Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Skeena Resources Ltd T.SKE

Alternate Symbol(s):  SKE

Skeena Resources Limited is a precious metals developer that is focused on advancing the Eskay Creek Gold-Silver Project, a past producing mine located in the Golden Triangle in British Columbia, Canada. Eskay Creek represents one of the highest-grade and lowest cost open-pit precious metals mines in the world, with substantial silver by-product production. It also owns the past-producing Snip gold mine (Snip). In addition to Eskay Creek and Snip, the Company also owns several exploration stage mineral properties in the Golden Triangle and Liard Mining Division of British Columbia. Its 100%-owned Eskay Creek Project is a high-grade volcanogenic massive sulphide (VMS) deposit. The Snip mine consists of one mining lease and eight mineral claims totaling approximately 4,546 hectares (ha) in the Liard Mining Division. It has staked a 74,633-ha Hoodoo Project, located approximately 65 kilometers northwest of Eskay Creek. It also has interests in KSP property.


TSX:SKE - Post by User

Bullboard Posts
Comment by jfan22on Feb 07, 2020 2:26pm
142 Views
Post# 30659634

RE:For What It's Worth

RE:For What It's WorthNice modelling! I'd like to point out though that 5% discount rate is industry standard for precious metals projects. 8% is standard for base metals projects. That is the norm among banks, analysts and corp. dev. teams at majors.

This valuation also doesn't account for Snip or their cash on hand.

When I use 1500 POG, 5% discount, 174M share, 0.3 as multiplier for NPV and add in 18M cash I'm getting $1.62/share. Then add in snip value on top of that.

As we infill drill and increase the resource/reserve that is within the pit, the overall NPV will increase by a lot as the AISC goes down. Infill drilling I think will actually add more value to the project at this point than extending the resource since those infill ounces are within the pit and come out with no added mining cost.
Bullboard Posts