Seabridge Gold, Inc.
SA
and Eskay Mining Corp. recently entered into an agreement to split equally the estimated cost of around $12 million on construction of the first nine kilometers (5.6 miles) of the Coulter Creek Access Road (“CCAR”). This deal will benefit both companies’ efforts to advance exploration and development in the Golden Triangle in British Columbia, Canada — one of the world’s richest mineral regions.
The construction, which is planned to start this month, will provide Seabridge Gold easy access to its promising 100%-owned KSM project, while providing cost-saving logistical benefits for Eskay Mining’s planned exploration activities. CCAR is one of two main access roads planned and permitted for the KSM project. Approximately 2.92 kilometers of the abovementioned nine kilometer stretch is situated on mineral tenures held by Eskay Mining.
Seabridge Gold’s KSM project is the world’s largest undeveloped gold project and also ranks as one of the world’s largest undeveloped copper projects. It has current proven and probable reserves at 38.8 million ounces of gold and 10.2 billion pounds of copper. In December 2020, the company acquired 100% interest in the Snowfield property immediately adjacent to KSM. The addition of the same significantly transforms the KSM project, increasing measured and indicated gold ounces of KSM by 51% and 28% for copper, and enables new development opportunities for KSM. This, in turn, is likely to have a positive impact on the overall project economics.
This initial segment of CCAR will provide Seabridge Gold with a lower elevation staging site closer to the KSM camp and result in lowering its helicopter costs while improving both safety and access to KSM. It will also shorten the time required to establish early site access to the KSM deposits, thus assuring more rapid development of the project. Meanwhile, for Eskay Mining, it will provide cost-saving logistical benefits and aid it in exploration on its 100% owned consolidated Eskay precious metal-rich volcanogenic massive sulphide (“VMS”) project in the Golden Triangle.
Based in Toronto, Canada, Seabridge Gold engages in acquisition and exploration of gold properties located in North America. It strives to provide shareholders with exceptional leverage to a rising gold price. Its business plan is to increase its reserves but not to go into production on its own. The company will either sell projects or participate in joint ventures toward production with major mining companies. Since inception in 1999, Seabridge Gold has acquired interests in numerous advanced-stage gold projects located in North America. Its principal projects include the KSM property and the Courageous Lake property located in the Northwest Territories. In 2016, the company acquired the Iskut Project and Snowstorm Project in Nevada in 2017. In 2020, Seabridge Gold purchased 100% interest in the 3 Aces gold project in Yukon and the Snowfield property adjacent to the KSM Project.
Notably, the company ranks first in gold as well as copper reserves among major listed gold companies. From 2003 to 2020, Seabridge Gold’s gold resources have grown by 915%. It is also focusing on copper given its growing demand particularly owing to the prospects of its increasing demand in the coming years on account of growing emphasis on cutting down emissions. The company’s debt free balance sheet also provides it a competitive edge.
In the past year, shares of Seabridge Gold have fallen 3.9%, compared with the
industry
’s decline of 16.0%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Seabridge Gold currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks worth considering in the basic materials space include
Cabot Corporation
CBT
,
Nucor Corporation
NUE
and
International Paper Company
IP
. All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Cabot Corporation has a projected earnings growth rate of 137% for the current fiscal year. The company’s shares have appreciated 56% in a year.
Nucor has a projected earnings growth rate of 345% for the current fiscal. The company’s shares have rallied 134% in a year.
International Paper has a projected earnings growth rate of 73% for the current fiscal year. The company’s shares have appreciated 74% in a year.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report