Skeena Resources reports loss of 104.5 million Canadian dollars
The precious metals developer saw its quarterly loss widen to 104.5 million Canadian dollars from 38.2 million Canadian dollars a year earlier
Skeena Resources Ltd (SKE), a precious metals development company, reported a loss of 104.5 million Canadian dollars for the three months ended March 31, 2026,. The loss per share for the period was 0.86 Canadian dollars, compared to a loss of 0.36 Canadian dollars a share in the same quarter of the previous year.
The company attributed the increased loss to several factors, including the expensing of costs related to permits, licenses, and authorizations for the Eskay Creek Revitalization Project. The company also noted the absence of certain gains that occurred in the first quarter of 2025, specifically a 3.2 million Canadian dollar gain from the sale of the Sofia property and a 6.5 million Canadian dollar flow-through share premium recovery.
Cash used in investing activities rose to 77.0 million Canadian dollars from 43.9 million Canadian dollars in the prior-year period. The company said this increase was due to the transition to the development phase and a substantial increase in activity at the Eskay Creek Project, which included the acquisition of equipment and the advancement of construction.
Operating activities consumed 15.2 million Canadian dollars of net cash during the quarter, a decrease from the 37.0 million Canadian dollars used in the first quarter of 2025. This decrease was primarily due to the settlement of exploration and evaluation expenditures in accounts payable and accrued liabilities. Financing activities consumed 4.2 million Canadian dollars in the period, compared to providing 81.9 million Canadian dollars in the prior-year quarter, largely because the company did not have a bought deal financing transaction similar to the 83.3 million Canadian dollar event in 2025,.
To support its capital requirements, the company completed an offering of 750 million US dollars in Senior Secured Notes on April 10, 2026. The company used 184 million US dollars of those proceeds to repurchase 66.67% of its Gold Stream and deposited 94.2 million US dollars into an interest reserve account.
Skeena is progressing the Eskay Creek project toward initial production and cash flow in the second quarter of 2027. The company anticipates that the proceeds from the Senior Secured Notes will be sufficient to fund capital requirements until commercial production begins in 2027, provided it meets the conditions precedent of the notes.