is well on its way to achieving the "substantially started" status for its KSM gold-copper project, as defined by British Columbia's Environmental Assessment Office (EAO), reported Cantor Fitzgerald analyst Mike Kozak, in an August 29, 2022 research note, after he visited the site last week.
KSM must have this designation for Seabridge to get the environmental assessment certificate for the project, issued by the EAO, extended indefinitely, Kozak explained. For KSM to be deemed "substantially started," Seabridge must establish permanent infrastructure there that will last through the mine's life, according to the EAO.
As far as a timeline, the Toronto, Ontario-based mining explorer outlines having initial discussions with the EAO in Q3/23, submitting the necessary application by H1/24 at the earliest, and then receiving the designation, at the soonest, in Q4/24.
To reach this goal, Kozak relayed, Seabridge is spending CA$150 million this year and next and has various infrastructure projects in progress. These include constructing three fish habitat offset ponds, site access roads, worker camps, and a power transmission line.
All of this work, along with the mine plan calling for just an open-pit operation, enhance KSM's attractiveness to potential larger mining firms, Kozak opined. Already, he added, about 12 large-tier miners have expressed interest, according to Seabridge's management.
"KSM is in a class of its own as the world's only standalone, development-stage mining project capable of producing 1,000,000-plus ounces of gold annually for decades," wrote Kozak.
Cantor has a Buy rating and a CA$43.50 per share price target on Seabridge, the current share price of which is around CA$16.14.
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Disclosures For Cantor Fitzgerald Canada Corp., Outcrop Silver & Gold Corp., August 29, 2022
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Disclosures as of August 29, 2022: 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.
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