Skip to main content

Walter Coles, Executive Chairman of Skeena Gold & Silver | Rule Symposium 2026: Rick Rule interviews

Rule Investment Media May 11, 2026

Summary

Skeena's Eskay Creek restart averages 5.5 g/t gold in its first years — roughly four times a typical open pit — on 4.6 million ounces of reserves.

Management cites a spot net present value approaching $7 billion versus $565 million upfront capital and roughly $1.1 billion yearly after-tax cash flow.

A $750 million high-yield bond led by KKR replaced 12% Blackstone and Orion loan commitments with 8.5% notes, cutting financing costs before production.

The partnership gives the Tahltan First Nation a 0.5% royalty plus shares worth over $100 million, anchoring social license in the Golden Triangle.

The guest argues investors pay under 4 times after-tax cash flow and a 65% discount to net present value before any exploration upside.

Key points on Barrick Mining

  • The guest says Barrick was the last operator of the SK mine, reclaimed the site, and walked away after the 2008 shutdown.
  • Skeena optioned the property from Barrick in 2017 after approaching Barrick's corporate development team in 2015, under a three-year option.

Key points on Skeena Resources

  • Management says construction is just over 50% complete, with the mill on schedule to start up in April 2027.
  • The executive chairman projects about $1.1 billion a year of after-tax cash flow at spot prices against roughly $565 million of upfront capital, a net present value approaching $7 billion, payback of just over six months, and an IRR over 100%.
  • A $750 million high-yield bond at 8.5%, led by KKR and Bank of America, replaced loan commitments costing about 12% a year and left $650 million to finish the build.
  • The company reports 4.6 million ounces of proven and probable reserves within a 6-million-ounce resource, and an update due around year-end is expected to grow reserves by about a third and extend mine life from 12 to 15 years.
  • The project sits entirely in Tahltan territory under an impact benefit agreement the chairman calls a genuine partnership — a 0.5% royalty plus about 3.4 million shares for the nation — with grid power contracted at 4.5 US cents per kilowatt-hour.

Randy Reichert's takeaways

  • Top takeaway Randy Reichert has been Skeena's CEO for the last four years, brought in for a proven record of building mines on time and on budget, while the chairman oversees strategy and finances.

Rick Rule's takeaways

  • Top takeaway Rule applies his own screening benchmarks — net present value at least twice upfront capital, IRR above 25% a year, payback within three years — and says the Skeena project clears them by wide margins, with IRR about four times his hurdle.
  • Rule frames the investment as paying less than 4 times after-tax profit and roughly a 65% discount to net present value at the prices current when the interview was published.
  • Rule argues the symposium's vetting rule — exhibitors must be owned in producers' accounts — and his money-back guarantee set the event apart.