Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) was granted the "substantially started" designation for its KSM gold-copper project, from the provincial government of British Columbia, well in advance of the July 2026 deadline, reported Cantor Fitzgerald analyst Mike Kozak in a July 26 research note.
"This is a substantial derisking milestone for the company," Kozak wrote.
112% return potential
Cantor maintained its CA$45 per share, one-year target price on the Canadian mining explorer, based on the assumption it will attract a 50% partner on standard industry terms, noted Kozak. Seabridge's current share price, in comparison, is about CA$21.23.
From here, the return to target is 112%.
The company remains a Buy.
Designation derisks project
Kozak explained that the "substantially started" status of the massive KSM project ensures the EAC will remain valid over the project's life. Along with the EAC, KSM has the required permits for construction.
The newly received designation also removes the final barrier to Seabridge securing a joint venture (JV) partner with which to advance KSM, the company's chosen path forward.
The Ontario-based explorer is well cashed up for what is next. It had CA$62.9 million (CA$62.9M) in cash and cash equivalents at the end of Q1/24, the analyst wrote, "providing sufficient runway to advance discussions and secure a JV partnership."
Significant capital invested
Since acquiring KSM in 2001, Seabridge spent more than CA$1 billion on it, specifically on exploration, development and construction work, Kozak pointed out. Of this amount, the company outlaid more than CA$800M since being granted the EAC for KSM in July 2014.
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