Interview with Rudi P. Fronk, Chairman & CEO of Seabridge Gold Inc.

Recording date: 16th December 2024

Seabridge Gold (NYSE:SA, TSX:SEA) is advancing KSM, the world's largest undeveloped gold-copper project, located in British Columbia. After investing over $1 billion and 20 years of development work, the company has secured key permits and indigenous support, positioning KSM for its next phase of growth.

The project's 2022 prefeasibility study demonstrates impressive economics, with a planned 33-year mine life producing over 1 million ounces of gold and 178 million pounds of copper annually. The projected all-in sustaining cost of $600/oz gold (after copper credits) sits well below the industry average of $1,500/oz. With 47.3 million ounces of gold and 7.3 billion pounds of copper in reserves, KSM represents a strategic asset in the global energy transition.

In July 2024, Seabridge achieved a crucial milestone by securing "substantially started" status for KSM, completing a major de-risking step. The company has engaged RBC Capital Markets to secure a joint venture partner, with discussions ongoing with major mining companies capable of developing a project of KSM's scale.

Seabridge's proposed joint venture structure involves a two-phase approach: potential partners would first fund a bankable feasibility study to earn a minority interest, followed by an option to increase to a majority stake by funding construction. This structure aims to protect shareholder value while securing necessary development capital.

Beyond KSM, Seabridge's portfolio includes the Courageous Lake project in Northwest Territories, hosting 11 million ounces of indicated gold resources. A 2024 PFS outlined a 12-year mine producing 200,000 ounces annually at $1,000/oz all-in costs. The company is also advancing the Iskut project in BC's Golden Triangle, which shows potential to become another significant gold-copper deposit.

Under CEO Rudi Fronk's leadership, Seabridge has maintained a disciplined approach to capital allocation, with only 92 million shares outstanding despite extensive development work. Management's alignment with shareholders is demonstrated by significant insider ownership exceeding 20%.

The company is well-positioned to benefit from favorable gold market dynamics, with gold reaching all-time highs in 2024. While central bank demand remains strong, Fronk notes the absence of Western investors in gold equities presents a significant opportunity for re-rating as these investors return to the sector. With gold mining stocks trading at multi-decade lows relative to bullion prices, Seabridge offers investors exposure to a world-class asset portfolio in an improving market environment.

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