Explorer Poised for Breakthrough Partnership on Colossal BC Gold Project

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Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) announced it has filed its interim financial statements for the first quarter ending March 31.

During that quarter, the company said it posted net earnings of US$10.6 million (US$0.11 per share) compared to a net loss of US$8.2 million (US$0.09 per share) for the same period in 2024.

"During the first quarter of 2025, Seabridge invested US$14.3 million in mineral interests, property and equipment compared to US$39.3 million invested in the first quarter of 2024," Seabridge said in a release. "The working capital position increased by US$110.9 million from US$37.8 million on December 31, 2024, to US$148.7 million on March 31, 2025."

Earlier this year, Seabridge completed a financing for more than CA$142 million, increasing its working capital with 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.

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.

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.

Other goals for 2025 include unlocking value from its Courageous Lake project and completing drilling campaigns at its 3 Aces and Iskut projects.

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."

Brien Lundin of Gold Newsletter had for the company and KSM on May 1. "Gold's impressive gains this year make the massive gold resource at Seabridge Gold Inc.'s KSM a fantastic optionality play," he wrote. "On the strength of that play, the company remains a Buy."

KSM Partner Still 'Most Important Catalyst'

Seabridge has reported advancing discussions with several potential partners for KSM, the Red Cloud analysts said.

Given the recent financing, the Red Cloud 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.

Finding a JV partner for KSM remains "the most important catalyst for the stock," noted B. Riley Securities Analyst Nick Giles in an updated research note in February. He rated the stock a Buy with a CA$50 per share price target.

"The KSM project in British Columbia stands as the world's largest undeveloped gold project in terms of resources," wrote Giles. "It boasts proven and probable reserves of 47.3 (million ounces) Moz gold, 160 Moz silver, and 7.3 billion pounds of copper. We believe there are very few comparable developments today, especially with all three metals combined in one location."

Giles continued, "We believe the economies of scale and tier 1 jurisdiction make for very attractive net economics and should ultimately translate to a JV partner."

Seabridge noted that 2025 field programs were underway at KSM.

The Catalyst: Gold Falls, But Experts Still Bullish

Gold plummeted for a second day out of three on Wednesday, driven mainly by an improvement in risk appetite following positive trade news linked to the United States, reported Christian Borjon Valencia for FX Street on Wednesday.

"This, along with a bearish technical chart pattern, pushed the yellow metal below the US$3,200 figure for the first time since April 11," Valencia noted. "At the time of writing, XAU/USD trades at US$3,182, down by more than 2%, as the trade war truce between Washington and Beijing has lifted traders' spirits amid some uncertainty about the global economic outlook."

But even as some investors move to riskier assets, many experts say the gold bull market is here to stay.

Garth Friesen wrote for Forbes on March 15 that DoubleLine Chief Executive Officer Jeffrey Gundlach said, "I think gold will make it to US$4,000. I'm not sure that'll happen this year, but I feel like that's the measured move anticipated by the long consolidation at around US$1,800 on gold."

And according to an April 10 post on Goldfix, Goldman Sachs has revised raised the upper boundary of its forecast range for the end of the year to US$3,520 an ounce and even introduced a "tall-risk scenario" as high as US$4,500 an ounce.

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 62% of the company. Friedberg Mercantile Group Ltd. owns 17.58%, 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$1.5 billion and trades in a 52-week range of CA$13.44 and CA$28.39.