RBC Global Mining & Materials Conference 2017

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VALUE THROUGH GOLD RBC GLOBAL METAL & MINING CONFERENCE June 13-14, 2017

Transcript of RBC Global Mining & Materials Conference 2017

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VALUE  THROUGH  GOLD

RBC GLOBAL METAL & MINING CONFERENCE

June 13-14, 2017

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CAUTIONARY STATEMENT

Forward-Looking InformationThis Presentation contains “forward-looking information” and “forward looking statements” within the meaning of applicable Canadian and United States securities legislation. Forward-looking information may include, but is not limited to, the anticipated production and developments in our operations in future periods, information with respect to our planned exploration and development activities, the adequacy of our financial resources, the estimation of mineral reserves and resources including the 2016 Valley of the Kings Mineral Resource estimate, realization of mineral reserve and resource estimates and timing of development of our Brucejack Project, costs and timing of future exploration, results of future exploration and drilling, production and processing estimates, capital and operating cost estimates, timelines and similar statements relating to the economic viability of the Brucejack Mine, timing and receipt of approvals, consents and permits under applicable legislation, our executive compensation approach and practice, the composition of our board of directors and committees and adequacy of financial resources. Wherever possible, words such as “plans”, “expects”, “projects”, “assumes”, “budget”, “strategy”, “scheduled”, “estimates”, “forecasts”, “anticipates”, “believes”, “intends”, “targets” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative forms of any of these terms and similar expressions, have been used to identify forward-looking statements and information. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be forward-looking information. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation, those risks identified in our Annual Information Form dated March 30, 2017 filed on SEDAR at www.sedar.com and in the United States on Form 40-F through EDGAR at the SEC’s website at www.sec.gov. Forward-looking information is based on the expectations and opinions of our management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise. We do not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking information. National Instrument 43-101Technical and scientific information contained herein relating to the Projects is derived from National Instrument 43-101 (“NI 43-101”) compliant technical reports (“Reports”), “Measured, Indicated, and Inferred Mineral Resource Update” dated July 21, 2016, “Feasibility Study and Technical Report on the Brucejack Project, Stewart, BC” dated June 19, 2014, “Mineral Reserve Update” dated December 15, 2016, “capital cost update” dated February 3, 2017, and . We have filed the Reports and Update under our profile at www.sedar.com. Technical and scientific information not contained within the Reports for the Projects have been prepared under the supervision of Mr. Ivor W.O. Jones, M.S.c., FAusIMM, Cpgeo, Mr. Kenneth C. McNaughton, P.Eng., Ian Chang, P.Eng., Mr. Russell Pennel, B.A.S.c., P.Eng., and Mr. Lyle Morgenthaler, B.A.S.c., P.Eng. each of whom is an independent “qualified person” under NI 43-101.This presentation uses the terms “measured resources”, “indicated resources” (together “M&I”) and “inferred resources”. Although these terms are recognized and required by Canadian regulations (under NI 43-101), the United States Securities and Exchange Commission does not recognize them. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no guarantee that all or any part of the mineral resource will be converted into mineral reserves.In addition, “inferred resources” have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre feasibility studies, or economic studies, except for a Preliminary Assessment as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. CurrencyUnless otherwise indicated, all dollar values herein are in Canadian $.

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V A L U E   T H R O U G H   G O L D

High-grade underground gold mine in British Columbia, Canada

Commissioning nearing completion

Ramping up towards commercial production

Low All-In-Sustaining Cost

Local and regional exploration potential

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BRUCEJACK LOCATION

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HIGH-GRADE GOLD RESERVES(1,2)

Category Tonnes(mil)

Gold(g/t)

Silver(g/t)

Contained

Gold(mil oz)

Silver(mil oz)

Proven 1.4 7.2 383 0.3 17.4

Probable 1.5 6.5 181 0.3 8.6

Total P&P 2.9 6.9 279 0.6 26.0

Valley of the Kings

West Zone

(1) Source: Mineral Reserve Update, see news release dated December 15, 2016(2) Source: Feasibility Study and Technical Report Update on the Brucejack Project, dated June 19, 2014

