PVG - Pretium Resources: A Reasonable Valuation For This Tier-1 Producer

• Pretium Resources released its Q4 and FY2020 results last month, beating the mid-point of its production guidance in a challenging year for the sector due to COVID-19 related headwinds.
• The strong operational results combined with the sale of Snowfield allowed the company to continue to strengthen its balance sheet, finishing the year with ~$175 million in cash.
• Looking ahead to FY2021, we should see a higher cost year with lower free cash flow due to higher sustaining capital, including an aggressive exploration program.
• However, at a valuation of less than 11x FY2021 annual EPS estimates, I continue to see the stock as very reasonably valued.

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