Skeena Resources (TSX:SKE) Advances Eskay Creek While Losses Persist, Is The Stock Too Expensive?

Skeena Resources (TSX:SKE) is back in focus after reporting second quarter 2026 results. The company showed continued losses alongside ongoing construction progress at its fully permitted Eskay Creek gold silver project in British Columbia.

See our latest analysis for Skeena Resources.

Skeena Resources' recent quarterly loss has arrived alongside construction progress at Eskay Creek, and the stock’s momentum reflects renewed interest, with a 30 day share price return of 18.73% and a very large 3 year total shareholder return of 630.89%.

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Skeena Resources trades at a discount to both analyst targets and an estimated intrinsic value, even after the recent share price jump. Is the market simply cautious about ongoing losses and construction risk, or is it being overly conservative on Eskay Creek?

Preferred Price-to-Book Multiple of 31.6x: Is It Justified?

Skeena Resources currently trades at a P/B ratio of 31.6x, which sits alongside a CA$45.9 share price and strong recent share price gains. Against both its peers and the broader Canadian Metals and Mining industry, that valuation stands out as very rich for a developer that remains loss making.

The P/B ratio compares the market value of Skeena Resources to its book value, which is the accounting value of its net assets. For asset heavy metals and mining companies that are still building out projects, P/B is often used as a shorthand for how much future production and profitability the market is pricing in relative to the current balance sheet.

In this case, Skeena Resources' 31.6x P/B ratio is far above the Canadian Metals and Mining industry average of 2.7x and also above the peer average of 2.5x. That is a strong signal that investors are paying a substantial premium versus sector norms for the Eskay Creek project and future cash flow potential, while the company is still unprofitable and reported a loss of CA$249.05m with no meaningful revenue.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-book of 31.6x (OVERVALUED)

However, Skeena Resources still faces construction risk at Eskay Creek and continued losses of CA$249.05m, which could challenge sentiment around its 31.6x P/B premium.

Find out about the key risks to this Skeena Resources narrative.

Another View on Skeena Resources Using Our DCF Model

The earlier P/B check made Skeena Resources look very expensive at 31.6x. Our DCF model points in a very different direction. It suggests the stock, at CA$45.9, is trading at a steep discount to an estimated value of CA$262.78, which screens as heavily undervalued. How do you weigh such a wide gap?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Skeena Resources for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 11 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Given the mixed signals around Skeena Resources, do you feel more cautious or optimistic right now? Look through the numbers, weigh both sides, then assess the 2 key rewards and 3 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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