In this article, I analyze Pretium Resources (NYSE:PVG), which is a speculative gold exploration company.
1: About Pretium Resources
Pretium Resources is a gold and silver exploration company with a market capitalization of roughly $675 million (or $730 million fully diluted). The company is a very long-term investment: while it owns two properties in British Columbia--Brucejack and Snowfield--that have sufficient resources to become economic mines, it will not have any production until 2016-2017 at the very earliest.
For an exploration company that owns just two properties, that has just $20 million in cash and equivalents, and that will not see any production for 3-4 years, Pretium Resources has a very high valuation. The reason for this is the...
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