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Seabridge Gold Maintained at Outperform, Speculative, at RBC Ahead of Valor Spinout; Price Target Kept at US$71

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RBC Capital Markets on Monday reiterated its outperform, speculative risk, rating on the shares of Seabridge Gold (SEA.TO, SA) ahead of its spin out of its Courageous Lake and Walsh Lake gold assets in the Northwest Territories into Valor Gold.

"The spin-out of Courageous Lake into Valor Gold could surface meaningful embedded value within the Seabridge

portfolio. With renewed project momentum and a dedicated management team, we see a path to independent valuation expansion as Valor advances the project through its own development milestones. We estimate NAV8% at spot (~US$4,500/oz) of US$2.0-2.9B, implying C$10-14/sh at 0.2x (current SEA P/NAV at spot). This implies a potential future market cap range of ~US$400-$600m vs. our carried valuation in SEA at US$150m (<1% of NAV) as in-situ value being de-prioritized vs. KSM. The wide range on valuation reflects a multi-year timeline to first production (earliest ~2031-2032) and the need for substantial project de-risking before a build decision," analyst Harrison Reynolds wrote.

(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)

Price: $46.22, Change: $-0.36, Percent Change: -0.77%

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