Why Pretium Resources Inc's Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of gold miner Pretium Resources Inc jumped as much as 97% today before settling in at a 78% gain for the day.
So what: The driver of the outstanding performance was results from gold recovered from a bulk sample taken from Valley of the Kings mine. The company targeted 4,000 ounces of gold from a 10,000 metric ton sample, but there was actually 4,215 ounces in just 8,090 metric tons of rock.
Now what: The result was about 16 grams of gold per ton versus expectations for 13 grams. This is a huge win for investors because the increased output is levered straight to the bottom line. Commercial production isn't expected until 2016, so there may be a long wait for significant revenue; but this is a huge positive for the company. Keep an eye on future announcements to see if the full sample continues to show the potential of this early report.
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The article Why Pretium Resources Inc's Shares Popped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.