Dual-listed Pretium Resources (Pretivm) has attributed its profitable second quarter, with “significant” cash flows, to the “robust economics” of its Brucejack mine, in northern British Columbia, allowing the miner to eliminate $65-million of its debt during the first half of 2019.

This strengthened the company’s balance sheet and advanced its debt repayment goals as it continued to target debt reduction of $140-million this year, president and CEO Joseph Ovsenek said on Thursday.

He added that the Brucejack mine was successfully ramping up production and that the company would deliver higher grades and tonnes throughout the remainder of the year.

The company produced 90 761 oz of gold, at an all-in sustaining cost (AISC) of $940/oz, in the second quarter. Although production was 18% lower than that of the second quarter of 2018, Ovsenek said it remained on track to achieve its production guidance of 390 000 oz to 420 000 oz this year.

The AISC in the first half of the year was $905/oz of gold sold, which is above the yearly guidance range of between $775/oz and $875/oz of gold sold. However, as production increases through the remainder of 2019, Pretivm expects AISC to be within full-year guidance.

Pretivm reported that the production ramp-up from 2 700 t/d to 3 800 t/d over the course of the year was advancing as planned. In order to achieve the ramp-up, the company increased the underground development rate to 1 000 m a month to improve access to a greater number of stopes.

June saw Pretivm achieve 993 m, with development expected to continue to ensure that it remained ahead of production requirements to achieve a mining rate of 3 800 t/d by year-end.

FINANCIAL OVERVIEW

Pretivm generated revenue of $113.2-million, compared with revenue of $103.1-million in the first quarter of 2019 and $146.5-million in the second quarter of 2018.

Over the quarter, the company sold 85 953 oz of gold at an average realized price of $1 252/oz. In the previous quarter, 81 434 oz of gold were sold at an average realized price of $1 257/oz.

Earnings from mine operations were $29.8-million, compared with $29.2-million in the previous quarter and $60.1-million in the corresponding period of 2018.

Adjusted earnings were $17-million compared with $16.5-million in the previous quarter and $47-million a year earlier.

Pretivm generated $41.2-million in cash from mining operations, compared with $39.9-million in the previous quarter.

Pretivm 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. About $415.3-million is currently still outstanding.