Seabridge Gold Inc. (SEA:TSX; SA:NYSE) has substantially completed and successfully energized the Treaty Creek Terminal (TCT), marking a key infrastructure milestone for its KSM project in northwestern British Columbia, according to a September 8 release. The company substantially completed and successfully energized the terminal on August 27.
Located along Highway 37 about 2 kilometers north of the KSM project entrance, the TCT forms an important part of the electrical infrastructure planned to support future construction and operations at KSM.
Seabridge said it expects the terminal to be ready for service by November 2026.
"The Treaty Creek Terminal means KSM has access to reliable, clean, and economic hydroelectric power, which lowers KSM's carbon footprint and reduces its operating costs," Chairman and Chief Executive Officer Rudi Fronk said. "We appreciate BC Hydro's continued commitment to supporting responsible resource development in northwestern British Columbia."
Seabridge describes KSM as one of the largest undeveloped copper-gold projects controlled by a publicly traded company and said it could become a major long-term source of critical minerals. The company said it has invested more than CA$1.2 billion to advance the project, with a significant share directed toward local businesses and workers.
Court Ruling, Spin-Out, and a US$100M Facility Mark the Quarter
In its financial and management filings for the three and six months ended June 30, Seabridge reported continued work on the 2026 KSM field program and feasibility study preparations, along with access to a US$100 million short-term credit facility while it pursues a potential earn-in joint venture with a preferred partner. The proposed structure is intended to help finance construction without immediately diluting shareholders.
During the period, Seabridge also 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 for KSM reasonable but ordered additional consultation with the Tsetsaut Skii km Lax Ha before the BCEAO reconsiders the determination.
The new financing arrangement gives Seabridge access to as much as US$100 million in minimum US$10 million draws to fund ongoing KSM activities. The facility bears 7% interest compounded monthly, with interest capitalized through its Dec. 31, 2026, maturity. Seabridge can repay the facility in cash or, subject to applicable conditions and Toronto Stock Exchange approval, with common shares. The company had not drawn on the facility when the arrangement was announced, but expects to access the funds as required to bolster liquidity.
KSM Seen as the Catalyst for a Valuation Reset
Stonegate Capital Partners analyst Dave Storms said August 20 that Seabridge's second-quarter results strengthened the outlook for advancing and financing KSM. He viewed the US$100 million unsecured facility as an additional sign of confidence in the project, while considering the quarterly earnings less significant because the bulk of net income came from a one-time Courageous Lake distribution gain.
Storms identified KSM as Seabridge's key potential catalyst for a valuation reset, with the most important progress centered on establishing a new ownership and funding structure rather than increasing the resource. Work at five camps is supporting the geotechnical, metallurgical, geochemical, and environmental programs needed for the feasibility study. KSM remains on track, with the UTCAR about 40% complete, TCT construction expected to conclude in the fourth quarter of 2026, and the feasibility study targeted for the second half of 2027. The court-ordered consultation process concerning KSM's "Substantially Started" determination is also underway, with Tsetsaut Skii km Lax Ha's written submissions due September 28. Analysts see a potential joint-venture transaction, possibly before year-end, as the near-term catalyst.
Storms valued Seabridge using an EV/NAV range of 0.8x to 0.9x, producing values from US$63.97 to US$72.37 and a midpoint of US$68.17. His EV/In-Situ approach generated a US$61.49-to-US$83.07 range based on 6.0x to 8.0x multiples and a US$72.28 price target.
Cantor Fitzgerald analyst Mike Kozak characterized the financing as moderately positive on July 20 because it expands Seabridge's ability to fund feasibility-stage work at KSM while the company pursues a joint venture designed to increase project value without immediate shareholder dilution. He continued to anticipate a JV transaction in 2026 and said the facility's short maturity and strategic backer could indicate a potential transaction announcement before the end of the year.
Kozak maintained his Buy rating and CA$66 price target, representing about 115% upside at the time of his report.
"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 analyst Josh Wolfson maintained an Outperform rating and US$71 target on June 4, representing approximately 108% upside from Seabridge's US$34.05 closing price that day.
Separately, TipRanks reported that B. Riley Securities analyst Soundarya Iyer maintained a Buy rating in August while lowering the firm's target to US$40 from US$65.
The Catalyst: Goldman Sees More Upside for Gold in 2026
Gold edged higher as a sharp rally in the Japanese yen weakened the U.S. dollar, making bullion cheaper for overseas buyers, according to Investing.com's Jaiveer Shekhawat on September 8.
The yen approached its strongest level of the year as traders bet on Bank of Japan rate increases. Spot gold traded near US$4,430 an ounce, with silver around US$66.79, the report said. Gains were capped by rising oil prices tied to renewed U.S.-Iran tensions near the Strait of Hormuz and by roughly 60% market odds of a Federal Reserve rate hike next week, following Friday's strong U.S. payrolls report.
"Gold finished lower overnight at around US$4,406, pressured by Friday's strong payrolls report and higher energy prices," said Tony Sycamore, senior market analyst at IG, according to the author.
