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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

Comment by metalhead666on Sep 20, 2022 11:23am
132 Views
Post# 34973798

RE:Dilution pollution is not settled

RE:Dilution pollution is not settledYou don't know this.  They could well do the whole thing with debt and pay it off in a year.  As I explained previously...so what?  They sell some shares and we get a working cash machine...it's not dilution for nothing!  We get something big in return.  I'll repeat....If they financed the whole thing tomorrow with equity and sold 100 million shares...make it 120 million....there would be 200 million shares outstanding and no debt....that is NOT a bloated share structure and is in fact quite modest compared to most.....1 full year of production of 400k ounces with a minimum $1000 margin is $400 million bucks or $2 per share.....that's a 3x PE multiple.  They could pay a 50% dividend with that kind of cash flow. This obsession with dilution is nonsensical if you think of yourself as an owner of the best current project on the planet. 

I didn't like the hit to the stock with this last move they did but I'm not in this for daytrading...When I look out to first pour and commercial production I know the value of my shares will be realized. You can wait until financing is in place and maybe you get in a bit cheaper...or maybe not....but the difference between now and then isn't going to matter in the end.  Anyone bying shares today will be richly rewarded...the math doesn't lie.
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