Gold Explorer With Massive BC Resource Responds to Challenges

Source: Streetwise Reports 05/29/2025

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) files its responses in British Columbia Supreme Court to petitions challenging the company’s flagship KSM project’s Substantially Started (SS) designation. See why one analyst is optimistic the challenges will not be successful.

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced it has filed its responses in British Columbia Supreme Court to petitions challenging the company’s flagship KSM project’s Substantially Started (SS) designation.

The province’s Environmental Assessment Office determined in July 2024 the project met those requirements and KSM’s Environmental Assessment Certificate is no longer subject to expiration, the company said.

“Our team’s engagement and work in support of advancing KSM has been exemplary, especially while striving to achieve the SS determination,” Seabridge Chairman and Chief Executive Officer Rudi Fron said. “I am confident that our responses, and those of the BC Government, provide strong support that the EAO’s decision to grant the SS Designation was indeed procedurally fair and not unreasonable.”

Resolving the issue will facilitate the next steps in project development beyond this year’s extensive work schedule, he said.

“While this legal process continues, the SS Designation remains in effect,” Fronk said.

During the application process for the SS designation, Seabridge said it submitted letters from “representatives of the three largest indigenous peoples in the area of the KSM project, the Nisga’a Lisims government, the Tahltan central government and the Gitxsan hereditary chiefs office, as well as the village of Hazelton, the district of New Hazelton, the town of Smithers, the district of Stewart, the city of Terrace, (and) the regional district of Kitimat-Stikine, all expressing strong support for a positive SS determination for the KSM project.”

“It is clear that the new petitioners do not represent the interests of northwest British Columbia or Canada,” Fronk said at the time.

Red Cloud Analyst Taylor Combaluzier wrote in an updated research note in December that his firm was “optimistic that these challenges will ultimately prove unsuccessful.”

“We note that these challenges have no immediate effect on the SS determination, and a verdict on the matter could take a year or more,” he wrote.

In an updated research note on March 13, Combaluzier and David Talbot of Red Cloud noted that KSM is “one of the largest undeveloped gold-copper projects in the world.”

Co. Notes ‘Extensive Engagement’ With TSKLH

In a release, the company said its submissions “further strengthen and broaden” responses filed by the BC government in April, “Detailing the extent of our engagement with the petitioners in support of our SS application and the previously granted provincial, federal, and Nisga’a environmental approvals.”

The company’s “extensive engagement” with the TSKLH (one of the petitioners) includes funding support Seabridge said it has provided.

“The TSKLH have been included in all reviews of Seabridge’s regulatory applications and participated to the extent they decided warranted, with funding support, contrary to their assertions,” Seabridge said.

Our responses also support BC’s position on why granting the SS Designation was not unreasonable. The parties have scheduled the period from September 22 to September 29, 2025, for the court hearing.

Brien Lundin of Gold Newsletter had high praise for the company and KSM on May 1. “Gold’s impressive gains this year make the massive gold resource at Seabridge Gold Inc.’s KSM a fantastic optionality play,” he wrote. “On the strength of that play, the company remains a Buy.”

Partner Discussions Advancing

Seabridge has reported advancing discussions with several potential partners for KSM, the Red Cloud analysts said.

The Red Cloud analysts maintained their Buy rating on the stock and increased their target price to CA$53.90 per share, a 234% return at the time the note was written.

Finding a JV partner for KSM remains “the most important catalyst for the stock,” noted B. Riley Securities Analyst Nick Giles in an updated research note in February. He rated the stock a Buy with a CA$50 per share price target.

“The KSM project in British Columbia stands as the world’s largest undeveloped gold project in terms of resources,” wrote Giles.

KSM “boasts proven and probable reserves of 47.3 (million ounces) Moz gold, 160 Moz silver, and 7.3 billion pounds of copper. We believe there are very few comparable developments today, especially with all three metals combined in one location,” he said. “We believe the economies of scale and tier 1 jurisdiction make for very attractive net economics and should ultimately translate to a JV partner.”

The Catalyst: Gold Environment Still ‘Extremely Bullish’

According to Neils Christensen writing for Kitco on Thursday, disappointing housing market data had little impact on gold, as prices continued to hold support above $US3,300 per ounce.

The precious metal continues to benefit from ongoing economic uncertainty and the “environment remains extremely bullish for the precious metal,” he wrote.

On Wednesday, gold prices fell in Asian trade, remaining under pressure from improved risk appetite after U.S. President Donald Trump postponed plans to impose steep trade tariffs on the European Union, Investing.com reported.[OWNERSHIP_CHART-700]

As gold’s bull market continues, some predict gold could still go higher. Garth Friesen wrote for Forbes on March 15 that DoubleLine Chief Executive Officer Jeffrey Gundlach said, “I think gold will make it to US$4,000. I’m not sure that’ll happen this year, but I feel like that’s the measured move anticipated by the long consolidation at around US$1,800 on gold.”

And according to an April 10 post on Goldfix, Goldman Sachs has revised raised the upper boundary of its forecast range for the end of the year to US$3,520 an ounce and even introduced a “tall-risk scenario” as high as US$4,500 an ounce.

Ownership and Share Structure

Refinitiv provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 3% of the company. According to Refinitiv, CEO and Chairman Rudi P. Fronk owns 1.25%.

Refinitiv reports that institutions own about 52% of the company. Friedberg Mercantile Group Ltd. owns 16.08%, Van Eck Associates Corp. owns 2.96%, Kopernik Global Investors L.L.C. owns 7.3%, and Paulson & Co. Inc. owns 2.06%.

According to Refinitiv, there are about 100.54 million shares outstanding, while the company has a market cap of CA$1.73 billion and trades in a 52-week range of CA$13.44 and CA$28.39.

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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.
2. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: SEA:TSX; SA:NYSE.MKT, )

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