Group 1 - Skeena Resources Limited (SKE) has shown strong year-to-date performance, with a return of approximately 30.4%, significantly outperforming the Basic Materials sector average of 0.2% [4] - The Zacks Rank for Skeena Resources Limited is currently 2 (Buy), indicating positive analyst sentiment and an improving earnings outlook [3][4] - Over the past three months, the Zacks Consensus Estimate for SKE's full-year earnings has increased by 58.1%, reflecting stronger analyst sentiment [4] Group 2 - Skeena Resources Limited is part of the Mining - Miscellaneous industry, which consists of 58 companies and currently ranks 155 in the Zacks Industry Rank [6] - The Mining - Miscellaneous industry has experienced a decline of about 3.2% year-to-date, indicating that SKE is performing better than its peers in this group [6] - Another stock in the Basic Materials sector, Symrise AG Unsponsored ADR (SYIEY), has also outperformed the sector with a year-to-date increase of 2% [5][7]

Core Viewpoint - Skeena Resources Limited (SKE) shares have increased by 5.7% recently, closing at $10.09, with a potential upside of 28.8% based on Wall Street analysts' mean price target of $13 [1] Price Targets and Estimates - The average price target consists of seven estimates ranging from a low of $10.06 to a high of $14.63, with a standard deviation of $1.73, indicating variability among analysts [2] - The lowest estimate suggests a minor decline of 0.3%, while the highest indicates a potential upside of 45% [2] - Analysts' price targets should be approached with caution, as their reliability has been questioned [3][7] Earnings Estimates and Analyst Agreement - Analysts are optimistic about SKE's earnings, with a consensus indicating better-than-previously estimated earnings, which historically correlates with stock price increases [4][11] - Over the past 30 days, the Zacks Consensus Estimate for the current year has risen by 1.8%, with one estimate increasing and no negative revisions [12] Zacks Rank and Investment Potential - SKE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting strong potential for upside [13]

Financial Results - Skeena reported its fourth quarter and annual financial results for the year ended December 31, 2024[2]. - The financial statements and management's discussion and analysis are available on Skeena's website and regulatory filings[2]. Project Highlights - The Eskay Creek Gold-Silver Project is expected to be one of the highest-grade and lowest-cost open-pit precious metals mines globally[3]. - The company anticipates future exploration and development activities, with a focus on estimating mineral resources and reserves[6]. Sustainability and Community Engagement - Skeena is committed to sustainable mining practices and fostering positive relationships with Indigenous communities[3]. - The company aims to maximize the potential of its mineral resources while delivering long-term value to stakeholders[3]. Risk Management and Future Outlook - Forward-looking statements include expectations regarding future metal prices and operational performance[6]. - The company emphasizes the importance of regulatory approvals and environmental risk management in its operations[6]. - Skeena's management acknowledges potential risks that may affect future performance, including changes in economic conditions and project execution delays[6]. - Skeena's future strategies will be guided by the results of ongoing exploration and market conditions[6].

Core Viewpoint - Skeena Resources Limited has entered into an agreement for a bought deal offering of 4,800,000 common shares at C$14.70 per share, aiming to raise approximately C$70.5 million for the advancement of its Eskay Creek gold-silver project and general corporate purposes [1][2]. Group 1: Offering Details - The underwriters, led by BMO Capital Markets, have the option to increase the offering by 15% up to 48 hours before closing [1]. - If the underwriters elect to issue up to 2,230,000 shares as flow-through shares at C$17.93 each, the total gross proceeds could rise to approximately C$78 million [3]. - The offering is expected to close around February 26, 2025, subject to regulatory approvals [6]. Group 2: Use of Proceeds - Proceeds from the common shares will be allocated to the Eskay Creek project and general corporate purposes [2][5]. - Funds from flow-through shares will be used for eligible Canadian development expenses, with an effective date for renouncement no later than December 31, 2025 [4]. Group 3: Company Overview - Skeena Resources is focused on advancing the Eskay Creek Gold-Silver Project, which is expected to be one of the highest-grade and lowest-cost open-pit precious metals mines globally [9][10]. - The company emphasizes sustainable mining practices and aims to build positive relationships with Indigenous communities [10].

Core Insights - Skeena Gold & Silver has discovered a significant gold-copper porphyry system at the KSP property, showcasing consistent mineralization of 0.71 grams per tonne (gpt) gold over a length of 381.5 meters [1] Group 1 - The discovery indicates a large-scale mineralization potential at the KSP property, which could enhance the company's resource base and future production capabilities [1] - The consistent mineralization results suggest a promising exploration outlook for Skeena Gold & Silver, potentially leading to increased investor interest and valuation [1] - The presence of both gold and copper in the porphyry system may diversify the company's asset portfolio and mitigate risks associated with commodity price fluctuations [1]

Financial Performance - The company reported a loss of CAD 84,887,000 for the three months ended September 30, 2024, compared to a loss of CAD 39,795,000 for the same period in 2023, indicating a decline of 113.5%[6] - For the three months ended September 30, 2024, the company reported a loss of $84,887 thousand, compared to a loss of $39,795 thousand for the same period in 2023, representing a 113% increase in losses[11] - For the nine months ended September 30, 2024, the loss was $147,290 thousand, up from $76,024 thousand in 2023, indicating a 94% increase in losses year-over-year[11] - The loss per share for the three months ended September 30, 2024, was CAD (0.80), compared to CAD (0.45) for the same period in 2023, indicating a worsening of 77.8%[5] Assets and Liabilities - Total assets increased to CAD 227,060,000 as of September 30, 2024, up from CAD 194,987,000 at December 31, 2023, representing a growth of approximately 16.4%[3] - Total liabilities increased to CAD 136,658,000 as of September 30, 2024, from CAD 70,452,000 at December 31, 2023, representing an increase of approximately 94.0%[3] - Shareholders' equity decreased to CAD 90,402,000 as of September 30, 2024, down from CAD 