Pretivm Reports Second Quarter 2019 Operating and Financial Results

Press Release

Brucejack Generates $113 Million in Revenue, $41 Million in Operating Cash Flow, Reduces Debt by $45 Million and Re-affirms 2019 Guidance

VANCOUVER, British Columbia, Aug. 01, 2019  — Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”) reports operating and financial results for the second quarter 2019, Pretivm’s eighth consecutive quarter of positive adjusted earnings.

All amounts are in US dollars unless otherwise noted. This release should be read in conjunction with the Company’s Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the three and six months ended June 30, 2019 and 2018, available on the Company’s website and on SEDAR and EDGAR.

Second Quarter 2019 Operating Summary

• Production of 90,761 ounces of gold, on track to achieve 2019 annual guidance.
• Mill feed grade of 8.9 grams per tonne gold.
• Gold recovery rate of 96.9%.
• Ore milled 324,171 tonnes.
• Daily average ore milled 3,562 tonnes per day.

Second Quarter 2019 Financial Summary

• Revenue of $113.2 million on 85,953 ounces of gold sold.
• Total cost of sales of $83.4 million or $970 per ounce of gold sold¹.
• Earnings from mine operations of $29.8 million.
• Achieved an average realized cash margin¹ of $550 per ounce of gold sold, with a total cash cost of $702 per ounce of gold sold¹.
• All-in Sustaining Cost (“AISC”)¹ of $940 per ounce of gold sold, on track to achieve 2019 annual guidance.
• Generated $41.2 million in cash from operating activities.
• Net earnings of $10.4 million ($0.06 per share).
• Adjusted earnings¹ of $17.0 million ($0.09 per share¹).
• Reduced debt by $44.7 million using cash generated from operations.
• Remaining debt of $415.3 million on the $480 million loan facility.

¹ Refer to the “Non-IFRS Financial Performance Measures” section at the end of this news release.

“We delivered another profitable quarter with significant cash flow,” said Joseph Ovsenek, President & CEO of Pretivm. “The robust economics of our Brucejack Mine allowed us to eliminate $65 million of debt in the first half of 2019, strengthening our balance sheet and advancing our debt repayment goals as we continue to target debt reduction of $140 million this year. We are successfully ramping up production and made additional progress since the first quarter of the year. We expect this positive trajectory to continue, to deliver higher grade and tonnes through the remainder of the year and to meet our guidance.”

2019 Production and Financial Guidance

The Company remains on track to achieve its 2019 gold production guidance of 390,000 ounces to 420,000 ounces. The production ramp-up from 2,700 tonnes per day to 3,800 tonnes per day over the course of the year is advancing as planned. To achieve the ramp-up, the Company increased the underground development rate to 1,000 meters per month to improve access to a greater number of stopes. As the mine plan continues to progress through a lower grade area of the Valley of the Kings, all stopes above cut-off grade of approximately 5.0 grams per tonne gold are being mined as they become available for production.  As a result, gold grade over the first half of the year was 8.8 grams per tonne, with the gold grade expected to average approximately 10.4 grams per tonne for 2019. As previously guided, both grade and tonnes are expected to be higher through the remainder of the year as the increased rate of underground development opens the mine and further improves access to reserves.

AISC in the first half of the year was $905 per ounce of gold sold, above the annual guidance range of $775 to $875 per ounce of gold sold. However, as production increases through the remainder of 2019 we expect AISC to be within full-year guidance. AISC guidance for the year includes approximately $30.0 million for sustaining capital, of which approximately $11.6 million was spent in the first half of the year. Approximately $15.0 million of the estimated sustaining capital is allocated for non-recurring expenditures.

