BC Copper-Gold Developer Energizes Treaty Creek Terminal at KSM

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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) has substantially completed and successfully energized the Treaty Creek Terminal, a critical step forward for its large-scale KSM copper-gold project in northwestern British Columbia, according to a recent press release.

The terminal was energized on August 27 and is expected to be ready for service by November 2026. Located along Highway 37 roughly two kilometers north of the KSM site entrance, the facility will deliver reliable hydroelectric power from BC Hydro to support future construction and operations.

Why the Terminal Milestone Matters Now

Access to clean, low-cost power directly reduces operating expenses and the project's overall carbon footprint. Chairman and Chief Executive Officer Rudi Fronk noted that the terminal gives KSM a reliable hydroelectric supply while lowering costs and environmental impact.

The company has already invested more than CA$1.2 billion in KSM, much of it spent with local businesses and workers in British Columbia.

KSM's Scale and Strategic Position

Seabridge describes KSM as one of the largest undeveloped copper-gold projects held by a publicly traded company. KSM has its major environmental approvals in place and is advancing the remaining permits and authorizations required for construction. It is designed to produce more than 1.0 million ounces of gold per year, plus by-products over a multi-decade mine life.

These attributes position KSM as a potential long-term supplier of critical minerals once financing and development advance.

Key Investor Takeaways

• The Treaty Creek Terminal energization provides KSM with access to clean hydroelectric power, cutting future operating costs and emissions.
• Seabridge has an unsecured US$100 million short-term loan facility to support KSM work while it continues discussions with its preferred partner on an earn-in joint venture.
• Some analysts see a potential joint-venture transaction before year-end as a major potential catalyst for the stock.
• KSM remains on schedule for a feasibility study in the second half of 2027, with the UTCAR tunnel approximately 40 percent complete.
• Goldman Sachs forecasts gold reaching US$4,900 per ounce by the end of 2026, supported by strong central-bank buying.
• Management and insiders own roughly 2.43 percent of the shares, while institutions hold about 59 percent.¹

Financing and Court Developments

In its financial and management filings for the three and six months ended June 30, Seabridge reported progress on the 2026 field program and feasibility study work. The company also secured a US$100 million short-term credit facility that can be drawn in minimum US$10 million increments. The facility carries 7 percent interest compounded monthly and matures on December 31, 2026. It can be repaid in cash or, subject to conditions and Toronto Stock Exchange approval, in common shares. No funds had been drawn at the announcement.

During the quarter, Seabridge released its 2025 Sustainability Report, completed the spin-out of Courageous Lake, and received the Smithers Resource and Mining Excellence Award. The British Columbia Supreme Court found the province's ‘Substantially Started’ determination reasonable but ordered additional consultation with Tsetsaut Skii km Lax Ha before the BCEAO reconsiders the determination.

Next Catalysts and Timeline

Work at five camps is advancing geotechnical, metallurgical, geochemical, and environmental programs required for the feasibility study. The UTCAR tunnel stands about 40 percent complete.

TCT construction is scheduled to finish in the fourth quarter of 2026, and the feasibility study remains targeted for the second half of 2027.

The court-ordered consultation process continues, with written submissions from Tsetsaut Skii km Lax Ha due September 28.

Analysts continue to watch for a possible joint-venture announcement as a potential near-term catalyst.

Broader Gold Market Timing

Gold prices have been supported by central-bank purchases and shifting expectations for U.S. interest rates, with Goldman Sachs Research on August 28 projecting that gold will reach US$4,900 per troy ounce by year-end 2026. Central banks are forecast to buy an average of 50 tonnes per month in 2026, well above pre-2022 levels, as they diversify reserves. Goldman Sachs analysts expect continued buying from both official and private investors amid geopolitical risks.

According to Investing.com's Jaiveer Shekhawat on September 8, spot gold recently traded near US$4,430 an ounce while silver hovered around US$66.79. Gains have been tempered by higher oil prices and shifting odds of near-term Federal Reserve policy moves.

Analyst Views and Valuation Context

Stonegate Capital Partners analyst Dave Storms highlighted the US$100 million facility as a positive signal of project confidence and identified KSM as the key driver for a potential valuation reset. He valued the company on an EV/NAV range of 0.8x to 0.9x, producing a midpoint of US$68.17, and set a US$72.28 price target using an EV/In-Situ approach.

Cantor Fitzgerald analyst Mike Kozak maintained a Buy rating and CA$66 price target, citing the facility's role in funding feasibility work ahead of a possible joint venture. RBC Capital Markets analyst Josh Wolfson kept an Outperform rating and US$71 target.

TipRanks reported that B. Riley Securities analyst Soundarya Iyer maintained a Buy rating while adjusting the target to US$40.

Ownership and Share Structure¹

Management and insiders own approximately 2.43 percent of Seabridge, while institutions hold about 59.21 percent. The company has roughly 107.87 million shares outstanding and a market capitalization of about CA$4.77 billion. Its 52-week trading range is approximately CA$23.73 to CA$54.29.

Common Questions from Investors

How does the energized terminal affect project costs? The Treaty Creek Terminal supplies hydroelectric power that Seabridge expects will lower operating expenses and reduce the carbon intensity of future KSM production.

What is the purpose of the US$100 million facility? The short-term credit line provides flexible funding for feasibility-stage activities while Seabridge continues discussions on an earn-in joint venture intended to help finance future construction.

When could a joint venture be announced? Several analysts see the potential for a transaction before the end of 2026, citing the facility's maturity date and strategic backing as signals of near-term progress.

What is the current status of the "Substantially Started" determination? The British Columbia Supreme Court found the province's original determination reasonable but required further consultation with Tsetsaut Skii km Lax Ha before the BCEAO reconsiders the matter.

What gold price outlook supports the project? Goldman Sachs Research projects gold reaching US$4,900 per ounce by year-end 2026, driven by sustained central-bank purchases averaging 50 tonnes per month.

Seabridge continues to advance its flagship KSM project through infrastructure milestones and financing steps that position the asset for potential development in a supportive gold price environment.