124,535,000 at December 31, 2023, reflecting a reduction of approximately 27.4%[3] - The total shareholders' equity as of September 30, 2024, included capital stock of CAD 667,765,000, reflecting a significant increase from CAD 552,397,000 at December 31, 2023[3] Cash Flow and Liquidity - The company’s cash and cash equivalents stood at CAD 84,860,000 as of September 30, 2024, compared to CAD 91,135,000 at December 31, 2023, a decrease of approximately 6.9%[3] - Cash and cash equivalents at the end of the period were $84,860 thousand, compared to $38,004 thousand at the end of the previous period, indicating a significant increase in liquidity[11] - The company reported net cash used in investing activities of $4,880 thousand for the three months ended September 30, 2024, down from $14,075 thousand in the same period of 2023, showing a 65% decrease[11] - Net cash used in operating activities for the three months ended September 30, 2024, was $40,963 thousand, compared to $21,024 thousand for the same period in 2023, reflecting a 95% increase[11] Project Financing and Commitments - The company anticipates that proceeds from the Project Financing Package will be sufficient to fund capital requirements up to the commencement of commercial production at the Eskay Project, expected in 2027[14] - The company has entered into binding commitments with Orion Resource Partners for a Project Financing Package, which includes private placements, a Gold Stream, and a Senior Secured Term Loan facility[13] - The total undiscounted financial liabilities and commitments as of September 30, 2024, amount to $163,860,000[47] - The Company is required to spend $27,572,000 in Canadian Development Expenses (CDE) by December 31, 2024, due to the issuance of flow-through common shares[47] Exploration and Evaluation - The total exploration and evaluation expenses for the nine months ended September 30, 2024, were $99,288,000, compared to $63,899,000 for the same period in 2023, representing a year-over-year increase of approximately 55.5%[61] - The company has made significant investments in environmental studies and consultation, totaling $27,763,000 for the nine months ended September 30, 2024[59] - The company incurred $13,517,000 in costs related to earthworks and infrastructure at Eskay, an increase from $8,626,000 in the same period of 2023[53] - The increase in the estimate for closure and reclamation costs was $11,468,000 for the nine months ended September 30, 2024, indicating significant disturbance at Eskay[52] Stock Options and Share-Based Payments - The company granted 90,000 stock options and 10,000 RSUs on May 10, 2024, with an exercise price of $6.75 per share[88] - Share-based payments expense for the nine months ended September 30, 2024, totaled $9,719,000, compared to $8,640,000 for the same period in 2023[99] - The weighted average fair value per stock option granted during the nine months ended September 30, 2024, was $2.96, down from $4.14 in 2023[99] - The company granted 1,928,000 stock options and 147,000 PSUs on August 12, 2024, subject to performance criteria that have not yet been achieved[95] Management and Governance - Key management personnel remuneration for the three months ended September 30, 2024, was $928,000, compared to $844,000 for the same period in 2023, representing an increase of 9.94%[101] - For the nine months ended September 30, 2024, key management personnel remuneration totaled $2,680,000, up from $2,541,000 in 2023, reflecting a growth of 5.48%[101] - Accounts payable and accrued liabilities included $1,143,000 due to key management personnel as of September 30, 2024, compared to $1,004,000 at the end of 2023, an increase of 13.83%[105] Legal and Regulatory - The British Columbia Court of Appeal overturned a previous decision regarding mineral rights, which may impact future operations but is not expected to affect the carrying value of the Eskay project[107]

Group 1 - The gold price has reached record highs, positively impacting gold and silver exploration stocks [1] - A notable gold exploration company operates in the Golden Triangle of northwest British Columbia, adjacent to Newmont Mining's significant assets [1] - The historical mine produced 3.3 million ounces of gold at a grade of 45 g/t and 160 million ounces of silver, with a revenue split of approximately 60% gold and 40% silver [1] Group 2 - As of November 2023, the project has proven and probable reserves of 3.3 million ounces of gold and 88 million ounces of silver, with an after-tax NPV of C$3.1 billion and an IRR of 57% [2] - The capital expenditures for mine construction are estimated at over C$700 million, with a secured financing package of C$1 billion from Orion Resource Partners [2] - Production is expected to start in the first half of 2027, with an annual output of around 450,000 gold equivalent ounces for the first five years [2] Group 3 - The company acquired the Snip project in 2017, which has a historical production of 1.1 million ounces at a grade of 27.5 g/t Au, and a 2023 resource estimate shows an increase of 579,000 ounces [3] - The current share price of Skeena Resources is $7.50, with an enterprise value of approximately $700 million, and the valuation is expected to rise towards the project's NPV of C$3.1 billion [3] - The gold price is anticipated to double by 2027, potentially increasing Skeena's share price significantly, with a target of 5x the current level [3]

Group 1 - Michael McCrae is leading Kitco's coverage of the mining sector, bringing extensive experience from both media and banking [1] - McCrae has an MBA and CMA, indicating a strong educational background relevant to financial analysis [1] - He was a cofounder and publisher of MINING.com, showcasing his capability in building digital media properties [1] Group 2 - The article emphasizes the importance of accurate information in the mining sector, although it notes that accuracy cannot be guaranteed [2] - It clarifies that the views expressed are those of the author and may not reflect the views of Kitco Metals Inc [2] - The article is intended for informational purposes only and does not serve as a solicitation for financial transactions [2]