Second Quarter 2019 Ramp-up Production Overview

• The production rate ramp-up is advancing as planned; sequential comparison demonstrates the progress achieved from the first to second quarter of 2019.
• Gold production totaled 90,761 ounces in the second quarter, representing a 14% increase compared to 79,180 ounces in the first quarter of 2019.
• The mill feed grade average improved slightly to 8.9 grams per tonne gold for the quarter compared to 8.7 grams per tonne gold in the previous quarter. As development underground progressed through lower grade areas, all stopes that met the grade cut-off were processed. Both grade and tonnes are expected to be higher through the remainder of the year as the increased rate of underground development opens the mine and further improves access to reserves.
• Underground development has successfully advanced towards the targeted rate of 1,000 meters per month, with 993 meters achieved for the month of June. Development is expected to continue at approximately 1,000 meters per month for the remainder of the year to ensure development remains ahead of production requirements to achieve a mining rate of 3,800 tonnes per day by year end.
• A total of 324,171 tonnes of ore, equivalent to a throughput rate of 3,562 tonnes per day, was processed. This represents an increase of 10% from the previous quarter, when a total of 295,122 tonnes of ore, equivalent to a throughput rate of 3,279 tonnes per day, was processed.
• The modifications and upgrades required to sustain processing at the increased production rate of 3,800 tonnes per day are progressing on schedule. The most significant upgrade was the shift from concentrate bagging to a bulk loading system. The bulk loading system is now installed in its permanent location and is operating as a fully integrated component of the concentrate process. Modifications to the flotation circuit which include upgraded pumps and piping and an additional cleaning cell for the flotation circuit will continue during regularly scheduled shutdowns as the final components are delivered.
• Gold recoveries averaged 96.9% for the quarter, a slight improvement over 96.8% in the previous quarter.

Second Quarter 2019 Financial Overview

• The Company generated revenue of $113.2 million compared to revenue of $103.1 million in the first quarter 2019. Revenue includes a gain on trade receivables at fair value related to provisional pricing adjustments of $4.1 million (Q1 2019 – loss of $0.7 million).
• Over the quarter the Company sold 85,953 ounces of gold at an average realized price¹ of $1,252 per ounce. In the previous quarter 81,434 ounces of gold were sold at an average realized price of $1,257 per ounce. The average realized price was reduced by treatment costs and refining charges related to concentrate gold sales.
• Total cost of sales was $83.4 million or $970 per ounce of gold sold. For the previous quarter, total cost of sales was $74.0 million or $908 per ounce of gold sold. Total cost of sales was impacted by an increase in depreciation and depletion related to the updated Mineral Reserve in April 2019 and in production costs primarily due to additional development and drilling.
• Production costs for the second quarter were $56.0 million or $173 per tonne of ore milled, compared to $53.0 million or $180 per tonne of ore milled in the previous quarter. Production costs include mining, processing, surface services and mine general and administrative costs.
• Total cash cost was $702 per ounce of gold sold resulting in an average realized cash margin of $550 per ounce of gold sold. In the first quarter 2019, total cash cost was $686 per ounce of gold sold resulting in an average realized cash margin of $571 per ounce of gold sold.
• AISC was $940 per ounce of gold sold and remains on track to meet our 2019 financial guidance of $775 to $875 per ounce of gold sold, as production is expected to be higher in the second half of the year. In the first quarter 2019, AISC was $868 per ounce of gold sold. The increase over the previous quarter is related to timing of sustaining capital expenditures, growth-oriented expenses and the increased rate of underground development associated with the production ramp-up to 3,800 tonnes per day.
• Earnings from mine operations were $29.8 million compared to $29.2 million in the previous quarter.
• Net earnings were $10.4 million compared to earnings of $4.2 million in the previous quarter. Adjusted earnings were $17.0 million compared to $16.5 million in the previous quarter.
• Cash generated by operations was $41.2 million compared to $39.9 million in the previous quarter.
• The Company repaid $44.7 million of the $480.0 million loan facility with cash generated from operations this quarter, for a total of $64.7 million this year ($415.3 million outstanding).

Lyle Morgenthaler, B.A.Sc., P.Eng., Chief Mine Engineer, Pretium Resources Inc. is the Qualified Person responsible for Brucejack Mine development, and has reviewed and approved the scientific and technical information contained in this news release relating thereto.

