Gold Co. With Big BC Asset Sets Goals for 2024

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) has announced its top 15 goals to be measured in its corporate Report Card for 2024, and the top of the list isn't surprising: Find a joint venture partner for its massive KSM project in British Columbia.

Each of the goals, which will be used to determine at-risk compensation for senior management and bonuses for other employees, is weighted by percentage. The JV goal is weighted 20.5%.

Newsletter writer Chris Temple, author and editor of The National Publisher, wrote that it's only a matter of time before the project gets the attention it deserves.

"Even some 'experts' in the precious metals space are WAY behind in their understanding of just what kind of world-class monster Seabridge's flagship KSM Project in British Columbia's Golden Triangle has become," wrote Temple, who said he was "table-pounding bullish" on the stock.

Coming in second on the Report Card's weighted scale is achieving a positive "substantially started" decision for the project from the province government, assuring KSM's environmental approvals are valid for the life of the project. This was weighted 13%.

Getting that designation from the provincial government, which would ensure KSM keeps its approved Environmental Assessment Certificate for the life of the project, would definitely help the company in its search for a joint venture (JV) partner.

The release of the goals comes just after the company announced its marks for its 2023 goals, in which it earned 82% for meeting goals like securing additional funding and applying for the "substantially started" designation.

Seabridge completed the sale of a non-equity dilutive US$150 million secured note to Sprott Resource Streaming and Royalty Corp. last year and filed the formal application for "substantially started" in January 2024, two months ahead of schedule.

Co.'s Goals for 2024

Other goals the company has put on the Report Card, with their weighting, include:

• Secure a minimum of US$50 million in new funding for construction at the BC Hydro switching station to provide low-cost, green power for the project (12%)
• Exit 2024 with more gold resources per common share than reported at the end of 2023 (6%)
• Continue to improve cyber-security to ensure confidentiality of company data (3%)
• Prepare the company for transition to a JV partnership (4%)
• Initiate and advance a sale/join venture process for its Courageous Lake project (4.5%)
• Remain in compliance with permit conditions, reporting, inspections, and technical requests for all projects (4.5%)
• Continue to strengthen Seabridge's social license with indigenous partners and local communities (5.5%)
• Continue to mature the company's risk management systems (3.5%)
• Continue to develop and update sustainability strategy to reflect company values and regulatory requirements (4.5%)
• Promote a culture of health and safety (4%)
• File a new technical report for Bronson Slope with 2023 drill results and an updated resource estimate and complete a drill program of at least 12,500 meters at Iskut (6.5%)
• Complete a drill program at 3 Aces of at least 8,000 meters to evaluate resource expansion potential in the Central Core Area and complete an evaluation on three regional targets (5.5%)
• Continue to evaluate the potential for a Getchell-style discovery at its Snowstorm project and progress the permitting on a northern Nevada rift target at Goldstorm (3%)

Making "significant progress" on finding a JV partner for KSM was a top goal for 2023. As the search continues this year, the company noted that RBC Capital Markets is running a formal search process.

"Following site visits by five major mining companies, we are now continuing discussions with several parties who have expressed an interest in our joint venture structure," the company said.

KSM is the world's largest undeveloped gold project by reserves and resources, analyst Lucas N. Pipes of B. Riley Securities has noted. He said Seabridge has "a clear vision for a potential partnership agreement" for the project and has rated the stock a Buy with a target price of US$60 per share. 

An 'Explosive' Move Higher for Gold?

Gold prices hit a new high Friday, Reuters reported. Spot gold was up 1% at US$2,397.84 per ounce as of 9:29 a.m. ET after hitting a record high of US$2,400.35. Prices were up nearly 3% for the week.

Newsletter writer Captain Ewave recently analyzed the precious metal's movements and recommended being long on gold.

"Are gold and gold mining stocks on the verge of an explosive move higher?" he wrote. "Based on our analysis, the answer appears to be a resounding yes."

In a March 21 article, Ron Struthers of Struthers Research Stock Report wrote, "This could be the start of a super bull market in gold."

Analyst Recommendations, Coming Catalysts

A number of analysts are bullish on the stock, and not just for KSM. Mike Kozak of Cantor Fitzerald analyst Mike Kozak wrote in January that "Courageous Lake is a robust standalone project in its own right," and gave the company a Buy rating and CA$41 target price.

In a February 15 research note, Taylor Combaluzier of Red Cloud Securities gave the company a Buy rating and CA$46.50 target price. This target price represented a possible gain of 265% compared to the price at the time of the report (CA$12.75). 

"On top of KSM, when you consider the rest of Seabridge's world-class portfolio, I think you'll feel — as I expressed — that Seabridge deserves to be a core holding in your portfolio," Temple wrote in January.

Upcoming catalysts include finding a JV partner, ongoing development updates at KSM, and continued drilling at its Iskut, 3 Aces, and Snowstorm projects.

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 3% of the company. According to Reuters, CEO and Chairman Rudi P. Fronk owns 1.43% 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. owns 13.56%, National Bank of Canada owns 5.24%, Van Eck Associates Corp. owns 4.06%, Kopernik Global Investors, L.L.C. owns 3.7%, Paulson & Co. Inc. owns 2.4%, and Sprott Asset Management L.P. owns 2.23%.

According to Reuters, there are 86.22 million shares outstanding with 83.65 million free float traded shares, while the company has a market cap of CA$1.97 billion and trades in a 52-week range of CA$12.62 and CA$22.58.

Important Disclosures:

1. Seabridge Gold Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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