New US$150 Million Deal Will Support Gold Co. In Achieving Project Designation Well Before Due Date
Research Report

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) recently announced it would be raising US$150 million royalty deal from Sprott Resource Streaming and Royalty, noted Mike Kozak in a Cantor Fitzgerald research note.

This was completed via the sale of a 1.2% net smelter return royalty on all metals production at KSM in the future. 

In this research note, Kozak stated, "We have a favorable view of this transaction as it removes a significant financing overhang in a way that is not equity dilutive to shareholders."

Kozak also pointed out that the US$150 million, besides the US$225 million raised the previous year, will be used to finish physical work at the site that Kozak expects "will support Seabridge achieving the "substantially started" project designation well before the July 2026 date required by the B.C. government to keep its Environmental Assessment Certificate (EAC) valid for the life of the project."

Integrating the 1.2% minimizes Kozak's DCF-based NPV on KSM from US$7.22 billion to US$7.01 billion, "effectively net-neutral after adding back the US$0.15 billion" Seabridge will earn from this NSR sale.

Structure and Predictions

From this news, Cantor Fitzgerald reiterated its Buy rating on Seabridge Gold, with a target of US$33.50 / CA$42.

Kozak's research also shares current market data on the company:

• Rating: Buy
• Price: US$15.17/ CA$20.47, with a 52-week range of US$10.03 and US$16.18
• Price Target: US$33.50 / CA$42
• Market Cap: US$1,250

Kozak expects a projected return to target of 105.2% for shareholders. Seabridge has US$248 million in cash and cash equivalents and 82.4 million outstanding shares.  

Important Disclosures:

1. Katherine DeGilio wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
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Disclosures for Cantor Fitzgerald, Seabridge Gold Inc., May 12, 2023

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Disclosures as of May 12, 2023 Cantor has provided investment banking services or received investment banking related compensation from Seabridge Gold Inc. within the past 12 months. The analysts responsible for this research report do not have, either directly or indirectly, a long or short position in the shares or options of Seabridge Gold Inc. The analyst responsible for this report has visited the material operations of Seabridge Gold Inc. (KSM and Iskut). No payment or reimbursement was received for the related travel costs.

Analyst certification The research analyst whose name appears on this report hereby certifies that the opinions and recommendations expressed herein accurately reflect his personal views about the securities, issuers or industries discussed herein.