Gold Co.'s Annual Sustainability Report Notes Advances in Diversity, Safety

Source: Streetwise Reports 05/30/2024

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced the release of its 2023 Sustainability Report, in which it noted advancements in diversity and safety in the company. Find out why one newsletter writer says its flagship project is “world-class.”

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) has announced the release of its 2023 Sustainability Report, in which it noted advancements in diversity and safety in the company.

The document covers many aspects of sustainability, from environmental, social, and governmental progress to insights on the climate challenges facing the company and measures being taken to meet them.

“We are particularly proud of our achievements in the realm of diversity and inclusion at the Board of Directors level and throughout the organization,” Chairman and Chief Executive Officer Rudi Fronk wrote in the CEO Message at the start of the report. “We have added Indigenous representation on the Board, and we have increased Indigenous participation in our management team. At the board level, 36% of our directors are women, and several board committees are chaired by women. On our management team, female representation has risen to 53%.”

The report details progress in creating a safety culture at the company. “The gratifying result was the best safety performance in our company’s history,” the company noted in a release.

The company also recently shared its highlights and financials for the quarter ending March 31, noting its application for “substantially started” status for its KSM project and exploration plans for its Iskut and 3 Aces projects.

Seabridge has worked diligently toward fulfilling the requirements needed to earn the substantially started designation for KSM, with which its Environmental Assessment Certificate would remain valid for its life. Finding a joint venture partner for KSM is at the top of its list of corporate goals for the year. The company has noted that RBC Capital Markets is running a formal search process.

Lucas N. Pipes of B. Riley Securities, who has rated the stock a Buy with a target price of US$60 per share, wrote that Seabridge has “a clear vision for a potential partnership agreement” for the project.

Chris Temple, author and editor of The National Investor, said it’s only a matter of time before the project attracts partners.

“Even some ‘experts’ in the precious metals space are WAY behind in their understanding of just what kind of world-class monster Seabridge’s flagship KSM Project in British Columbia’s Golden Triangle has become,” wrote Temple.

The Catalyst: Gaining Local Trust

In the Sustainability Report, Seabridge noted that most of its projects are “within or near Indigenous territories.”

It said it has “diligently worked to gain trust” from them at KSM, resulting in multiple Impact Benefit Agreements (IBAs) with the Nisga’a Nation and Tahltan Nation, capacity funding agreements with Tsetsaut Skii km Lax Ha and the Gitxsan Office of the Hereditary Chiefs, and a WILP Environmental Sustainability Agreement with Gitanyow Hereditary Chiefs Office.

Lucas N. Pipes of B. Riley Securities, who has rated the stock a Buy with a target price of US$60 per share, wrote that Seabridge has “a clear vision for a potential partnership agreement” for the project.

“In 2023, we renewed our Capacity Funding Agreement with Tsetsaut Skii km Lax Ha,” the report noted.

“We frequently held meetings with Indigenous groups in 2023 to provide updates on early construction works activities, permit application reviews, and employment and contracting opportunities.”

The report noted that 31% of Seabridge’s senior management team is from local communities, 72% of its total procurement budget was spent on local suppliers, and CA$222 million was spent on local procurement in 2023.

Under diversity, the company noted that the female makeup of its Board of Directors has increased from 13% to 36% from 2020 to 2023, and its number of female senior managers has increased from 11% to 27% over the same time period.

A ‘Journey to Zero Harm’

Seabridge also pointed to an improvement in safety over that time period from a total recordable injury frequency of over 200,000 hours worked of 7.71 in 2020 to 1.79 last year. The number for 2020 also only covered KSM.

“Seabridge Gold recorded zero fatalities and seven total recordable injuries, which included two lost time injuries,” according to the report. “This is an improvement on our 2022 TRIF performance and an important milestone on our journey to zero harm.”

The company also said its Board and Sustainability Committee continue to assess climate- and nature-related risks and opportunities.

“Our KSM Project has the potential to be an industry-leading low-carbon copper producer,” the report said. “We continue to look for additional opportunities to decarbonize and optimize our project design. More broadly, our management team has formulated a robust analysis of our carbon footprint as a foundation for future steps towards a net zero profile for our company.”

2024 Exploration

The company has a busy year planned as it continues to grow its resources at two other projects: Iskut, which is about 30 kilometers from KSM in BC, and 3 Aces in the Yukon.[OWNERSHIP_CHART-700]

Seabridge plans a 15,000-meter core drilling campaign at Iskut, where it will be looking at expanding the Bronson Slope mineral resource and its discovery in 2023 of similar mineralization at Snip North with three helicopter-portable drill rigs with a budgeted cost of CA$12 million. Work at 3 Aces will include drilling, geophysical surveys, surface mapping, and reclamation efforts.

Ownership and Share Structure

Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 3% of the company. According to Reuters, CEO and Chairman Rudi P. Fronk owns 1.41% of the company with 1.23 million shares.

Reuters reports that institutions own about 55% of the company. According to Reuters, Friedberg Mercantile Group Ltd. owns 13.34%, National Bank of Canada owns 5.15%, Van Eck Associates Corp. owns 4.2%, Kopernik Global Investors, L.L.C. owns 3.64%, Paulson & Co. Inc. owns 2.36%, and Sprott Asset Management L.P. owns 1.14%.

According to Reuters, there are 87.69 million shares outstanding with 85.21 million free float traded shares, while the company has a market cap of CA$1.87 billion and trades in a 52-week range of CA$12.62 and CA$23.

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1. Seabridge Gold Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: SEA:TSX; SA:NYSE.MKT, )