Pretium Resources (NYSE:PVG) is a mid-tier gold producer that operates the high-grade Brucejack mine in British Columbia, Canada. Brucejack is one of the newest and highest grade mines in the sector, but has been plagued by volatile operational performance since going into production in mid-2017. After widely missing guidance in 2019, management released an updated reserve and mine life in the first quarter of this year that showed lower grades and production, sending the stock tumbling further.

Despite these challenges, the company has been surprisingly consistent in generating free cash flow and reported a record second quarter that sent its shares up 25% in one day. With gold prices now hovering around $1,900 per ounce, Brucejack could be one of the most profitable independent assets in a tier-one jurisdiction, making it an attractive takeover target for larger producers looking to grow production.

Looking at a five-year chart, it’s clear that the company has had frequent ups and downs. Many investors have been turned off by the roller-coaster trajectory of the share price, with the typically volatile price of gold looking much more stable in comparison.

Five-year share price performance

(Source: YCharts)

Brucejack: A Troubled Asset with Long-Term Potential in a Top Jurisdiction

After Pretium acquired the project for $450 million in 2010 and started aggressively drilling newly discovered zones, the mine progressed through economic studies and permitting before reaching commercial production in July 2017. Over the past decade, the project has seen many highs and lows, from heightened expectations by promotional management of a tier-one mine to engineering consultants and critics who suggested the project was not mineable at all.

The vein system being exploited at Brucejack is very high grade but complex, making consistent mine planning difficult. Going back to 2018, the first full year of commercial production, head

By Tom Wilson

LONDON, Oct 6 (Reuters)Sterling climbed above $1.30 on Tuesday for the first time in three weeks as investors pushed back expectations for when the Bank of England would cut interest rates below zero.

The pound gained 0.3% in early trading to touch $1.3006, the first time it had broken the mark since mid-September, before giving up its gains. It was last down 0.1% at $1.2962.

Money markets pushed back bets that Britain’s interest rates would turn negative, with investors now seeing rates falling below zero in May 2021. Previously they had expected the Bank of England to cut rates into negative territory in March. BOEWATCH

The BoE, which cut interest rates to a record-low 0.1% in March, is looking at whether it is technically feasible to cut its main interest rate below zero, something that has already been done in Japan and the euro zone.

Bank of England rate-setter Jonathan Haskel said on Monday he saw downside risks to the economy – and also some possible benefits – from cutting interest rates below zero.

The BoE’s chief economist, Andy Haldane, and one of its deputy governors, Dave Ramsden, have expressed doubts about whether negative rates would be helpful. One external policymaker, Silvana Tenreyro, has been more supportive.

“They are still keeping the option open that negative rates could help support the recovery,” said Lee Hardman, currency strategist at MUFG.

Sub-zero rates would likely weaken the pound, at least in the short term, he added.

The pound was flat against the euro EURGBP=D3, last trading down 0.1% at 90.83 pence.

Also supporting sentiment was cautious optimism towards Britain’s trade talks with the European Union. Most analysts now expect London and Brussels to reach a deal before the transition deadline.

Still, Prime Minister Boris Johnson’s

SEOUL (Reuters) – Big Hit Entertainment, the management label for K-pop sensation BTS, saw robust but not spectacular demand in the first of two days of share offerings for retail investors, with sentiment hurt by increasing talk that the band’s members may have to complete military service.

In South Korea, all able-bodied men aged 18 or above are obliged at some point to serve in the military for about 20 months.

But there has also been discussion within parliament that the band, which has just become the first South Korean group to reach No.1 on the U.S. Billboard Hot 100 singles chart with the song “Dynamite”, could be granted an exemption as it has successfully promoted the country’s image abroad.

Individual investors on Monday submitted orders for 89.6 times the amount of stock made available to them worth some 8.6 trillion won ($7.4 billion), said lead arranger NH Investment & Securities.

That is about half the value of bids made on a record first day of retail bids in the recent listing for South Korean game developer Kakao Games.

“Demand is very strong, its just not as earth shattering as some had expected,” said Hwang Hyun-jun, an analyst at DB Financial Investment.

