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TICKERS: SEA; SA

Drill Results Support US$88M Valuation for Mining Project
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Data from the drill program also suggest a porphyry deposit exists at the property at depth, ROTH Capital Partners wrote in a company update.

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) released the results of its 10-hole drill program conducted at its Iskut project last year, and they were "encouraging," ROTH Capital Partners analyst Joe Reagor noted in a Jan. 9 research report. One exemplary intercept was 174.4 meters of 0.86 grams per ton gold and 0.34% copper. 

"We believe this drill program was supportive of management's belief that a porphyry deposit exists at depth on the project and of our inclusion of an US$88 million valuation for the project," Reagor wrote.

Company Model Updated

The analyst also reported ROTH updated its model for the gold resource company, and this resulted in a decreased target price. The new target is US$36 per share, down from US$37, and in comparison, Seabridge's current share price is US$18.30. ROTH, however, maintained its Buy rating on the Canadian explorer.

The changes made to the model, according to Reagor, were:

  • Pushing back by one year to Q4/23 the timing of a joint venture announcement and start of mining at Seabridge's KSM project
  • Moving discounted cash flow to 2023 from 2022
  • Updating dilution assumptions for Seabridge's current market valuation
  • Updating the U.S. to Canadian dollar exchange ratio to 1.34:1.


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Disclosures:
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Seabridge Gold Inc. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Seabridge Gold Inc., a company mentioned in this article.

Disclosures For Roth Capital Partners, Seabridge Gold Inc.,  January 9, 2023

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Disclosures: ROTH makes a market in shares of Seabridge Gold, Inc. (SEA.TO) and as such, buys and sells from customers on a principal basis.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH.




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