Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) listed, ranked and weighted the key goals it wants to achieve this year, and No. 1 is securing a joint venture partner to advance its KSM project in British Columbia (B.C.), reported Red Cloud Securities Vice President and Mining Analyst Taylor Combaluzier in a March 13 research note. Red Cloud raised its target price on the Canadian explorer after adjusting its model to reflect the recent financing and the latest capital structure.
"This set of objectives outlines a clear path forward and priorities for the company," Combaluzier wrote. "Linking management's compensation with the progress achieved on these objectives aligns its interest with that of shareholders."
Potential For 234% Return
Red Cloud increased its target price on Seabridge to CA$53.90 per share from CA$50.60 per share, the analyst noted. The new target implies a potential return of 234% given the company is trading now at about CA$16.15 per share.
Seabridge remains a Buy.
"With copper (Cu) and gold (Au) prices approaching record high levels (currently trading at about US$2,930 per ounce Au and about US$4.85 per pound Cu), we believe Seabridge is well-positioned to benefit from the strong metal price environment," Combaluzier wrote.
Major To-Do Items
Combaluzier presented and commented on six of the Top 10 objectives on Seabridge's list.
Objective 1: "Enter a partnership agreement for KSM with a major mining company that has the technical, financial and social wherewithal to build and operate the project." The company gave this objective a proposed weighting of 25% out of 100%.
As for progress on this, Seabridge is in discussions with three potential partners, Combaluzier reported.
Objective 2: "Secure a minimum of US$100 million (US$100M) in new funding to continue to advance early-stage construction activities and final feasibility data collection at KSM." (Proposed weighting 20%)
Seabridge accomplished this last month, noted the analyst. The US$100M it raised consisted of an US$80M bought deal and a US$20M private placement with a strategic investor.
"This should allow the company to fund its bankable feasibility study, which it expects to undertake with a joint venture partner," Combaluzier wrote.
Objective 3: "Complete a drill program of at least 8,000 meters (8,000m) [10–12 holes] at Iskut in order to announce a maiden gold-copper mineral resource at the Snip North target in Q1/26." (Proposed weighting 10%)
As it stands now, the analyst noted, mineralization at Snip North extends over a 2,000m strike length and a 600m-plus dip projection. It remains open downdip to the west and northwest. A highlight result of recent drilling was 0.45 grams per ton (0.45 g/t) Au, 0.15% Cu, 5.2 g/t silver and 63 parts per million molybdenum over 382m, encountered in hole SN-24-19.
"The porphyry Cu-Au source of mineralization has yet to be found, providing additional upside potential," reported Combaluzier.
Objective 5: "Complete and file responses contesting the two petitions filed in B.C. Supreme Court challenging KSM's Substantially Started designation awarded by B.C. regulators in July 2024." (Proposed weighting 5%)
The petitioners are claiming the determination to grant the status was unreasonable, which will be more difficult to prove than a claim it was wrong, wrote Combaluzier. Because both petitions raise the same concerns, they will be combined and heard together in court. A final decision could take a year or longer, but while the dispute gets resolved, the designation stays in place.
"We are optimistic that the challenges will prove unsuccessful because the arguments by the petitioners were already considered during the Substantially Started application phase and the broad discretion the Minister has in making a Substantially Started determination," added Combaluzier.
Objective 6: "Satisfy regulatory requirements for the approval of our M245 permit application for construction of the Mitchell Treaty Tunnels (MTT)." (Proposed weighting 5%)
This license of occupation allows Seabridge to be in the area targeted for the MTT at KSM for construction purposes, Combaluzier explained. It is valid through September 2044, having just been renewed for 20 years by the B.C. government.
Objective 9: "Complete a drill program of at least 2,500m (5–7 holes) at 3 Aces, testing the potential for resource delineation to the south of the Central Core zone." (Proposed weighting 5%)
Most recently, in 2024, the explorer expanded known mineralized zones in the Central Core Area (CCA) and identified new targets.
"Seabridge has begun recognizing the key patterns that localize gold in the CCA across the broader property," Combaluzier pointed out.
Stock Moving Events
Investors should watch for development updates on KSM, on an ongoing basis, the analyst wrote. Announcement of a joint venture partner is another potential catalyst. Also, there will be drill results from Iskut and 3 Aces.
Ownership and Share Structure
Combaluzier reported that management owns 2.56% of Seabridge.
Other major shareholders are Pan Atlantic Bank and Trust with 17.64%, Kopernik Global Investors with 10.8%, FCMI Parent Co. with 5.04%, National Bank Investments with 3.55%, Van Eck Associates Corp. with 3.5% and Tidal Investments LLC with 2.8%.
The mining company has 98.6 million basic shares outstanding. Its market cap is CA$1.6 billion. Its 52-week low and high are CA$14.70 and CA$28.39 per share, respectively.
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