[Condensed Interim Consolidated Financial Statements](index=1&type=section&id=Condensed%20Interim%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed interim consolidated financial statements and accompanying notes for Skeena Resources Limited [Financial Statements](index=2&type=section&id=Financial%20Statements) This section presents the unaudited condensed interim consolidated financial statements for Skeena Resources Limited, including the statements of financial position, loss and comprehensive loss, changes in shareholders' equity, and cash flows for the three and six months ended June 30, 2024 and 2023 [Condensed Interim Consolidated Statements of Financial Position](index=2&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Financial%20Position) This statement provides a snapshot of the company's assets, liabilities, and equity at specific reporting dates Balance Sheet Highlights (June 30, 2024 vs. December 31, 2023) | Metric | June 30, 2024 (CAD '000) | December 31, 2023 (CAD '000) | Change (CAD '000) | % Change | | :-------------------------------- | :-------------------------- | :---------------------------- | :---------------- | :--------- | | Total Assets | 248,435 | 194,987 | 53,448 | 27.41% | | Cash and cash equivalents | 127,261 | 91,135 | 36,126 | 39.64% | | Exploration and evaluation interests | 70,641 | 62,414 | 8,227 | 13.18% | | Total Liabilities | 78,313 | 70,452 | 7,861 | 11.16% | | Current portion of flow-through share premium liability | 11,831 | 3,137 | 8,694 | 277.14% | | Total Shareholders' Equity | 170,122 | 124,535 | 45,587 | 36.60% | [Condensed Interim Consolidated Statements of Loss and Comprehensive Loss](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) This statement details the company's financial performance, including expenses and net loss, over specific interim periods Loss and Comprehensive Loss (Three Months Ended June 30) | Metric | June 30, 2024 (CAD '000) | June 30, 2023 (CAD '000) | Change (CAD '000) | % Change | | :------------------------------------ | :-------------------------- | :-------------------------- | :---------------- | :--------- | | Exploration and evaluation expenses | 27,260 | 14,677 | 12,583 | 85.73% | | Change in fair value of convertible debenture | 1,973 | — | 1,973 | N/A | | Share-based payments | 744 | 2,352 | (1,608) | -68.37% | | Loss for the period | (34,985) | (19,486) | (15,499) | 79.54% | | Loss per share – basic and diluted | (0.38) | (0.24) | (0.14) | 58.33% | Loss and Comprehensive Loss (Six Months Ended June 30) | Metric | June 30, 2024 (CAD '000) | June 30, 2023 (CAD '000) | Change (CAD '000) | % Change | | :------------------------------------ | :-------------------------- | :-------------------------- | :---------------- | :--------- | | Exploration and evaluation expenses | 47,307 | 25,729 | 21,578 | 83.87% | | Change in fair value of convertible debenture | 3,153 | — | 3,153 | N/A | | Share-based payments | 3,745 | 4,512 | (767) | -17.00% | | Loss for the period | (62,403) | (36,229) | (26,174) | 72.25% | | Loss per share – basic and diluted | (0.69) | (0.45) | (0.24) | 53.33% | [Condensed Interim Consolidated Statements of Changes in Shareholders' Equity](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) This statement outlines the movements in the company's equity accounts over the reporting period Shareholders' Equity Changes (December 31, 2023 to June 30, 2024) | Item | Amount (CAD '000) | | :------------------------------------------ | :----------------- | | Balance December 31, 2023 | 124,535 | | Private placement | 122,750 | | Share issue costs | (1,085) | | Flow-through share premium | (20,000) | | Share-based payments | 6,126 | | Loss for the period | (62,403) | | Balance June 30, 2024 | 170,122 | [Condensed Interim Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities Cash Flow Summary (Six Months Ended June 30) | Activity | June 30, 2024 (CAD '000) | June 30, 2023 (CAD '000) | Change (CAD '000) | % Change | | :-------------------------------- | :-------------------------- | :-------------------------- | :---------------- | :--------- | | Net cash used in operating activities | (45,163) | (32,380) | (12,783) | 39.48% | | Net cash used in investing activities | (11,855) | (5,068) | (6,787) | 133.93% | | Net cash provided by financing activities | 93,612 | 70,292 | 23,320 | 33.18% | | Change in cash and cash equivalents | 36,126 | 32,844 | 3,282 | 9.99% | | Cash and cash equivalents, end of period | 127,261 | 73,446 | 53,815 | 73.27% | [Notes to the Condensed Interim Consolidated Financial Statements](index=6&type=section&id=NOTES%20TO%20THE%20CONDENSED%20INTERIM%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed explanations and disclosures for the financial statements, covering the company's operations, accounting policies, financial instruments, exploration activities, recent financing, capital structure, and contingencies [Nature of Operations](index=6&type=section&id=1.%20NATURE%20OF%20OPERATIONS) This note describes the company's primary business activities and its going concern considerations - Skeena Resources Limited's principal business activity is the exploration and evaluation of mineral properties focused in British Columbia, Canada[10](index=10&type=chunk) - On June 24, 2024, the Company entered into binding commitments with Orion Resource Partners for a construction financing package (private placements, a Gold Stream, and a Senior Secured Term Loan facility) for the development and construction of the Eskay Project[11](index=11&type=chunk) - The Company's ability to continue as a going concern is dependent upon successful execution of its business plan, including bringing the Eskay Creek project to profitable operation, and securing further financing if current facilities are insufficient[12](index=12&type=chunk) [Basis of Presentation](index=6&type=section&id=2.%20BASIS%20OF%20PRESENTATION) This note outlines the accounting principles and significant estimates used in preparing the financial statements [Statement of Compliance](index=6&type=section&id=Statement%20of%20compliance) This section confirms adherence to International Accounting Standard 34 for interim financial reporting - The unaudited condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard 34 (IAS 34)[13](index=13&type=chunk) - Accounting policies applied are consistent with those in the Company's audited annual consolidated financial statements as at and for the year ended December 31, 2023, except as disclosed in Note 3[14](index=14&type=chunk) [Significant Accounting Estimates and Judgments](index=6&type=section&id=Significant%20accounting%20estimates%20and%20judgments) This section highlights key areas requiring management's judgment and estimation in financial reporting - Critical accounting estimates include the fair values of derivatives and other financial instruments, particularly the stream derivative liability, which involves a high degree of estimation uncertainty associated with inputs like forecast gold production, gold prices, volatility, and credit spread[16](index=16&type=chunk)[17](index=17&type=chunk) [New Standards, Amendments and Interpretations Adopted](index=8&type=section&id=3.