Q: With gold reaching highs what would be your opinion of this canadian miner
5i Research Answer:
SKE shares are up 162% in the past year as the sector's gains push developers higher. It is developing the past-producing Eskay Creek mine in BC. It has no revenue yet and cash flow is highly negative. Cash is $80M. Insiders own 2.4%. First production is expected in 2027. Lots can still go wrong, but, as they say, the best place for a new mine is right beside an old mine. We would consider it a 'decent' stock in the mid-cap development category. We think management knows what they are doing.