Post by
templetooth2 on Nov 22, 2023 9:55pm
Sold some
On this bounce I've lightened up. These $18 target prices are cruel and hilarious. Believe them at your peril.
If you have a position in Skeena, as I do, you are entirely at the mercy of the bot-deal financing model. Yes, Walter Coles says they will rely heavily on the streaming avenue, but that still leaves by my guess a needed equity component of (minimum) Cdn $200 million. That means ballpark 50 million new shares of dilution.
If instead of 95 million shares outstanding (fully-diluted) you need to calculate 145 million, then your $18 target becomes $12. Still a wonderful return, but more likely 2 years hence,
Or you could pursue a non-dilutive mine-financing transaction.