Skeena(SKE) - 2025 Q3 - Quarterly Report

Financial Performance - The company reported a loss of CAD 36,797,000 for the three months ended September 30, 2025, compared to a loss of CAD 84,887,000 for the same period in 2024, indicating a 56.6% improvement [3]. - Loss per share improved to CAD (0.32) for Q3 2025 from CAD (0.80) in Q3 2024 [3]. - The company incurred general and administrative expenses of CAD 12,218,000 for Q3 2025, up from CAD 7,020,000 in Q3 2024, reflecting a 74.5% increase [3]. - Exploration and evaluation expenses were CAD 2,681,000 for Q3 2025, significantly lower than CAD 51,981,000 in Q3 2024, a decrease of 94.8% [3]. - Net cash used in operating activities was CAD 17,806,000 for Q3 2025, compared to CAD 40,963,000 for Q3 2024, a reduction of 56.5% [5]. Assets and Liabilities - Total assets increased to CAD 647,203,000 as of September 30, 2025, up from CAD 274,391,000 at December 31, 2024, representing a growth of 135% [2]. - Shareholders' equity decreased to CAD 85,261,000 as of September 30, 2025, down from CAD 90,613,000 at December 31, 2024 [2]. - Total liabilities increased to CAD 561,942,000 as of September 30, 2025, compared to CAD 183,778,000 at December 31, 2024, an increase of 205% [2]. Financing Activities - The company raised CAD 88,347,000 through a bought deal offering during the nine months ended September 30, 2025 [4]. - The Company has entered into a Project Financing Package with Orion Resource Partners, which includes private placements, a Gold Stream, and a Senior Secured Term Loan facility [9]. - The Project Financing Package includes private placements of $122,750,000, a Gold Stream of $200,000,000, and a Senior Secured Term Loan facility of $350,000,000 [38]. - On February 26, 2025, the company raised gross proceeds of $88,347,000 through a bought deal offering, issuing 3,290,000 common shares at $14.70 each [47]. - In October 2025, the company closed another bought deal offering, raising gross proceeds of $143,796,000 by issuing 5,991,500 common shares at $24.00 each [48]. Capital Expenditures - Total additions to mineral property for the nine months ended September 30, 2025 amounted to $308,290,000, including $71,801,000 for mineral property and $176,528,000 for construction-in-progress [35][36]. - The company recognized total depreciation of $11,960,000 during the nine months ended September 30, 2025, with $9,312,000 capitalized to mineral property and construction-in-progress [36]. - The company incurred an availability fee of $4,712,000 during the nine months ended September 30, 2025, with $3,661,000 capitalized to other non-current assets [43]. - The company reported $12,738,000 in additions to mineral property, plant, and equipment during the three months ended September 30, 2025 [57]. Stock and Shareholder Information - As of September 30, 2025, the company had 6,804,529 stock options outstanding with a weighted average exercise price of $10.28 [55]. - The company granted 927,325 stock options and 364,100 RSUs during the nine months ended September 30, 2025 [56]. - Share-based payments for the nine months ended September 30, 2025 totaled $22,318,000, a significant increase from $9,719,000 in 2024 [56]. - The weighted average fair value per unit of stock options granted in 2025 was $6.09, compared to $2.96 in 2024 [56]. - The company granted stock options at an exercise price of $25.57 per share in October 2025 [53]. Management and Personnel - Key management personnel received total remuneration of $1,055,000 for the three months ended September 30, 2025, up from $928,000 in 2024 [59]. - As of September 30, 2025, accounts payable to key management personnel amounted to $1,658,000, down from $2,106,000 at the end of 2024 [61]. Risk and Valuation - The Company has a total liquidity risk exposure of $442,874,000 in undiscounted financial liabilities and commitments as of September 30, 2025 [30]. - A 1% increase in interest rates would have decreased net loss before tax by $797,000 based on cash and cash equivalents at September 30, 2025 [24]. - The Company is exposed to a 5% increase in the forward gold price curve, which would increase net loss before tax by $9,881,000 [28]. - The fair value of the Gold Stream derivative liability is based on a forecasted gold spot price of $3,807 per ounce as of September 30, 2025, compared to $2,611 per ounce as of December 31, 2024 [20]. - The balance of the Gold Stream derivative liability as of September 30, 2025 is $379,706,000, reflecting proceeds and changes in fair value [42].