Cara Community GSM: Skeena Resources 11-2020 update

Skeena Resources Ltd (USOTC: SKREF) (TSX: SKE) updated 11-17-2020

Market Cap:       $295.24M (USD)                               Share Price:        $1.87 (USD)

Shares outstanding: 152,971,913

Cash:     44.72 M (CAD) as of 30 June 2020. Further $46 million CAD raised in November

Debt:     No Long-term debt

Current operations: No (but is extensive drilling from eight drill rigs)

Insiders: Nil                         14 institutions own approx. 36% of shares

Website: skeenaresources.com

https://skeenaresources.com/site/assets/files/5638/ske_new_corporate_presentation_november_5.pdf

CEO: Walter Coles            HQs: Vancouver, BC, Canada

The company is developing the past-producer Eskay Creek mine in British Columbia, Canada

On 17 Nov 2020, Skeena closed its offering to sell $46 Million (CAD) of shares (19.574,468 at C$2.35)

Proceeds to be used to fund ‎exploration and development activities at the Eskay Creek Project, Snip Gold Project and for general ‎administrative and corporate purposes

Barrick Gold currently owns 12.4% of the outstanding shares

The company has had some recent promising drill reports:

https://www.juniorminingnetwork.com/junior-miner-news/press-releases/787-tsx/ske/87959-skeena-intersects-5-29-g-t-aueq-over-56-34-metres-in-22-zone-infill-drilling-at-eskay-creek.html

Bottom Line:

  • As noted in my last report on this company, I like the high-grade open-pit Eskay Creek property and the deal that Walter Coles did to acquire it from Barrick, and the fact Barrick has retained a significant interest.
  • Drill results this quarter have been impressive.
  • I was impressed with their presentation at the Sprott Symposium in July and bought a small position. I presently hold a +2.47% portfolio weighting.
  • The price at US$1.87 is quite attractive today, with a +33% potential upside in 3 to 4 months.

https://tvc-invdn-com.akamaized.net/data/tvc_fd5fe01a1f9467aa3d4c20d747023342.png


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