Pretivm Expands Management Team

Pretivm has added to its leadership team with the appointment of Mr. John Hayes as Senior Vice President, Corporate Development and Investor Relations. Mr. Hayes has over 30 years of experience in capital markets and the mining sector. Mr. Hayes has served as a mining analyst and Managing Director for BMO Capital Markets and prior to that worked as a professional geologist.  Mr. Hayes graduated from Memorial University of Newfoundland with an Honours Bachelor of Science in Geology (1989) and a Master of Science in Geology (1997). He also holds an MBA from Dalhousie University (2003) and is a member (P. Geo.) of the Professional Engineers and Geoscientists of Newfoundland and Labrador.

Our unaudited condensed consolidated interim Financial Statements and MD&A for the three and six months ended June 30, 2019 and 2018 are filed on SEDAR and EDGAR and are available on our website at www.pretivm.com.

Webcast and Conference Call

The webcast and conference call to discuss the second quarter 2019 operating and financial results will take place Friday, August 2, 2019 at 8:00 am PT (11:00 am ET).

Webcast and conference call details:

Friday, August 2, 2019 at 8:00 am PT (11:00 am ET)
Webcast	www.pretivm.com
Toll Free (North America)	1-800-319-4610
International and Vancouver	604-638-5340

A recorded playback will be available until August 16, 2019:

Toll Free (North America)	1-800-319-6413
Access Code	3256

About Pretivm

Pretivm is a low-cost intermediate gold producer with the high-grade underground Brucejack Mine in northern British Columbia.

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.)

Operating Results
	Three months ended June 30,				Six months ended June 30,
		2019		2018		2019		2018
Ore mined (wet tonnes)	t	337,044		248,506		645,431		516,845
Mining rate	tpd	3,704		2,731		3,566		2,855
Ore milled (dry tonnes)	t	324,171		236,990		619,293		498,433
Head grade	g/t Au	8.9		14.9		8.8		11.9
Recovery	%	96.9		97.7		96.9		97.4
Mill throughput	tpd	3,562		2,604		3,422		2,754
Gold ounces produced	oz	90,761		111,340		169,941		187,029
Silver ounces produced	oz	135,797		118,205		244,031		212,935
Gold ounces sold	oz	85,953		115,309		167,387		183,960
Silver ounces sold	oz	104,442		118,366		201,416		202,600
The following abbreviations were used above: t (tonnes), tpd (tonnes per day), g/t (grams per tonne), Au (gold) and oz (ounces).

Financial Results
	Three months ended June 30,				Six months ended June 30,
In thousands of USD, except for per ounce data		2019		2018		2019		2018
Revenue	$	113,202		146,478		216,321		235,900
Earnings from mine operations	$	29,789		60,070		58,941		76,904
Net earnings for the period	$	10,443		31,097		14,609		23,039
Per share – basic	$/share	0.06		0.17		0.08		0.13
Per share – diluted	$/share	0.06		0.17		0.08		0.13
Adjusted earnings(1)	$	17,013		47,048		33,540		52,845
Per share – basic(1)	$/share	0.09		0.26		0.18		0.29
Total cash and  cash equivalents	$	34,281		142,495		34,281		142,495
Cash generated from operating activities		41,183		77,276		81,127		101,995
Total assets	$	1,609,644		1,731,950		1,609,644		1,731,950
Long-term debt(2)	$	411,595		292,330		411,595		292,330
Production costs (milled)	$/t	173		215		176		213
Total cash costs(1)	$/oz	702		548		694		657
All-in sustaining costs(1)	$/oz	940		648		905		783
Average realized price(1)	$/oz	1,252		1,278		1,255		1,276
Average realized cash margin(1)	$/oz	550		730		561		619
(1) Refer to the “Non-IFRS Financial Performance Measures” section at the end of this news release. (2) Long-term debt does not include the current portions of the Company’s loan facility and offtake obligation in the amount of $75,609 as at June 30, 2019. For the comparable period in 2018, long-term debt does not include the current portions of the Company’s then-outstanding credit facility and offtake obligation in the amount of $399,719.

Non-IFRS Financial Performance Measures

The Company has included certain non-IFRS measures in this new release. Refer to the Company’s MD&A for an explanation, discussion and reconciliation of non-IFRS measures. The Company believes that these measures, in addition to measures prepared in accordance with IFRS, provide readers with an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with International Financial Reporting Standards (“IFRS”). These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other issuers.

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