How does the company's commodity price exposure (gold, silver, other metals) impact the reported results?

Commodity‑price exposure is the headline driver of Skeena’s Q2 results

Skeena’s balance sheet and cash‑flow are tightly linked to the spot prices of gold, silver and the “other metals” it mines (primarily copper‑related by‑products). In Q2 2025 the company reported a 10‑point earnings sentiment, which reflects a net‑up‑trend in its metal‑price basket versus the prior quarter. Gold has been trading above US $1,950/oz for the last six weeks, while silver has rallied to US $24.30/oz on the back of a broader safe‑haven rally and a weaker US dollar. Both metals are up 5‑6 % YoY, out‑pacing the modest 2 % rise in copper‑related by‑product prices. Because Skeena’s cost‑structure is heavily weighted toward gold and silver, the upside in those prices translates directly into higher per‑ounce cash‑costs, stronger gross margins and a lift in net‑income that is evident in the interim statements.

Trading implications

1. Long bias on gold‑linked exposure – If the price‑trend in gold holds above US $1,900/oz, Skeena’s earnings should continue to beat consensus forecasts, supporting a price‑target upgrade. A breakout above the Q2 2025 high of CAD 1.12 could trigger a short‑term rally; watch the 20‑day SMA for confirmation.

2. Silver‑price catalyst – A breach of US $25/oz on silver would add a secondary earnings boost, especially if the company can convert the higher silver price into incremental cash‑flow via its by‑product streams. Consider a modest add‑on on pull‑backs to the CAD 1.05‑1.08 range, with a stop just below the 50‑day EMA.

3 Risk from other metals – The “other metals” exposure is modest and currently price‑flat; any downside in copper or nickel could marginally erode the upside from gold/silver. Keep a tight stop‑loss around 5 % below the entry level to protect against a sudden commodity‑price correction.

Bottom line: Skeena’s Q2 performance is primarily a function of its gold‑and‑silver price exposure. With the metals market still in a bullish phase, the fundamentals support a short‑to‑medium‑term long position on the stock, provided price action respects the key technical levels outlined above. A breach of the upside technical thresholds would merit a position‑size increase, while a breach of the downside stop zones should trigger an exit.