the revolving credit facility. For
the remainder of this year, three quarterly payments of
approximately $16.7 million remain to be made on the term credit
facility and interest remains payable on the outstanding amounts of
the term and revolving credit facilities.
COVID-19 Impact on Production
COVID-19
did not impact first quarter gold production. Looking ahead,
COVID-19 may have a significant impact on production if the Company
is not able to maintain operations. The Company currently expects a
modest impact on costs should operations continue with enhanced
safety measures in effect.
Local Communities
Pretivm
realizes that the remote and dispersed communities of northwest
British Columbia are at particular risk as a result of the COVID-19
pandemic, as access to healthcare can be a geographical challenge.
Pretivm is committed to mitigating the risk of exposure to its
staff, their families and neighboring communities in the region.
Pretivm is engaging with local communities to address concerns as
well as to share and develop strategies to
address the challenges posed by COVID-19.
Lyle
Morgenthaler, B.A.Sc., P.Eng., Chief Mine Engineer, Pretium
Resources Inc. is the Qualified Person as defined in NI 43-101
responsible for Brucejack Mine development, and has reviewed and
approved the scientific and technical information contained in this
news release relating thereto.
About Pretivm
Pretivm
is an intermediate gold producer with the high-grade gold
underground Brucejack Mine.
For
further information contact:
Joseph
Ovsenek
Troy
Shultz
President &
CEO
Manager, Investor
Relations &Corporate Communications
Pretium
Resources Inc.
Suite
2300, Four Bentall Centre, 1055 Dunsmuir Street
PO Box
49334 Vancouver, BC V7X 1L4
(604)
558-1784
invest@pretivm.com
(SEDAR
filings: Pretium Resources Inc.)
Forward-Looking Information
This
news release contains “forward-looking information”,
“forward looking statements”, “future oriented
financial information” and “financial outlook”
within the meaning of applicable Canadian and United States
securities legislation (collectively herein referred to as “
“forward-looking information”), including the
“safe harbour” provisions of Canadian provincial
securities legislation and the U.S. Private Securities Litigation
Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act
of 1934, as amended, and Section 27A of the U.S. Securities Act of
1933, as amended. The purpose of disclosing future oriented
financial information and financial outlook is to provide a general
overview of management’s expectations regarding the
anticipated results of operations including cash generated
therefrom and costs thereof and readers are cautioned that future
oriented financial information and financial outlook may not be
appropriate for other purposes.
Wherever
possible, words such as “plans”, “expects”,
“guidance”, “projects”,
“assumes”, “budget”,
“strategy”, “scheduled”,
“estimates”, “forecasts”,
“anticipates”, “believes”,
“intends”, “modeled”, “targets”
and similar expressions or statements that certain actions, events
or results “may”, “could”,
“would”, “might” or “will” be
taken, occur or be achieved, or the negative forms of any of these
terms and similar expressions, have been used to identify
forward-looking information. Forward-looking information may
include, but is not limited to, statements with respect to:
anticipated operational and financial impacts from the COVID-19
pandemic; our COVID-19 response and contingency plans and
anticipated effects thereof; production and cost guidance, and our
expectations around achieving such guidance; our future operational
and financial results, including estimated cash flows (including
free cash flow forecasts) and the timing thereof; expectations
around grade of gold and silver production; the Brucejack Mine
production rate and gold recovery rate; capital modifications and
upgrades, underground development and anticipated benefits thereof,
and estimated expenditures and timelines in connection therewith,
including with respect to achievement of steady state production
of, 3,800 tonnes per day production rate; payment of debt,
operating and other obligations and commitments including timing
and source of funds; our mining (including mining methods),
expansion, exploration and development activities, including
longitudinal longhole stoping initiatives, the reverse circulation
drill program, our infill, expansion and underground exploration
drill programs and our grassroots exploration program, and the
results, costs and timing thereof; our operational grade control
program, including plans with respect to our infill drill program
and our local grade control model; grade reconciliation, updated
geological interpretation and mining initiatives with respect to
the Brucejack Mine; our management, operational plans and strategy;
capital, sustaining and operating cost estimates and timing
thereof; the future price of gold and silver; our liquidity and the
adequacy of our financial resources (including capital resources);
our intentions with respect to our capital resources; capital
allocation plans; our financing activities, including plans for the
use of proceeds thereof; the estimation of Mineral Reserves and
Resources including any updates thereto; realization of Mineral
