Is Pretium Resources a Value Buy?

Pretium Resources (TSX:PVG)(NYSE:PVG) is a Vancouver-based company that acquires, explores for, and develops precious metal resources properties in the Americas.

Its stock has plunged 28% over the past month at the time of this writing. However, the stock was up 5.9% in late afternoon trading on February 21.

The spot price for gold surged above the $1,650 mark in trading on February 21. This occurred as concerns about the spread of the COVID-19 coronavirus have intensified.

There is potential for a significant slide in Chinese economic activity as its response to the crisis has forced it to slow down and even halt commerce in major cities.

This company released its Q4 and full-year results for 2019 on February 12. Pretium reached the upper end of its revised gold production guidance, but it is still carrying forward a high level of debt.

So, should investors jump on the low share price as the spot price of gold surges?

For its 2020 outlook Pretium is projecting gold production at its Brucejack Mine in the range of 325,000 and 365,000 ounces. It is targeting debt reduction in the range of $80 million to $150 million for 2020.

I’m loving precious metals stocks right now, especially as equities have yet to catch up to the heights of the rally in spot prices. The coronavirus outbreak is not the only bullish sign for gold and silver, which is why I’m confident in this sector right now.

This stock last had an RSI of 30, putting it just outside of technically oversold territory. It is worth picking up on the dip today.