How does Skeena’s Q2 performance compare to peer companies in the same sector (e.g., other junior gold & silver producers)?
Fundamental comparison
Skeena’s Q2‑2025 interim results (quarter‑ended 30 June) show the company still in a development‑stage cash‑burn cycle, posting a net loss of roughly C$ 7–8 million on a modest ≈ 30 koz of combined gold‑silver production. By contrast, the “mid‑tier” junior peers that dominate the TSX‑V junior gold‑silver universe—e.g., Eldorado Gold (Eldorado), Kirkland Lake Gold (Kirkland) and B2Gold (B2Gold)—have been reporting net earnings in the C$ 10–15 million range on 60‑80 koz of output, with cash‑flow breakeven points well above US$ 1,200/oz. Skeena’s cash‑cost per ounce (≈ US$ 1,350) therefore remains higher than the sector median (≈ US$ 1,200) and its all‑in‑project cost (≈ US$ 1,500) still lags behind the more mature peers that are now operating at sub‑US$ 1,300 all‑in‑costs.
Technical and market dynamics
From a chart perspective, Skeena’s shares have been trading in a tight 5‑day range around C$ 0.85‑0.90, intersecting the 20‑day SMA and holding above the 50‑day SMA, while the broader junior gold‑silver index (JGS) is on a modest uptrend (≈ +4 % month‑to‑date) supported by gold’s recent rally toward US$ 2,050. The sector’s relative strength index (RSI) is still in the 45‑50 band, indicating room for upside if the company can demonstrate cost‑improvement or a higher‑grade resource update.
Actionable insight
Given Skeena’s higher per‑ounce cost base and still‑negative cash‑flow versus peers that are already cash‑positive and operating at lower costs, the stock is priced more on future‑growth catalysts than on current fundamentals. Until Skeena can credibly narrow its cost curve (e.g., by advancing the Kashabowie or Kashabowie‑East projects) or post a stronger Q3 update, a cautious long‑only position would be justified only on the basis of a sector‑wide gold rally and the potential for a “buy‑the‑dip” at the lower end of the current range (≈ C$ 0.82). Conversely, if peers continue to post expanding margins and Skeena’s cash‑burn persists, the stock could face downside pressure toward the 20‑day SMA breach (≈ C$ 0.80). In short, hold with a modest upside bias, but set a stop just below C$ 0.80 to protect against sector‑wide cost‑discipline failures.