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 2Q25, Seabridge Gold maintained a robust financial position with cash and cash equivalents of $121.4 million, supported by a US$100.2 million equity financing in February 2025 and a $30.5 million flow-through financing in June 2025. The company also renewed its US$750 million base shelf prospectus and US$100 million ATM facility in early 2025, demonstrating strong financial flexibility.

The company's flagship KSM project in British Columbia's Golden Triangle remains the world's largest undeveloped gold project and the third largest copper development resource. The 2022 pre-feasibility study outlined a 33-year mine life producing at an all-in sustaining cost of US$601 per ounce net of copper credits, with initial capital expenditure of US$5.3 billion. The project received its Substantially Started Designation in July 2024, securing its Environmental Assessment Certificate for the life of the project. Near-term objectives include completing the KSM Site Investigation Program in the second half of 2025, supporting a future Bankable Feasibility Study and advancing the ongoing joint venture process targeting partner selection by year-end 2025.

Courageous Lake, located in the Northwest Territories, provides Seabridge with a second Tier-1 scale project hosting 2.8 million ounces of proven and probable gold reserves, 11.0 million ounces measured and indicated, and 3.3 million ounces inferred resources. The 2024 pre-feasibility study outlined a 12.6-year mine life producing approximately 201,000 ounces annually at an all-in sustaining cost of US$999 per ounce, with an after-tax NPV5% of US$523 million and internal rate of return of 20.6%. 2025 activities are focused on maintaining permits, community engagement, and initiating renewal of exploration permits expiring in 2027.

Seabridge's exploration portfolio includes several high-impact projects with substantial organic growth potential. The Iskut project, located just 20 kilometers from KSM, has shown early signs of becoming a second KSM with the 2024 discovery of the Snip North porphyry system. A maiden copper-gold resource is expected by early 2026 following an 8,000-meter drill campaign in 2025. The 3 Aces project in Yukon, a high-grade orogenic gold system, is slated for 2,500 meters of drilling in 2025, while Snowstorm in Nevada will undergo a C$1.8 million geophysical program to refine drill targets near Nevada Gold Mines operations.

Stonegate's valuation analysis applies an EV/NAV range of 0.60x to 0.80x, resulting in a valuation of C$41.85 to C$57.85 with a midpoint of C$49.85. Using an EV/Reserves valuation method with a multiple range of 20x to 30x, the analysis results in a valuation range of C$42.72 to C$67.17 with a midpoint of C$54.94. Seabridge offers exceptional leverage to metals prices through its strategy to secure a major joint venture partner for KSM, unlock value from Courageous Lake, and continue expanding its district-scale exploration pipeline while consistently growing ounces of gold and copper per share faster than outstanding shares.