Skeena(SKE) - 2025 Q2 - Quarterly Report

Condensed Interim Consolidated Financial Statements This section presents the Company's financial position, performance, cash flows, and changes in equity for the interim period Condensed Interim Consolidated Statements of Financial Position Total assets increased to $453,277 thousand by June 30, 2025, primarily due to mineral property and derivative liability growth Consolidated Statements of Financial Position Summary | Metric | June 30, 2025 (CAD thousands) | December 31, 2024 (CAD thousands) | Change (CAD thousands) | % Change | | :-------------------------------- | :-------------------------- | :-------------------------- | :---------------- | :------- | | ASSETS | | | | | | Cash and cash equivalents | 94,452 | 96,941 | (2,489) | -2.57% | | Marketable securities | 14,030 | 949 | 13,081 | 1378.40% | | Deposits | 16,447 | 5,083 | 11,364 | 223.56% | | Exploration and evaluation interests | 17,107 | 18,662 | (1,555) | -8.33% | | Mineral property, plant and equipment | 297,077 | 144,220 | 152,857 | 105.99% | | Total assets | 453,277 | 274,391 | 178,886 | 65.19% | | LIABILITIES | | | | | | Accounts payable and accrued liabilities | 56,495 | 57,285 | (790) | -1.38% | | Lease liabilities (total) | 42,348 | 13,533 | 28,815 | 212.92% | | Derivative liability | 192,107 | 63,886 | 128,221 | 200.70% | | Total liabilities | 340,661 | 183,778 | 156,883 | 85.37% | | SHAREHOLDERS' EQUITY | | | | | | Capital stock | 761,571 | 670,126 | 91,445 | 13.65% | | Deficit | (701,390) | (627,109) | (74,281) | 11.84% | | Total shareholders' equity | 112,616 | 90,613 | 22,003 | 24.28% | | Total liabilities and shareholders' equity | 453,277 | 274,391 | 178,886 | 65.19% | Condensed Interim Consolidated Statements of Loss and Comprehensive Loss Net loss for the six months ended June 30, 2025, increased to $74,281 thousand, driven by derivative liability and share-based payments Consolidated Statements of Loss and Comprehensive Loss Summary | Metric | Q2 2025 (CAD thousands) | Q2 2024 (CAD thousands) | 6M 2025 (CAD thousands) | 6M 2024 (CAD thousands) | | :--------------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Administrative compensation | 1,819 | 1,223 | 3,462 | 2,497 | | Share-based payments | 7,652 | 744 | 11,848 | 3,745 | | Total General and administration expenses | 13,721 | 5,489 | 22,644 | 12,401 | | Change in fair value of derivative liability | 29,794 | — | 60,004 | — | | Exploration and evaluation | 1,467 | 27,260 | 3,037 | 47,307 | | Flow-through share premium recovery | (4,950) | (386) | (11,416) | (715) | | Gain on sale of exploration and evaluation interests | — | — | (3,216) | — | | Loss (gain) on marketable securities | (3,290) | 459 | (2,000) | 606 | | Loss before income tax | 37,319 | 34,985 | 70,819 | 62,403 | | Deferred tax | (1,286) | — | 3,462 | — | | Loss and comprehensive loss for the period | 36,033 | 34,985 | 74,281 | 62,403 | | Loss per share – basic and diluted | (0.31) | (0.38) | (0.66) | (0.69) | Condensed Interim Consolidated Statements of Changes in Shareholders' Equity Shareholders' equity increased to $112,616 thousand by June 30, 2025, driven by a bought deal offering and share-based payments, offset by period loss Consolidated Statements of Changes in Shareholders' Equity Summary | Metric | 6M 2025 (CAD thousands) | 6M 2024 (CAD thousands) | | :--------------------------------------- | :------------------ | :------------------ | | Balance December 31, 2024 | 90,613 | 124,535 (Dec 31, 2023) | | Bought deal offering | 88,347 | — | | Private placements | — | 122,750 | | Share issue costs | (5,586) | (1,085) | | Flow-through share premium | (7,203) | (20,000) | | Share-based payments | 14,708 | 6,126 | | Loss for the period | (74,281) | (62,403) | | Balance June 30, 2025 | 112,616 | 170,122 | Condensed Interim Consolidated Statements of Cash Flows Cash and cash equivalents decreased by $2,489 thousand, driven by increased investing in mineral property, partially offset by financing proceeds Consolidated Statements of Cash Flows Summary | Metric | 6M 2025 (CAD thousands) | 6M 2024 (CAD thousands) | | :--------------------------------------- | :------------------ | :------------------ | | Net cash used in operating activities | (38,699) | (45,163) | | Net cash used in investing activities | (111,619) | (11,855) | | Additions to mineral property, plant and equipment | (93,412) | (2,059) | | Net cash provided by financing activities | 148,242 | 93,612 | | Proceeds from Gold Stream | 68,217 | — | | Proceeds from bought deal financing | 88,347 | — | | Proceeds from private placements | — | 122,750 | | Change in cash and cash equivalents during the period | (2,489) | 36,126 | | Cash and cash equivalents, end of the period | 94,452 | 127,261 | Notes to the Condensed Interim Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the condensed interim consolidated financial statements 1. Nature of Operations Skeena Resources Limited is a development-stage mining company focused on the Eskay Creek project, funded by a Project Financing Package until 2027 - Skeena Resources Limited is a mining company focused on the development and construction of the Eskay Creek project in British Columbia[6] - The Company secured a Project Financing Package with Orion Resource Partners on June 24, 2024, comprising private placements, a Gold Stream, and a Senior Secured Term Loan facility[7] - Management anticipates the Project Financing Package will fund capital requirements until commercial production at Eskay, expected in 2027[8] 2. Basis of Presentation Interim consolidated financial statements are prepared under IAS 34, consistent with annual policies, on a historical cost basis, and expressed in Canadian thousands - Interim consolidated financial statements are prepared in accordance with IAS 34, Interim Financial Reporting[9] - Accounting policies are consistent with the audited annual consolidated financial statements as of December 31, 2024[10] - Statements are prepared on a historical cost basis, with certain financial instruments at fair value, and presented in thousands of Canadian dollars[11] 3. New Standards, Amendments and Interpretations IFRS 18, replacing IAS 1, introduces a new income statement structure and disclosure