Cashing In on Gold...and Green: A Streetwise Live Broadcast

The Streetwise Live! Broadcast on June 4, 2021, focused on Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) and its large copper resources—in addition to its gold. Precious metals expert Matt Badiali and Seabridge CEO and Chairman Rudi Fronk fielded questions about the magnitude of the metals resources at Seabridge's KSM project, the economic benefits of the copper there, the world's copper supply relative to new green initiatives and the company's strategy regarding project-related environmental and social issues.

Host Cyndi Edwards introduced Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) as a company that is well known for gold but also has opportunities for green energy, given the significant amount of copper it has amassed at its flagship KSM project. Edwards noted that copper has numerous applications in solar, hydro, thermal and wind renewable energy and in electric vehicles.

During the broadcast, Edwards shared a picture of the Mitchell deposit at Seabridge's KSM, which Rudi Fronk described. The visible green color actually is copper, oxidizing naturally, he said. He pointed out that the helicopter to the left of the copper shows the ample scale of the metal present.

"It's hard to comprehend how big KSM is," Fronk said. "In terms of total economic resources, we now have 9.8 billion tons, which contain 142 million ounces (142 Moz) of gold and 50 billion pounds (50 Blb) of copper."

Fronk explained that finding copper was a surprise. When the company was formed in 1999, the management team was focused solely on gold and growing gold ounces faster than shares outstanding, he said. However, while exploring for the precious metal, the company also found copper, so much of it that now, in terms of pounds of copper per share, it provides more copper ownership per share than most copper companies.

At KSM, "we knew we were in a gold rich porphyry environment," Fronk said. "Grades of copper continued to get better, particularly at Deep Kerr and Lower Iron Cap."

Edwards asked Matt Badiali, a precious metals expert following Seabridge, why the Canadian company is well positioned to capitalize on its copper reserves.

"You have to understand how massive these copper reserves are," he said. "They're so big that mining them and selling them will pay for all of the mining costs, and you get all of the gold that they're going to produce for free." Fronk confirmed that is the case.

The CEO added that copper is in short supply today; it is in deficit in the market. That deficit is expected to grow to 30 million metric tons by 2030 even taking into account new mines and mine expansions planned to be built during the interim, he said. In 2030 alone, the deficit will amount to 6 million metric tons.

"New [copper] mines aren't being built fast enough to meet the new green energy initiatives," he added. "Our industry needs to produce more [copper]."

Badiali talked about how Seabridge is navigating KSM-related environmental and social concerns, issues that tend to derail projects. He said that the company began addressing both early on, the preferable strategy. From the start it began engaging with the First Nations in the region and started environmental groundwork. Also, Seabridge is using renewable energy in the form of hydroelectric power at the project instead of diesel generators.

Finally, Edwards indicated that Seabridge shares were currently trading around $19.50–19.60. Numerous Wall Street analysts rate the company a Buy and have price targets on it that range from $23.98 to $105, with $46.60 being the median. She asked Badiali what he thinks about the analysts' stance.

"KSM is in the Top 10 of gold reserves globally," he said. "This is a giant, giant project. Between KSM and Courageous Lake, the two big projects that Seabridge holds, they have 45 Moz of gold and 17.6 Blb of copper. They know it's there. It's all in reserve.

"You have gold in a bull market, and you have copper in a major bull market, so that you have tailwinds on your investment, and you have a lot of metal in the ground that we know is there," Badiali continued. "So I put a lot of faith in what these analysts have done. I think they're probably right on."

Click below to watch the broadcast.

Streetwise Reports Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Seabridge Gold. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Seabridge Gold, a company mentioned in this article.

Disclosures for Streetwise Live! Broadcast:

1. This broadcast does not constitute investment advice. Each viewer is encouraged to consult with his or her individual financial professional and any action a viewer takes as a result of information presented here is his or her own responsibility. This broadcast is not a solicitation for investment. Streetwise Live! does not render general or specific investment advice and the information should not be considered a recommendation to buy or sell any security. Streetwise Live! does not endorse or recommend the business, products, services or securities of any company mentioned here.


2. Statements and opinions expressed are the opinions of the presenters and not of Streetwise Live! or its officers. The presenters are wholly responsible for the validity of the statements. The presenter was not paid by Streetwise Live! for this broadcast. Streetwise Live! requires presenters to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Live! relies upon the authors to accurately provide this information and Streetwise Live! has no means of verifying its accuracy.


3. The following companies discussed in this broadcast have paid a $10,000 fee to participate: Seabridge Gold Inc.


4. From time to time, Streetwise Live! and its directors, officers, employees or members of their families, as well as persons interviewed for broadcasts and interviews on the site, may have a long or short position in securities mentioned. As of the date of this broadcast, officers and/or employees of Streetwise Live! (including members of their household) own securities of the following companies discussed in this broadcast: Seabridge Gold Inc. Seabridge Gold Inc. is a billboard sponsor of Streetwise Reports, an affiliate of Streetwise Live! (description available at https://www.streetwisereports.com/disclaimer/).


5. Rudi Fronk - CEO/Chairman owns securities of the company.


6. Disclosures for: Matt Badiali - Precious Metals Expert. I, or members of my immediate household or family, own securities of the following companies discussed in the broadcast: None. I personally am, or members of my immediate household or family are, paid by the following companies discussed in the broadcast: None. My company has a financial relationship with the following companies discussed in the broadcast: None.


7. Disclosures for: Cyndi Edwards, Host. I, or members of my immediate household or family, own securities of the following companies discussed in the broadcast: None. I personally am, or members of my immediate household or family are, paid by the following companies discussed in the broadcast: None. My company has a financial relationship with the following companies discussed in the broadcast: None.