%20NEW%20STANDARDS%2C%20AMENDMENTS%20AND%20INTERPRETATIONS%20ADOPTED) This note details the impact of recently adopted and upcoming accounting standards on the financial statements [New Accounting Policy Adopted in 2024](index=8&type=section&id=New%20accounting%20policy%20adopted%20in%202024) This section describes the new accounting policy for derivatives implemented in the current year - Derivatives are initially recognized at fair value and subsequently re-measured at fair value at each statement of financial position date, with changes recognized in the consolidated statement of loss[18](index=18&type=chunk) [Adoption of New Accounting Standards in 2024](index=8&type=section&id=Adoption%20of%20new%20accounting%20standards%20in%202024) This section outlines the new accounting standards adopted in 2024 and their financial impact - The Company adopted amendments to IAS 7 and IFRS 7 related to supplier finance arrangements effective January 1, 2024, which had no material impact on the financial statements[20](index=20&type=chunk)[21](index=21&type=chunk) [New Standards and Interpretations Not Yet Adopted in 2024](index=10&type=section&id=New%20standards%20and%20interpretations%20not%20yet%20adopted%20in%202024) This section identifies future accounting standards and their potential impact on the company's financial reporting - The IASB issued IFRS 18, Presentation and Disclosure in Financial Statements, effective for annual reporting periods beginning on or after January 1, 2027, which the Company is currently evaluating for impact[22](index=22&type=chunk)[23](index=23&type=chunk) [Financial Instruments and Risk Management](index=10&type=section&id=4.%20FINANCIAL%20INSTRUMENTS%20AND%20RISK%20MANAGEMENT) This note describes the company's financial instruments and its strategies for managing associated risks [Carrying Values and Fair Value Hierarchy](index=10&type=section&id=Carrying%20Values%20and%20Fair%20Value%20Hierarchy) This section presents the valuation of financial instruments and their classification within the fair value hierarchy Financial Instrument Carrying Values (June 30, 2024 vs. December 31, 2023) | Financial Instrument | Category | June 30, 2024 (CAD '000) | December 31, 2023 (CAD '000) | | :-------------------------------- | :----------------------- | :-------------------------- | :---------------------------- | | Cash and cash equivalents | Amortized cost | 127,261 | 91,135 | | Marketable securities | Fair value through profit or loss | 910 | 1,554 | | Receivables | Amortized cost | 27 | 957 | | Deposits | Amortized cost | 3,633 | 2,102 | | Accounts payable | Amortized cost | 21,415 | 16,074 | | Convertible debenture | Fair value through profit or loss | — | 22,775 | - In June 2024, the Company repaid the convertible debenture in full (**$25,928,000**, including $928,000 of accrued interest) following the completion of project financing[27](index=27&type=chunk) Prior to repayment, the fair value of the liability component increased by **$1,973,000** (three months ended June 30, 2024) and **$3,153,000** (six months ended June 30, 2024) [Credit Risk](index=12&type=section&id=Credit%20risk) This section details the company's exposure to credit risk and its mitigation strategies - The Company's credit risk is primarily attributable to its cash and cash equivalents, receivables, and deposits, totaling **$132,486,000** at June 30, 2024 (December 31, 2023 – $96,462,000)[28](index=28&type=chunk) - Credit risk is limited by dealing with high credit quality counterparties, with cash and cash equivalents primarily held at large creditworthy Canadian financial institutions[28](index=28&type=chunk) [Market Risk](index=12&type=section&id=Market%20risk) This section discusses the company's exposure to market risks, including interest rate, currency, and other price risks - The Company is exposed to interest rate risk on cash and cash equivalents; a **1% increase (decrease)** in interest rates at June 30, 2024, would have decreased (increased) net loss before tax by **$1,260,000**[30](index=30&type=chunk) - The Company is exposed to currency risk with **US$16,658,000** of cash and cash equivalents; a **1% increase (decrease)** in foreign exchange rates at June 30, 2024, would have decreased (increased) net loss before tax by **$223,000**[31](index=31&type=chunk) - Other price risk relates to marketable securities; a **10% decrease** in their share price at June 30, 2024, would have resulted in a **$91,000 decrease** to their carrying value[31](index=31&type=chunk) [Liquidity Risk](index=14&type=section&id=Liquidity%20risk) This section describes how the company manages its liquidity to meet short-term and long-term financial obligations - The Company manages liquidity risk by forecasting cash flows and anticipating investing and financing activities, with the recently secured construction financing package for Eskay expected to fund capital requirements until commercial production[32](index=32&type=chunk)[33](index=33&type=chunk) Undiscounted Financial Liabilities and Commitments (June 30, 2024) | Category | Less than 1 year (CAD '000) | 1-5 years (CAD '000) | Greater than 5 years (CAD '000) | Total (CAD '000) | | :------------------------------------------ | :-------------------------- | :------------------- | :-------------------------- | :---------------- | | Accounts payable | 21,415 | — | — | 21,415 | | Commitments to spend on exploration and development | 58,004 | 52,953 | — | 110,957 | | Reclamation and mine closure | 33 | 304 | 26,859 | 27,196 | | Leases | 11,851 | 7,635 | 12,058 | 31,544 | | Other liabilities | 712 | 540 | — | 1,252 | | Contractual obligations | 7,224 | — | — | 7,224 | | **Total** | **99,239** | **61,432** | **38,917** | **199,588** | [Exploration and Evaluation Interests](index=15&type=section&id=5.%20EXPLORATION%20AND%20EVALUATION%20INTERESTS) This note details the company's investments in mineral exploration and evaluation activities [Exploration and Evaluation Assets](index=15&type=section&id=Exploration%20and%20evaluation%20assets) This section provides a breakdown of capitalized exploration and evaluation expenditures by property Exploration and Evaluation Assets (June 30, 2024 vs. December 31, 2023) | Property | June 30, 2024 (CAD '000) | December 31, 2023 (CAD '000) | | :-------------------------------- | :-------------------------- | :---------------------------- | | Eskay | 53,246 | 44,822 | | Snip | 1,272 | 1,469 | | Other | 16,123 | 16,123 | | **Total** | **70,641** | **62,414** | - During the six months ended June 30, 2024, the Company incurred and capitalized **$7,979,000** relating to the engineering and fabrication of certain mill equipment and preliminary drawings for the future mine plant at Eskay[37](index=37&type=chunk) - In April 2024, the Company made the fourth payment for three properties in the Golden Triangle area, consisting of **$250,000 in cash** and **40,193 common shares**[39](index=39&type=chunk) [Exploration and Evaluation Expenses](index=16&type=section&id=Exploration%20and%20evaluation%20expenses) This