all resource estimates reported by the company, with the … · 2020-02-05 · forward looking...
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Corporate PresentationFebruary 2020
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Forward Looking Statements
2
All reserve and resource estimates reported by the Company were calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
Statements relating to the estimated or expected future production and operating results and costs and financial condition of Seabridge, planned work at the Company’s projects and the expected results of such work are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: expects, plans, anticipates, believes, intends, estimates, projects, assumes, potential and similar expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should occur. Information concerning exploration results and mineral reserve and resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable at the time they are made, are inherently subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfill projections/expectations and realize the perceived potential of the Company’s projects; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold reserves and resources; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of environmental issues at the Company’s projects; the possibility of cost overruns or unanticipated expenses in work programs; the need to obtain permits and comply with environmental laws and regulations and othergovernment requirements; fluctuations in the price of gold and other risks and uncertainties, including those described in the Company’s Annual Information Form filed with SEDAR in Canada (available at www.sedar.com) for the year ended December 31, 2018 and in the Company’s Annual Report Form 40-F filed with the U.S. Securities and Exchange Commission on EDGAR (available at www.sec.gov/edgar.shtml).
Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management or its independent professional consultants on the date the statements are made.
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The Case for Seabridge
3
• KSM: 38.8M oz gold plus 10.2B lbs copper (2.2B tonnes at 0.55 gpt Au and 0.21% Cu)
• Courageous Lake: 6.5M oz gold (91M tonnes at 2.2 gpt Au)Proven and Probable
Reserves
• 63.3M shares outstanding Low Share Dilution
• $19 Enterprise Value per oz of gold reservesLow Valuation
• All reserves are located in Canada• KSM is shovel ready; Environmental Assessment completedLow Political Risk
• Recent resource additions and new discoveries could add significant higher grade reserves to improve project economicsExploration Upside
• Iskut B.C.: District scale with district scale porphyry potential• Snowstorm Nevada: On the intersection of 3 major gold trendsNew Acquisitions
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30
60
90
120
New
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Barr
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45M oz
Gol
d R
eser
ves
(m o
z)Gold Reserves
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Reserves rank Seabridge among world’s top ten gold companies
Source: Company data. Data as of January 31, 2020. Note: Companies shown include North America’s largest gold companies and selected gold project development companies.
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Seabridge Designed to Provide Leverage to Gold
5
Gol
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omm
on S
hare
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0.40
0.60
0.80
Seab
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Alam
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0.72 Reserve oz/share Seabridge ranks 1st in reserves/share among leading gold companies
Source: Company data. Data as of January 31, 2020.Note: Companies shown include North America’s largest gold companies and selected gold project development companies.
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10
20
30
40
50
60
70
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100
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130
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10
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Shares Outstanding (M
illions)O
unce
s of
Gol
d (M
illion
s)
Proven & Probable Gold Reserves Measured & Indicated Gold Resources Inferred Gold Resources Shares Outstanding
Share Dilution Matters!
6
Reserves and Resources continue to grow faster than shares outstanding
Source: Company data. Data as of December 31, 2018.Note: For a breakdown of Seabridge’s mineral reserves and resources by project, tonnes and grade, please visit http://seabridgegold.net/resources.php
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Historical Performance
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(100%)
400%
900%
1,400%
1,900%
2,400%
2,900%
3,400%
3,900%
4,400%
4,900%
5,400%
5,900%
6,400%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Seabridge Newmont Goldcorp Barrick HUI Gold
Price Performance:
In a rising gold market, Seabridge is a stock to own…
+2,540% +459%+256%+13%+121%
Source: Company and index dataNote: Price Performance represents performance over time from January 2000 through January 2020
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Attractive Valuation
8
Seabridge has a very low enterprise value per oz of gold reserves
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$75
$150
$225
$300
$375
$450
$525
$600
Bar
rick
Pre
tium
Yam
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Pol
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al
New
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Kin
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Pol
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Ang
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ld
Ala
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Det
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Nov
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d
New
Gol
d
Sea
brid
ge
Ente
rpris
e Va
lue
per R
eser
ve o
z
$19/oz
Source: Company data. Data as of January 31, 2020.(1) Enterprise Value calculated as market capitalization (basic) plus net debt and minority interest.Note: Companies shown include North America’s largest gold companies and selected gold project development companies
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Low Political Risk
9
Where would you rather be?
