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Singular Research Initiates Coverage with BUY.
Seabridge Gold Inc. (SA)
Seabridge Gold (SA) is a development stage company engaged in the acquisition and exploration of gold properties located in North America. SA is designed to provide shareholders with exceptional leverage to a rising gold price. The company’s business plan is to increase its gold ounces in the ground but not to go into production on its own. SA intends to either sell projects or participate in joint ventures towards production with major mining companies.
Q2 Update
- Seabridge (SA) recently released the results of an updated Preliminary Economic Assessment for its KSM project that shows 10% lower initial capital investment and 11% lower unit operating costs.
- SA also announced an agreement to purchase mineral claims (22,160 acres) immediately adjacent to KSM, which significantly increases the project area.
- The company reported a Q2 loss of ($.03) on higher corporate and general expenses than modeled.
- Given the prospects of its two core projects (KSM and Courageous Lake), SA shares remain attractively valued relative to potential monetization. As KSM moves closer to feasibility, SA is a possible target for gold majors.
- The company has a clean balance sheet with no debt and nearly US$23m of cash. Its liquidity is enough to sustain operations up to the monetization of core assets or sale of the company without equity dilution.
PRIMARY RISKS
- Gold metal prices fluctuate widely and are affected by global factors such as economics, politics, inflation, speculation, consumption & production levels.
- Mineral resources are only estimates of anticipated tonnage and grades expected to be realized. Realized reserves also depend on price/viability
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About Singular Research
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