Category Tonnes(mil)

Gold(g/t)

Silver(g/t)

Contained

Gold(mil oz)

Silver(mil oz)

Proven 3.3 14.5 12.9 1.6 1.4

Probable 12.3 16.5 11.3 6.5 4.5

Total P&P 15.6 16.1 11.1 8.1 5.9

Mineral Reserve Estimate – Dec 2016

West Zone

Valley of the Kings

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BRUCEJACK PROJECT PRODUCTION

Source: Feasibility Study and Technical Report Update on the Brucejack Project, dated June 19, 2014; Mineral Reserve Update, see news release dated Dec. 15, 2016.

Mine Life 18 years

Feasibility Study Gold Production 7.27 million oz

Average Annual Gold Production

504,000 oz (years 1-8)

404,000 oz (life of mine)Gold and Silver Recoveries 96.7% and 90.0%

Processing Rate 2,700 tonnes per day

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BRUCEJACK - ROBUST ECONOMICS

(1) Based on updated forecast of capital cost (see News Release dated February 3, 2017) and operating cost assumptions from the Feasibility Study and Technical Report Update on the Brucejack Project, with an effective date of June 19, 2014

(2) NPV is discounted to Dec 31, 2015.

Economic Results by Metal Price (1)

Low Case Base Case High Case

Gold Price (US$/oz) $800 $1,100 $1,400Silver Price (US$/oz) $10 $14 $18NPV(2) (5% US$M) Pre-Tax $1,050 $2,340 $3,620

After Tax $690 $1,530 $2,360Internal Rate of Return Pre-Tax 19.9% 34.4% 47.5%

After-Tax 16.5% 28.5% 39.1%Net Cash Flow (US$M) Pre-Tax $2,110 $4,220 $6,320

After-Tax $1,470 $2,820 $4,170Payback Pre-Tax 5.0 3.3 2.5

After-Tax 5.2 3.5 2.7

Capex (US$M) $811.1 $811.1 $811.1

Exchange Rate (US$:C$) 0.75 0.75 0.75

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COMMISSIONING UPDATE

Underground Infrastructure Grizzly to Surge Bin: commissioned

Mill Building Surge Bin to concentrate bagging system: commissioned

Bagging system enhancements

Cyclones to Furnace: commissioned

Shaker table feed modifications

Paste Plant: commission in late June

Water treatment plant: commissioning

Commercial Production Ramping up towards commercial production

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MINE SITE– APRIL 2017

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ORE FLOW

Isometric view facing North West

West Zone Portal

Valley of the Kings Portal

Transfer Station

Truck Dump to Crusher

Ventilation Raise

Ventilation Raise

Ventilation Raise

As Built April 20171200L Stopes1230L Stopes

Ore Flow Direction1320L Stopes

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UNDERGROUND DEVELOPMENT– TRUCK DUMP

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UNDERGROUND DEVELOPMENT– JAW CRUSHER

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UNDERGROUND DEVELOPMENT– LOWER TRANSFER TOWER

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UNDERGROUND DEVELOPMENT– UPPER TRANSFER TOWER

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PORTAL BUILDING– UPPER TRANSFER CONVEYOR

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PROCESSING FLOW SHEET

55% FROM CONCENTRATE

45% FROM GRAVITY

(1) Source: Feasibility Study and Technical Report Update on the Brucejack Project, dated June 19, 2014.

96.7% GOLD RECOVERY (LOM)

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MILL BUILDING– SURGE BIN FEED CONVEYOR

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MILL BUILDING– SURGE BIN AND APRON FEEDER

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MILL BUILDING– SURGE BIN DISCHARGE AND PEBBLE CRUSHER CONVEYORS

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MILL BUILDING– SAG MILL FEED CONVEYOR AND GRINDING AREA

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MILL BUILDING– SAG & BALL MILLS

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MILL BUILDING– CENTER BAY, FLOTATION CIRCUITS

23Process and fire water tanks

MILL BUILDING– FLOTATION CELLS

24Process and fire water tanks

MILL BUILDING– FLOTATION CELLS

25Process and fire water tanks

MILL BUILDING– CONCENTRATE THICKENER

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MILL BUILDING– CONCENTRATE FILTER PRESS

