Seabridge Gold Inc. shares highlights and financial data for the quarter ending March 31 with shareholders. Find out why the company believes its shares are literally worth “underground” gold.
Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) share his Financial highlights and data for the quarter ending March 31 with shareholders, noting its request for “substantially started” status for its KSM project and its exploration plans for its Iskut and 3 Aces projects.
Seabridge worked diligently to meet the necessary requirements to obtain the substantially commenced designation for KSM, with which its environmental assessment certificate would remain valid for its lifespan.
Recent moves in the gold and copper markets provide a tailwind for the company's shares as it searches for a partner for the massive gold and copper project in British Columbia. Seabridge went from a six-month low of C$12.75 per share to a high of C$23 on April 12. It was at CA$20.86 per share on Tuesday.
Gold and copper are up year-to-date, especially gold, which is up more than 15% so far this year and up 1% to US$2,362.49 per ounce Friday. Reuters reported. The spot price was US$2,348.63 on Tuesday.
“We are starting to see the benefits of rising gold prices and our stock price should also respond to copper prices,” said Rudi Fronk, chairman and CEO of Seabridge. Streetwise Reports during a recent interview. “A successful joint venture with KSM will clearly be the biggest value driver for us going forward. And we are working diligently to try to achieve the joint venture with the right partner and on the right terms.”
Companies recognize they need new projects, especially in copper, Fronk said, which makes KSM even more valuable.
“And here sits KSM, the largest undeveloped gold and copper project in the world, measured by reserves and resources in a secure jurisdiction with permits in hand and the support of local indigenous peoples,” Fronk said . “So KSM checks a lot of boxes.”
The catalyst: Gold levels could 'shock people'
Fronk has run the company since 1999. He said he sees something different in the gold market this year. Generally, a strong dollar tends to act as a drag on gold. But Fronk said gold is flowing from the West to the East, with some countries increasing their ownership as a reserve currency, worried that the United States will weaponize the dollar.
He noted in a blog entry on Seabridge's website titled “Gold Market Update: The West is Losing Control of Gold Prices”, that central banks are now the largest buyers of gold and that “the gold replaces dollar-denominated assets in central bank reserves.”
The company “offers some of the highest torque relative to underlying gold prices,” Cantor Fitzgerald analyst Mike Kozak wrote in an April 29 report.
Fronk said he thinks gold will reach levels “that I think will shock people.” He also said Seabridge is a great way to gain exposure to higher gold prices when comparing its underground resources and reserves to its stock price.
“If you play with the numbers and just look at all the metals that we have in the ground in terms of resources, (like) gold, copper, silver and molly (molybdenum), and take the metal prices today for those in metals, and “Take our outstanding shares, every single one of our shares is backed by over $6,000 worth of metal in the ground per share,” Fronk said.
The company “offers some of the highest torque relative to underlying gold prices,” Cantor Fitzgerald analyst Mike Kozak wrote in an April 29 report.
KSM is “one of the largest undeveloped gold-copper projects in the world,” Red Cloud Securities analyst Taylor Combaluzier described in an April 12 research note.
Objectives for 2024
At the top of the company's list of goals for 2024 is finding a joint venture partner for KSM. The company indicated that RBC Capital Markets conducts a formal research process.
Lucas N. Pipes of B. Riley Securities, who rated the stock a buy with a target price of US$60 per share, wrote that Seabridge had “a clear view of a potential partnership deal” for the project, because it leads a formal process. research process.
It's only a matter of time before KSM attracts potential partners, said Chris Temple, author and editor-in-chief of The national investor.
“Even some 'experts' in the precious metals field are WAY behind in their understanding of the kind of world-class monster that Seabridge's flagship KSM project in British Columbia's Golden Triangle has become,” wrote Temple, who said he was “pounding the table.” bullish” on the stock, and not just because of KSM.
But when it comes to exploration, Fronk said this year will be about increasing resources at two other projects: Iskut, located about 30 kilometers from KSM in British Columbia, and 3 Aces in the Yukon.
Seabridge plans 15,000 meter core drilling campaign in Iskutwhere it will consider expanding the mineral resources at Bronson Slope and discovering similar mineralization at Snip North in 2023 with three helicopter-borne drilling rigs at a budgeted cost of CA$12 million. Working at 3 As will include drilling, geophysical surveying, surface mapping and reclamation efforts.
First quarter financial data
Seabridge also announcement that in the quarter ending March 31, it recorded a net loss of C$8.2 million, or C$0.09 per share, compared to a net loss of C$10.8 million or CA$0.13 per share for the same period in 2023.
The company said it invested CA$39.3 million in projects of mining interest, up from CA$48.6 million in the first quarter of 2023.
As of March 31, 2024, net working capital was C$43.2 million, compared to C$54.5 million as of December 31, 2023.
Shareholding and sharing structure
Reuters provided a breakdown of the company's ownership and shareholder structure, where management and insiders own approximately 3% of the company. According to Reuters, CEO and Chairman Rudi P. Fronk owns 1.41% of the company with 1.23 million shares.
Reuters reports that institutions own about 55% of the company. According to Reuters, Friedberg Mercantile Group Ltd. holds 13.34%, National Bank of Canada 5.15%, Van Eck Associates Corp. 4.2%, Kopernik Global Investors, LLC 3.64%, Paulson & Co. Inc. 2.36% and Sprott Asset Management LP owns 1.14%.
According to Reuters, there are 86.22 million shares outstanding, including 85.21 million floating shares, while the company has a market capitalization of CA$1.76 billion and trades on a range of 52 weeks between 12.62 and 23 Canadian dollars.
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Important Disclosures:
- Seabridge Gold Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee of between US$4,000 and US$5,000.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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