Exploration Firm Advances Massive Gold-Copper Project for Development

Source: Streetwise Reports 03/31/2025

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced its consolidated financial statements for the year ending December 31, 2024. The company is continuing to search for a partner for its KSM project, which analysts say is “one of the largest undeveloped gold-copper projects in the world.”

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced its consolidated financial statements for the year ending December 31, 2024, posting a net loss of CA$31.2 million, or CA$0.35 per share, compared to CA$29.3 million or CA$0.35 per share in 2023.

During 2024, on a cash basis, the company said it invested CA$106.3 million in mineral interests, property and equipment compared to CA$230.2 million in 2023. As of December 31, 2024, net working capital also was CA$37.8 million compared to CA$54.5 million on December 31, 2023. The company subsequently completed a financing for CA$142 million in February, increasing its working capital.

“2024 was a year of important accomplishments, including the Substantially Started (SS) determination from the BC government (for the KSM project), discovery of a large system of gold and copper mineralization on the Company’s Iskut project, and engagement with leading global miners on the KSM partnership opportunity,” Chairman and Chief Executive Officer Rudi Fronk said. “Our number one corporate objective for 2025 is to secure a partner for KSM that possesses the technical, financial, and social skills to advance the project to a production decision.”

In setting its goals for 2025 earlier this month, finding a partner for the massive KSM project in British Columbia was weighted the most at 25% out of 16 objectives.

In an updated research note on March 13, analysts Taylor Combaluzier and David Talbot of Red Cloud Securities noted that KSM is “one of the largest undeveloped gold-copper projects in the world.”

The company has reported advancing discussions with three potential partners for KSM, the Red Cloud analysts said.

Given the company’s recent financing, the analysts maintained their Buy rating on the stock and increased their target price to CA$53.90 per share, a 234% return at the time the note was written.

Financing to Help Seabridge Reach 2025 Goals

The financing, held in February, strengthened its balance sheet by completing two equity financings for gross proceeds of CA$142.5 million, consisting of a bought-deal financing of 6,540,000 common shares at US$12.25 per share, plus a private placement on the same terms with a strategic investor of 1,640,000 common shares.

The analysts maintained their Buy rating on the stock and increased their target price to CA$53.90 per share, a 234% return at the time the note was written.

Seabridge said net proceeds from the financings will be used to make the payments to BC Hydro for the completion of the KSM switching station; complete a program to collect all remaining anticipated field data for, and undertake early value engineering to support, a KSM bankable feasibility study; respond to data requirements from the joint venture process; fund other costs associated with ongoing activities at KSM; and for general corporate purposes.

Other goals for 2025 include unlocking value from its Courageous Lake project (5%), completing a drilling campaign at 3 Aces (5%), improving cybersecurity systems (2%), remaining in compliance with permits and reporting required for all projects (2%), strengthening the company’s social license with Treaty and First Nations communities (2%), and further evaluating the potential for a “Getchell-style discovery at its Snowstorm project using AI technology and other survey technology (2%).

BC Court Allows Appeal of Tax Credit Program Decision

Also on Friday, the company announced that the British Columbia Supreme Court had allowed Seabridge’s appeal of the Canada Revenue Agency’s decision to disallow CA$15.8 million in exploration expenditures it claimed under the BC Mining Exploration Tax Credit (METC) program.

Expenses that assist in the determination of the economic viability of a mineral resource qualify under the BC METC program. As a result, all exploration expenditures claimed by Seabridge, other than report compilation expenses, were validly claimed by Seabridge, according to the decision.

Approximately CA$3.1 million in refunds (plus interest) under the BC METC program were at issue, the company said. Seabridge was also awarded costs for its success in the appeal.

“I am very pleased with the BCSC decision validating Seabridge’s claimed expenditures,” Fronk noted. “It demonstrates that our approach to claiming expenses under BC METC and in respect of flow-through share subscriptions has been reasonable. This decision should not only result in funds being returned to the company in respect of our BC METC claim, but also should form the basis for a resolution of the flow-through share reassessments and result in the return of further funds.”

The Catalyst: Gold Goes Higher and Higher

Gold prices hit new highs Friday as “investors flocked to the safe-haven asset amid fears of a global trade war triggered by U.S. President Donald Trump’s latest tariffs,” reported Anmol Choubey for Reuters.

Spot gold climbed 0.6% to USA$3,074.43 an ounce as of 02:41 p.m. EDT after hitting its 18th record high this year at US$3,086.70 earlier in the session. Bullion is up 1.7% this week and is on track for a fourth straight weekly gain, Choubey said. U.S. gold futures settled 0.8% higher at US$3,114.30.

“It continues to be the safe-haven demand on ramped-up concerns about tariffs, trade and ongoing geopolitical uncertainty as well,” that is supporting gold, said Peter Grant, vice president and senior metals strategist at Zaner Metals, according to Choubey.

Markets are now bracing for Trump’s plans for reciprocal tariffs, which he intends to lay out on April 2.

Trump’s policies are perceived as inflationary, posing a risk to economic growth and escalating trade tensions, analysts say according to Choubey.

Angela Brown of CBS News MoneyWatch has reported that the price of gold is not immune to volatility, especially in the short term. Will gold prices continue to rise? [OWNERSHIP_CHART-700]

“We don’t think that the rally is over yet,” Lina Thomas, a commodities strategist at Goldman Sachs Research, noted during a recent discussion regarding gold prices, Brown reported. “We have a target of US$3,500 by the end of 2025. The reason for that is twofold: One, structurally higher central bank demands, and two, some boost to ETF flows because the Fed is expected to cut twice this year. That being said if safe-haven demand remains high or picks up again … we can easily go to US$3,300 by the end of 2025.”

Ownership and Share Structure

Refinitiv provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 3% of the company. According to Refinitiv, CEO and Chairman Rudi P. Fronk owns 1.37%.

Refinitiv reports that institutions own about 48% of the company. According to Reuters, Friedberg Mercantile Group Ltd. owns 17.58%, National Bank of Canada owns 3.81%, Van Eck Associates Corp. owns 3.76%, Kopernik Global Investors, L.L.C. owns 11.57%, and Paulson & Co. Inc. owns 2.25%.

According to Refinitiv, there are about 91.95 million shares outstanding, while the company has a market cap of CA$1.61 billion and trades in a 52-week range of CA$14.70 and CA$28.39.

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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, )