Gold Co. Achieves Major Project Derisking Milestone

Source: Mike Kozak 07/29/2024

Now the explorer is ready to “secure a large-cap joint venture partner on attractive terms,” noted a Cantor Fitzgerald report.

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 share price at the time of the report, in comparison, was 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 has 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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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.
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Disclosures for Cantor Fitzgerald, Seabridge Gold Inc., July 26, 2024

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Potential conflicts of interest The author of this report is compensated based in part on the overall revenues of Cantor, a portion of which are generated by investment banking activities. Cantor may have had, or seek to have, an investment banking relationship with companies mentioned in this report. Cantor and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. Although Cantor makes every effort possible to avoid conflicts of interest, readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.

Disclosures as of July 26, 2024 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.

( Companies Mentioned: SEA:TSX; SA:NYSE.MKT, )