CA - Skeena Resources: Eskay Financial Package Unlocks Growth Prospects Possibly Cheaper Shares

2024-07-20 08:08:08 ET

Summary

• The financing package with Orion boosts the Eskay Creek project and raises market interest in this stock.
• A strong correlation between Skeena shares and bullish gold prices combined with renewed market sentiment is driving optimism, boding well for the share price to move higher.
• Buy rating re-affirmed for Skeena Resources Limited.

Buy Rating Re-Affirmed for Skeena Resources Limited

This analysis recommends another “Buy” rating on shares of Skeena Resources Limited ( SKE ) ( SKE:CA ), a Vancouver, Canada-based explorer and developer of precious metals properties seeking to revitalize the Eskay Creek and Snip gold mines projects, which are located in the Tahltan Territory of the Golden Triangle in northwestern British Columbia, Canada. These two mines have produced precious metals in the past, and Eskay Creek, which is the most advanced project, is the crown jewel of the company's portfolio.

Hereinafter, Skeena Resources Limited is referred to simply as “Skeena”.

The previous analysts also gave a “Buy” recommendation as this stock was seen as a winner as Skeena shares listed on the North American exchange are strongly associated with the promising uptrend in gold prices. Gold is enjoying renewed interest among investors due to its safe-haven properties, offering protection against increased risk of portfolio underperformance in a very challenging global environment. In response to rising inflation and geopolitical threats, governments and leading monetary authorities are taking actions that could, unfortunately, have undesirable consequences for investors. Their necessity may be to crack down on the globalization of markets in retaliation for Russia's illegal war in Ukraine, as well as China's potential dumping by “ exporting goods at artificially low prices ” to Western markets. As for the restrictive monetary policy, it aims to cause a slowdown in the economy to bring inflation back to the medium-term target of 2%....

For further details see: