Seabridge Gold Inc. (SEA:TSX; SA:NYSE) reported that it has obtained a copy of a letter the Gitxsan Huwilp Government (GHG) delivered to the British Columbia Environmental Assessment Office (BCEAO) and other parties, urging both the company and the B.C. Government to work with and meaningfully consult their neighbor, the Tsetsaut Skii km Lax Ha (TSKLH), as part of the "court ordered consultation process," according to an August 20 release.
As a show of solidarity with TSKLH, the GHG has rescinded the September 4, 2013, letter of support it had issued for Seabridge's KSM Project during the Project's environmental assessment, the release said. In a follow-up statement, the GHG Co-Chairs made clear that the support stays withdrawn until they are satisfied TSKLH is being treated properly.
The court-ordered process the GHG points to stems from the June 8 ruling of the B.C. Supreme Court, which concluded that the BCEAO had not met its duty to consult TSKLH in connection with the BCEAO's determination that the KSM Project had been "substantially started," and directed the BCEAO to consult TSKLH further by granting them 90 days "to present written submissions addressing the question of whether the [KSM Project] was substantially started," Seabridge said.
Once that consultation closes, the BCEAO will revisit its decision.
In the release, Seabridge said the company supports a proper consultation process run by the BCEAO. That process is now underway, and TSKLH must file its written submissions with the BCEAO by September 28.
TSKLH has made clear that, for the moment, it is seeking consultation on the KSM Project's tailings management facility (TMF) — a structure TSKLH has characterized as a "52-storey-deep toxic waste dump."
Seabridge said it fully funded a broad opportunity for TSKLH to be consulted on the TMF at a more conceptual level throughout the KSM Project environmental assessment review, which concluded in 2014 with approval of the KSM Project, including the TMF. As the judge wrote in her decision, "the jurisprudence establishes [a process for considering whether a project is substantially started] is not an opportunity for the TSKLH to revisit decisions of the past."
Aside from the consultation the BCEAO is presently conducting, TSKLH will get a further chance to be consulted on the technical specifics of the TMF during a future permitting process that would authorize the facility's construction, Seabridge said. Engineers have studied the TMF design at length, and the company's Independent Geotechnical Review Board — made up of foremost experts in the engineering disciplines essential to the facility's design and performance — keeps it under continuous oversight. The company is engineering it to meet the highest industry standards.
Underlying TSKLH's dissatisfaction with the Crown's consultation is its contention that the ground on which the TMF sits belongs exclusively to TSKLH, according to the release. That same territory, however, is widely recognized as part of the Tahltan Nation's traditional territory and lies within the "Nass Area" defined by the Nisga'a Final Agreement, which grants the Nisga'a Nation treaty rights there. The company said it has worked extensively to collaborate with TSKLH, the Tahltan Nation, and the Nisga'a Nation alike and to share the benefits of the KSM Project among them. Having reached agreements with both the Nisga'a Nation and the Tahltan Nation, the company now sees their businesses actively engaged in ongoing work at the KSM Project.
TSKLH businesses have likewise participated in work at the KSM Project; regrettably, the company's practice of honoring the established rights and recognized traditional territory of other Indigenous nations in this area, coupled with TSKLH's insistence that the company treat it as the exclusive owner of the territory, has made its relationship with TSKLH difficult, Seabridge said.
The company has maintained a respectful and positive relationship with the GHG, and it is committed to addressing the concerns the GHG raised in its recent letter.
The company said it draws encouragement from TSKLH's clear statements that it is not anti-development and is willing to engage and collaborate with Seabridge on the KSM Project. The company looks forward to that collaboration.
KSM's economic benefits to the surrounding community and the Province are considerable and continue to grow, the release noted. More than CA$1.4 billion has been invested to date to responsibly advance the KSM Project, including over CA$650 million since 2021, making the project a major economic driver for northwest British Columbia and Canada. Indigenous businesses are benefiting directly from their involvement in KSM's development, as Seabridge has awarded roughly CA$515 million in contracts to Indigenous-affiliated businesses over the past four years, among them TSKLH and Gitxsan companies.
Analyst: 2Q Results Improve Development, Financing Outlook for KSM
An updated note by Stonegate Capital Partners Analyst Dave Storms, dated the same day as the release (August 20), does not yet address Seabridge's latest news, likely because it went out before the release.
Storms noted Seabridge's 2Q26 results materially improved the development and financing outlook for KSM. The company continues to advance an earn-in joint venture with its preferred partner, while a subsequent unsecured US$100M strategic facility provides greater funding certainty for planned KSM work and, in Storms' view, offers another important indication of confidence in the project as the partnership process moves forward. Quarterly financial results remained secondary, with second-quarter net income largely reflecting a one-time gain from the Courageous Lake distribution.
KSM remains the company's primary potential re-rating catalyst, with the quarter's key development centered on progress toward a new financing and ownership structure rather than a resource milestone, Storms said. Management continues to work toward formalizing those agreements.
Activity at five camps is supporting the geotechnical, metallurgical, geochemical and environmental work required for the feasibility study. KSM development remains on schedule, with UTCAR 40% complete, TCT completion targeted for 4Q26 and the feasibility study still expected in 2H27.
The regulatory developments surrounding KSM have not affected the company's work programs there, Storms said.
For valuation, Storms applies an EV/NAV multiple range of 0.8x to 0.9x, producing a valuation range of US$63.97 to US$72.37 and a midpoint of US$68.17. Using an EV/In-Situ approach and a multiple range of 6.0x to 8.0x results in a valuation range of US$61.49 to US$83.07 and a price target of US$72.28.
Lifting Value Without Dilution
Cantor Fitzgerald's Mike Kozak framed the facility as a modest positive in a July 20 note, writing that it gives Seabridge added flexibility to advance feasibility-level work at KSM and pursue a joint venture meant to lift the project's value — all without diluting shareholders through an equity raise. He continued to expect a JV deal to close in 2026 and suggested the loan's short term and strategic backer could signal that an announcement is near, perhaps before year-end.
Kozak reiterated a Buy rating and CA$66 target — a 115% potential return when he wrote the note — resting on a 0.8x NAVPS7.5% multiple and the assumption of a 50/50 KSM joint venture on standard industry terms. "The company's flagship 100%-owned KSM project is among the world's largest development-stage gold-copper projects," Kozak noted. "It is permitted to commence construction and is scoped to produce +1.0 MMoz Au (million ounces gold)/year (plus by-products) over a multi-decade mine life."
RBC Capital Markets' Harrison Reynolds held his Outperform rating and US$71 target on June 9, 2026 — roughly 155% above the June 8 close of US$27.83.
Separately, TipRanks reported that B. Riley Securities' Soundarya Iyer rated Seabridge a Buy on August 3, with a US$40 target.
The Catalyst: Gold On Track for Another Weekly Advance
Gold climbed toward a three-month high Friday as a weaker U.S. dollar and U.S. Treasury efforts to reduce longer-term borrowing costs supported bullion, reported Scott Kanowsky for Investing.com on August 21.
Spot gold rose 1.4% to US$4,584.30 an ounce, while futures gained 1.5% to US$4,641.89, leaving gold up more than 4% this week and on track for a third consecutive weekly advance.
The rally has tracked U.S. bond-market moves after the Treasury announced it would double purchases of longer-dated debt to at least US$4 billion per operation next quarter, with Secretary Scott Bessent indicating purchases could increase further. Lower yields reduce the opportunity cost of holding gold, while a weaker dollar boosts overseas demand.
"Yes, these buyback operations were originally designed to address market liquidity issues and the off-cycle nature of the adjustment has raised eyebrows. But the main takeaway has to be that higher longer-dated Treasury yields are firmly on the Treasury’s radar and need to be addressed," ING analysts said in a note, according to Kanowsky's report.
Fed officials have warned that lower long-term yields could ease financial conditions even as the central bank works to contain inflation. Markets are also weighing the impact of an Iran-related energy shock and heavy AI infrastructure spending on bond yields and interest-rate expectations. CME FedWatch puts the odds of unchanged Fed rates in September at roughly two-thirds.
Streetwise Ownership Overview*
Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT)
Gold’s latest advance follows a steep retreat from record levels near US$5,600 reached earlier this year, with bullion also posting its weakest quarterly performance since 2013 during the three months ending in June, according to Hugh Leask of CNBC on August 21.
UBS commodity analyst Giovanni Staunovo said elevated government debt worldwide and continued weakness in the U.S. dollar helped drive gold’s gains last year, and those same concerns are resurfacing, Leask reported. ″[That] should lift the price of gold to $5,400 per ounce over the next 12 months, in our view,” Staunovo told CNBC via email.
The U.S. Treasury announced Wednesday that it would at least double liquidity-support purchases of 10- to 30-year government bonds to help steady a selloff in longer-maturity Treasurys. The announcement initially drove Treasury yields lower and weakened the dollar, providing additional support for gold prices.
Ownership and Share Structure1
Management and insiders hold approximately 2% of the company, while institutions own about 59%. The remainder is held by retail investors.
There are around 107.87 million shares outstanding, with the company having a market cap of CA$4.96 billion and trading within a 52-week range of CA$20.71 to CA$50.77.
Common Investor Questions
What did Seabridge announce? On August 20, 2026, Seabridge Gold reported that it had received a copy of a letter the Gitxsan Huwilp Government (GHG) sent to the BC Environmental Assessment Office and others, urging Seabridge and the BC Government to meaningfully consult the Tsetsaut Ski km La Ha (TSKLH) as part of a court-ordered consultation process. The GHG also withdrew the September 4, 2013 letter of support it had issued for the KSM Project.
Why is there a court-ordered consultation process? On June 8, 2026, the BC Supreme Court found that the BCEAO had not met its duty to consult TSKLH regarding its determination that KSM had been "substantially started." The court directed the BCEAO to consult TSKLH further, giving them 90 days to submit written comments on that question. TSKLH's submissions are due to the BCEAO by September 28, 2026, after which the office will reconsider its decision.
What is TSKLH specifically concerned about? According to the release, TSKLH is currently seeking consultation on the KSM Project's tailings management facility (TMF), which it has characterized as a "52-storey-deep toxic waste dump." Seabridge says TSKLH was given a fully funded opportunity to be consulted on the TMF at a conceptual level during the environmental assessment that concluded in 2014, and that TSKLH will have a further chance to weigh in on technical details during a future permitting process for the facility's construction.
How does Seabridge characterize the territorial dispute? Seabridge says the disagreement centers on TSKLH's contention that the TMF sits on territory belonging exclusively to TSKLH, whereas that ground is also recognized as part of the Tahltan Nation's traditional territory and lies within the "Nass Area" under the Nisga'a Final Agreement. The company says it has reached agreements with both the Nisga'a and Tahltan Nations and has worked to include all three groups in the project's benefits, and it says its relationship with TSKLH has been difficult because it declines to treat TSKLH as the sole owner of the area. Seabridge adds that it maintains a respectful relationship with the GHG and welcomes TSKLH's stated willingness to collaborate.
How significant is KSM economically? Seabridge says more than CA$1.4 billion has been invested in KSM to date, including over CA$650 million since 2021, and that it has awarded roughly CA$515 million in contracts to Indigenous-affiliated businesses — including TSKLH and Gitxsan companies — over the past four years, making the project a major economic driver for northwest British Columbia.
| Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
- Seabridge Gold Inc. is a billboard sponsor of Streetwise Reports. The company pays a monthly sponsorship fee of US$3,000–US$6,000 for banner advertising and an enhanced company profile page. Streetwise Reports’ editorial content is fully independent and is not influenced by sponsorship.
- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Seabridge Gold Inc.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
For additional disclosures, please click here.
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.