Reserve and Resource estimates; our estimated life of mine and life
of mine plan for the Brucejack Mine; production and processing
estimates; estimated economic results of the Brucejack Mine,
including net cash flow and net present value; predicted
metallurgical recoveries for gold and silver; geological and
mineralization interpretations; development of our Brucejack Mine
and timing thereof; results, analyses and interpretations of
exploration and drilling programs; timelines and similar statements
relating to the economic viability of the Brucejack Mine, including
mine life, total tonnes mined and processed and mining operations;
updates to our Mineral Reserves and Resources and life of mine plan
for the Brucejack Mine, and the anticipated effects and timing
thereof; timing, receipt, and anticipated effects of, and
anticipated capital costs in connection with, approvals, consents
and permits under applicable legislation; our executive
compensation policy, approach and practice; our relationship with
community stakeholders; litigation matters; environmental matters;
our effective tax rate and the recognition of our previously
unrecognized income tax attributes; new accounting standards
applicable to the Company, including methods of adoption and the
effects of adoption of such standards; statements regarding USD
cash flows, currency fluctuations and the recurrence of foreign
currency translation adjustments; management and board of directors
succession plans; and the impact of financial instruments on our
earnings. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance are not
statements of historical fact and may be forward-looking
information.
Forward-looking
information is subject to a variety of known and unknown risks,
uncertainties and other factors that could cause actual results,
actions, events, conditions, performance or achievements to
materially differ from those expressed or implied by the
forward-looking information, including, without limitation, those
related to: future impacts of the COVID-19 pandemic and government
response to such pandemic; our ability to continue operations at
Brucejack in lieu of the pandemic and the risk of future shut downs
as a result thereof; the effectiveness of preventative actions and
contingency plans put in place by the Company to respond to the
COVID-19 pandemic; escalation of travel restrictions on people or
products; uncertainty as to the outcome of legal proceedings; the
effect of indebtedness on cash flow and business operations; the
effect of restrictive covenants pursuant to the Loan Facility;
assumptions regarding expected capital costs, operating costs and
expenditures, production schedules, economic returns and other
projections; our production and production cost estimates,
including the accuracy thereof; commodity price fluctuations,
including gold price volatility; the accuracy of our Mineral
Resource and Reserve estimates (including with respect to size,
grade and recoverability) and the geological, operational and price
assumptions on which they are based; our ability to maintain or
increase our annual production of gold at the Brucejack Mine or
discover, develop or acquire Mineral Reserves for production;
dependency on the Brucejack Mine for our future operating revenue;
the development of our properties; our ability to raise enough
capital to mine, develop, expand or complete further exploration
programs on our mineral properties; our ability to generate
operating revenues in the future; failure of counterparties to
perform their contractual obligations; general economic conditions;
the inherent risk in the mining industry; the commercial viability
of our current and any acquired mineral rights; availability of
suitable infrastructure or damage to existing infrastructure;
transportation and refining risks; maintaining satisfactory labour
relations with employees and contractors; significant governmental
regulations, including environmental regulations; non-compliance
with permits that are obtained or delay in obtaining or failure to
obtain permits required in the future; increased costs and
restrictions on operations due to compliance with health, safety
and environmental laws and regulations; compliance with emerging
climate change regulation; adequate internal control over financial
reporting; various tax-related matters; potential opposition from
non-governmental organizations; uncertainty regarding unsettled
First Nations rights and title in British Columbia; uncertainties
related to title to our mineral properties and surface rights; land
reclamation requirements; our ability to identify and successfully
integrate any material properties we acquire; currency
fluctuations; competition in the mining industry for properties,
qualified personnel and management; our ability to attract and
retain qualified management and personnel; the ability of our new
executive to successfully transition into their new roles; some of
our directors’ and officers’ involvement with other
natural resource companies; potential inability to attract
development partners or our ability to identify attractive
acquisitions; compliance with foreign corrupt practices regulations
and anti-bribery laws; changes to rules and regulations, including
accounting practices; limitations in our insurance coverage and the
