Pretium Resources Inc. is facing two separate class-action lawsuits for allegedly making false and misleading statements, particularly about its Brucejack gold mine in British Columbia not being a "high-grade, high-output" mine.
These moves follow the release of a 47-page report by Viceroy Research, which claimed that the company's reported grades and reserves are inflated. The report added that Pretium moved "undisclosed tonnage" of rock at the mine that, in its view, renders the mine "uneconomic" and Pretium stock "worthless."
Investors suffered damages when "true details" entered the market, Rosen Law Firm said in a Sept. 8 release. Glancy Prongay & Murray LLP, meanwhile, said Sept. 7 that the company's share price fell by 77 Canadian cents, or nearly 10%, to close at C$6.94 on Sept. 6 following the Viceroy piece.
Pretium President and CEO Joseph Ovsenek told S&P Global Market Intelligence that the company stands by its numbers aned rejected Viceroy's core claims.
The mine has courted controversy over the years given the variable nature of gold mineralization in the deposit. It is often extremely high-grade and often is not.