Skeena Resources: Undervalued Gem with Significant Progress at Eskay Creek Driving Buy Rating

In a report released today, Andrew Mikitchook from BMO Capital maintained a Buy rating on Skeena Resources (SKE – Research Report), with a price target of C$22.00.

Andrew Mikitchook has given his Buy rating due to a combination of factors, including the significant progress made at the Eskay Creek site, which underscores its value as a world-class asset in development. The company’s advancements in construction and permitting, alongside efforts to derisk the project, are expected to enhance shareholder value and align Skeena Resources with peers who have successfully completed mine development.
The construction of the dual-use warehouse/mill building is notably ahead of schedule, with foundations completed early and under budget. The smooth progress in permitting, aided by proactive consultations, further supports the company’s aggressive timelines. Skeena’s share price, reflecting the steady progress and potential high margins of the mine, is currently undervalued compared to its peers. This, combined with Eskay Creek’s premium status as a Canadian gold asset with existing infrastructure, underpins the expectation of a positive revaluation as the project advances.

According to TipRanks, Mikitchook is a 5-star analyst with an average return of 20.4% and a 57.55% success rate. Mikitchook covers the Basic Materials sector, focusing on stocks such as Wesdome Gold Mines, G Mining Ventures, and Ivanhoe Mines.

In another report released on June 18, Raymond James also maintained a Buy rating on the stock with a C$21.00 price target.