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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

Post by templetooth2on Jan 30, 2024 6:46pm
266 Views
Post# 35853834

Getting a handle on dilution

Getting a handle on dilutionThanks to metalhead for posting that long youtube interview with Randy R. Note that it was recorded in early December. While RR says in video they have about 88 million outstanding, the fully-diluted number as of late January is 101.1 million.

At 1:44 of interview, RR converts $730 million Cdn capex to US$550 - $600 million. He says US$350 million of that will be a stream deal, leaving a balance of $100 - $125 million each in debt and equity components.

I will use US$125 million in targeted equity, conversion rate of $1.3 to get Cdn$162.5 million equity raise. Add a 6% underwriting commission and it's Cdn$172.25 million. Using an issue price of $5 Cdn per share, that's 34.45 million shares of dilution coming. You may choose a more optimistic price, but given the past offerings over the last 2 or so years, I think a $5 price is very realistic. (Stock closed today at $6.50).

So all in, about 135 or 136 million fully-diluted, fully-financed.
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