RE:In outer space AnalystPipes Analysis is post Snowfield, prior to this acquisition Gold Stock Analyst, (GSA), had a target of $60, calculated as below. GSA's top ten picks, which includes SA, have outperformed the HUI by over 500% in the past 20 years. Snowfield plus increases in the price of gold and copper may account for the higher target price from Pipes.
"Seabridge Gold (NYSE: SA) owns 100% of Kerr-Sulphurets-Mitchell, the world’s largest fully permitted but still unbuilt gold project, located in British Columbia. With about 40 million ounces of gold and 19.2 billion pounds of copper, its capex is estimated at $5.2 billion (notably less than other unbuilt giant sites such as Northern Dynasty’s Pebble and NovaGold’s Donlin). SA will have to give up significant ownership of the project to get a big miner to fund the capex. GSA thinks a 10% gold stream at the typical $400/oz might persuade some copper miner to fund the deal. (Seabridge says it wants more.) Based on the PEA issued earlier this year, 10% of 1.34 million gold oz/yr nets 133,000 oz/yr to Seabridge at $400/oz. Working through the adjacent calculations, we get a new $60-a-share Target Price."