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 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.