Monster Quarter for Sun Valley Gold As Materials Bets Pay Off Handsomely

Klondex Mines Ltd (NYSEMKT:KLDX)

– Shares Owned by Sun Valley Gold (as of June 30): 11.95 million

– Value of Sun Valley Gold’s Holding (as of June 30): $43.36 million

Sun Valley Gold decreased its holding in Klondex Mines Ltd (NYSEMKT:KLDX) by 507,000 shares during the second quarter of 2016. The stock has gained over 148% so far this year, including 37% gains in the latest quarter. The gold and silver mining company expects to produce 8,000-to-12,000 gold ounces from a combination of processing gold in tailings and test stope mining during the second-half of 2016. The company earned $0.05 per share on $48 million in revenue during the second quarter. Just seven hedge funds out of the 749 tracked by Insider Monkey which filed 13F’s for the June quarter were bullish on Klondex Mines Ltd (NYSEMKT:KLDX) at the end of the quarter.

Alamos Gold Inc (USA) (NYSE:AGI)

– Shares Owned by Sun Valley Gold (as of June 30): 5.61 million

– Value of Sun Valley Gold’s Holding (as of June 30): $48.21 million

Sun Valley sold around 2.4 million shares of Alamos Gold Inc (USA) (NYSE:AGI) during the second quarter, ending the period with a $48.21 million stake in the company. The Canadian gold exploration and development company reported a second quarter adjusted loss of $0.04 per share, while revenue came in at $120.1 million, widely beneath the $124.88 million in revenue that it reported a year earlier, and below analysts’ estimates of $124.9 million. Alamos Gold Inc (USA) (NYSE:AGI) CEO John McCluskey said in a statement that the company expects higher production and lower costs in the second-half of the year. Alamos Gold shares gained 64% during the second quarter.

Pretium Resources Inc (NYSE:PVG)

– Shares Owned by Sun Valley Gold (as of June 30): 4.38 million

– Value of Sun Valley Gold’s Holding (as of June 30): $48.97 million

Sun Valley made no change to its stake in Pretium Resources, another Canada-based precious metals exploration and development company, ending the quarter with 4.38 million of its shares, which account for around 12% of the value of the fund’s equity portfolio. Pretium Resources Inc (NYSE:PVG) shares entered into oversold territory during trading on Wednesday, hitting a Relative Strength Index reading of 29.3. A total of ten hedge funds in our database held positions in Pretium Resources Inc (NYSE:PVG) at the end of the second quarter. The stock is up by over 92% year-to-date and gained 109% during the second quarter.

Disclosure: None