Gold Giant Advances Copper-Gold KSM Project With Strong ESG Performance

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) has released its 2025 Sustainability Report, an in-depth analysis of the company's environmental, social, and governance (ESG) initiatives across its portfolio of gold and copper projects in North America, according to a June 8 release.

"2025 was a year of exceptional progress — not only in advancing our projects, but in deepening the values that define who we are," Chair and Chief Executive Officer Rudi Fronk said. "We once again demonstrated that responsible resource development and operational excellence go hand in hand."

In terms of safety, the company reported a Total Recordable Incident Frequency (TRIF) of 0.73 over 547,418 hours worked, significantly better than the target of 1.5, and achieved zero reportable spills at all active sites. The KSM Project received the 2025 AME David Barr Award for its effective health and safety practices in a remote area of British Columbia, the company said.

Regarding environmental compliance, Seabridge said it successfully passed eight regulatory site inspections at five active projects without any major non-compliances.

A key development achievement for Seabridge was the advancement of the Treaty Creek Terminal (TCT) switching station, which is set to connect the KSM Project to BC Hydro's low-cost renewable hydroelectric power, enhancing the project's sustainability. Additionally, significant reclamation efforts were made at the former Johnny Mountain Mine, where substantial volumes of material were used to construct a permanent erosion berm and relocate waste rock.

On the social front, Seabridge said it strengthened its relationships with Indigenous and local communities, providing CA$50,000 in bursaries to 48 students in northwest BC in collaboration with the Nisga'a Lisims Government and Tahltan Central Government, and directing a majority of its procurement expenditures to local suppliers. The company also boasts a workforce with 52% women and a Board with 40% female representation, with ongoing increases in Indigenous leadership roles.

In governance, Seabridge said it introduced the Pulsora platform to facilitate auditable reporting of greenhouse gas releases and climate data and initiated pilot projects for Scope 3 emissions questionnaires with major suppliers.

The full 2025 Sustainability Report and ESG Performance Data Index can be accessed on Seabridge Gold's website.

A Busy Year

At KSM, a significant geotechnical drilling initiative was successfully completed during the year, covering approximately 8,500 meters across 117 holes. This effort is part of the preparatory work for an upcoming Feasibility Study.

"The metals we hold — gold, copper, and silver — sit at the heart of the global transition in energy and the monetary system," Fronk said in the report. "The KSM Project's extraordinary copper resource positions us squarely within the green economy narrative."

The Bronson Corridor Project, previously known as Iskut, also saw extensive diamond drilling activities. A total of 24,225 meters of drilling confirmed the presence of a significant porphyry system at Snip North. Notably, one of the drill holes intersected 820 meters containing 0.66 grams per tonne (g/t) of gold and 0.14% copper, highlighting the project's potential.

The company also announced plans for its Courageous Lake project in 2025, which it successfully spun off into a new publicly traded entity named Valor Gold this year.

On the community engagement front, Seabridge Gold has continued to support local education and economy. The company awarded $50,000 in bursaries to 48 students from northwest British Columbia.

Furthermore, it was reported that 71% of the company's procurement spending was directed towards local communities, reinforcing its commitment to regional economic support.

"Our community engagement went beyond education; we supported local food banks and cultural events, including the Tour de Telegraph cycling event, and piloted educational visits to the site for local schools, reinforcing our commitment to being an active community participant," Seabridge Chief Sustainability Officer Melanie Miller noted in the report.

The company also said it values diversity, with women making up 52% of the company's workforce and 40% of its Board, she said.

"We have also increased Indigenous representation in leadership roles," Miller wrote. "These achievements enhance our decision-making and community engagement, and we continue to enhance and advance inclusivity within Seabridge Gold. While there is pressure from some parts of society to step back from these commitments, we continue to take steps toward a more robust and diverse operating model. Seabridge Gold values diverse experiences and perspectives, as well as an inclusive workplace culture."

Looking ahead to 2026, Seabridge is actively enhancing its sustainability strategy and associated objectives. The company said it has initiated a comprehensive materiality assessment designed to identify and prioritize the sustainability issues that are most crucial to both the business and its stakeholders. This assessment is a foundational step towards refining the focus areas of the company's sustainability efforts.

"We are energized by the possibilities ahead and committed to developing a sustainability program that isn't just ambitious but is also credible," the report noted.

KSM Still Tops Priority List

Seabridge's top priority for the year is establishing a partnership for KSM. In a communication to its shareholders, Seabridge reported substantial progress in this endeavor, revealing, "We continue to make material progress on a partnership at KSM with our preferred partner who is now participating with our technical team to advance the feasibility program and early works construction planning while we formalize our partnership agreement."

This year, the KSM Project achieved significant recognition as it was designated a provincial priority project by the Province of British Columbia. This important status will facilitate focused provincial permitting coordination and support, expected to greatly enhance and expedite the permitting process.

The KSM Project is renowned globally as one of the largest undeveloped copper and gold projects, containing extensive reserves estimated at 7.3 billion pounds of copper and 47.3 million ounces (Moz) of gold within 2.29 billion tonnes.

Analyst: Spinoff Seen as Strategic Move

Seabridge's decision to separate its Courageous Lake project into a new entity, Valor Gold, is viewed by RBC Capital Markets as a strategic maneuver poised to significantly enhance the value embedded within Seabridge's portfolio.

In a research update dated June 1, Analyst Harrison Reynolds highlighted the potential benefits of this spin-off. "With renewed project momentum and a dedicated management team, we see a path to independent valuation expansion as Valor advances the project through its own development milestones," the note explained.

