VALUE THROUGH GOLD CREDIT SUISSE GLOBAL STEEL & MINING CONFERENCE. September 11-12, 2017

Transcription

1 1 VALUE THROUGH GOLD CREDIT SUISSE GLOBAL STEEL & MINING CONFERENCE September 11-12, 2017

2 CAUTIONARY STATEMENT 2 Forward-Looking Information This 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 and in the United States on Form 40-F through EDGAR at the SEC s website at 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 Technical and scientific information contained herein relating to the Projects is derived from National Instrument ( NI ) 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 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 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 ), 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 Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. Currency Unless otherwise indicated, all dollar values herein are in Canadian $.

3 BRUCEJACK LOCATION 3

4 BRUCEJACK LOCATION 4 Access Road Brucejack Mine Power Line Airstrip Knipple Camp Transfer Station

5 HIGH-GRADE GOLD RESERVES (1,2) West Zone Mineral Reserve Estimate Dec 2016 Valley of the Kings Category Tonnes (mil) Gold (g/t) Silver (g/t) Contained Gold (mil oz) Silver (mil oz) Proven Probable Total P&P West Zone Valley of the Kings Category Tonnes (mil) Gold (g/t) Silver (g/t) Contained Gold (mil oz) Silver (mil oz) Proven Probable Total P&P (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,

6 BRUCEJACK PRODUCTION 6 Mine Life 18 years Feasibility Study Gold Production Average Annual Gold Production Gold and Silver Recoveries Processing Rate 7.27 million oz 504,000 oz (years 1-8) 404,000 oz (life of mine) 96.7% and 90.0% 2,700 tonnes per day 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.

7 BRUCEJACK - ROBUST ECONOMICS Economic Results by Metal Price (1) Low Case Base Case High Case Gold Price (US$/oz) $800 $1,100 $1,400 Silver Price (US$/oz) $10 $14 $18 NPV (2) (5% US$M) Pre-Tax $1,050 $2,340 $3,620 After Tax $690 $1,530 $2,360 Internal Rate of Return Pre-Tax 19.9% 34.4% 47.5% After-Tax 16.5% 28.5% 39.1% Net Cash Flow (US$M) Pre-Tax $2,110 $4,220 $6,320 After-Tax $1,470 $2,820 $4,170 Payback Pre-Tax After-Tax Capex (US$M) $811.1 $811.1 $811.1 Exchange Rate (US$:C$) (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,

8 8 MILL COMMISSIONING & RAMP-UP 2017 Focus: MAY: Wet commissioning complete JUNE: Increase in production rate. First gold pour. JULY: Achieved commercial processing rate. Mill optimization. Produced 25,392 ounces of gold in June/July from low-grade stockpiles, development muck, and in July, the addition of stope ore. AUGUST: Continue mill optimization. Continue addition of stope ore. SEPTEMBER > Optimize ore blending

9 9 OPERATIONS Staffing complete Stoping underway with contract miner: Procon

10 10 LOCAL EMPLOYMENT Brucejack Mine 54% British Columbia - Other 31% First Nations 15% Canada - Other As of July 2017

11 UNDERGROUND DEVELOPMENT View facing North West 11

12 12 LONGHOLE STOPING Active Stopes 12 stopes in the mining and backfill cycle at all times Dimensions 30 meter level spacing 45 meter maximum length 15 meter widths 30 M SPACING Dilution Factors Primary Stopes: 7% Secondary Stopes: 15%

13 MILL BUILDING 13 VOK Portal Mill Camp West Zone Portal Waste Rock Disposal Contact Water Pond

14 PROCESSING FLOW SHEET 55% FROM CONCENTRATE 96.7% GOLD RECOVERY (LOM) 45% FROM GRAVITY (1) Source: Feasibility Study and Technical Report Update on the Brucejack Project, dated June 19,

15 GOLD ROOMEFFICIENCY 15 Gold Recovery Optimized Metallic Slag Eliminated

16 GOLD RECOVERY OPTIMIZATION 16 Cyclone Underflow Oversize Primary Screen Primary Screen Secondary Screen Knelson Tails Primary Knelson Primary Knelson Knelson Tails Secondary Knelson Knelson Tails Bin Bin Bin Primary Shaker Table Table Middlings Secondary Shaker Table Table Tails Table Tails Gravity Concentrate

17 FINANCIAL Capex Close Out Gold Sales Underway Working Capital Surplus Targeted for End of Q Pay Down Debt Buy Back Stream

18 DELIVERING ON STRATEGY 18 Brucejack Reserve Expansion Bowser Exploration Potential Brucejack Production Expansion

19 RESERVE EXPANSION N Mineral Resource 1 Mineral Reserve 2 Exploration Potential Drill Intercepts SU g/t Au 16.9 g/t Au 2,100 g/t Au (Includes 8,600 g/t Au) g/t Au (Includes 203 g/t Au) SU g/t Au 250 m 1 Outline of Measured, Indicated, and Inferred Mineral Resource as at 21 July Outline of Proven and Probable Mineral Reserve, based on 19 June 2014 Updated Feasibility Study. SU-654 SU

20 BOWSER EXPLORATION SURFACE SAMPLING N 5km /13 Pre

21 PRODUCTION EXPANSION 21

22 RAMPING-UP PRODUCTION 22 Construction Commissioning Commercial Production Completion Date Processing Stope Ore Targeting Steady State Production - End of Q4

23 QUESTIONS 23

24 SHAREHOLDING & ANALYST COVERAGE Equity Structure (1) (shares in millions) Issued & Outstanding Market Cap (Sept 5, 2017) Fully Diluted US$1.57 B Working Capital (at June 30, 2017) (US$12.9) M Top Shareholders (2) (1) As of September 5, 2017; ownership calculated on an undiluted basis. (2) As of September 5, Source: IPREO & SEDI. (% S/O) Black Rock Asset Management 10.6 SSR Mining 9.3 Van Eck Associates 5.9 Zijin Mining 5.0 Liberty Mutual Group 4.1 M&G Investment Management 3.1 BMO Asset Management 3.0 Sun Valley Gold 2.7 Orion Mine Finance 2.6 Anchor Bolt Capital 2.5 Pretivm Management 1.9 Analyst Coverage BMO Canaccord Genuity CIBC Citi Cormark Securities Credit Suisse H.C. Wainwright Numis Pareto Securities RBC Roth Capital Partners Scotiabank Andrew Kaip Eric Zaunscherb Jeff Killeen Alexander Hacking Richard Gray Robert Reynolds Heiko F. Ihle Jonathan Guy Rhys Bradley Dan Rollins Joseph Reagor Ovais Habib 24

25 Brucejack Mine Phone: Fax: Toll-free: Pretium Resources Inc. Suite Dunsmuir St. Four Bentall Centre PO Box Vancouver, BC, Canada V7X 1L4 pretivm.com PVG : TSX/NYSE 25