Mining Co. Makes Progress Toward Needed Designation

A project site visit revealed the explorer is working to achieve this goal, necessary for an environmental certificate extension, Cantor Fitzgerald noted in a report.

Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) is well on its way to achieving the “substantially started” status for its KSM gold-copper project, as defined by British Columbia’s Environmental Assessment Office (EAO), reported Cantor Fitzgerald analyst Steve Kozak, in an August 29, 2022 research note, after he visited the site last week.

KSM must have this designation for Seabridge to get the environmental assessment certificate for the project, issued by the EAO, extended indefinitely, Kozak explained. For KSM to be deemed “substantially started,” Seabridge must establish permanent infrastructure there that will last through the mine’s life, according to the EAO.

As far as a timeline, the Toronto, Ontario-based mining explorer outlines having initial discussions with the EAO in Q3/23, submitting the necessary application by H1/24 at the earliest, and then receiving the designation, at the soonest, in Q4/24.

To reach this goal, Kozak relayed, Seabridge is spending CA$150 million this year and next and has various infrastructure projects in progress. These include constructing three fish habitat offset ponds, site access roads, worker camps, and a power transmission line.

All of this work, along with the mine plan calling for just an open-pit operation, enhance KSM’s attractiveness to potential larger mining firms, Kozak opined. Already, he added, about 12 large-tier miners have expressed interest, according to Seabridge’s management.

“KSM is in a class of its own as the world’s only standalone, development-stage mining project capable of producing 1,000,000-plus ounces of gold annually for decades,” wrote Kozak.

Cantor has a Buy rating and a CA$43.50 per share price target on Seabridge, the current share price of which is around CA$16.14.

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Disclosures For Cantor Fitzgerald Canada Corp., Outcrop Silver & Gold Corp., August 29, 2022

The opinions, estimates and projections contained in this report are those of Cantor Fitzgerald Canada Corporation. (“CFCC”) as of the date hereof and are subject to change without notice. Cantor makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; however, Cantor makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this report or its contents. Information may be available to Cantor that is not herein.

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Potential conflicts of interest:  The author of this report is compensated based in part on the overall revenues of Cantor, a portion of which are generated by investment banking activities. Cantor may have had, or seek to have, an investment banking relationship with companies mentioned in this report. Cantor and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. Although Cantor makes every effort possible to avoid conflicts of interest, readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.

Disclosures as of August 29, 2022: Cantor has provided investment banking services or received investment banking related compensation from Seabridge Gold Inc. within the past 12 months. The analysts responsible for this research report do not have, either directly or indirectly, a long or short position in the shares or options of Seabridge Gold Inc. The analyst responsible for this report has visited the material operations of Seabridge Gold Inc. (KSM and Iskut). No payment or reimbursement was received for the related travel costs.

Analyst certification:  The research analyst whose name appears on this report hereby certifies that the opinions and recommendations expressed herein accurately reflect his personal views about the securities, issuers or industries discussed herein.

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