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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 3:09pm
130 Views
Post# 30659922

RE:RE:RE:For What It's Worth

RE:RE:RE:For What It's WorthDon't get me wrong, I know why you chose a higher discount rate and I agree the cost of capital is different. I'm just saying that institutional investors and corp. dev teams use 5%. While 5% might not fit every project, that is how every project is modeled by market movers.

Barrick and Newmont get lower rates than 5% while juniors will be looking at something higher. The reality is that Skeena will get bought out by a major before this project goes into development, making Skeena's cost of capital much less relevant.

The reason you should use the same rate as them is because if you use a higher rate, you will see lower valuations as the fair price and wait to get in. Institutions will be buying before the SP drops to where you want to get in. Essentially you're just losing out on gains.

Barrick's back-in is what is stopping the SP from being $0.5 - $1.5 higher right now.
Bullboard Posts