TSXV:SKE

Stock Analysis Report

Executive Summary

Skeena Resources Limited engages in the exploration and development of mineral properties in Canada.

Risk Analysis

Earnings have declined by -25.27% per year over past 5 years

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Skeena Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SKE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.7%

SKE

3.2%

CA Metals and Mining

0.1%

CA Market


1 Year Return

96.7%

SKE

26.1%

CA Metals and Mining

12.1%

CA Market

Return vs Industry: SKE exceeded the Canadian Metals and Mining industry which returned 26.1% over the past year.

Return vs Market: SKE exceeded the Canadian Market which returned 12.1% over the past year.


Shareholder returns

SKEIndustryMarket
7 Day1.7%3.2%0.1%
30 Day-3.2%4.8%0.2%
90 Day36.4%2.7%0.7%
1 Year96.7%96.7%27.1%26.1%15.9%12.1%
3 Year-14.3%-14.3%17.3%15.1%16.0%5.4%
5 Year-42.9%-42.9%38.5%34.0%33.5%13.8%

Price Volatility Vs. Market

How volatile is Skeena Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Skeena Resources undervalued compared to its fair value and its price relative to the market?

4.93x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SKE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SKE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SKE is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: SKE is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SKE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SKE is overvalued based on its PB Ratio (4.9x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Skeena Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.3%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Skeena Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Skeena Resources performed over the past 5 years?

-25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKE is currently unprofitable.

Growing Profit Margin: SKE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SKE is unprofitable, and losses have increased over the past 5 years at a rate of -25.3% per year.

Accelerating Growth: Unable to compare SKE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SKE is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (4.1%).


Return on Equity

High ROE: SKE has a negative Return on Equity (-129.77%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Skeena Resources's financial position?


Financial Position Analysis

Short Term Liabilities: SKE's short term assets (CA$6.4M) exceed its short term liabilities (CA$4.9M).

Long Term Liabilities: SKE's short term assets (CA$6.4M) exceed its long term liabilities (CA$4.5M).


Debt to Equity History and Analysis

Debt Level: SKE is debt free.

Reducing Debt: SKE currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

Inventory Level: SKE has a high level of physical assets or inventory.

Debt Coverage by Assets: SKE's debt is not covered by short term assets (assets are -2.8639768131935E+16x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SKE has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SKE has less than a year of cash runway if free cash flow continues to reduce at historical rates of -4% each year


Next Steps

Dividend

What is Skeena Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SKE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SKE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SKE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SKE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SKE's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Skeena Resources's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Walt Coles (47yo)

6yrs

Tenure

CA$408,280

Compensation

Mr. Walter Coles, Jr., also known as Walt, BA, has been the Chief Executive Officer and President of Skeena Resources Limited since December 2013. Mr. Coles has ten years of experience in the finance indus ...


CEO Compensation Analysis

Compensation vs Market: Walt's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD170.54K).

Compensation vs Earnings: Walt's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.2yrs

Average Tenure

Experienced Management: SKE's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

1.9yrs

Average Tenure

52yo

Average Age

Experienced Board: SKE's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Andrew MacRitchie
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Walter Coles
EntityIndividual
Role
Chief Executive Officer
President
Shares105,000
Max PriceCA$0.38

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.7%.


Management Team

  • Tony Perri

    Manager of Investor Relations

    • Tenure: 0yrs
  • Justin Himmelright

    Vice President of Sustainability

    • Tenure: 2.2yrs
  • Andrew MacRitchie (44yo)

    Corporate Secretary & CFO

    • Tenure: 3.4yrs
    • Compensation: CA$190.63k
  • Walt Coles (47yo)

    President

    • Tenure: 6yrs
    • Compensation: CA$408.28k
  • Paul Geddes

    Vice President of Exploration & Resource Development

    • Tenure: 1.8yrs
  • Kelly Earle

    Vice President of Communications

    • Tenure: 0yrs
  • Eric Casey

    Controller

    • Tenure: 0.9yrs

Board Members

  • Borden Putnam (66yo)

    Independent Director

    • Tenure: 1.9yrs
  • Don Siemens (73yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: CA$45.00k
  • Isac Burstein (52yo)

    Independent Director

    • Tenure: 0.8yrs
  • Walt Coles (47yo)

    President

    • Tenure: 6yrs
    • Compensation: CA$408.28k
  • Craig Parry (45yo)

    Independent Chairman of the Board

    • Tenure: 0.4yrs
    • Compensation: CA$35.00k

Company Information

Skeena Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Skeena Resources Limited
  • Ticker: SKE
  • Exchange: TSXV
  • Founded:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$75.993m
  • Shares outstanding: 128.80m
  • Website: https://www.skeenaresources.com

Location

  • Skeena Resources Limited
  • 1021 West Hastings Street
  • Suite 650
  • Vancouver
  • British Columbia
  • V6E 0C3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKETSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1982
RXFBDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1982
SKRE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1982

Biography

Skeena Resources Limited engages in the exploration and development of mineral properties in Canada. The company holds 100% interests in the Snip gold mine covering an area of approximately 1,932 hectares; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 23:45
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.