increased the consolidated mineral resource of its KSM copper-gold project in British Columbia with its updated resource estimates of the Kerr and Iron Cap deposits there, reported Cantor Fitzgerald analyst Mike Kozak in a Feb. 5 research note.
188% Potential Return
Following this news, Kozak reiterated its CA$41 per share target price on Seabridge.
"Our target is derived via a 1x net present value discounted at 7.5% multiple on the KSM project and the assumption that Seabridge attracts a 50% joint venture partner on industry standard terms," Kozak wrote.
The mining developer, in comparison, is currently trading at about CA$14.21 per share. The implied return for investors, given the difference between the target and current prices, is significant, at 210%.
Seabridge remains a Buy.
Resulting Quantities, Impacts
Kozak reported that for KSM's Kerr and Iron Cap deposits, the updated resource increased the Measured & Indicated (M&I) ounces by about 13% and the Inferred ounces by about 9%.
The Kerr and Iron Cap resources grew the overall KSM project's M&I resource by 1%, taking it to 125,100,000 ounces (125.1 Moz) of gold equivalent (Au eq) at 0.72 grams per ton (0.72 g/t) Au eq.
Kerr and Iron Cap also expanded the overall KSM Inferred resource by 9%, boosting it to 139 Moz Au eq at 0.65 g/t Au eq.
When calculating an updated mineral resource on Kerr and Iron Cap, explained Kozak, the Toronto, Ontario-based company used the same metals prices and foreign exchange (FX) rate it used when determining the resource estimate for the Mitchell and East Mitchell deposits in the 2022 prefeasibility study.
Specifically, Seabridge employed US$1,820 per ounce for gold and US$4.20 per pound for copper as well as a U.S. to Canadian dollars FX rate of 0.83.
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- 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.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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Disclosures for Cantor Fitzgerald, Seabridge Gold Inc., February 5, 2024
Disclaimers The opinions, estimates and projections contained in this report are those of Cantor Fitzgerald Canada Corporation. (“CFCC”) as of the date hereof and are subject to change without notice. Cantor makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; however, Cantor makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this report or its contents. Information may be available to Cantor that is not herein. This report is provided, for informational purposes only, to institutional investor clients of CFCC, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. This report is issued and approved for distribution in Canada, Cantor Fitzgerald Inc., a member of the Investment Industry Regulatory Organization of Canada ("IIROC"), the Toronto Stock Exchange, the TSX Venture Exchange and the CIPF. This report is has not been reviewed or approved by Cantor Fitzgerald & Co., a member of FINRA. This report is intended for distribution in the United States only to Major Institutional Investors (as such term is defined in SEC 15a-6 and Section 15 of the Securities Exchange Act of 1934, as amended) and is not intended for the use of any person or entity that is not a major institutional investor. Major Institutional Investors receiving this report should effect transactions in securities discussed in the report through Cantor Fitzgerald & Co.
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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.