Skeena Gold & Silver (TSX:SKE): Permits, Refinancing, and Feasibility - Catalysts Lining Up.

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1d ago 32:38

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Interview with Walter Coles, Executive Chairman of Skeena Resources Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/skeena-resources-tsxske-fully-funded-high-grade-gold-poised-for-production-5657

Recording date: 29th May 2025

Skeena Gold & Silver is developing the Eskay Creek Mine in British Columbia, positioned to become one of the world's largest gold-silver mines when production begins in early 2027. This project represents a compelling investment opportunity with exceptional economics, significant upside potential, and multiple near-term catalysts that could drive substantial share price appreciation.

The project's economics are truly remarkable. At $3,200/oz gold price, Eskay Creek boasts an after-tax NPV of $4.5 billion and an extraordinary 72% internal rate of return. This translates to a payback period of just over six months on the $700 million construction cost. Most impressively, Skeena's all-in sustainable cost per ounce is projected at less than $600 for the first six years of production, compared to approximately $1,700 for major producers like Barrick and Newmont. "We have a project that's super super low on the cost curve, enormously profitable per ounce of production.", explains Coles. This cost advantage creates exceptional profit margins even at much lower gold prices.

Skeena has secured comprehensive financing through Orion Resource Partners, removing a major uncertainty that typically impacts junior developers. The $750 million package includes equity, a gold stream, and debt facilities. Since announcing this funding, Skeena's stock has nearly tripled from around $6 to $17 Canadian. The company is now exploring refinancing options to reduce its cost of capital as the project de-risks.

Beyond the base case, Skeena is advancing several value-enhancement initiatives. The company plans to extend the mine life from 12 to 15-16 years by incorporating the high-grade Snip deposit and the Albino Lake waste facility. Additionally, Skeena has identified significant antimony, lead, and zinc content worth potentially 2.2 million tons of waste tailings that could be recovered with minimal additional costs.

Investors can look forward to several near-term catalysts such as final permits expected in Q4 2025, refinancing of the Orion loan facility in Q1 2026, updated feasibility study in the first half of 2026, and production commencement in early 2027.

Skeena's partnership with the Tahltan First Nation adds another layer of strength to the project. The company signed the first agreement in Canada giving a First Nation formal consent rights over a mining project, creating a true partnership that reduces social and political risk factors.

For investors seeking exposure to precious metals with significant upside potential, Skeena offers a rare combination of exceptional grade, economics, and execution capability in a tier-one jurisdiction. As the company advances toward production and begins generating substantial cash flow, the valuation gap with producing peers is likely to close, potentially delivering substantial returns to investors who position themselves ahead of these developments.

View Skeena Gold & Silver's company profile: https://www.cruxinvestor.com/companies/skeena-resources

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