Skeena Resources (TSX:SKE) - 465,000 oz pa High-Grade Gold Production

[Music] hi Randy rer uh skinny resources uh president and CEO skinny resources has the former producing SK Creek mine uh was previously one of the highest grade producing uh underground small operation gold mines in the world and we're redeveloping that into an open pit operation uh just really started on on the development of that project right now welome Salon thank you you're here for uh the show and and to do what what are you happen to achieve uh well we've just uh uh released our definitive feasibility study so now it's really about getting out there and talking about it and and showing how we've we've made some improvements made some changes and and and really just giving a good eye to the the project now right and you're well you're relatively neat to to the team same briyan what what grow on boards do yeah so really brought in to develop and and build this project right so build out and they have and you're bringing on board people bringing in operation press board you got to get fin that's right so that that's the big thing so and before we jump into that let's talk about the the numbers around the de addess what do they tell us uh yeah so increase the the npv in the project two two billion uh Canadian npv uh uh great 43 is% irr 1.2 year after tax payback so good good numbers overall 682 uh US dollar all on sustaining cost so that that's really you know puts us at the the lower end of that that range yeah and that's all driven by the the grade of of the deposit right so margin that's the thing the people talking about these days CU ofly Ming has gold gr gone up price silver hopefully fall following suit um but of costs certain margin has you know been squeezed in effect so um when you came on board all the things that you were focused on what did you have to solve well there are a few things in the project that I saw that I guess I I saw as a little bit more of a risk uh one of the things was the the flow sheet was complicated uh it had a lot of regrind circuits different flotation circuits in it so aimed to simplify that uh as well on the mining side saw that they were using a mining method that wasn't as selective as I was used to say in at like faola and some of the other operations in in Africa uh so look to switch that knowing that we could probably Bop the grade up a bit on that as well and then just some of the some of the other things in in the project overall making sure that it was buildable and something if we did build it that it was readily you know something that could be operated and operated well from from the beginning right and see you mentioned it's a former which is send mine high is 45 tons so level there are advantages and disadvantages to kind of effectively restarting and and getting into form producing I mean what what are those well the the big one so along from the old operations there's a number of of existing permits but it is a a different operation it's not a small uh underground operation producing 4,000 or 400 tons a day we're actually going to process 8,800 tons a day so that change the open pit so we'll do an environmental uh impact assessment and we well into that now uh and then looking to get really final permits for that kind the mid 25 right K is that the only is that I guess the the the last remaining herle that's that's the big one yeah right okay andly these days that's well so it's not a case of we started it's zero and then 700 I mean how far on that process are you uh we're going to put the application in for the EA in the next kind of three months right uh so that's that's well along there and then there's about a year review process on that right okay and obviously you've got the money to be a can deliver that yeah correct okay and and as well using your existing perm we can make some permanent amendments and then uh do some other things like a joint application for an early Works uh bulk samp permit allows us to get actually in and start the construction ahead of the final permits right it's it's a it's a big S I mean some of num you me that the MPV is a a big number but they the total number of gold cro answers been produced is significant first five years particularly so yeah e why are you why do you want build why why not give that someone elseit to with the with the balance sheet to be able to kind get her with the confin this is this is kind of the perfect starting point of a company when you really look at this and say okay you can be producing 450 to 500 100,000 gold equivalent ounces right straight out of the gate it immediately puts you into that intermediate category the margins are so high it it really is something that you can build a company upon right that that was kind of the real desire for me when I looked around at you know many many deposits or projects around the world uh this one really stood out as from the economics and and really what it was capable of doing and and really it was a project that wasn't that complicated to build right so it's attractive that way right but and but in terms of money kind the money that we know what's happening out there in the marketplace it's it's a kind of um bated Market explores of sharing you's interested Advanced developers like yourself what I saw at Colorado Springs was the money does seem to be there as a question of the cost of that Capital yeah and the type of money that comes in so what's s conversations at the end yeah the conversations we're having are with kind of the alternative so straight debt you know we really can't take that on until after we receive final permits anyways uh some of the alternative guys like the streamers uh are offering money at more like one times an na uh these days versus you know if we do an equity raise right now we're trading at about 0.2 times now so that's where we're kind of focused on uh there was a deal done last year uh financing for G mining in a Brazil project something similar along those lines uh one fir providing pretty well everything is is what we're really focused on right but and and they can't May got the paret and environmental um but how long do you think that process will take because the debt usually takes a while um and then these markets you end certainty sooner rather than later yeah so so it'll be really a combination of stream equity and and debt so we'd be looking at doing uh the equity all in part of the same package with the same group uh and the stream kind of at