Skeena Resources (SKE) AI Stock Analysis

• Market Cap: C$2.86B
• Dividend Yield: N/A
• Average Volume (3M): 469.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: N/A
• EPS Growth: -0.21%
• Country: CA
• Employees: 83
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.31
• Shares Outstanding: 115,035,750
• 10 Day Avg. Volume: 826,784
• 30 Day Avg. Volume: 469,604
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$25.83
• Price Target Upside: 3.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 52 Neutral
• Price Target: ―

Skeena Resources' overall stock score reflects the high-risk, high-reward nature of exploration companies. The financial performance is weak due to lack of revenue and substantial losses, yet there is strong technical momentum and positive corporate developments. Valuation remains challenging with negative earnings, but the company's strategic initiatives in project advancement and financing are promising. Investors should weigh the potential for significant returns against the inherent risks of the sector.

Positive Factors

Project Advancement

The filing of an Environmental Assessment application is a critical step in advancing the Eskay Creek project, indicating progress towards obtaining necessary permits. This development supports long-term growth and potential economic benefits, positioning Skeena as a key player in the precious metals industry.

Financial Position Strengthening

The successful financing deal enhances Skeena's financial position, providing necessary capital to advance the Eskay Creek project. This strengthens the company's ability to fund development activities and supports its strategic focus on becoming a leading gold-silver producer.

Sustainable Development Focus

Skeena's commitment to sustainable development aligns with industry trends towards responsible mining practices. This focus not only enhances its reputation but also ensures long-term viability and attractiveness to environmentally-conscious investors and partners.

Negative Factors

Lack of Revenue

The absence of revenue is typical for exploration companies but poses a challenge for Skeena's financial stability. Without revenue, the company relies heavily on external funding, which can be risky if market conditions change or financing becomes constrained.

Negative Cash Flow

Negative cash flow indicates ongoing cash burn, typical for exploration phases. This reliance on external funding for operations can be problematic if future financing becomes limited, affecting the company's ability to sustain its projects and operations.

High Liabilities

High liabilities relative to equity suggest financial risk, as it may limit Skeena's ability to secure additional funding or manage debt efficiently. This could impact the company's financial flexibility and long-term operational stability if not managed carefully.

Skeena Resources Business Overview & Revenue Model

Company Description

Skeena Resources Limited explores and develops mineral properties in Canada. The company explores for gold, silver, copper, and other precious metal deposits. It holds 100% interests in the Snip gold mine comprising one mining lease and four mineral tenures that covers an area of approximately 1,932 hectares; and the Eskay Creek gold mine that consists of eight mineral leases, two surface leases, and various unpatented mining claims, which total 6,151 hectares located in British Columbia, Canada. The company was formerly known as Prolific Resources Ltd. and changed its name to Skeena Resources Limited in June 1990. Skeena Resources Limited was incorporated in 1979 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Skeena Resources makes money through the exploration and development of mineral properties, with the aim of increasing the value of these properties and eventually selling them or partnering with larger mining companies for production. Revenue is primarily generated through the discovery and development of high-grade gold and silver deposits, which can be sold directly to refineries or through off-take agreements with other mining firms. The company may also engage in joint ventures or strategic partnerships to finance the extensive capital expenditures required for mining operations. Additionally, Skeena Resources might raise funds through the capital markets by issuing shares or debt to finance their exploration and development activities.

Skeena Resources Financial Statement Overview

Summary

Skeena Resources operates in a high-risk, high-reward segment typical for exploratory mining companies. The lack of revenue and substantial losses reflect the company's phase in the resource discovery process. Financial stability is moderately supported by equity, but continuous negative cash flows and reliance on external funding highlight the financial risk. Investors should be cautious of the ongoing operational losses and the need for future capital raising.

Income Statement

Skeena Resources has consistently reported no revenue, which is typical for exploration companies in the industrial materials sector. The company shows negative profitability with significant losses in EBIT and net income, indicating operational challenges and high expenditure relative to income potential.

Balance Sheet

Skeena Resources has a moderate debt-to-equity ratio and maintains a positive stockholders' equity, suggesting some degree of financial stability. However, the company has a high level of liabilities compared to equity, which could pose risks if not managed carefully.

