Seabridge Gold: World's Largest Undeveloped Gold-Copper Project Ready for JV Deal in 2025

• Seabridge Gold is advancing the Kerr-Sulphurets-Mitchell (KSM) project, the world's largest undeveloped gold & copper project
• KSM has permits and indigenous support; Seabridge spent $1B+ and 20 years advancing it
• Seabridge seeks a JV partner to help fund and develop KSM; currently in discussions with major miners
• Courageous Lake and Iskut projects provide additional value and optionality for investors
• CEO Rudi Fronk has 40+ years mining experience; insiders own 20%+ of shares

Seabridge Gold (NYSE:SA, TSX:SEA) is a world-class gold and copper asset with significant exploration and development upside. The company's flagship Kerr-Sulphurets-Mitchell (KSM) project in British Columbia ranks as the largest undeveloped gold-copper project globally by gold resources. After over 20 years and $1 billion invested in the project, KSM is substantially de-risked with key permits in hand and support from local indigenous groups. Seabridge is now focused on securing a joint venture partner to help fund and develop the mine.

KSM Project: A Rare Tier-1 Asset 

The KSM project boasts impressive scale and economics. A 2022 pre-feasibility study outlined a 33-year mine life producing over 1 million ounces of gold and 178 million pounds of copper annually, at an attractive all-in sustaining cost of just $600/oz gold (accounting for copper by-product credits).

"If you looked at the all-in cost of (AIC) production for this project, you're looking at about $600 an ounce of gold produced with copper at $3.53 as a byproduct credit. The industry today is making gold at about $1,500 an ounce all-in. This project will be well below that."

With 47.3 million ounces of gold and 7.3 billion pounds of copper in P&P reserves, KSM provides exposure to two critical metals essential for the global energy transition. The project's long life and low costs make it a highly strategic asset for a major miner.

Interview with Chairman & Chief Executive Officer, Rudi Fronk

De-Risked & Partner-Ready 

Seabridge has diligently advanced KSM through exploration, economic studies, and the permitting process. The project holds federal and provincial environmental assessment certificates, with local indigenous groups and communities supporting development.

In July 2024, Seabridge secured a key milestone by obtaining "substantially started" status for KSM.

"We did receive that designation in July of this year, so I think that was the last piece of de-risking that we needed to do to bring a partner in now to co-develop the asset."

With this de-risking complete, Seabridge has engaged RBC Capital Markets to help secure a joint venture partner to fund and develop KSM to production. Fronk confirmed discussions are ongoing with major gold and copper producers who have the technical, financial and social capabilities to build a mine of KSM's scale.

Realizing Shareholder Value 

Given KSM's vast size, Seabridge recognizes a larger partner is best suited to develop the asset. However, the company remains keenly focused on realizing fair value for shareholders.

"We recognize that whoever is going to be our partner here is going to want to have control of the asset at some point in time. Our ask in a joint venture is actually a bit creative. We're actually asking partners to come in and fund a bankable feasibility study (BFS) over the next couple years to earn a minority interest, with an option to increase to a majority stake later by sole funding to a construction decision."

This phased earn-in approach allows Seabridge shareholders to retain meaningful exposure to KSM as it advances to production, while a larger partner funds the heavy lifting.

Additional Growth Pipeline 

Beyond KSM, Seabridge's portfolio includes 100%-owned projects that provide further value and optionality.

The Courageous Lake project in the Northwest Territories hosts 11 million ounces of indicated gold resources. A 2024 PFS outlined a 12-year mine producing 200,000 ounces annually at all-in costs of $1,000/oz. Fronk said the company is exploring ways to monetize this asset, including a potential sale, joint venture or spinout to Seabridge shareholders.

The Iskut project, also in BC's "Golden Triangle", is an earlier-stage asset that could represent "another KSM" according to Fronk. Aggressive drilling at Iskut continues to generate long, high-grade gold-copper intercepts, pointing to the potential for another large porphyry deposit in this prolific district.

Proven Leadership & Insider Alignment 

Seabridge benefits from a deeply experienced management team with a history of value creation in the mining sector. Chairman and CEO Rudi Fronk, a 40-year industry veteran, co-founded Seabridge in 1999 on the thesis of building a company leveraged to a rising gold price by growing gold ownership per share.

Fronk has skillfully executed this strategy over the past two decades. Despite raising over hundreds of millions to acquire and advance its asset base, Seabridge has just 92 million shares outstanding. This disciplined approach to capital allocation and focus on per-share value has positioned the company for outsized returns in a rising gold market.

Notably, Seabridge's management and board have significant skin in the game, aligning them with investors:

"Insiders own well above 20% of the shares of this company. I've not been doing this for 25 years to sell it at today's share price."

The Investment Thesis for Seabridge Gold

• Exposure to world's largest undeveloped gold-copper project with robust economics
• Key permits in hand and indigenous support; substantially de-risked
• Ongoing JV process with major miners to fund/develop the flagship KSM asset
• Earlier-stage projects provide additional resource growth and value creation potential
• Tight share structure (92M shares out) and significant insider ownership (20%+)
• Proven, disciplined management team focused on per share value

Macro Thematic Analysis

The investment case for gold miners like Seabridge is underpinned by a constructive macro outlook for precious metals. Gold has emerged as a standout performer in 2024, notching all-time highs despite a challenging environment for most financial assets. The key drivers fueling gold's rise - high inflation, growing recession risks, and geopolitical turmoil - show no signs of abating.

Central bank demand has been a major contributor to gold's strength.

"What's missing right now though is the Western investor in the space. Those that are buying gold today do not buy gold mining stocks. The Western investor is typically the one that comes in and buys gold equities and they're not buying gold equities right now. I think bringing them back to the table looking forward to gold is what's going to drive gold equities much higher than where they're trading at today."

Fronk's view encapsulates the bull case for gold miners. If history is a guide, a sustained upturn in the gold price will inevitably attract generalist investors back to the mining sector, driving a dramatic re-rating of gold equities. This scenario could see gold stocks deliver substantial outperformance versus the metal as the cycle plays out. In a market starved for returns, gold miners offer tremendous upside potential. Current equity valuations sit near multi-decade lows compared to bullion, setting the stage for significant mean reversion as the gold thesis gains traction.