Loading ...PVG: the battle
interesting battle between believers and shorters:
I fully agree with the following author, that in order to be 100% sure PVG has turned the corner, several quarters of profitable operation are needed:
https://seekingalpha.com/article/4203845-pretium-resources-patience-required
The following hedge fund however believes the contrary and sees no merit in the high grade PVG story:
I do find it strange however that neither auditors or authority would notice any fraud:
https://viceroyresearch.files.wordpress.com/2018/09/pretium-summary-6-september-2018.pdf
I’d say the battle was lost. That Viceroy report essentially says Pretium is going to go belly up.
Viceroy Research:
The implications of our findings on grade, tonnage and life of mine are damning and lead us to believe that Pretium’s equity is highly likely to be worthless in its current state, and its credit significantly impaired.
Viceroy believe Pretium bears striking resemblance to Rubicon Minerals, now operating as a shadow of its former self after revising mineral reserve estimates down ~90%.
We believe the most likely scenario is that Pretium’s assets are seized by its secured creditors as collateral.
I think we are fully in the battle, as I doubt banks have lend 500M+ without doing due diligence. Shorters are just playing a game by making lots of panic so they can buy back lower. The same happened with AG and AKG last year, but with AKG I think they had it partly right.