Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced a financing and the procurement of hydro power, and on that news, ROTH Capital Partners increased its target price on the gold mining company to $30 per share from $27, reported analyst Joe Reagor in a March 1 research note. Seabridge's current share price is around $18.
"Additionally, we are reiterating our Buy rating as we believe Seabridge is making decisions designed to accelerate joint venture negotiations with potential partners," Reagor added.
The analyst described both of the recent "positive events" this mining company effected.
As for the financing, Seabridge will receive $225 million through a convertible loan from Sprott Resource Streaming and Royalty and the Ontario Teachers' Pension Plan. The loan will accrue interest at a 6.5% rate and upon maturity, will convert into a royalty equal to 60% of the silver production from Seabridge's KSM project. These terms are outlined in the secured note agreement Seabridge signed with both entities last month.
"We see this as positive for Seabridge as it reduces near-term funding risks, in our opinion," Reagor commented.
More recently, Canada-based Seabridge entered into another agreement, this one with BC Hydro to connect to grid power so construction at KSM can start.
This "allows the company to move towards 'substantially started' status, which is key to maintaining its environmental permits," Reagor pointed out. "Second, the hydro power should provide both lower cost and substantially cleaner energy for project construction."
Disclosures:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures and Disclaimers, ROTH Capital Partners LLC, Seabridge Gold Inc., March 1, 2022
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Disclosures: ROTH makes a market in shares of Seabridge Gold, Inc. and as such, buys and sells from customers on a principal basis.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2022. Member: FINRA/SIPC.
