RE:RE:RE:fyi "SKE is a serial diluter indicating that they overspend but are optimistic about the quality of the deposit."
I agree that this is a risk. If there is no deal with Barrick for them to relinquish their back-in, there is a big risk that they don't hit with their drills and waste tens of millions. There is no question that we are all betting on hits, as with any junior mining investment. If there was no Barrick back-in right, there is no way I would support a junior spending essentially 25% of their market cap to drill in one year.
Because this is a brownfield VMS deposit with pretty well understood geology, the chances of missing with drills is not as significant as many other juniors. Also, a large portion of the drilling is infill and not attempting to extend the deposit.
"personally I think the management here because of this forced spend are skimming way too much of these proceeds for themselves"
This is not something that I necessarily agree with. A company that goes from $0.5/share to $1.1/share is a company that deserves to compensate management. I'm not aware of management compensation increasing, but I'll look more closely at the financials when I get a chance. Overall, I'd be more concerned about this if the management team weren't making solid decisions for the best interest of the shareholders and pushing this project along as fast as possible. This doesn't seem like a junior that exists to keep management employed at the shareholder's expense. In my opinion 9/10 junior miners are run by management teams that leach off the teat of investors and never bring projects forward. Skeena doesn't seem like that kind of company to me.
Your points are all very valid and I appreciate your input, but in my opinion the benefits outweigh these particular risks (for now).
What I personally like about Skeena is that they could stop drilling and it's a deposit that could be economically mined at this point. The project works at $1200 gold and $2000 gold and is in a safe jurisdiction. The government is pro-mining and first nations groups have been consulted and are on board. There is no fatal flaw that would stop a major from picking this up at a premium as far as I can tell.