Analysts Praise Major Milestone for Prominent Gold-Copper Project in BC

Seabridge Gold Inc. (SEA:TSX;  SA:NYSE.MKT) is a leading exploration and development company focused on advancing its portfolio of gold and copper projects in North America. The company recently announced a significant regulatory milestone for its 100%-owned KSM project in British Columbia’s Golden Triangle. The British Columbia government granted the project its "substantially started" designation, ensuring the validity of its Environmental Assessment Certificate (EAC) for the life of the project. This achievement is the culmination of extensive efforts and investments made since acquiring the project in 2001. Seabridge has invested over CA$1 billion in advancing the KSM project, including CA$800 million post-2014 after receiving the EAC.

The "substantially started" status is a critical regulatory step, positioning KSM as a potential multigenerational economic anchor for northwestern British Columbia. This designation not only confirms the project’s regulatory standing but also enhances its attractiveness to potential joint venture partners. With this milestone, Seabridge Gold is well-positioned to move forward with its strategic goal of securing a large-cap partner to develop the KSM project, which is one of the largest undeveloped gold-copper projects in the world.

Analyst Opinions on Seabridge Gold

According to a Cantor Fitzgerald report on July 26, 2024, achieving the "substantially started" designation was seen as a significant de-risking milestone for Seabridge Gold. The report highlighted that this designation confirmed the validity of the Environmental Assessment Certificate (EAC) over the life of the KSM project. The analysts believed this milestone was crucial for securing a large-cap joint venture partner on attractive terms, reinforcing their Buy rating on Seabridge with a US$36.00 price target. They also noted that Seabridge had spent over CA$1 billion in exploration, development, and construction activities at KSM since acquiring the project in 2001, with over CA$800 million spent post-2014 after the EAC was initially issued.

RBC Capital Markets also provided a positive outlook in their July 26, 2024 report. Analyst Michael Siperco described the "substantially started" status as a significant permitting de-risking event and a catalyst for the stock as Seabridge continued to seek a larger partner for the development of the +US$7 billion gold/copper project in British Columbia. He emphasized that the designation allowed KSM to retain its Environmental Assessment Certificate over the project's life, enhancing its attractiveness to potential partners. Siperco reiterated an Outperform rating with a Speculative Risk qualifier and a US$30.00 price target, based on the assumption that Seabridge would find a partner to advance and fund a feasibility study.

Siperco also pointed out that the designation was awarded based on three key criteria: indigenous support for the project, physical disturbance from permanent infrastructure, and total expenditures on construction activities. He noted that finding a senior producer to partner with Seabridge could provide funding through feasibility and a construction decision, potentially validating the project's value and work done to date while offering a path for investors to participate in future upside.

Taylor Combaluzier from Red Cloud Securities had also positively reviewed Seabridge's recent developments. On June 28, 2024, he mentioned that the updated mineral resource estimate for the Bronson Slope deposit, part of Seabridge's Iskut project, was viewed positively. He stated that the company remained focused on identifying a deeper porphyry source to the epithermal mineralization found at Bronson Slope and Snip North.

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 3% of the company. According to Reuters, CEO and Chairman Rudi P. Fronk owns 1.41%.

Reuters reports that institutions own about 55% of the company. According to Reuters, Friedberg Mercantile Group Ltd. owns 13.34%, National Bank of Canada owns 5.15%, Van Eck Associates Corp. owns 4.2%, Kopernik Global Investors, L.L.C. owns 3.71%, Paulson & Co. Inc. owns 2.36%, and Sprott Asset Management L.P. owns 2.24%.

According to Reuters, there are 87.69 million shares outstanding, while the company has a market cap of CA$1.92 billion and trades in a 52-week range of CA$12.62 and CA$23.

Important Disclosures:

1. Seabridge Gold Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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