section details the expenses incurred in exploration and evaluation activities for the reporting periods Exploration and Evaluation Expenses (Three Months Ended June 30) | Category | June 30, 2024 (CAD '000) | June 30, 2023 (CAD '000) | Change (CAD '000) | % Change | | :-------------------------------- | :-------------------------- | :-------------------------- | :---------------- | :--------- | | Environmental studies | 8,550 | 3,960 | 4,590 | 115.91% | | Geology, geophysics, and geochemical | 5,948 | 4,235 | 1,713 | 40.45% | | Fieldwork, camp support | 3,832 | 1,833 | 1,999 | 109.06% | | Depreciation | 1,440 | 439 | 1,001 | 228.02% | | **Total for the period** | **27,260** | **14,677** | **12,583** | **85.73%** | Exploration and Evaluation Expenses (Six Months Ended June 30) | Category | June 30, 2024 (CAD '000) | June 30, 2023 (CAD '000) | Change (CAD '000) | % Change | | :-------------------------------- | :-------------------------- | :-------------------------- | :---------------- | :--------- | | Environmental studies | 15,791 | 7,289 | 8,502 | 116.64% | | Geology, geophysics, and geochemical | 14,199 | 7,970 | 6,229 | 78.16% | | Fieldwork, camp support | 4,798 | 2,525 | 2,273 | 90.02% | | Depreciation | 1,964 | 872 | 1,092 | 125.23% | | **Total for the period** | **47,307** | **25,729** | **21,578** | **83.87%** | [Project Financing Package](index=18&type=section&id=6.%20PROJECT%20FINANCING%20PACKAGE) This note outlines the details of the recently secured financing package for the Eskay Project [Equity Investment](index=18&type=section&id=Equity%20Investment) This section describes the equity component of the project financing, including private placements - Orion committed to purchase **US$100 million** of the Company's common shares[44](index=44&type=chunk) As of June 30, 2024, **US$75 million** has been purchased through a **$100 million development flow-through private placement** and a **$22.75 million common share private placement** - The remaining **US$25 million** of common shares will be purchased by Orion at a later date, with pricing to be set at the time of investment[44](index=44&type=chunk) [Gold Stream](index=19&type=section&id=Gold%20Stream) This section details the gold stream agreement, including deposit tranches and delivery obligations - A total deposit of **US$200,000,000** is to be provided in five tranches, with the first **US$5,000,000** received on July 5, 2024[48](index=48&type=chunk) - The Gold Stream entails deliveries of **10.55% of payable gold production** from Eskay upon satisfaction of a completion test by September 30, 2027, with the percentage increasing if the test is not met[48](index=48&type=chunk) - The Gold Stream is accounted for as a derivative instrument measured at fair value through profit and loss; no amounts related to the Gold Stream were recorded in the financial statements at June 30, 2024, as there were no draws[49](index=49&type=chunk) [Senior Secured Term Loan](index=20&type=section&id=Senior%20Secured%20Term%20Loan) This section describes the terms and conditions of the senior secured term loan facility - The facility amount is **US$350,000,000** with a maturity date of September 30, 2031, available as a non-revolving multi-draw facility after the US$100 million Gold Stream deposit has been drawn[53](index=53&type=chunk) - The loan carries a coupon of **3-month term Secured Overnight Financing Rate plus a margin of 7.75%**[53](index=53&type=chunk) - The Senior Secured Term Loan is accounted for as a loan commitment until drawn upon, at which point it will be accounted for at amortized cost No amounts were drawn at June 30, 2024[51](index=51&type=chunk) [Transaction Costs](index=20&type=section&id=Transaction%20costs) This section outlines the costs incurred in securing the project financing package - Total transaction costs of **$4,228,000** were incurred for the Project Financing Package, allocated to private placements (**$1,085,000** as share issuance costs), Gold Stream (**$1,143,000** expensed), and Senior Secured Term Loan (**$2,000,000** recorded as Other Assets)[52](index=52&type=chunk) [Capital Stock and Reserves](index=22&type=section&id=7.%20CAPITAL%20STOCK%20AND%20RESERVES) This note provides details on the company's share capital, including private placements and share-based payments [Private Placements and Bought Deal Offering](index=22&type=section&id=Private%20placements%20and%20bought%20deal%20offering) This section describes recent equity issuances through private placements - On June 24, 2024, the Company closed a non-brokered private placement offering, raising **$22,750,000** by issuing **3,418,702 common shares**[55](index=55&type=chunk) - Also on June 24, 2024, a **$100,000,000 non-brokered private placement** of **12,021,977 flow-through shares** resulted in a **$20,000,000 flow-through share premium liability**[56](index=56&type=chunk) - Share issuance costs of **$1,085,000** were incurred in connection with the private placements[57](index=57&type=chunk) [Tahltan Investment Rights](index=22&type=section&id=Tahltan%20Investment%20Rights) This section details the conversion of Tahltan Investment Rights into common shares - In April 2024, the Company issued the final share payment related to Milestone 4, converting **79,858 Tahltan Investment Rights** into **79,858 common shares**[59](index=59&type=chunk) [Share-based Payments](index=22&type=section&id=Share-based%20payments) This section outlines the company's share-based compensation plans and associated expenses - During the six months ended June 30, 2024, the Company granted **1,172,093 stock options**, **533,852 RSUs**, and **158,643 DSUs** to various directors, officers, employees, and consultants[64](index=64&type=chunk) Share-based Payments Expense (Six Months Ended June 30) | Category | June 30, 2024 (CAD '000) | June 30, 2023 (CAD '000) | Change (CAD '000) | % Change | | :---------------- | :-------------------------- | :-------------------------- | :---------------- | :--------- | | Stock options | 1,897 | 1,728 | 169 | 9.78% | | RSUs | 2,618 | 3,975 | (1,357) | -34.14% | | PSUs | 684 | — | 684 | N/A | | DSUs | 600 | 75 | 525 | 700.00% | | **Total** | **5,799** | **5,778** | **21** | **0.36%** | Weighted Average Fair Value per Unit (2024 vs. 2023) | Category | 2024 (CAD) | 2023 (CAD) | | :---------------- | :--------- | :--------- | | Stock options | 2.49 | 4.14 | | RSUs | 6.34 | 8.15 | | DSUs | 5.84 | 6.38 | [Supplemental Disclosure with Respect to Cash Flows](index=28&type=section&id=8.