SKE · Skeena Resources Limited

Skeena Resources Limited's Q1 2026 results reflect intensified development activity at the Eskay Creek Gold-Silver Project, now fully permitted and under construction in British Columbia's Golden Triangle, with initial production targeted for Q2 2027. The quarter's $104.5 million net loss, up from $38.2 million in Q1 2025, was predominantly driven by a $54.4 million change in fair value of the gold stream derivative liability and $11.9 million loss on marketable securities, alongside elevated general and administration expenses of $20.8 million (including $11.9 million share-based payments). No revenue was generated as the company remains in the development stage. Balance sheet expansion is evident with mineral property, plant, and equipment surging 85% to $1.03 billion, fueled by $72.2 million in Q1 additions, signaling accelerated construction momentum. New non-cash liabilities emerged from royalty arrangements: $110 million NSR Royalty and $146 million Additional NSR Royalty Option, contributing to total liabilities reaching $952 million against shareholders' equity of $180 million. Cash position weakened sharply to $25.6 million from $122 million at year-end, with $15.2 million operating burn and $77 million investing outflows, partially offset by minor financing inflows. Recent Senior Secured Notes issuance of US$750 million (April 2026) repurchased 66.67% of the gold stream and funded interest reserves, bolstering liquidity toward production. Management emphasizes responsible development with Indigenous partnerships, positioning Eskay Creek as a potential high-grade, low-cost open-pit mine upon commissioning.