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SEA:TSX; SA:NYSE.MKT

Seabridge Gold Inc.

Seabridge Gold Inc. is designed to provide its shareholders with exceptional leverage to a rising gold price. From 1999 through 2002, when the gold price was lower, Seabridge acquired nine North American projects with substantial gold resources, including Courageous Lake and KSM. Subsequent exploration by Seabridge has significantly expanded its acquired gold resource base.

Seabridge considers each of its common shares to represent an indirect ownership interest in its reserves and resources. Our aim is to increase the value of this ownership interest by growing reserves and resources faster than shares outstanding. Project acquisitions, exploration and engineering programs are carefully designed and monitored to ensure that equity dilution required to fund these activities is more than offset by additional reserves and resources.

Seabridge is pursuing three value-enhancing strategies. First, the Company continues to search for gold projects in North America which would be accretive in terms of gold resources. Second, Seabridge funds exploration and engineering work considered likely to expand resources and upgrade them to reserves. Third, Seabridge sells or partners its projects when they reach the production stage, to limit risk and share dilution.
SEA:TSX SA:NYSE.MKT

Expert Comments:

Rudi Fronk Rick Rule
In a StreetSmart Live! Broadcast on Jan. 7, Rick Rule of Sprott Inc. and Rudi Fronk, chairman and CEO of Seabridge Gold, address the future of the gold price and precious metals assets and discuss Seabridge, its Snowfield acquisition and its KSM project.
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The transaction details and benefits to acquirer Seabridge Gold are discussed in a Canaccord Genuity report.
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Allen Alper, Metal News

(12/14/20)
"We learned from Rudi Fronk, chairman and CEO of Seabridge Gold Inc., that it is buying Pretium Resources' world-scale Snowfield property, which hosts a large gold resource. . .this transformative acquisition enables exciting new development opportunities for KSM, which could have a significant positive impact on project economics. Snowfield today already has a resource base of 35 Moz gold, of which 26 Moz are Measured and Indicated, in a configuration that could be mined as an open pit."

Lucas N. Pipes, B. Riley Securities

(12/14/20)
"Seabridge Gold Inc. announced the acquisition of the Snowfield property from Pretium Resources for $100M, a 1.5% net smelter returns royalty and a future contingent payment of $20M. . .the acquisition of Snowfield substantially derisks KSM, providing for additional flexibility in the mine plan, including the potential to defer the capital-intense block cave transition until much later in the +40-year asset life."

Chris Temple
Chris Temple, editor and publisher of The National Investor, outlines his investment thesis for Seabridge Gold.
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headshot of Joe Reagor

Joe Reagor, ROTH Capital Partners

(12/10/20)
"Seabridge Gold Inc. announced and completed an equity financing; the financing consisted of 6.7M common shares at a price of $17.25/share. While the announced financing was dilutive compared to our prior estimates, the potential value of Snowfield as part of KSM more than offsets this dilution. . .thus, we are increasing our price target."

Mike Kozak, Cantor Fitzgerald

(12/10/20)
"The Snowfield transaction is highly accretive to Seabridge Gold Inc.'s 'ounces per share,' and the synergies between the Snowfield deposit and KSM are exceptional. . .an 'open pit first' scenario, incorporating Snowfield, makes the consolidated KSM project far more attractive to potential joint venture partners that may lack underground block cave expertise."

headshot of Derek Macpherson

Derek Macpherson, Red Cloud Securities

(12/10/20)
"Similar to Seabridge Gold Corp.'s Mitchell, Snowfield is more economically driven by gold (versus the more copper-rich Iron Cap and Kerr deposits), and as a result, KSM's gold leverage has increased. Now for every 10% increase in the gold price, post tax net present value 5% increases by 10% (was 9%)."

Dalton Baretto, Canaccord Genuity

(12/9/20)
"Seabridge Gold Inc. announced the acquisition of the Snowfield property from Pretium Resources. . .this transaction is a very sound strategic move for Seabridge on a number of fronts."

Pretium Resources agrees to sell Snowfield to Seabridge Gold.
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These factors, positively impacting Seabridge Gold, are reviewed in a ROTH Capital Partners report.
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Seabridge Gold reported net income of CA$5.0 million in Q3/20 and ended the quarter with one of the strongest working capital positions in its 21-year history.
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Seabridge Gold reported that its 2020 drill program identified a potentially large gold-copper porphyry system at its Iskut project located near Stewart, British Columbia.
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More Expert Comments

Experts Following This Company

Dalton Baretto – Canaccord Genuity
Adam Graf – B. Riley Securities
Mike Kozak, Analyst – Cantor Fitzgerald
headshot of Derek Macpherson
Derek Macpherson, VP Mining Analysis – Red Cloud Securities
Jim Marrone, Analyst – SingularResearch
Lucas N. Pipes, Analyst – B. Riley Securities
headshot of Joe Reagor
Joe Reagor, Analyst – ROTH Capital Partners
headshot of Rick Rule
Rick Rule, Chairman – Sprott Global Resource Investments Ltd.
headshot of Jay Taylor
Jay Taylor, Author Gold, Energy & Tech Stocks
headshot of Chris Temple
Chris Temple, Editor and Publisher – The National Investor

The information provided above is from analysts, newsletters, the company and other contributors.

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