Skeena Resources (SKE) AI Stock Analysis

• Market Cap: C$1.98B
• Dividend Yield: N/A
• Average Volume (3M): 283.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• Revenue Growth: N/A
• EPS Growth: -19.29%
• Country: CA
• Employees: 83
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Industrial Materials
• EPS (TTM): -0.12
• Shares Outstanding: 114,768,980
• 10 Day Avg. Volume: 284,577
• 30 Day Avg. Volume: 283,484
• PEG Ratio: 0.34
• Price to Book (P/B): 15.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.14
• 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$19.20
• Price Target Upside: 11.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• 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.

Skeena Resources Business Overview & Revenue Model

Company Description

Skeena Resources Limited (SKE) is a Canadian-based mining exploration and development company primarily focused on revitalizing and developing major precious metal projects in the Golden Triangle of British Columbia, Canada. The company specializes in the acquisition, exploration, and development of high-grade gold and silver projects, with its primary focus being the Eskay Creek Project, a past-producing mine known for its rich mineral deposits.

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 is facing significant financial challenges with persistent losses and negative cash flows, typical in early-stage or exploration-focused mining companies. While the company maintains a low debt level, indicating limited leverage risk, its lack of revenue generation and reliance on external financing pose considerable financial stability concerns.

Income Statement

Skeena Resources shows consistent net losses with no revenue generated over multiple periods. The gross profit margin is negative due to the lack of revenue, and EBIT and EBITDA margins are also negative, indicating the company is incurring substantial operating losses. The lack of revenue growth is a critical weakness.

Balance Sheet

The debt-to-equity ratio remains low, indicating a conservative level of leverage, which is positive. However, the continuous accumulation of net losses has negatively impacted stockholders' equity over time. Despite a stable cash position, the equity ratio is decreasing, signaling potential risk if liabilities continue to rise.

Cash Flow

The company consistently reports negative operating and free cash flows, indicating cash outflows exceed inflows, which is a concern. There is high reliance on financing activities to support operations. The operating cash flow to net income ratio indicates inefficiencies in converting income into cash, which is a weakness.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-3.45M	-2.40M	-289.00K	-320.00K	-377.19K	-376.52K
	EBIT
-68.95M	-114.77M	-123.52M	-130.58M	-68.50M	-15.55M
	EBITDA
-148.53M	-113.88M	-111.11M	-128.53M	-79.51M	-26.43M
	Net Income Common Stockholders
-180.25M	-108.98M	-54.26M	-117.39M	-71.45M	-29.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.09M	92.69M	43.10M	41.15M	37.82M	13.12M
	Total Assets
24.55M	194.99M	167.98M	154.96M	137.84M	24.43M
	Total Debt
0.00	32.38M	3.56M	1.31M	2.63M	1.47M
	Net Debt
-1.09M	-58.75M	-37.04M	-39.00M	-35.19M	-11.65M
	Total Liabilities
5.99M	70.45M	30.75M	31.41M	28.89M	12.82M
	Stockholders Equity
18.57M	124.53M	137.23M	123.55M	108.95M	11.61M
Cash Flow		Free Cash Flow
-135.34M	-113.70K	-112.22M	-135.84M	-74.15M	-10.79M
	Operating Cash Flow
-123.32M	-90.60K	-93.38M	-124.41M	-66.38M	-10.47M
	Investing Cash Flow
33.68M	31.27M	11.40M	-13.55M	591.36K	388.36K
	Financing Cash Flow
136.53M	109.86M	82.27M	140.45M	90.49M	22.11M

Skeena Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.28
• 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 17.28 is above the 20-day moving average (MA) of 16.64, above the 50-day MA of 15.64, and above the 200-day MA of 13.43, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 56.54 is Neutral, neither overbought nor oversold. The STOCH value of 78.38 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
K	75 Outperform	$24.67B	14.66	18.12%	0.84%	30.84%	188.80%
ELD	74 Outperform	$5.54B	12.09	8.91%	―	41.46%	187.54%
NGD	72 Outperform	C$4.68B	25.60	14.62%	―	23.61%	―
BTO	70 Outperform	$5.90B	―	-17.61%	4.26%	5.97%	-1677.31%
SKE	52 Neutral	C$1.98B	―	-137.38%	―	―	-19.29%
Sector *	50 Neutral	$1.99B	-1.06	-21.34%	3.71%	2.03%	-30.65%
SEA	46 Neutral	$1.70B	―	-1.46%	―	―	1.89%

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.