Follow up to Pershing Gold Corporation's (NASDAQ: $PGLC) (TSX: $PGLC.TO) Preliminary Feasibility Study (PFS) on Relief Canyon Mine; The Bottom Line
Point Roberts, WA - July 12, 2017 (Investorideas.com Newswire) Investorideas.com, a global news source covering leading sectors including mining stocks issues a follow up to the recent Pershing Gold Corporation (NASDAQ:PGLC) (TSX:PGLC) (FWB:7PG1) Preliminary Feasibility Study (PFS) on the company's Relief Canyon Mine.
Highlights from the PFS include a pre-tax net present value ("NPV") of $144.6 million, an internal rate of return ("IRR") of 89% and Net Cash Flow of $192.7 million. This NPV, IRR and Net Cash Flow assume pre-tax economics using $1,250.00 per ounce ("/oz") of gold ("Au"), $16.75/oz of silver ("Ag") and a 5% discount rate.
Recent research reports and interviews with management give investors a closer look at the economics and the bottom line.
Stephen D. Alfers, Pershing Gold's Chairman and CEO told Investor Ideas, following the release of the PFS, "First I want to invite attention to the reserves and resources that were announced in the geology section/chapters of the PFS. What we have here is a proven/probable reserve of 635,000 ounces and that is backed up by nearly 200,000 ounces of measured indicated and inferred resources. The significance of that is that in the operation of this mine, the fact that we have a nice, healthy M&I resource that backs up the reserves, indicates there is some low hanging fruit for significant growth as we continue to convert resources to reserves."
Rob Chang, an analyst covering the stock at Cantor Fitzgerald said, "We see the PFS as positive, as the increase in annual production relative to the PEA and the conversion of 80% of the resources are both positive developments."
In his report he states, "The PFS shows an increase in annual production over the PEA of 93,900 oz. Au versus 88,500/oz. prior, while leaving operating costs virtually the same. Moreover, about 80% of the 2016 M&I gold ounces were converted to reserves. The PFS will serve as basis for the Phase II application process, expected to be submitted later this year. We reiterate our Buy recommendation and are increasing our target price to US$4.65 per share."
Heiko Ihle, a mining analyst at Rodman & Renshaw in his June 6th report noted, "The economics of the Relief Canyon Mine have improved. Compared to the 2016 Preliminary Economic Assessment (PEA) for Relief Canyon, the current PFS calls for an increase of average LOM production to 93,900 ounces of gold per year from 88,500 ounces of gold
per year. This is achieved through an increase in average recoveries to 83% from 80%. The firm has also increased initial and sustaining capex by $11.4 million and $6.2 million, respectively. We note that estimated cash costs and all-in sustaining costs both remained approximately the
same from the PEA. Taking everything into account, both the after-tax NPV and after-tax net cash flow have improved by approximately $5 million and $10 million, respectively. We attribute the improvement in average recoveries and production to the additional metallurgical testing
incorporated into the PFS. We note that the PFS recommends that the company crush and agglomerate the entire ore body."
From the original release, Stephen D. Alfers, Pershing Gold's Chairman and CEO said, "The PFS is a major milestone for Pershing Gold. We announced an upgraded mineral resource that includes proven and probable reserves of approximately 635,000 ounces of gold and 1.6 million ounces of silver. The PFS is based on a mine plan and financial model with an annual average production of over 90,000 ounces of gold per year over a mine life of approximately six years. The Relief Canyon deposit remains open in three directions, presenting the opportunity for continued expansion and extension of this mine."
Hear a recent Podcast Interview with Stephen Alfers, Executive Chairman, President and CEO of Pershing Gold talking about PFS and Relief Canyon Mine:
About Pershing Gold Corporation www.PershingGold.com
Pershing Gold is an emerging gold producer whose primary asset is the Relief Canyon Mine in Pershing County, Nevada. Relief Canyon includes three historic open-pit mines and a state-of-the-art, fully permitted and constructed heap-leach processing facility. Pershing Gold is currently permitted to resume mining at Relief Canyon under the existing Plan of Operations.
Pershing Gold's landholdings cover approximately 25,000 acres that include the Relief Canyon Mine asset and lands surrounding the mine in all directions. This land package provides Pershing Gold with the opportunity to expand the Relief Canyon Mine deposit and to explore and make new discoveries on nearby lands.
Pershing Gold is listed on the NASDAQ Global Market and the Toronto Stock Exchange under the symbol PGLC and on the Frankfurt Stock Exchange under the symbol 7PG1.
To hear more Investorideas.com podcasts visit: http://www.investorideas.com/Audio/.
Investorideas.com podcasts are also available on iTunes, Google Play Music, Stitcher and Tunein.
About Investorideas.com - News that Inspires Big Ideas www.investorideas.com
Investorideas.com is a meeting place for global investors, featuring news, stock directories, video, podcasts, company profiles, interviews and more in leading sectors.
Sectors we cover in include tech, bitcoin and blockchain , biotech, mining, energy, renewable energy, water stocks, marijuana and hemp stocks, food and beverage (including organic and LOHAS, wine), defense and security including biometrics, Latin America, sports, entertainment, luxury brands and gaming.
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp Disclosure: Pershing Gold Corporation (NASDAQ: PGLC) (TSX: PGLC) is a paid PR, media and news client effective June 2017 for 2 months
800 665 0411