%20SUPPLEMENTAL%20DISCLOSURE%20WITH%20RESPECT%20TO%20CASH%20FLOWS) This note provides additional information on non-cash transactions affecting the company's financial position Non-Cash Transactions (Six Months Ended June 30, 2024) | Transaction | Amount (CAD '000) | | :---------------------------------------------------------- | :----------------- | | Recognition of right-of-use assets and lease liabilities | 9,104 | | Deposits reclassified to exploration and evaluation interests | 5,207 | | Project financing costs in accounts payable and accrued liabilities | 2,595 | | Deposits reclassified to capital assets | 769 | | Depreciation capitalized in exploration and evaluation interests | 673 | | Acquisition of vehicles through loan financing | 615 | [Related Party Transactions](index=28&type=section&id=9.%20RELATED%20PARTY%20TRANSACTIONS) This note discloses transactions with related parties, including key management compensation Key Management Compensation (Six Months Ended June 30) | Category | June 30, 2024 (CAD '000) | June 30, 2023 (CAD '000) | Change (CAD '000) | % Change | | :-------------------------- | :-------------------------- | :-------------------------- | :---------------- | :--------- | | Director remuneration | 191 | 163 | 28 | 17.18% | | Officer & key management remuneration | 1,752 | 1,697 | 55 | 3.24% | | Share-based payments | 4,603 | 4,054 | 549 | 13.54% | | **Total** | **6,546** | **5,914** | **632** | **10.69%** | Share-based Payment Expenses to Related Parties (Six Months Ended June 30) | Category | June 30, 2024 (CAD '000) | June 30, 2023 (CAD '000) | | :------------------------------------ | :-------------------------- | :-------------------------- | | Exploration and evaluation expense | 513 | 365 | | General and administrative expense | 4,090 | 3,689 | [Contingencies](index=30&type=section&id=10.%20CONTINGENCIES) This note describes potential future obligations or assets arising from past events - In July 2024, the British Columbia Court of Appeal overturned previous decisions regarding mineral rights to materials in the Albino Lake Storage Facility, referring the matter back for rehearing[80](index=80&type=chunk) The outcome is not expected to affect the carrying value of Eskay

[Condensed Interim Consolidated Financial Statements](index=1&type=section&id=Condensed%20Interim%20Consolidated%20Financial%20Statements) This report presents Skeena Resources Limited's unaudited condensed interim consolidated financial statements and accompanying notes for the three months ended March 31, 2024 [Financial Statements](index=2&type=section&id=Financial%20Statements) This section presents the unaudited condensed interim consolidated financial statements for Skeena Resources Limited, covering the statements of financial position, loss and comprehensive loss, changes in shareholders' equity, and cash flows for the three months ended March 31, 2024, and 2023 [Condensed Interim Consolidated Statements of Financial Position](index=2&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20POSITION) This statement details the Company's assets, liabilities, and shareholders' equity, showing a decrease in total assets and equity as of March 31, 2024 Condensed Interim Consolidated Statements of Financial Position | Metric | March 31, 2024 (CAD '000) | December 31, 2023 (CAD '000) | Change (CAD '000) | % Change | | :----------------------------- | :-------------------------- | :--------------------------- | :---------------- | :------- | | Total Assets | 167,582 | 194,987 | (27,405) | -14.05% | | Total Liabilities | 66,090 | 70,452 | (4,362) | -6.19% | | Total Shareholders' Equity | 101,492 | 124,535 | (23,043) | -18.50% | | Cash and cash equivalents | 59,056 | 91,135 | (32,079) | -35.20% | [Condensed Interim Consolidated Statements of Loss and Comprehensive Loss](index=3&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20LOSS%20AND%20COMPREHENSIVE%20LOSS) This statement outlines the Company's financial performance, reporting an increased loss and comprehensive loss for the three months ended March 31, 2024 Condensed Interim Consolidated Statements of Loss and Comprehensive Loss | Metric | Three months ended March 31, 2024 (CAD '000) | Three months ended March 31, 2023 (CAD '000) | Change (CAD '000) | % Change | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------- | :------- | | Loss and comprehensive loss | (27,418) | (16,743) | (10,675) | 63.76% | | Loss per share – basic and diluted | (0.30) | (0.22) | (0.08) | 36.36% | | Exploration and evaluation | 20,047 | 11,052 | 8,995 | 81.39% | | Share-based payments | 3,001 | 2,160 | 841 | 38.94% | [Condensed Interim Consolidated Statements of Changes in Shareholders' Equity](index=4&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20SHAREHOLDERS'%20EQUITY) This statement tracks changes in the Company's capital stock, reserves, and accumulated deficit, reflecting a decrease in total shareholders' equity Condensed Interim Consolidated Statements of Changes in Shareholders' Equity | Metric | Balance Dec 31, 2023 (CAD '000) | Balance Mar 31, 2024 (CAD '000) | Change (CAD '000) | | :-------------------- | :----------------------------- | :----------------------------- | :---------------- | | Capital Stock | 552,397 | 552,881 | 484 | | Reserves | 48,299 | 52,190 | 3,891 | | Deficit | (476,911) | (504,329) | (27,418) | | Total Shareholders' Equity | 124,535 | 101,492 | (23,043) | - The deficit increased by **$27,418,000 CAD** during the three months ended March 31, 2024, primarily due to the loss for the period[6](index=6&type=chunk) [Condensed Interim Consolidated Statements of Cash Flows](index=5&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This statement summarizes the Company's cash inflows and outflows from operating, investing, and financing activities, indicating significant cash usage Condensed Interim Consolidated Statements of Cash Flows | Activity | Three months ended March 31, 2024 (CAD '000) | Three months ended March 31, 2023 (CAD '000) | Change (CAD '000) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------- | | Net cash used in operating activities | (23,217) | (17,809) | (5,408) | | Net cash used in investing activities | (8,398) | (1,973) | (6,425) | | Net cash (used in) provided by financing activities | (464) | 882 | (1,346) | | Change in cash and cash equivalents | (32,079) | (18,900) | (13,179) | | Cash and cash equivalents, end of period | 59,056 | 21,702 | 37,354 | [Notes to the Condensed Interim Consolidated Financial Statements](index=6&type=section&id=NOTES%20TO%20THE%20CONDENSED%20INTERIM%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed notes to the condensed interim consolidated financial statements, offering insights into the Company's operations, accounting policies, financial instruments, exploration activities, capital structure, related party transactions, and contingencies [1. Nature of Operations](index=6&type=section&id=1.