More RBC Analysts at RBC Dominion Securities added Skeena Resources Ltd. to their “Best Ideas Portfolio” of global mining stocks for the second quarter of the year.
It was the only company joining the list of 24 equities, replacing London-based Hochschild Mining PLC.
“The Q1/22 RBCCM Global Mining Best Ideas equal-weighted portfolio was up 23 per cent (USD) in the quarter, in line with the MSCI World Metals and Mining Index benchmark performance, which was also up 23 per cent. While all sectors were in the positive this quarter, fertilizers were up the most as supply disruptions on the back of Russia’s invasion of Ukraine drove fertilizer prices sharply higher. The Bulk Commodities & Diversified sector was up the second most on the back of much higher met coal and iron ore prices,” the firm said.
Seeing Skeena “checking the right boxes,” analyst Michael Siperco has an “outperform” rating and $21 target, exceeding the $22.09 average on the Street.
“Eskay Creek stacks up well vs. peer projects on scale, mine life, costs, and jurisdiction, and it should increasingly attract investor (and potential acquirer) attention as development milestones are met,” he said. “We continue to see re-rate potential as Skeena heads into feasibility/ project financing in 2Q22, with resource growth in a high-grade open pit driving an attractive risk/reward proposition at current levels. SKE trades at 0.65 times NAV at spot, in line with peers but meriting a more material premium, in our view.”
Other TSX-listed stocks on the list are: Agnico Eagle Mines Ltd. (
) Cameco Corp. (
); Capstone Copper Corp. (
); Champion Iron Ltd. (
) Endeavour Mining Corp. (
) First Quantum Minerals Ltd. (
); Hudbay Minerals Inc. (
); Ivanhoe Mines Ltd. (
); Nutrien Ltd. (
); Osisko Mining Inc. (
); SSR Mining Inc. (
) and Teck Resources Ltd. (
).