Is Skeena Resources’ (TSX:SKE) C$125 Million Equity Raise Reshaping Its Strategic Funding Narrative?

• On October 8, 2025, Skeena Resources Limited completed a follow-on equity offering, raising C$125.04 million through the issuance of 5,210,000 new common shares at C$24 each, with a per-share discount of C$1.08.
• This substantial capital infusion positions Skeena Resources to pursue funding for ongoing projects and advance its strategic objectives, while introducing considerations around potential dilution for existing shareholders.
• We'll explore how the equity raise and resulting capital influx may shape Skeena Resources' investment narrative and future project funding.

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What Is Skeena Resources' Investment Narrative?

Owning shares in Skeena Resources often comes down to believing in the long-term upside of its flagship Eskay Creek project and the company’s ability to transition from explorer to producer. The recent CAD 125.04 million equity raise is a meaningful catalyst in that it bolsters Skeena’s balance sheet at a pivotal time, providing flexibility for advancing Eskay Creek and other key initiatives. In the near term, this capital should help reduce funding risk, a major overhang given persistent losses and the fact that Skeena has yet to generate revenue. However, fresh equity also means dilution for existing shareholders and raises questions about when profitability will actually be in reach. As a result, this capital influx likely shifts the balance: less immediate concern over cash burn, but the pressure now shifts to demonstrating tangible project progress and managing high cash outflows more effectively.

But with these new funds, the risk of continued dilution remains a key issue every investor should be aware of. Skeena Resources' shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

Exploring Other Perspectives

Five retail investors in the Simply Wall St Community published fair value estimates for Skeena Resources, ranging from C$21.22 up to a very large C$212.19. While the breadth of these estimates reflects many views on future outcomes, the recent capital raise puts new focus on whether Skeena can efficiently convert this funding into operational progress. Consider how this uncertainty could shape your own outlook before making up your mind.

Explore 5 other fair value estimates on Skeena Resources - why the stock might be worth over 7x more than the current price!

Build Your Own Skeena Resources Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Skeena Resources research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Skeena Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Skeena Resources' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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