Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Mining Developer Expands Resources of B.C. Project
Research Report

View Important Disclosures for this Article
Share on Stocktwits


This is another of the Canadian company's steps taken toward making its massive copper-gold project attractive to prospective partners, noted a Cantor Fitzgerald report.

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) increased the consolidated mineral resource of its KSM copper-gold project in British Columbia with its updated resource estimates of the Kerr and Iron Cap deposits there, reported Cantor Fitzgerald analyst Mike Kozak in a Feb. 5 research note.

188% Potential Return

Following this news, Kozak reiterated its CA$41 per share target price on Seabridge.

"Our target is derived via a 1x net present value discounted at 7.5% multiple on the KSM project and the assumption that Seabridge attracts a 50% joint venture partner on industry standard terms," Kozak wrote.

The mining developer, in comparison, is currently trading at about CA$14.21 per share. The implied return for investors, given the difference between the target and current prices, is significant, at 210%.

Seabridge remains a Buy.

Resulting Quantities, Impacts

Kozak reported that for KSM's Kerr and Iron Cap deposits, the updated resource increased the Measured & Indicated (M&I) ounces by about 13% and the Inferred ounces by about 9%.

The Kerr and Iron Cap resources grew the overall KSM project's M&I resource by 1%, taking it to 125,100,000 ounces (125.1 Moz) of gold equivalent (Au eq) at 0.72 grams per ton (0.72 g/t) Au eq.

Kerr and Iron Cap also expanded the overall KSM Inferred resource by 9%, boosting it to 139 Moz Au eq at 0.65 g/t Au eq.

Maintained Consistency

When calculating an updated mineral resource on Kerr and Iron Cap, explained Kozak, the Toronto, Ontario-based company used the same metals prices and foreign exchange (FX) rate it used when determining the resource estimate for the Mitchell and East Mitchell deposits in the 2022 prefeasibility study.

Specifically, Seabridge employed US$1,820 per ounce for gold and US$4.20 per pound for copper as well as a U.S. to Canadian dollars FX rate of 0.83.

Want to be the first to know about interesting Base Metals and Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. Subscribe

Important Disclosures:

  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. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  3.  This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Disclosures for Cantor Fitzgerald, Seabridge Gold Inc., February 5, 2024

Disclaimers The opinions, estimates and projections contained in this report are those of Cantor Fitzgerald Canada Corporation. (“CFCC”) as of the date hereof and are subject to change without notice. Cantor makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; however, Cantor makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this report or its contents. Information may be available to Cantor that is not herein. This report is provided, for informational purposes only, to institutional investor clients of CFCC, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. This report is issued and approved for distribution in Canada, Cantor Fitzgerald Inc., a member of the Investment Industry Regulatory Organization of Canada ("IIROC"), the Toronto Stock Exchange, the TSX Venture Exchange and the CIPF. This report is has not been reviewed or approved by Cantor Fitzgerald & Co., a member of FINRA. This report is intended for distribution in the United States only to Major Institutional Investors (as such term is defined in SEC 15a-6 and Section 15 of the Securities Exchange Act of 1934, as amended) and is not intended for the use of any person or entity that is not a major institutional investor. Major Institutional Investors receiving this report should effect transactions in securities discussed in the report through Cantor Fitzgerald & Co.

Non US Broker Dealer 15a-6 disclosure: This report is being distributed by (CF Canada/CF Europe/CF Hong Kong) in the United States and is intended for distribution in the United States solely to “major U.S. institutional investors” (as such term is defined in Rule15a-6 of the U.S. Securities Exchange Act of 1934 and applicable interpretations relating thereto) and is not intended for the use of any person or entity that is not a major institutional investor. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. It is prohibited for distribution to non-institutional clients including retail clients, private clients and individual investors. Major Institutional Investors receiving this report should effect transactions in securities discussed in this report through Cantor Fitzgerald & Co. This report has been prepared in whole or in part by research analysts employed by non-US affiliates of Cantor Fitzgerald & Co that are not registered as broker-dealers in the United States. These non-US research analysts are not registered as associated persons of Cantor Fitzgerald & Co. and are not licensed or qualified as research analysts with FINRA or any other US regulatory authority and, accordingly, may not be subject (among other things) to FINRA’s restrictions regarding communications by a research analyst with a subject company, public appearances by research analysts, and trading securities held by a research analyst account. Potential conflicts of interest The author of this report is compensated based in part on the overall revenues of Cantor, a portion of which are generated by investment banking activities. Cantor may have had, or seek to have, an investment banking relationship with companies mentioned in this report. Cantor and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. Although Cantor makes every effort possible to avoid conflicts of interest, readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies. Disclosures as of February 5, 2024 Cantor has provided investment banking services or received investment banking related compensation from Seabridge Gold Inc. within the past 12 months. The analysts responsible for this research report do not have, either directly or indirectly, a long or short position in the shares or options of Seabridge Gold Inc. The analyst responsible for this report has visited the material operations of Seabridge Gold Inc. (KSM and Iskut). No payment or reimbursement was received for the related travel costs.

Analyst certification The research analyst whose name appears on this report hereby certifies that the opinions and recommendations expressed herein accurately reflect his personal views about the securities, issuers or industries discussed herein.

Want to read more about Base Metals and Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe