Gold Co Flips Its Own Royalty For C$10m Profit

and another nickel hit

Greetings Contrarian,

This is The Next Big Rush, a daily newsletter to let you know the good, the bad and the ugly in the mining / energy world. 

Where we come together to watch the price of uranium not move for the 234th consecutive day. 😒

If you're bored, this should help:

  • Gold Co Flips Its Own Royalty For C$10m Profit

  • PBR Incoming CEO Says "JK.... We'll Play Nice"

  • Junior Gets Juicy Assays in Sudbury

Gold Co Flips Its Own Royalty For C$10m Profit

Skeena Resources Limited (TSX:SKE)(NYSE:SKE) has sold a 0.5% royalty on their flagship gold-silver project Essay Creek, in the Golden Triangle. Not to be confused with the golden triangle of bermuda where investors’ money goes to die, Skeena is filling its coffers with almost 10m extra on the sole basis of negotiation and signing lots of papers (thanks, lawyers).

Once upon a time, Barrick Gold and Skeena were very involved, financially speaking, with Barrick owning a large piece of the company.  Earlier this year, Barrick started to divest from the project due to “investment portfolio management purposes”. As Barrick started to lighten up its holdings in Skeena, the developer saw an opportunity to buy back at least half of its royalties from the mining giant. 

0.5% out of the 1% NSR was negotiated in September 2022 for C$17.5m. Merely 3 months later, the company has flipped its own 0.5% royalty and sold to Franco-Nevada for C$27m now and a contingency of C$1.5m.

The Company released a Feasibility Study for Eskay Creek in September which highlights an open-pit average grade of 4.00 g/t AuEq, an after-tax NPV5% of C$1.4B, 50% IRR, and a 1-year payback at US$1,700/oz Au and US$19/oz Ag.

Current market cap: C$640m

This, ladies and gents, is freaking good management. 

Bringing this monster into production is a whole other matter, but for now, a massive high-five to the Skeena management team. ✋🏼

PBR Incoming CEO Says "JK.... We'll Play Nice"

Soon to be appointed Petrobras’ (NYSE: PBR) CEO, Jean Paul Prates, has reacted to President Lula’s not-so-investor friendly idea reported here yesterday after the stock crashed over 10%. 

We will see. 👀

Junior Gets Juicy Assays in Sudbury

Apparently it's Nickel Week with a juicy grade assay for Magna Mining (TSX.V: NICU).

The skinny:

  • The Company's flagship assets are the past producing Shakespeare and Crean Hill Mines. The Shakespeare Mine is at feasibility stage.

  •  Crean Hill is a past producing nickel, copper and PGM mine with an updated technical report in the summer of 2022. 

  • The 101 FW Zone represents an area of high grade massive sulphide mineralization over significant widths that was not mined by the operators that came before.

  • Hole MCR-22-005 intersected mineralization grading 4.0 % Ni, 0.7 % Cu, 0.7 g/t Pt+Pd+Au over 31.1 metres.  Nice. 

We expect a lot more drilling from these guys.

Challenge of the day: 

Hit reply and let me know who you think this is. I'll get you a beer when we meet if you get it right. 

No cheating!

Chin up, tomorrow is Friday!

The Editor

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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