ROTH Capital Partners Corp. Senior Research Analyst Joe Reagor stated in a February 2 research report that Toronto-based mineral exploration company Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) just released assay results from nine more drill holes at its Kerr-Sulphurets-Mitchell (KSM) project in British Columbia.
The analyst advised the objective of this latest round of drilling was to update and solidify KSM's resource model in advance of a new Prefeasibility study (PFS) planned for Q2/22. The analyst said that Seabridge Gold released the assay results from nine additional drill holes from its 2021 drill campaign at KSM on February 1, 2022,
The report from ROTH Capital Partners stated that it sees the drill results as positive as they confirm high-grade gold at East Mitchell.
According to the report from ROTH Capital, the drill results highlighted the high-grade gold component of the East Mitchell deposit (formerly Snowfield). In particular, ROTH mentioned that hole SF-21-09 intercepted 150.5 m of 1.81 g/t Au.
ROTH stated it believes that the recent drill results together the results announced last November 2021 will allow the firm to move the KSM mine plan forward to optimize cash flow.
ROTH Capital anticipate that when Seabridge releases the updated PFS in Q2/22 it will provide the basis for a potential significant catalyst for the company.
The analyst noted that ROTH's valuation of Seabridge Gold was based upon a combination of discounted cash flow and sum of the parts valuation methods. ROTH's calculations resulted in total valuation for Seabridge Gold of US$2.7 billion (CA$3.4 billion), or US$27.43 per future fully diluted share based on an estimated 97 million shares outstanding.
Seabridge Gold Inc.'s shares trade in the U.S. on the NYSE under the symbol "SA" and last closed for trading at US$16.00 on Tuesday, February 8, 2022. The company's shares also trade under the ticker "SEA" on the Toronto Stock Exchange.
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Disclosures for ROTH, Seabridge Gold Inc., Feb. 2, 2022
ROTH makes a market in shares of Seabridge Gold, Inc. and as such, buys and sells from customers on a principal basis.
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