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Skeena(SKE) - 2024 Q3 - Quarterly Report
SkeenaSkeena(US:SKE)2024-11-14 12:43

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]