- An investment case in Seabridge revolves around a largely risk-free business model, strong balance sheet, as well as mining projects with eye-catching mining dynamics.
- Yet, we don't find Seabridge currently worth an investment due to several reasons including high initial CAPEX, share dilution by management, long development timelines, and uncertainty in gold prices.
- Here, we discuss the positive aspects to an investment thesis in Seabridge Gold, and contrast them with the risk factors.
- Our analysis reveals that Seabridge is a speculative play capable of offering strong leverage to a rising gold price environment and should only be invested with a near-term horizon for swing trading gains.
- In my view, Seabridge's projects are likely to have acquisition offers in a stronger gold price environment, where gold prices breach and sustain >$2000/ounce.
For further details see:
Seabridge Gold: All That Glitters Is Not Gold, Not Until Very 'Long'