Reynolds projected a net asset value (NAV) at an 8% discount rate at current gold prices (approximately US$4,500 per ounce) to be between US$2 billion and US$2.9 billion, translating to CA$10 to CA$14 per share at 0.2x, which is the current price to NAV ratio at Seabridge. This valuation suggests a potential future market capitalization for Valor Gold in the range of approximately US$400 million to US$600 million, compared to a much lower carried valuation within Seabridge of US$150 million, which is less than 1% of its NAV, reflecting the under prioritization of in-situ value relative to the KSM project.

The broad valuation range accounts for the extended timeline to initial production, projected at the earliest around 2031-2032, and the significant de-risking required prior to making a construction decision, the note said.

Reynolds also identified several key drivers for Valor Gold's future growth, including the completion of an integrated Pre-Feasibility Study (PFS) that will incorporate the Walsh Lake by the end of 2027, ongoing infrastructure development, exploration outcomes from both deposits, and advancements in the permitting process. The Walsh Lake deposit, with an existing resource estimate of 0.5 Moz at 4.2 grams per tonne, compared to the total Courageous Lake resource of 14.3 Moz at 2.4 grams per tonne, holds considerable promise. The potential discovery or expansion of deposits similar to Walsh Lake could significantly improve the project's economic outlook.

Converting Embedded Asset Value Into Milestones

Stonegate Capital Partners Analyst Dave Storms recently described Seabridge Gold as entering a "catalyst-dense phase" in an updated research note dated May 27. According to Storms, this phase is marked by significant advancements in various areas including KSM partnership discussions, Feasibility Study (FS) preparations, BC permitting support, the Valor Gold spin-out, and the initial resource estimation at Snip North.

He emphasized, "In our view, SA is increasingly converting embedded asset value into externally validated milestones across KSM, Courageous Lake, and Bronson Corridor."

Storms highlighted KSM as the primary value driver for Seabridge Gold, noting its potential for a near-term re-rating. Since the last report, the project has seen enhanced prospects with the active involvement of Seabridge's preferred partner in feasibility and early works planning as the company moves closer to finalizing a formal agreement.

The focus for 2026 is set on preparing for the FS, developing green power infrastructure, constructing access roads, conducting environmental work, and ensuring readiness for early works, aiming to complete the FS in the second half of 2027.

The analyst also noted the overwhelming shareholder support for the spin-out of Valor Gold, with Seabridge planning to distribute approximately 55 million Valor shares. This move is expected to provide a clearer valuation reference for the 11 million ounces of Measured and Indicated (M&I) gold asset at Courageous Lake, which has been somewhat overshadowed by the KSM project.

Storms concluded his analysis by applying a valuation range to Seabridge Gold. "When valuing SA we apply an EV/NAV range of 0.8x to 0.9x which results in a valuation of US$67.86 to US$76.85 with a midpoint of US$72.36," he stated. "When using an EV/In-Situ valuation method we apply a multiple range of 7x to 9x which results in a valuation of US$72.41 to US$94.25 with a midpoint of US$83.33."

The Catalyst: Gold Stabilizes on News of Possible Ceasefire

On Monday, gold prices stabilized as the anticipation of a possible ceasefire between Israel and Iran helped the metal recover from earlier lows, according to a report by Anushree Ashish Mukherjee for Reuters on June 7.

However, the gains were capped by robust U.S. employment data, which heightened expectations of an interest rate hike by the Federal Reserve. By 9:27 a.m. ET, spot gold was trading at US$4,330.98 per ounce, having earlier dropped to its lowest since March 23 at US$4,268.39. Meanwhile, U.S. gold futures for August delivery saw a slight decline of 0.2%, trading at US$4,355.60.

U.S. President Donald Trump announced that Israel and Iran were both inclined to "do an immediate ceasefire" and that final discussions on "peace" were underway. Peter Grant, vice president and senior metals strategist at Zaner Metals, noted, "We rebounded off the overseas lows just on news that perhaps there's a new ceasefire between Iran and Israel. So that's taken a little bit of pressure off the downside," according to the Reuters report.

A ceasefire could diminish the inflation risks associated with energy costs, potentially easing the necessity for central banks to maintain high interest rates, which usually negatively impact the appeal of non-yielding gold.

The dollar's strength, near a two-month high following the strong jobs report, also restricted the upward movement in gold prices, as a stronger dollar makes gold more expensive for holders of other currencies. Market participants are now estimating a 43% likelihood of a quarter-point rate increase by the Fed in December, a significant jump from just about 14% a month earlier, based on the CME Group's FedWatch tool.

Investors are keenly awaiting the release of the U.S. Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday, which could provide further insights into the Federal Reserve's rate trajectory. Han Tan, chief market analyst at Bybit, suggested, "Gold may next test the psychologically important US$4,000 line for critical support if markets receive hotter-than-expected CPI prints this week, or a decidedly hawkish FOMC next week."

Concerns about inflation across various sectors have significantly impacted the gold market, leading to a breach below a crucial long-term support level, Neils Christensen wrote for Kitco News on June 5.

But despite the potential for further declines in the near term for both gold and silver, analysts find it challenging to envision any long-term negative trends for these metals, the author said.

Ownership and Share Structure¹

Management and insiders hold approximately 2% of the company, while institutions own about 63%. The remainder is held by retail investors.

Friedberg Mercantile Group Ltd. holds 15.08%, Kopernik Global Investors L.L.C. holds 10.26%, Pan Atlantic Bank and Trust holds 9.92%, and Van Eck Associates Corp. holds 6.07%.

There are around 107.62 million shares outstanding, with the company having a market cap of CA$4.4 billion and trading within a 52-week range of CA$17.90 to CA$50.77.