ability to insure against certain risks; risks related to ensuring
the security and safety of information systems, including cyber
security risks; reputational risks; future sales or issuances of
our debt or equity securities; the trading price of our common
shares is subject to volatility due to market conditions; we are
limited in our ability to, and may not, pay dividends in the
foreseeable future; and certain actions under U.S. federal
securities laws may be unenforceable. This list is not exhaustive
of the factors that may affect any of our forward-looking
information. Although we have attempted to identify important
factors that could cause actual results, actions, events,
conditions, performance or achievements to differ materially from
those contained in forward-looking information, there may be other
factors that cause results, actions, events, conditions,
performance or achievements to differ from those anticipated,
estimated or intended. Our forward-looking information is based on
the assumptions, beliefs, expectations and opinions of management
on the date the statements are made, many of which may be difficult
to predict and beyond our control. In connection with the
forward-looking information contained in this news release, we have
made certain assumptions about, among other things: our business
and operations and that no significant event will occur outside of
our normal course of business and operations (other than expressly
set out herein); planned exploration, development and production
activities and the costs and timing thereof; future price of gold
and silver and other metal prices; the accuracy of our Mineral
Resource and Mineral Reserve estimates and related information
analyses and interpretations (including with respect to any updates
or anticipated updates); the geology and mineralization of the
Brucejack Project; operating conditions; capital and operating cost
estimates; production and processing estimates; the results, costs
and timing of future exploration and drilling; timelines and
similar statements relating to the economic viability of the
Brucejack Mine; timing and receipt of governmental, regulatory and
third party approvals, consents, licenses and permits; obtaining
required renewals for existing approvals, consents, licenses and
permits; the geopolitical, economic, permitting and legal climate
that we operate in; the adequacy of our financial resources, and
our ability to raise any necessary additional capital on reasonable
terms; our ability to satisfy the terms and conditions of our debt
obligations; commodity prices; currency exchange rates and interest
rates; political and regulatory stability; requirements under
applicable laws; market competition; sustained labour stability and
availability of equipment; positive relations with local groups;
favourable equity and debt capital markets; and stability in
financial capital markets. Although we believe that the assumptions
inherent in forward-looking information are reasonable as of the
date of this news release, these assumptions are subject to
significant business, social, economic, political, regulatory,
competitive and other risks and uncertainties, contingencies and
other factors that could cause actual actions, events, conditions,
results, performance or achievements to be materially different
from those projected in the forward-looking information. The
Company cautions that the foregoing list of assumptions is not
exhaustive. Other events or circumstances could cause actual
results to differ materially from those estimated or projected and
expressed in, or implied by, the forward-looking information
contained in this news release.
Additional
information about the risks and uncertainties concerning
forward-looking information and material factors or assumptions on
which such forward-looking information is based is provided in our
Annual Information Form and From 40-F, each dated February 21,
2020, for the year ended December 31, 2019, our MD&A for the
years ended December 31, 2019 and 2018, and our other disclosure
documents as filed in Canada on SEDAR at www.sedar.com and in the
United States through EDGAR at the SEC’s website at
www.sec.gov (collectively, “the Pretivm Disclosure
Documents”).
Forward-looking
information is not a guarantee of future performance. There can be
no assurance that forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information.
Forward-looking information involves statements about the future
and is inherently uncertain, and our actual achievements or other
future events or conditions may differ materially from those
reflected in the forward-looking information due to a variety of
risks, uncertainties and other factors, including, without
limitation, those referred to in this news release and the Pretivm
Disclosure Documents. For the reasons set forth above, readers
should not place undue reliance on forward-looking information. We
do not assume any obligation to update forward-looking information,
whether as a result of new information, future events or otherwise,
other than as required by applicable law. For the reasons set forth
above, prospective investors should not place undue reliance on
forward-looking information. Neither the TSX nor the NYSE has
approved or disapproved of the information contained
herein.