Skeena Resources Ltd T.SKE

Market cap drops to $300 million after hours..LOL!

[metalhead666]

Because we raised some money to advance the project. Of course that explains the drop during the day as the criminals shorted in advance of the press release.  Doesn't matter....picked a little more up FH at $4.45  Thank you for your shares.

[inse]

I can't seem to catch any breaks these days! Good thing I only picked up a small amount of SKE today.

[metalhead666]

It's absurd. 7% dilution to grow the resource and advance the project and the stock gets clipped for 15% ....stupid.  So I bought some more in AH for 4.45  Everyone is so terrified in this space now with gold dropping and worries over financing they shoot first and paint everything with a negative brush. Projects don't get built with pixie dust!  Equity dilution is how SKE

[metalhead666]

Nothing other that we get rid of Barrick and won't be paying them a royalty on production. I don't understand the timing or the price here but buying back the royalty means more for us down the road. 

[AlwaysLong683]

52W-high is 17.11 per share. 52W-low before today was 5.80 per share. Bought deal was at 6.05 per new share. Was there a real urgency to buy down the NSR now, or could it have waited until a higher bought deal price per share could be had by SKE.....or does SKE not forsee the share price increasing that much (or risk going lower) over the next few months.....? Need the share price to rise

[metalhead666]

I've been told it will be debt with a possible silver stream.  The financials are plenty strong enough  The fact that the payback is just 1 year allows for short term debt option. 

[AlwaysLong683]

If the financials are plenty strong enough, then why do an equity raise when the share price is near a 52W low? Why not just buy the NSR with cash on hand? If there is not enough cash on hand, then wait. What's the big hurry here? SKE hasn't even begun the permitting process or cut any funding / financing deals for the mine build yet and they are already trying to rid themselves of a small

[metalhead666]

There might have been a time limit for buying back the royalty...I don't know but will find out.  The bottom line remains...buying back the royalty saves a lot of money over the long term....some share dilution is an inevitable part of mine building.....we don't need a big equity component as the payback is 1 year...1 year and we own it...this is unheard of. focus on that. It means we

[Angelique01]

This news release was completely expected.  There was a timeline in place.  Skeena has always had the right to buy down a .5 NSR royalty( from a 1% NSR royalty held by Barrick, for $17.5 M, until October 2 next month. As negotiated when they bought Eskay from Barrick.

[Angelique01]

Here is the second part of the equation as to why this move was brilliant.  From $17.5M to $22.5M a gain of $5M In connection with the Offering, Skeena will grant to Franco-Nevada a right of first refusal (the “ROFR”) over the sale of a 0.5% net smelter return (NSR) royalty (the “Royalty”) over the Eskay Creek gold-silver project (“Eskay Creek”) matching the portion of the existing Barrick

[metalhead666]

Ah! Good work! Thanks for that!  I suspected that there had to be a deadline involved here. So it was a little razzle dazzle and a few million in the drill kitty on top....Thank you for finding that and clearing things up! 

[eldreco]

Thank you, Angelique, For your clarification on this issue.  Maybe everyone can stop getting thair knickers in a twist...and if there is a drop Monday - just buy it! Walter is nothing if not responsible - good move! el d

[metalhead666]

Making $5 million and possibly doing another NSR deal with Franco for potenially higher prices is fine. But doing the bought deal at C$6 is 8% less than the close and 16% lower than the close on Thursday. The retail shareholder gets screwed in this deal unless Franco or some other bidder pays up for their 1.2% of the new NSR.  Given that the project is so much more derisked and valuable I

[AlwaysLong683]

Good info. I've never owned SKE and thus didn't do a deep dive into its past - the company is just a curiousity to me at this point. The above text is from an SKE PR dated December 31, 2021. The next line of the PR after Angel's quote (as also noted by Angel) is: "As noted, Skeena continues to have the right to buy down a 0.5% NSR royalty (from a 1.0% NSR royalty) currently

[tannin]

they all have their own risk factors, SBB for eg, which i also own, is operating way north, barges building supplies up to a port they built, and then truck over an ice road during winfer months......always unknowns, elements of risk, so own a few, a package of the best.....but certainly include SKE, a truly remarkable size/grade/location etc, with, imo, fewer unknowns that most.

[metalhead666]

Excellent synopsis.  Thank you.  They may well have hoped that there would be a bump in the stock with the release of the feasibility study...and there was...but they gave away these shares way below market and we should all be rightfully PO!   While I have no issue with buying back the royalty now for long term gain later this was a terrible execution.  The saving grace

[tannin]

Inclined to think you're right metalhead666........