With plenty of liquidity in the market, some analysts had predicted gross bids from retail investors could hit 100 trillion won ($85 billion).

Offering about 20% of the company in its IPO, Big Hit Entertainment, led by CEO Bang Si-hyuk, is set to raise 962.6 billion won ($830 million). In the institutional portion of the offer, investors expressed interest in more than 1,000 times the number of shares on offer.

The label is due to make its market debut on Oct. 15.

(Reporting by Cynthia Kim; Editing by Edwina Gibbs)

Copyright 2020 Thomson Reuters.

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NEW YORK (Reuters) – The dollar slipped against major currencies on Thursday in volatile trading, as hopes for U.S. fiscal stimulus cheered investors and spurred them to seek higher-yielding but riskier currencies.

FILE PHOTO: A U.S. Dollar banknote is seen in this illustration taken May 26, 2020. REUTERS/Dado Ruvic/Illustration

The Chinese yuan gained the most against the dollar, reaching a year-and-a-half high in the offshore market, as a holiday in China dried up liquidity, exaggerating the moves.

In addition, Chinese data on Wednesday showed its economic recovery was on track.

Commodity currencies such as the Australian, New Zealand, and Canadian dollars as well as the Norwegian crown also rose versus the greenback.

U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin were expected to try again on Thursday to reach a deal on COVID-19 relief, while the House of Representatives stood ready for a second day to move a Democratic bill if talks fail.

Mnuchin raised hopes of an agreement by telling reporters that Wednesday’s discussions had made “a lot of progress in a lot of areas.”

“The market is latching on to renewed hopes for a stimulus deal,” said Erik Nelson, macro strategist, at Wells Fargo in New York. “Those stimulus hopes seem to be driving much of today’s macro price action.”

Wall Street shares were higher on the day, while U.S. Treasury prices were lower.

In mid-morning trading, the euro rose 0.1% against the dollar to $1.1721 EUR=EBS.

The Australian dollar rose 0.1% against the greenback to US$0.7168 AUD=D3. The New Zealand dollar gained 0.3% to US$0.6631 NZD=D3. Against the Canadian dollar, the U.S. dollar slipped 0.1% C$1.3314 CAD=D3.

The dollar index was little changed at 93.851 =USD, after earlier falling to 93.522, its weakest level since Sept. 22.

Starbucks  (SBUX) – Get Report shares rose Wednesday after Cowen analyst Andrew Charles upgraded the coffee-bar chain’s stock to outperform from market perform and raised his share-price target 29% to $99 from $77.

“We view early signs of the U.S. recovery as durable, aided by broadening digital access through expanded pay options for loyalty and 23% of U.S. stores adding curbside pickup,” he wrote in a commentary.

“Covid-19 presents new efficiency opportunities [to drive] 15% earnings-per-share growth for 2022-2023, he said. The shares risk/reward balance is “compelling, as our bull/bear cases suggest 2-to-1 upside/downside ratio.”

The Seattle chain’s stock recently traded at $86.72, up 2.3%. The shares have eased 1% this year. The new price target indicates 17% upside from Tuesday’s close at $84.80.

“We view Americas same-store sales as the key metric for SBUX, given a 0.8 correlation with SBUX’s forward price-to-earnings multiple pre-covid-19,” Charles said.

“We believe Starbucks is pursuing the right structural drivers to help transcend displaced morning routines, including broadening payment options beyond a Starbucks card for customers to join My Starbucks Rewards loyalty program.”

That also includes the additional curbside-pickup capacity and “on-trend plant-based-menu innovation,” Charles said.

“This should help Starbucks extend the sales recovery and gives us confidence in potential upside to comps,” he said. 

Charles views Starbucks stock as “attractive on a total-shareholder-return basis, with room for multiple expansion.”

Starbucks said two weeks ago that comparable sales in the U.S. and China continued to improve in August, as the impact of coronavirus lockdowns eased in its two largest global markets.

In June the company introduced a breakfast sandwich made with Impossible Foods’ plant-based sausage.