- Skeena Resources has a very busy year ahead with step-out drilling planned for 2022, as well as a Feasibility Study for its Eskay Creek Project due in Q1.
- Following the recent Pretium takeover, it's clear that the best assets will command a premium, with Pretium being acquired for ~1.50x P/NAV and over $350/oz.
- While Skeena does not belong at this valuation given that it is pre-production and requires permitting, the stock's fair value is much higher than current levels.
- Given Skeena's scarcity value as a low capex, high-margin asset in a Tier-1 jurisdiction, I continue to see the stock as a top-5 takeover target sector-wide.
For further details see:
Skeena Resources: A Top-5 Takeover Target