Newcrest Mining Limited (TSX:NCM)

[Pixel8r]

Continuation of the old thread, which can be found here - https://old.24knews.com/viewtopic.php?f=8&t=550

6,700 g per tonne

NEW HIGH-GRADE GOLD EXPLORATION DISCOVERY AT THE GOLDEN MARMOT ZONE AFFIRMS THE DISTRICT-SCALE POTENTIAL OF BRUCEJACK WITH 72.5 G/T GOLD OVER 53.5 METERS, INCLUDING 6,700 G/T GOLD OVER 0.5 METERS

OCT 25. 2021

VANCOUVER, British Columbia, Oct. 25, 2021 (GLOBE NEWSWIRE) -- Pretium Resources Inc. (TSX/NYSE: PVG) (“Pretivm” or the “Company”) today announced a new high-grade gold exploration discovery at the Golden Marmot Zone on its Brucejack Property in Northern British Columbia. The Golden Marmot Zone is located 3.5 kilometers north of the Valley of the Kings deposit.

To date, assays have been received for the first nine drill holes of which eight drill holes intersected gold. A highlight was drill hole SU-786, which intersected four bands of high-grade gold mineralization over 53.5 meters.

Selected highlights include:

• SU-786 intersected 72.5 grams per tonne gold over 53.5 meters, including 6,700 grams per tonne gold and 3,990 grams per tonne silver over 0.5 meters and including 787 grams per tonne gold over 0.5 meters.
• SU-778 intersected 46.1 grams per tonne gold over 5.8 meters, including 208 grams per tonne gold over 1.0 meter.
• SU-772 intersected 22.8 grams per tonne gold over 38.0 meters, including 268 grams per tonne gold over 1.0 meter and including 188.4 grams per tonne gold over 2.13 meters.

[Pixel8r]

I am going to select Newcrest shares.

Newcrest to Acquire Pretivm for C$18.50 in Cash and Shares

• Premium of 23%to the closing price and 29%to the 20-day volume-weighted-average price, respectively, on November 8, 2021 for Pretivm shareholders
• Option to select cash or Newcrest shares, subject to proration
• Opportunity to retain exposure to Brucejack, while gaining exposure to Newcrest’s diversified portfolio of high-quality, long life, tier one assets
• Newcrest is a respected partner of the First Nations in northwest British Columbia
• Newcrest intends to pursue growth with continued investment in Brucejack
• Offer unanimously recommended by Pretivm’s Board of Directors
• Investor conference call at 3:30 pm PT (6:30 pm ET) November 8, 2021

[Pixel8r]

Why I am going to elect for shares and not cash.

Newcrest Mining To Acquire Pretium Resources: A Good Deal For Newcrest

Summary

• Newcrest Mining will acquire Pretium Resources for $2.81 billion in cash and shares.
• Pretium's shareholders may elect between C$18.5 ($14.86) in cash and 0.8084 Newcrest shares per 1 share of Pretium.
• The deal attributes to Pretium a price-to-operating cash flow ratio of 9.15.
• Newcrest is about to pay $720/toz of gold contained in reserves, or $273/toz of gold contained in resources.
• The abovementioned price isn't bad, but it doesn't attribute any value to the huge exploration potential.

Conclusion

The deal values the Brucejack mine in its current shape reasonably. Newcrest attributes to Pretium price-to-operating cash flow ratio of approximately 9.15. It is willing to pay $720/toz of gold contained in reserves, or $273/toz of gold contained in resources. However, the recent drill results clearly confirm that there lies much more than only Valley of the Kings deposit under the large land package. Golden Marmot seems to be something similar to Valley of the Kings and numerous other exploration targets have been identified. Newcrest is about to get the huge exploration potential almost for free. This is why I believe that the deal is more favorable for Newcrest than for Pretium.

[Pixel8r]

I have changed the name of this thread as Pretium Resources is no more, having been bought by Newcrest Mining.

I chose to have 90% of my holding converted and 10% cash.