the front end and then the debt part uh more into mid 25 but we want to look at announcing that kind of in the first half of of next year right okay so say kind of phased cash flow and yeah okay um with it go to some looking looking forward Okay so a quick payback that's good um and you will be a producer which in this environment is is good too and you've seen a lot of your um peers or want want to be peers of struggling around the kind cash comper because it's destroyed well the the economics shall we say so for you guys you quite pleased about where where you've ended up but when you're looking forward at this thing there's a there's going to build phrase to go through is this how long from with that uh we expect to be a production kind of mid 2026 right and then the ramp up is and the ramp up about 3 four months so yeah really yeah wow okay should be really simple yeah okay um and see you must a view on what's happening out there on the marketplace show you would be Russian intering Finance right like Freight what gives a sense of what you think is happening that way well you know from a medals point of view we think you know gold I expect to go higher silver we're hearing Lots out especially China and Industrial uses uh especially for for things like solar padds and major major uh uses there so we expect both of those to be going up uh but really you know and and if we start now entering a little bit of a uh recessionary environment you know hopefully those those inflationary costs that we've been seeing on on projects kind of get more in line uh we're certainly looking in to tie into some some of the the bigger components very very soon right get those done that b when get um conflation come down with r seconding where they are yeah but again the your expectation is well who knows the first great going um so if if I if I um if I'm investor looking at this staying say fairly valued right now is it uh we think we're we're incredibly undervalued you know we've we've just put out a the DFS that gives us 2 billion NP v on it we're we're trading at about 0 2 times half right now we think really for a project of this quality we should be in the0 4.5.6 range that's where we really expect to be it's it's a project there there's there's not many of them around in the world like this so we think in a jurisdiction like BC and Canada uh that we should be you know seeing a little bit better valuation than we are right so I'm I if if I am if I feel it being contrarian and vasor obviously historically i' be looking at expression come this High leverage high risk high in but high high leverage environment the safety that developers can bring I I guess is is what as far as you're concerned well you know there there's there's some developers who certainly ran into some issues this project is a little bit different than those lot less earthwork so the risk on it we feel is a lot less but really it's just the metrics of the project that's that's what really differentiates us uh how many eles we'll be produce out of the gate that an extremely high grade you know we're we're we're economic down to levels of well below 1400 dollar gold but you know we expect gold to be increasing that it's really about that production that we can expect at the cost that we can expect in the jurisdiction we are right but but talk about the rest components I get the money on paper this looks fantastic right we read a report about it last the same last year and said that this looks like a solid project um and I don't think anything really really changed I mean cost around those chance and but so it's gold and silver price to the risk mitigation for you given your trct record Al you kind of briefly touched upon some sumary of that why come back to the Simplicity and Fs what what makes it so simple in ter look your team will not struggle to get this thing built why uh okay multiple reasons first of the earthw component of is small so getting in and getting the pit started that the ore is literally right on the surface so getting that started it's more about getting into the pit and and getting uh enough of the rock to build kind of the rest of the stuff out we simplified the mill circuit uh that that makes both building it and and operating it a lot less Le risky so a lot more cable with that and we made some big improvements in the metery so we went back kind of to Basics and and in our met testing the last kind of8 nine months really looked at doing things that were more normal brought in a fresh set of eyes uh and he looked at it and we were able to make a really kind of big change in our uh concentrate production so we were able to increase the go grades by over 70% reduce the amount of concentrate we're producing by 43% so we're we're having to ship now quite a lit less concentrate so in this feasibility study over life mine will'll ship 1 a half million tons of concentrate if we were going to do it the old metery regime we'd be at 2.6 2.7 million tons so we're saving a significant amount and that and that's huge to the bottom line cost okay so efficiency is efficiency yeah okay well done well um any any message for um us that we we need to be aware of in terms of what the next three months holds for you it's that tax loss season right yeah so people that go to redeploy take their losses uh and redeploy you know where they think see F what's your well there's been a lot of heavy selling and we think you you know there's some reasons for it that aren't connected with the project as much as it is maybe some tax loss selling uh funds changing few things like that uh we think this is a great opportunity for people to get into this now you know we're focused now on on just moving this ahead Next Step uh you know working through the pring process getting the project financing is is kind of the next big one we agree good see good see FS thank you

Channel: Crux Investor

Views: 4,332

Keywords: mining, gold, nickel, cobalt, uranium, vanadium, lithium, precious metals, crux investor, cruxinvestor, silver, TSX, ASX, AIM, LSE, investing in uranium, investing in mining, investing in stocks, investing in stocks for beginners, investing in gold, invest in stocks, invest in stocks for beginners, invest in gold, invest in mining, analyst's notes, analysts notes, analyst notes, battery metals, electric vehicles, net zero, carbon neutral, carbon credits, nuclear, best mining stocks, TSXV

Id: J_MsmsTPo20

Length: 13min 50sec (830 seconds)

Published: Wed Nov 22 2023