The Globe and Mail reports in its Saturday, Sept. 10, edition that CIBC analyst Mohamed Sidibe lowered his share target for Skeena Resources to $17.50 from $19. The Globe's David Leeder writes that Mr. Sidibe is sticking with his "outperformer" call for Skeena. Analysts on average target the shares at $18.07. Mr. Sidibe says in a note: "We slightly reduce our price target after updating our model with the feasibility study (FS) on the Eskay Creek project released on Sept. 8. We are now modeling 6 per cent lower gold and silver head grades, now in line with the FS, which drives our lower annual gold production of 355koz GEO (375koz GEO prior). On the costs front, while we have taken our unit operating costs slightly lower, our AISC remains largely unchanged on the back of lower production. Our initial capex of $640-million ($660-million prior) remains above the FS estimate of $592-million as we continue to factor in some contingency for any potential future cost pressures. ... We continue to like the project and expect further optimizations of the mine plan as well as resource upside from the exploration programs conducted. The focus continues to be on the permitting process as well as project financing."
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