%20NATURE%20OF%20OPERATIONS) This note describes the Company's primary business of mineral exploration and evaluation, highlighting its current funding status and going concern considerations - Skeena Resources Limited's principal business activity is the exploration and evaluation of mineral properties in British Columbia, Canada, currently in the exploration stage[11](index=11&type=chunk) - As of March 31, 2024, the Company had **$59,056,000 CAD in cash and cash equivalents**, sufficient to fund committed exploration and general administrative costs for at least twelve months, though current cash balances are not sufficient for planned exploration and evaluation activities beyond twelve months[12](index=12&type=chunk) - The Company's long-term ability to continue as a going concern depends on the successful execution of its business plan, including bringing the Eskay Creek project to profitable operation, raising additional capital, or evaluating strategic alternatives[12](index=12&type=chunk) [2. Basis of Presentation](index=6&type=section&id=2.%20BASIS%20OF%20PRESENTATION) This note clarifies the accounting standards used for the interim financial statements and their consistency with prior annual reports - The unaudited condensed interim consolidated financial statements are prepared in accordance with International Accounting Standard 34 (IAS 34) and should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2023[13](index=13&type=chunk) - Accounting policies applied are consistent with those in the 2023 annual consolidated financial statements, except as disclosed in Note 3[14](index=14&type=chunk) [3. New Standards, Amendments and Interpretations](index=8&type=section&id=3.%20NEW%20STANDARDS,%20AMENDMENTS%20AND%20INTERPRETATIONS) This note details the adoption of new accounting standards and the evaluation of future standards, including IFRS 18 - The Company adopted amendments to IAS 7 and IFRS 7 regarding supplier finance arrangements effective January 1, 2024, with no material impact on the financial statements[17](index=17&type=chunk) - IFRS 18, which replaces IAS 1 and introduces significant changes to the statement of income (loss) structure, is applicable for annual reporting periods beginning on or after January 1, 2027, and the Company is currently evaluating its impact[18](index=18&type=chunk)[19](index=19&type=chunk) [4. Financial Instruments and Risk Management](index=8&type=section&id=4.%20FINANCIAL%20INSTRUMENTS%20AND%20RISK%20MANAGEMENT) This note provides an overview of the Company's financial instruments, their carrying values, fair value hierarchy, and associated credit, market, and liquidity risks [Financial Instrument Carrying Values](index=8&type=section&id=Financial%20Instrument%20Carrying%20Values) This section presents the carrying values of various financial instruments, categorized by their measurement basis, as of March 31, 2024, and December 31, 2023 | Financial Instrument | Category | March 31, 2024 (CAD '000) | December 31, 2023 (CAD '000) | | :------------------- | :------- | :------------------------ | :--------------------------- | | Cash and cash equivalents | Amortized cost | 59,056 | 91,135 | | Marketable securities | Fair value through profit or loss | 1,369 | 1,554 | | Receivables | Amortized cost | 954 | 957 | | Deposits | Amortized cost | 8,078 | 2,102 | | Accounts payable | Amortized cost | 5,719 | 16,074 | | Convertible debenture | Fair value through profit or loss | 23,955 | 22,775 | | Other liabilities | Amortized cost | 732 | 691 | [Fair Value Hierarchy](index=10&type=section&id=Fair%20Value%20Hierarchy) This section classifies financial instruments based on the inputs used in their fair value measurement, particularly noting the Level 3 classification of the convertible debenture - Marketable securities are classified as Level 1, based on quoted market prices[22](index=22&type=chunk) - The fair value of the convertible debenture is classified as Level 3, subject to significant estimates related to project financing and change of control probabilities, and its fair value increased by **$1,180,000 CAD** during the three months ended March 31, 2024[23](index=23&type=chunk) [Credit Risk](index=10&type=section&id=Credit%20risk) This section discusses the Company's exposure to credit risk and its approach to measuring expected credit losses in accordance with IFRS 9 - The Company measures credit losses using a present value and probability-weighted model in accordance with IFRS 9, with no material expected credit losses for financial instruments held at amortized cost[24](index=24&type=chunk)[25](index=25&type=chunk) [Market Risk](index=10&type=section&id=Market%20risk) This section details the Company's exposure to market risk, specifically on marketable securities, and the potential impact of share price fluctuations - As of March 31, 2024, the Company is exposed to market risk on its marketable securities, where a **10% decrease** in their share price would result in a **$137,000 CAD decrease** in carrying value and an equivalent increase in unrealized loss[26](index=26&type=chunk) [Liquidity Risk](index=12&type=section&id=Liquidity%20risk) This section outlines the Company's strategy for managing liquidity risk, including cash flow forecasting and a schedule of undiscounted financial liabilities - The Company manages liquidity risk by forecasting cash flows and actively reviewing significant expenditures and commitments[27](index=27&type=chunk)[28](index=28&type=chunk) Undiscounted Financial Liabilities by Maturity Period | Maturity Period | Undiscounted Financial Liabilities (CAD '000) | | :---------------- | :-------------------------------------------- | | Less than 1 year | 26,910 | | 1-5 years | 43,989 | | Greater than 5 years | 39,289 | | Total | 110,188 | - Management expects the convertible debenture, maturing in December 2028, to be repaid during 2024 upon completion of project financing for the Eskay Creek project[29](index=29&type=chunk) [5. Deposits](index=12&type=section&id=5.%20DEPOSITS) This note details significant deposits made by the Company, specifically those related to infrastructure at the Eskay Creek project - During the three months ended March 31, 2024, the Company paid **$5,693,000 CAD** in deposits related to certain infrastructure at Eskay Creek[30](index=30&type=chunk) [6. Exploration and Evaluation Interests](index=12&type=section&id=6.