In a Nov. 12 research note, analyst Joe Reagor reported that ROTH Capital Partners increased its price target on Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) to US$24 per share from $21 for two main reasons. Results from the 2020 drill program at Iskut "showed the potential for a significant porphyry system" and "Seabridge is poised to benefit from rising commodity prices."
Reagor reviewed the drill campaign's goal and highlights. Seabridge aimed to identify the potential for a porphyry system at depth. Noteworthy intercepts include 31.8 meters (31.8m) of 0.62% copper as well as 158m of 0.16 g/t gold and 0.16% copper.
"While these results are not high grade, they do appear to support Seabridge's view that Iskut has a porphyry system at depth," noted Reagor.
He pointed out that Seabridge has significant leverage to copper and gold prices due to its large base of both metals. Further, he wrote that those prices should "benefit from worldwide stimulus and infrastructure spending." As such, ROTH increased the long-term gold price in its model on Seabridge to $1,700 an ounce from $1,500.
ROTH has a Buy rating on Seabridge Gold. The current share price is around US$19.73.
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