Cash Flow

The company has negative operating and free cash flow, indicating cash burn typical of a company in the exploration phase. The significant financing cash flow suggests reliance on external funding to support operations. This could be problematic if future financing becomes constrained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-822.00K	-8.22M	-2.40M	-289.00K	-320.00K	-377.00K
EBITDA	-178.78M	-141.95M	-113.88M	-111.11M	-128.53M	-79.51M
Net Income	-163.82M	-151.94M	-108.98M	-88.89M	-117.57M	-60.31M
Balance Sheet
Total Assets	453.28M	274.39M	194.99M	167.98M	154.96M	137.84M
Cash, Cash Equivalents and Short-Term Investments	108.48M	97.89M	92.69M	43.10M	41.15M	37.82M
Total Debt	42.35M	13.53M	32.38M	3.56M	1.31M	2.63M
Total Liabilities	340.66M	183.78M	70.45M	30.75M	31.41M	28.89M
Stockholders Equity	112.62M	90.61M	124.53M	137.23M	123.55M	108.95M
Cash Flow
Free Cash Flow	-215.75M	-130.61M	-113.70K	-112.22M	-135.84M	-74.15M
Operating Cash Flow	-121.44M	-127.90M	-90.60K	-93.38M	-124.41M	-66.38M
Investing Cash Flow	-123.59M	-23.83M	31.27M	11.40M	-13.55M	591.36K
Financing Cash Flow	211.40M	156.77M	109.86M	82.27M	140.45M	90.49M

Skeena Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SKE, the sentiment is Positive. The current price of 24.86 is above the 20-day moving average (MA) of 23.57, above the 50-day MA of 22.29, and above the 200-day MA of 17.43, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 59.42 is Neutral, neither overbought nor oversold. The STOCH value of 39.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SKE.

Skeena Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELD	78 Outperform	7.82B	13.79	10.02%	―	46.99%	144.05%
K	76 Outperform	39.34B	18.59	13.84%	0.52%	38.34%	218.80%
NGD	73 Outperform	7.22B	36.13	13.15%	―	31.32%	0.00%
BTO	62 Neutral	8.22B	-13.87	-13.26%	2.26%	15.08%	-204.35%
SKE	52 Neutral	C$2.86B	―	-115.88%	―	―	-0.21%
SEA	46 Neutral	2.84B	-53.07	0.00%	―	0.00%	-630.10%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Skeena Resources Corporate Events

Skeena Resources Advances Eskay Creek Project with Environmental Assessment Filing

Skeena Resources Limited has filed an Environmental Assessment application for its Eskay Creek Gold-Silver Project, marking a significant step in the permitting process. The project, expected to contribute $14 billion to the GDP of British Columbia and Canada, is on track to receive its environmental assessment certificate by Q4 2025. This development is anticipated to generate substantial economic benefits and tax revenues, while also supporting a cleaner future through critical metal production.

Spark’s Take on TSE:SKE Stock

According to Spark, TipRanks’ AI Analyst, TSE:SKE is a Underperform.

Skeena Resources’ stock is challenged by financial instability and lack of revenue, typical for exploration phase companies. Despite recent financing improving its financial position, the continuous losses and high volatility reflected in its technical indicators and valuation suggest significant risk. The lack of earnings call data limits insights into future guidance.

To see Spark’s full report on TSE:SKE stock, click here.

Skeena Resources Unveils 2024 Financial Results, Emphasizing Sustainable Growth

Skeena Resources Limited has released its fourth quarter and annual financial results for 2024, highlighting its ongoing commitment to advancing the Eskay Creek project. The results underscore Skeena’s strategic focus on sustainable development and its potential to become a leading player in the precious metals industry, with implications for stakeholders including enhanced value and growth opportunities.

Skeena Resources Secures C$88.3 Million to Advance Eskay Creek Project

Skeena Resources has successfully closed a C$88.3 million bought deal financing, involving the issuance of common shares and flow-through shares. The proceeds will be used to advance the Eskay Creek project and for general corporate purposes, with flow-through shares specifically funding eligible Canadian development expenses. This financing strengthens Skeena’s financial position, supporting its strategic focus on developing one of the world’s premier gold-silver mines.

Skeena Resources Secures C$70.5 Million Financing for Eskay Creek Project

Skeena Resources Limited has announced a C$70.5 million bought deal financing agreement with a syndicate of underwriters led by BMO Capital Markets. This financing will support the continued development of Skeena’s Eskay Creek project and general corporate activities. The offering includes an option for flow-through shares, potentially increasing the total proceeds to approximately C$78 million, which would be used for eligible Canadian development expenses.