%20EXPLORATION%20AND%20EVALUATION%20INTERESTS) This note provides details on the Company's mineral properties, including capitalized assets, royalty agreements, and exploration expenditures [Exploration and Evaluation Assets](index=12&type=section&id=Exploration%20and%20evaluation%20assets) This section presents the carrying values of the Company's exploration and evaluation assets by property, including additions related to the Eskay Creek project Exploration and Evaluation Assets by Property | Property | Balance Dec 31, 2023 (CAD '000) | Additions (CAD '000) | Balance Mar 31, 2024 (CAD '000) | | :--------- | :------------------------------ | :------------------- | :------------------------------ | | Eskay | 44,822 | 1,581 | 45,927 | | Snip | 1,469 | — | 1,250 | | Other | 16,123 | — | 16,123 | | Total | 62,414 | 1,581 | 63,300 | - On December 18, 2023, the Company sold a **1% net smelter return royalty** on Eskay to Franco-Nevada Corporation for **$56,000,000 CAD cash** and contingent cash consideration of **$3,000,000 CAD to $4,500,000 CAD** upon milestone completion[32](index=32&type=chunk) - During the three months ended March 31, 2024, the Company capitalized **$1,581,000 CAD** related to engineering and fabrication of mill equipment for Eskay Creek[33](index=33&type=chunk) [Exploration and Evaluation Expenses](index=13&type=section&id=Exploration%20and%20evaluation%20expenses) This section details the breakdown of exploration and evaluation expenses, highlighting significant increases in environmental and geological costs Exploration and Evaluation Expenses by Category | Expense Category | Three months ended March 31, 2024 (CAD '000) | Three months ended March 31, 2023 (CAD '000) | | :----------------- | :------------------------------------------ | :------------------------------------------ | | Environmental studies | 7,241 | 3,329 | | Geology, geophysics, and geochemical | 8,251 | 3,735 | | Share-based payments | 1,078 | 278 | | Total | 20,047 | 11,052 | - Total exploration and evaluation expenses increased by **81.39%** from **$11,052,000 CAD** in Q1 2023 to **$20,047,000 CAD** in Q1 2024, driven primarily by higher environmental studies and geology/geophysics costs at Eskay[35](index=35&type=chunk)[37](index=37&type=chunk) [7. Capital Stock and Reserves](index=14&type=section&id=7.%20CAPITAL%20STOCK%20AND%20RESERVES) This note provides information on the Company's capital structure, including Tahltan Investment Rights and various share-based payment instruments [Tahltan Investment Rights](index=14&type=section&id=Tahltan%20Investment%20Rights) This section describes the issuance of common shares related to the final milestone payment for Tahltan Investment Rights - In April 2024, the Company issued the final share payment related to Milestone 4 of the Tahltan Investment Rights, converting **79,858 Rights** into common shares[39](index=39&type=chunk) [Share-based Payments](index=15&type=section&id=Share-based%20payments) This section details the activity and expenses related to the Company's Restricted Share Units, Performance Share Units, Deferred Share Units, and Stock Options Share-based Payment Instrument Activity | Instrument | Outstanding Dec 31, 2023 | Granted Q1 2024 | Exercised Q1 2024 | Cancelled Q1 2024 | Outstanding Mar 31, 2024 | | :--------- | :----------------------- | :-------------- | :---------------- | :---------------- | :----------------------- | | RSUs | 1,845,339 | 323,940 | (48,334) | (23,659) | 2,097,286 | | PSUs | 770,000 | — | — | — | 770,000 | | DSUs | 86,257 | 142,158 | — | — | 228,415 | | Stock Options | 4,899,918 | 1,022,093 | (20,834) | (38,732) | 5,862,445 | - On January 28, 2024, the Company granted **822,093 stock options**, **323,940 RSUs**, and **105,080 DSUs** to various personnel, with stock options and RSUs granted to senior management subject to a vesting condition of the Company raising at least **$65,000,000 CAD**[44](index=44&type=chunk) Share-based Payment Expenses | Expense Type | Three months ended March 31, 2024 (CAD '000) | Three months ended March 31, 2023 (CAD '000) | | :----------- | :------------------------------------------ | :------------------------------------------ | | Stock options | 773 | 741 | | RSUs | 2,022 | 1,697 | | PSUs | 684 | — | | DSUs | 600 | — | | Total | 4,079 | 2,438 | Key Inputs for Share-based Payment Valuation | Input | 2024 | 2023 | | :-------------------- | :--- | :--- | | Expected life (years) | 3.5 | — | | Annualized volatility | 54.21% | —% | | Dividend rate | —% | —% | | Risk-free interest rate | 3.79% | —% | [8. Supplemental Disclosure with Respect to Cash Flows](index=18&type=section&id=8.%20SUPPLEMENTAL%20DISCLOSURE%20WITH%20RESPECT%20TO%20CASH%20FLOWS) This note provides additional information on non-cash transactions that affect the Company's financial position but are not reflected in the cash flow statement Non-Cash Transactions Affecting Cash Flows | Non-Cash Transaction | Three months ended March 31, 2024 (CAD '000) | Three months ended March 31, 2023 (CAD '000) | | :------------------- | :------------------------------------------ | :------------------------------------------ | | Capital asset additions in accounts payable and accrued liabilities | 167 | 142 | | Leasehold improvement allowance in receivables | 905 | — | | Exploration and evaluation expenditures in accounts payable and accrued liabilities | 1,906 | — | | Settlement of accrued directors fees through issuance of DSUs | 205 | — | [9. Related Party Transactions](index=19&type=section&id=9.%20RELATED%20PARTY%20TRANSACTIONS) This note outlines transactions and balances with related parties, including remuneration for directors, officers, and key management personnel Related Party Remuneration | Remuneration Type | Three months ended March 31, 2024 (CAD '000) | Three months ended March 31, 2023 (CAD '000) | | :---------------- | :------------------------------------------ | :------------------------------------------ | | Director remuneration | 96 | 81 | | Officer & key management remuneration | 876 | 854 | | Termination benefits | — | 675 | | Share-based payments | 2,802 | 1,630 | - Share-based payment expenses to related parties recorded in general and administrative expense increased from **$1,504,000 CAD** in Q1 2023 to **$2,543,000 CAD** in Q1 2024[52](index=52&type=chunk) - Included in accounts payable and accrued liabilities at March 31, 2024, is **$424,000 CAD** due to key management personnel, a decrease from **$1,004,000 CAD** at December 31, 2023[54](index=54&type=chunk) [10. Contingencies](index=19&type=section&id=10.%20CONTINGENCIES) This note discloses potential future obligations or assets arising from past events, specifically an appeal hearing regarding mineral rights - The Company has an appeal hearing on May 15, 2024, regarding the ownership of mineral rights to materials in the Albino Lake Storage Facility, with the outcome not expected to affect the carrying value of Eskay as these materials were not included in previous studies[56](index=56&type=chunk) [11. Other Subsequent Event](index=20&type=section&id=11.%20OTHER%20SUBSEQUENT%20EVENT) This note reports significant events occurring after the reporting period, such as the issuance of common shares upon RSU vesting - In April 2024, the Company issued **302,357 common shares** upon the vesting of Restricted Share Units (RSUs) granted on April 21, 2022[57](index=57&type=chunk)