RE:Interesting SEA interview w Rudi (Independent Specululator)Oops, forgot the link:
https://www.youtube.com/watch?v=XVzuY1h_0sE
rockport1 wrote: This interview of Seabridge CEO Rudi Fronk by The Independent Speculator is worth a listen. It's a proper interview where he asks a lot of tough questions. Definitely worth a listen while referring to Seabridge's Investor Presentation and with Treaty Creek in your mind for persective. Here are a few interesting notes:
A) Rudi says SEA are looking for a JV partner to take KSM to a bankable FS (time limited) for 10% in Phase One. Phase two would be for the JV partner to take them to a production decision (time limited), raise 50% of the project capital, and sole fund to take them to a majority position from 51-60%. Seabridge would keep 40-49%.
B) Rudi goes through a lot of history about why this project has not been developed for decades. IMO, they are excuses that shade the real reason, which is it has very poor economics. Due to the high capital costs, again IMO, it remains primarily an option on the price of gold and copper. As he states, there are only seven major miners that could take on a project of this size.
This is potentially an issue with Treaty Creek. If the project is too large, the potential buyer pool shrinks dramtically. Perhaps, Tudor needs to consider spinning off Goldstorm or somehow separating the Treaty Creek deposits into smaller digestible pieces. Logistically, I don't know if this reasonbly possible.
C) Seabridge has spent a billion dollars on KSM already. They have Courageous Lake that has a PFS of over $500 million (with over 10 million oz) that they are looking to sell. Not sure how much he expects, but can it be more than a couple of hundred million? The capital costs are higher than the after tax NPV; another marginal project in my opinion.
Anyway, lots of other interesting discussion that can apply to Treaty Creek, particularly the infrastructure that now exists in the area. The interview is long, but worh a listen.