One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Seabridge Gold Inc.
SA · NYQ · Basic Materials · Gold
Current price
$30.30
52-week range
$21.67 - $40.06
Market cap
$3.27B
Balance sheet
Distressed
-31.23x Concerning
Net debt $330.14M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
View details ↓What this company does
Seabridge Gold Inc.
Seabridge Gold buys and explores land in North America to find large deposits of gold, copper, and other valuable metals. Rather than mining the metals themselves, their main goal is to prove how much is in the ground and then sell the entire project to a bigger mining company. Therefore, the company's value is closely tied to its success in discovering new deposits and the market price of gold and other metals.
How the company got here
Seabridge Gold was started in 1999 when gold prices were very low. The founders believed gold was undervalued and would become more expensive in the future. Their strategy was to buy land with known gold deposits that other companies weren't interested in because it wasn't profitable to mine at the time. Between 1999 and 2002, they acquired several properties in North America, including their main project, KSM, for a very low cost. The company's goal was to give investors a way to benefit from rising gold prices without the company having to build or operate expensive mines itself.
What it actually does
Seabridge Gold doesn't actually mine and sell gold from its properties. Instead, its business is to find and prove the value of large mineral deposits. The company acquires land that it believes contains gold, copper, and silver, and then spends money on exploration, like drilling, to confirm how much metal is in the ground. This process turns an educated guess into a proven amount, known as mineral 'reserves' (the amount of ore that can be profitably mined). The company's goal is to make these projects so attractive and well-defined that a larger mining company will buy them or partner with Seabridge to handle the expensive and complex job of building and running a mine.
Mineral Project Development
The company operates as a single business focused on increasing the value of its mineral properties. Its main and most valuable asset is the KSM (Kerr-Sulphurets-Mitchell) project in British Columbia, Canada, which is one of the largest undeveloped gold and copper deposits in the world. Seabridge also owns several other exploration projects in Canada and the United States, such as Courageous Lake and Snowstorm. The company makes money not by selling metals, but by proving the value of these assets with the ultimate goal of selling them or finding a partner for their development.
What management is betting on now
Management's top priority is to secure a partnership with a major mining company for its flagship KSM project. This kind of deal, called a 'joint venture' (an arrangement where two or more businesses pool their resources for a specific project), would provide the funding and expertise to build the actual mine. To make the project more appealing, Seabridge is spending money on advanced engineering studies and early-stage construction work to get KSM fully ready for development. Their long-term strategy is to keep increasing the amount of gold and copper they own in the ground for each share of stock, trying to avoid 'dilution' (issuing so many new shares that it reduces the value of existing ones).
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $30.30
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $330.1M. Interest coverage -31.2x.
Net debt
$330.14M
Interest coverage
-31.23x
Seabridge Gold Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 5 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
SA
BASELINE
Seabridge Gold Inc.
Total debt $397.64M Interest coverage -31.23x This is the baseline the peer rows are being compared against.
Total debt $174.33M Interest coverage -1.72x Neither company has much profit cushion over interest right now.
Total debt $2.45M Interest coverage -25.75x Neither company has much profit cushion over interest right now.
Total debt $0.00 Interest coverage -16.22x Neither company has much profit cushion over interest right now.
Total debt $0.00 Interest coverage -61.40x Neither company has much profit cushion over interest right now.
Total debt $449.04M Interest coverage -3.42x Neither company has much profit cushion over interest right now.
What you should know
The case for and against SA
1 Reward
1 Risk
Rewards
-
Returns 3.3% on equity, ahead of 83% of its peers.
Risks
-
Net debt grew 254.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
159.47x
Forward P/E
-131.45x
P/B
4.16x
P/S
—
EV/EBITDA
-130.64x
PEG ratio
5.40x
Profitability
How much profit each dollar creates
Gross margin
0.0%
Operating margin
0.0%
Net margin
0.0%
ROE
3.3%
ROA
-1.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.51x
Current ratio
2.08x
Quick ratio
2.08x
Total debt
$397.64M
Total cash
$67.50M
Growth
How the business has been compounding
Revenue TTM
$0.00
Revenue 5Y CAGR
—
EPS TTM
0.19
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-10.93M
Free CF TTM
$-107.79M
FCF margin
—
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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