Skeena Resources Ltd T.SKE

Key Considerations IMO

[AlwaysLong683]

1) Quality of Management:

Will they be able to build the mine on time and on budget as per their Defiinitive Feasibility Study, or will they run into problems such as cost overruns or delays (which also costs money)...? No one need remind MOZ investors about this (anymore).....

2) De-Risking The Project:

Projects are typically funded using at least a combination of debt and equity financing, often with one or more streaming agreements thrown in. In addition, the terms of the agreements signed with the various contractors and the amount of risk that is passed along to the contractors (e.g. fixed pricing with any cost overruns absorbed by the contractor) are also key in determining whether DFS targets are met.

Here's a review of ARTG's timeline of how they reduced risk on their Blackwater project:

- Completed $171M equity offering (Q2 2021)

- Signed Nazko IBA (Q2 2021)

- Completed grade control drilling (Q3 2021)

- Received early works permit (Q3 2021)

- Delivered 2021 Definitive Feasibility Study (Q3 2021)

- Secured US$141M WPM silver stream financing (Q4 2021)

- Signed $385M PLF Commitment Letter with additional $40m standby COF (Q1 2022)

- Ordered long-lead crushing & grinding equipment (Q2 2022)

- Signed Caterpillar Financial $140M Master Lease Agreement (Q3 2022)

- Awarded $318M final process plant EPC contract to Sedgman (Q3 2022)

- Completed $175M equity financing (Q4 2022)

- Ordered construction and mining fleet (Q1 2023)

- Completed construction camp (>550 beds)

- Initiated process plant site preparations

- Selected construction explosives/drill & blast contractors

- Finalized $385M project loan facility (Q1 2023)

- Received final BC Mines Act permit (Q1 2023)

- Commenced construction (Q1 2023)

- Received Schedule 2 amendment approval (Q2 2023)

- Secured additional US$40M gold stream funding (Q2 2023)

- Received Fisheries Act Authorization (Q3 2023)

As you can see, there's a lot of work still to be done - thus the importance of high quality management in executing the building of a mining operation as they are very expensive projects to complete.

[Ridgeback]

Here's the latest from Sprott. There is a lot of risk with building and the timeline has many hurdles to jump. Good Project however there's a lot to go wrong to make it into production. Sorry can't posts the graphs. ----------------------------------------------------------------------> This week’s DFS shows a 4.6Moz @ 3.6g/t AuEq reserve being processed at 3-3.5Mtpa plant for

[metalhead666]

 Desjardins Securities has given $SKE Skeena Resources Limited a 'Buy' rating with a target price of CAD$18.25. STA:TSX:SKE

[Ork]

yea we've seen a firm build a mine with 4 mio oz's & secure financing & watched the stock drop to 50 cents, laugh or cry ?