Pretium Resources is a likely takeover candidate, CIBC says

|About: Pretium Resources Inc (PVG)|By:, SA News Editor

Pretium Resources (PVG) is a logical takeover candidate in the next 12-18 months due to the promising outlook for its Brucejack project, CIBC analyst Jeff Killeen says.

Even using a lower operating rate than company projections, CIBC thinks Brucejack could produce 300K-plus oz./year of gold, which would provide meaningful production growth to a range of producers; "bottom line is that we believe the scarcity value of high-grade development projects like Brucejack garner higher acquisition multiples, which value the underlying project at or near intrinsic value."

Killeen thinks PVG could attract a multiple of ~1x NAV, and raises his share price target to $11.50 from $9.50.