Gold is expected to build on its recent advance during the second half of 2026, with Goldman Sachs Research on August 28 projecting the metal will reach US$4,900 per troy ounce by year-end. Gold had climbed 15% from its mid-July low to about US$4,600 per ounce as of August 25, while continued central-bank buying and reduced expectations for U.S. interest-rate increases are providing further support.
Lina Thomas, senior commodities analyst at Goldman Sachs Research, and Daan Struyven, co-head of Global Commodities Research, said central-bank accumulation remains an important long-term driver as monetary authorities seek to diversify reserves and protect against geopolitical and financial risks.
"We continue to see elevated central bank gold accumulation as a multi-year trend, as central banks diversify their reserves to hedge geopolitical and financial risks, consistent with recent survey evidence," Thomas and Struyven write.
Central banks have increasingly favored gold as a reserve asset since 2022, when G7 nations froze Russian central-bank assets following the invasion of Ukraine. Goldman Sachs Research expects central banks to purchase an average of 50 tonnes of gold per month in 2026, compared with 17 tonnes monthly before 2022. Its estimate of central-bank activity showed purchases accelerating to 100 tonnes per month in June on a three-month seasonally adjusted basis, up from 66 tonnes in May, with China's central bank the largest identifiable buyer.
Expectations for Federal Reserve policy are also helping gold recover from a weaker first half of the year. Gold historically faces pressure when interest rates rise because higher yields make income-producing assets such as bonds more attractive. "We expect the Fed-related headwind to abate further, as our economists expect a lower inflation trend to keep the Fed on hold this year," Thomas and Struyven write.
Goldman Sachs Research also sees potential for prices to outperform its year-end target, citing limited gold exposure in private portfolios and geopolitical risks that could encourage additional buying by private investors.
"Gold's share in private portfolios remains low, and recent geopolitical developments—including Iran and broader tensions—may accelerate diversification beyond central banks to private investors, including by weighing on perceptions of Western fiscal sustainability," they wrote.
Streetwise Ownership Overview*
Seabridge Gold Inc. (SEA:TSX; SA:NYSE)
At the same time, increased use of gold derivatives could intensify price movements. Investors are buying more gold call options to protect portfolios against major policy shifts, and dealers who sell those options may need to purchase gold as prices approach key strike levels, potentially adding momentum to an advance. Conversely, a decline could prompt dealers to unwind those hedges by selling gold, amplifying downside pressure.
Goldman Sachs Research's US$4,900 year-end forecast does not factor in the heightened demand for derivative-based hedges. While that leaves room for prices to surpass the target, it also points to "greater two-sided volatility" as the rally continues, Thomas and Struyven wrote.
Ownership and Share Structure1
Management and insiders own approximately 2.43% of Seabridge, while institutions hold about 59.21%, with retail investors accounting for the balance.
The company has roughly 107.87 million shares outstanding, a market capitalization of about CA$4.77 billion, and a 52-week trading range of approximately CA$23.73 to CA$54.29.
Common Investor Questions
What did Seabridge announce? Seabridge substantially completed and energized the Treaty Creek Terminal (TCT), a key piece of electrical infrastructure for its KSM gold-copper project in northwestern British Columbia, according to a September 8 release. Seabridge substantially completed and successfully energized the terminal on August 27, and the terminal is expected to be ready for service by November 2026.
Why does the terminal matter? Located on Highway 37 about 2 kilometers north of the KSM entrance, the TCT gives KSM access to hydroelectric power from BC Hydro, which the company says lowers the project's carbon footprint and operating costs and supports future construction and operations.
What is KSM? Seabridge describes KSM as one of the largest undeveloped copper-gold projects controlled by a publicly traded company, permitted to begin construction and scoped to produce more than 1.0 million ounces of gold a year, plus by-products, over a multi-decade mine life. The company says it has invested more than CA$1.2 billion in advancing the project.
How is Seabridge funding the work? Seabridge has access to a US$100 million short-term credit facility, drawn in minimum US$10 million increments, bearing 7% interest compounded monthly and maturing December 31, 2026, repayable in cash or, subject to conditions and TSX approval, in shares. It had not drawn on the facility when the arrangement was announced. Separately, it is pursuing an earn-in joint venture with a preferred partner, a structure intended to help finance construction without immediately diluting shareholders.
What happened with Q2 results and the courts? Second-quarter net income rose sharply from the year-earlier period, though most of the increase came from a one-time gain tied to the Courageous Lake distribution rather than operations. During the quarter, Seabridge also completed the Courageous Lake spin-out and released its 2025 Sustainability Report, and the British Columbia Supreme Court upheld the province's "Substantially Started" determination for KSM while ordering additional consultation with the Tsetsaut Skii km Lax Ha.
What are the key milestones ahead? KSM remains on track, with the UTCAR tunnel about 40% complete, TCT construction expected to conclude in the fourth quarter of 2026, and the feasibility study targeted for the second half of 2027. Analysts see a potential joint-venture transaction, possibly before year-end, as the near-term catalyst.
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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.
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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.