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MILL BUILDING– CONCENTRATE BAGGING

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MILL BUILDING– CONCENTRATE BAGGING

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MILL BUILDING– CYCLONES (RIGHT FOREGROUND)

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MILL BUILDING– KNELSON FEED CHUTES

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MILL BUILDING– KNELSON FEED CHUTES

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MILL BUILDING– KNELSON (GRAVITY) CONCENTRATORS

33Process and fire water tanks

MILL BUILDING– TAILINGS THICKENER

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OPERATIONS READINESS

Staffing substantially complete

Operations staff mobilized to site

Stoping underway with contract miner: Procon

Permits in place

Preventive maintenance program substantially complete

Critical/capital spares on site

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FIRST NATIONS EMPLOYMENT- AT APRIL 30, 2017 NORTHWEST BC

$14 M

COLUMBIA

27% First 

Nations

Pretivm PretivmPlus Contractors

37% First 

Nations

119/433 317/864

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CONCENTRATE SALES

Offtake agreements awarded: two parties, 50% each

All concentrate transported in 2-tonne bags in containers by truck from Brucejack to Prince Rupert

Logistics provider retained to coordinate transport from site to final destination

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DORÉ SALES

Refining agreements awarded: three parties, one-third each

Logistics and security provider retained for transport from site to refineries

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V A L U E   T H R O U G H   G O L D

LOOKING AHEAD

Production Q3 2017

Exploration 2017

Infill Drilling 2018

Debt Repayment

Stream/Offtake Repurchase

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NN

5km

2016201520142011/13 Pre 2011

REGIONAL EXPLORATION– HISTORIC SURFACE SAMPLING

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OPEN IN ALL DIRECTIONS

N

250 m

1Outline of Measured, Indicated, and Inferred Mineral Resource as at 21 July 2016.2Outline of Proven and Probable Mineral Reserve, based on 19 June 2014 Updated Feasibility Study.

SU-658

SU-661

SU-654

SU-668

2.05m @ 2,100 g/t Au(Includes 0.5m @ 8,600 g/t Au)

1.18m @ 10.75 g/t Au

9.0m @ 21.87 g/t Au(Includes 0.5m @ 203 g/t Au)

1.5m @ 16.9 g/t Au

0.5m @ 137 g/t Au

Mineral Resource1

Mineral Reserve2

Exploration PotentialDrill Intercepts

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SHAREHOLDING & ANALYST COVERAGE

(1) As of May 31, 2017; ownership calculated on an undiluted basis.(2) As of May 31, 2017. Source: IPREO & SEDI.

Top Shareholders(2) (% S/O)

Black Rock Asset Management 10.6Silver Standard Resources 9.4Van Eck Associates 6.6Zijin Mining 5.0Liberty Mutual Group 4.3Sun Valley Gold 2.8Anchor Bolt Capital 2.6Orion Mine Finance 2.6M&G Investment Management 2.4Pretivm Management 2.0

Equity Structure(1)(shares in millions)

Issued & Outstanding 180.8Fully Diluted 187.8

Market Cap (June 8, 2017) US$1.69 B

Working Capital (at Mar 31, 2017) US$88.1 M

Analyst CoverageBMO Andrew KaipCanaccord Genuity Eric ZaunscherbCIBC Jeff KilleenCiti Alexander HackingCormark Securities Richard GrayCredit Suisse Robert ReynoldsH.C. Wainwright Heiko F. IhleNumis Jonathan GuyPareto Securities Rhys BradleyRBC Dan RollinsRoth Capital Partners Joseph ReagorScotiabank Ovais Habib

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Advancing the high-grade Brucejack gold mine

PVG : TSX/NYSEpretivm.com

CONTACT: Pretium Resources Inc.Suite 2300 – 1055 Dunsmuir St.Four Bentall CentrePO Box 49334Vancouver, BC, Canada V7X 1L4

Phone: 604-558-1784Fax: 604-558-4784Toll-free: 1-877-558-1784

[email protected]