{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Company Interviews","title":"Skeena Resources (TSX:SKE) - 465,000 oz pa High-Grade Gold Production","html":"","width":"100%","height":180,"duration":820,"description":"Interview with Randy Reichart, President and CEO of Skeena Resources Ltd.Our previous interview: https://www.cruxinvestor.com/posts/skeena-resources-ske-293m-annual-after-tax-free-cash-flow-2588Recording date: 20th November 2023High-Grade Past Producer Reimagined as Major Gold Operation with Robust EconomicsSkeena Resources has uncovered the rich potential of reinventing the formerly high-grade Eskay Creek mine in Canada into a prominently larger open pit operation. The company recently completed an enhanced Definitive Feasibility Study (DFS), optimized by its experienced leadership team, to develop a technically straightforward project producing over 450,000 low-cost gold-equivalent ounces per year.With an initial capital expenditure of C$592 million, Skeena emphasizes the attractiveness of Eskay Creek’s rapid 1.2-year payback period. The after-tax economics are stellar, boasting a C$2 billion NPV at a 5% discount rate alongside a 43% internal rate of return over a 14-year mine life. Benchmarked against comparable development projects, these figures place Eskay Creek as an extremely lucrative asset. Its current valuation at just 0.2 times NPV represents a substantial underpricing.Skeena is led by a proven mine building team who have addressed prior concerns by simplifying the process plant design and mining methods. By enhancing metallurgical performance, they’ve also managed to achieve significantly higher concentrate grades while requiring far lower shipment volumes. Real optimizations like these increase operational efficiency as well as investor confidence.With the DFS results now released, Skeena is focused on securing financing over the next 6 to 12 months. The company is pursuing a funding package across various alternatives like equity, stream financing, and debt. Concurrent permitting activities are also underway on key items such as the Environmental Assessment, targeting receipt by mid-2025.If everything progresses smoothly, construction would...","thumbnail_url":"https://img.transistorcdn.com/1wv-MFlQAgnm-ca64e5kK4984dZB0os8-HJdRVsI74M/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9zaG93/LzEzNTcyLzE2MjM5/NTQyMDctYXJ0d29y/ay5qcGc.webp","thumbnail_width":300,"thumbnail_height":300}