Rate This Article    

Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Target Price Raised on Gold Resource Co. on Positive News
Research Report

Share on Stocktwits

A gold mining company enters into two agreements for funding and power, helping to advance and de-risk one of its projects, noted a ROTH Capital Partners report.

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced a financing and the procurement of hydro power, and on that news, ROTH Capital Partners increased its target price on the gold mining company to $30 per share from $27, reported analyst Joe Reagor in a March 1 research note. Seabridge's current share price is around $18.

"Additionally, we are reiterating our Buy rating as we believe Seabridge is making decisions designed to accelerate joint venture negotiations with potential partners," Reagor added.

The analyst described both of the recent "positive events" this mining company effected.

As for the financing, Seabridge will receive $225 million through a convertible loan from Sprott Resource Streaming and Royalty and the Ontario Teachers' Pension Plan. The loan will accrue interest at a 6.5% rate and upon maturity, will convert into a royalty equal to 60% of the silver production from Seabridge's KSM project. These terms are outlined in the secured note agreement Seabridge signed with both entities last month.

"We see this as positive for Seabridge as it reduces near-term funding risks, in our opinion," Reagor commented.

More recently, Canada-based Seabridge entered into another agreement, this one with BC Hydro to connect to grid power so construction at KSM can start.

This "allows the company to move towards 'substantially started' status, which is key to maintaining its environmental permits," Reagor pointed out. "Second, the hydro power should provide both lower cost and substantially cleaner energy for project construction."

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Seabridge Gold. Click here for important disclosures about sponsor fees. 
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. 


Disclosures and Disclaimers, ROTH Capital Partners LLC, Seabridge Gold Inc., March 1, 2022

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Disclosures: ROTH makes a market in shares of Seabridge Gold, Inc. and as such, buys and sells from customers on a principal basis.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2022. Member: FINRA/SIPC.

Want to read more about Gold and Base Metals investment ideas?
Get Our Streetwise Reports Resources Report Newsletter Free and be the first to know!

A valid email address is required to subscribe