Stonegate Capital Partners Initiates Coverage on Seabridge Gold with Strong Valuation Outlook

Stonegate Capital Partners has initiated coverage on Seabridge Gold Inc. (NYSE: SA), providing comprehensive analysis of the company's financial standing and project portfolio. As of the second quarter of 2025, Seabridge maintained a strong financial position with $121.4 million in cash and cash equivalents, supported by recent financing activities including a $100.2 million equity offering and $30.5 million flow-through financing. This robust financial foundation positions the company well for advancing its extensive project pipeline.

The company's flagship KSM project in British Columbia represents the world's largest undeveloped gold project and third largest copper development resource. The 2022 pre-feasibility study outlined a 33-year mine life with all-in sustaining costs of $601 per ounce net of copper credits. The project received its Substantially Started Designation in July 2024, securing environmental approval for the project's lifetime. Near-term objectives include completing the KSM Site Investigation Program in the second half of 2025 and advancing joint venture partner selection by year-end, which could significantly accelerate development timelines.

Courageous Lake in the Northwest Territories provides Seabridge with a second tier-scale project containing 2.8 million ounces of proven and probable gold reserves. The 2024 pre-feasibility study projected a 12.6-year mine life producing approximately 201,000 ounces annually with an after-tax net present value of $523 million at a 5% discount rate. This project represents substantial additional value beyond the flagship KSM development.

Seabridge's exploration portfolio includes several high-impact projects with substantial growth potential. The Iskut project, located just 20 kilometers from KSM, shows early signs of becoming a second major development following the 2024 discovery of the Snip North porphyry system. Additional exploration activities are planned for the 3 Aces project in Yukon and Snowstorm in Nevada, where a $1.8 million geophysical program will refine drill targets near established mining operations, providing multiple avenues for resource expansion.

Stonegate's valuation analysis applies an enterprise value to net asset value multiple range of 0.60x to 0.80x, resulting in a valuation range of C$41.85 to C$57.85. Using an enterprise value to reserves methodology with multiples of 20x to 30x produces a valuation range of C$42.72 to C$67.17. The company's strategy focuses on securing a major joint venture partner for KSM, unlocking value from Courageous Lake, and expanding its exploration pipeline while maintaining strong per-share growth of gold and copper ounces, positioning Seabridge for significant value creation as projects advance.