Seabridge has two properties. KSM and Courageous Lake. Both deposits are low-grade (w/ very high tonnage) but can be mined via an open pit. The biggest problem for SA is that KSM will cost upwards of 4 billion dollars to bring into production. The market cap is currently about $1.2 billion. The project is expensive because of the economies of scale that will be required in order to extract the gold, copper and silver economically.
Courageous Lake will be cheaper to bring into production, and so it is likely that SA could sell part of KSM for cash, in order to change the company's focus from exploration company to producer. But that will be easier said than done, as KSM is probably worth more than SA's entire market cap, and so any suitors might be tempted to take over the entire company.
Lets assign a theoretical value to the profit they could achieve from their resources:
38.5 million ounces of gold x $25 per ounce = $950 million
10 billion pounds of copper x $.05 per pound= $500 million
214 million ounces of silver x $1= $214 million
That would give you... A valuation of around $1.65 billion dollars. The fact that the deposits are low grade means SA will benefit a lot from rising precious metal prices.
Now add in the Feasibility Study of combining the mining of KSM with Pretium's Snowcap and Brucejack (two massive low grade deposits literally down the road from KSM) and you have an exploration company that is almost certain to see its properties come into production. The question... Is when?
