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lobe says Bell touts potential of Skeena's Eskay Creek
2020-06-02 08:26 ET - In the News
The Globe and Mail reports in its Tuesday, June 2, edition that Hannam Partners analyst Roger Bell says Skeena Resources offers "undervalued exposure to a sizable, high-margin, fast-payback brownfield asset in a tier-1 mining jurisdiction." The Globe's David Leeder writes in the Eye On Equities column that Mr. Bell, touting the potential of the former Eskay Creek mine in British Columbia, began coverage of the Vancouver-based company with a share target of $4.16, implying a 250-per-cent upside from its current price. Mr. Bell is the lone analyst on the Street covering Skeena. He did no issue a rating. Mr. Bell says in a note: "Skeena has spent $20-million on exploration at Eskay Creek to date, fulfilling a spending requirement of $3.5-million under its purchase option with Barrick. The company has until the end of 2020 to exercise the option with a further payment of $10-million due to Barrick, who would retain a 1-per-cent net smelter return (NSR) royalty. A further $7.7-million will be posted by Skeena to cover the environmental rehabilitation bond. Skeena is also aiming to negotiate the waiving of Barrick's 'back-in' option over Eskay, giving the company unencumbered ownership of the asset."
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