Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Gold Speculators Should Consider Pretium Resources

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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details