• Illegal strikes and local opposition delay approved projects (Conga, Santa Anna, Tintaya)Peru
• Open pit mining and use of cyanide banned in certain areas• 100% tax on export earnings for some resource projects (Famatina, San Jose)Argentina
• Increased taxes and royalties (Fruta del Norte)Ecuador
• Creeping expropriation through imposed local and government ownership(Batu Hijau, Grasberg, Tujuh Bukit)Indonesia
• Increased royalty structure and challenging power/water supply issues• Local opposition delays approved projects (El Morro, Pascua-Lama)Chile• Stable regulatory and tax regime• Established, reliable procedures for obtaining permits include deadlines for
government agenciesCanada
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KSM - A Rare, World Class Project in a Top Mining Jurisdiction
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• KSM is the world’s largest undeveloped gold/copper project (by reserves)
• Located in mining friendly British Columbia near existing and past producers
– Adjacent to established infrastructure– Access to regional workforce and supplies– Updated mine plan shows outstanding capital efficiency – Established, reliable procedures for obtaining permits
Environmental & Social Approval Obtained • B.C. Environmental Assessment certificate
issued July 2014• Federal Environmental approval received
December 2014• Established social license with local communities
– Signed Impact Benefit Agreements with Nisg̱a’a and Tahltan Nations
– Letters of support received from Terrace, Smithers and the Gitxsan Nation
– Non opposition agreement with Gitanyow Nation
Source: British Columbia Ministry of Energy, Mines and Petroleum Resources (EMPR), company filings, Wood Mackenzie
BRITISH COLUMBIA
37
KSM Project
Producing MineDevelopment Project
Highway
Primary owner
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1
KSMSeabridge (100%)
BrucejackPretium (100%)(425 Employees)
SnowfieldPretium (100%)
HuckleberryImperial Metals (100%)
EndakoCenterra Gold (75%)
Galore CreekNewmont (50%) / Teck (50%)
Schaft CreekTeck (75%)
Red ChrisNewcrest (70%) / Imperial (30%)(380 Employees)
SilvertipCoeur Mining (100%)(167 Employees)
16
WolverineConuma (100%)(325 Employees)
BruleConuma (100%)(285 Employees)
Willow CreekConuma (100%)(190 Employees)
Mount MilliganCenterra Gold (100%)(485 Employees)
BlackwaterNew Gold (100%)
New ProsperityTaseko (100%)
Mount PolleyImperial Metals (100%)
GibraltarTaseko (75%)(625 Employees)
YellowheadTaseko (100%)
Myra FallsNyrstar (100%)(236 Employees)
Highland ValleyTeck (100%)(1,300 Employees)
New AftonNew Gold (100%)(410 Employees)
Copper MountainCopper Mountain Mining (75%)(445 Employees)
Fording RiverTeck (100%)(1,100 Employees)
GreenhillsTeck (80%)(600 Employees)Line CreekTeck (100%)(490 Employees)
ElkviewTeck (95%) (920 Employees)
Coal MountainTeck (100%)
(%)
TatoggaGT Gold (100%)
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KSM – Approved by BC and Canada
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Significant Existing Local Infrastructure
12
• Northwest Transmission Line completed in 2014– ~31.5 km between powerline to KSM process plant
• Paved Highway 37 allows efficient transport to and from port and mine – in use to support Brucejack and Red Chris
• Two nearby ports at Stewart B.C.• Two nearby regional airports and a local airstrip• Recent federal and provincial government additional
funding to complete bringing fiber-optic communications to the Tahltan Territory
N
KSM
BRITISH COLUMBIA
ALASKA
Port of Stewart
Port of Prince Rupert
Kitimat
37
37A
37
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Forrest Kerr Hydroelectric
CN Rail
NorthwestTransmission Line
Smithers Reginal Airport
Seabridge Asset
AirportAirstrip
Highway
RailwayHydroelectric Asset
Transmission Lines
Fiber Optic CablePorts / Port Towns
0 10050
kilometers
Northwest Reginal Airport
Bob Quinn Airstrip
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KSM – Mitchell Zone
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COMMENTARY
Based on NSR values calculated in block model using:
US$1,200/oz Au
US$2.70/lb Cu
US$17.50/oz Ag
Utilizes varying process recoveries for the different mining areas and applicable off-site charges for defining ore and waste in the open pit
NSR values used as a dynamic cut-off grade for defining ore and waste; minimum of C$9.00/t
Zone Mining Method Reserve Category
Millions Tonnes
Average Grades Contained Metal
Gold (gpT)
Copper (%)
Silver (gpT)
Gold (million ounces)
Copper (million pounds)
Silver (million ounces)
Mitchell Open Pit
Proven 460 0.68 0.17 3.1 10.1 1,767 45 Probable 481 0.63 0.16 2.9 9.7 1,677 44
Block Cave Probable 453 0.53 0.17 3.5 7.7 1,648 51
Iron Cap Block Cave Probable 224 0.49 0.20 3.6 3.5 983 26 Sulphurets Open Pit Probable 304 0.59 0.22 0.8 5.8 1,495 8 Kerr Open Pit Probable 276 0.22 0.43 1.0 2.0 2,586 9
Totals Proven 460 0.68 0.17 3.1 10.1 1,767 45 Probable 1,738 0.51 0.22 2.5 28.7 8,388 138
Total 2,198 0.55 0.21 2.6 38.8 10,155 183
The 2016 PFS defined Proven & Probable Reserves of ~39 Moz of Au and +10B lbs of Cu; significantly better ore has been found since
2016 PFS excluded the delineated Inferred Mineral Resources at Deep Kerr and Iron Cap Lower Zone
1414
2016 PFS: Proven and Probably Reserves
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KSM – 2016 Preliminary Feasibility Study
15
The PFS projects a large, long-life mine
Note: Numbers above have been rounded.
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2016 PFS: Before Tax Economic Analysis
16
Note: For Operating and Total Costs, copper, silver and molybdenum revenues are taken as a by-product credits. Total Costs include all Initial Capital, Sustaining Capital and Closure Costs. Numbers above have been rounded.
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2016 PFS: After Tax Economic Analysis
17
Note: Taxes include B.C. Mineral Tax plus Canadian Federal and B.C. Corporate Income Taxes. Numbers above have been rounded.
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New Discoveries at Grades Higher Than Reserves
18
• Deep Kerr core zone found in 2013 now contains 2.0 billion tonne inferred resource grading 0.41% copper and 0.31 g/T gold
• New inferred resource at Iron Cap zone estimated at 1.9 billion tonnes at 0.45 g/T gold and 0.30% copper
• Additions to KSM resources since 2013 total 44.4 million ounces of gold and 29.3 billion pounds of copper at grades significantly higher than existing reserves
• Deep Kerr and Iron Cap’s grades and size compare favorably with some of the world’s largest, most profitable, operating copper/gold mines
• New PEA demonstrates significant economic improvements to KSM from Deep Kerr higher-grade resources
• Economic improvements from Iron Cap additions still to come
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2016 PEA: Production Plan
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COMMENTARY
• Based on same Mineral Resource Estimate used in 2016 PFS, except that the Inferred Mineral Resources are included in the PEA project design and projected economics
• 2016 PEA mine plan captures an additional 6.5 billion pounds of copper at essentially the same tonnage throughput
• Result is significant economic improvement over 2016 PFS mine plan
Since the 2016 PEA, exploration success has dramatically increased Iron Cap’s Indicated and Inferred Resources; now
423 Mt and 1,900 Mt, respectively
The 2016 PEA mine plan captures an additional 6.5B lbs Cu
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KSM – 2016 Preliminary Economic Assessment
21
The PEA incorporates Deep Kerr and Lower Iron Cap with170k tpd throughput capacity
Note: As the PEA is preliminary in nature, it includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Numbers above have been rounded.
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2016 PEA: Before Tax Economic Analysis
22
Note: For Operating and Total Costs, copper and silver revenues are taken as a by-product credits. Total Costs include all Initial Capital, Sustaining Capital and Closure Costs. As the PEA is preliminary in nature, it includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Numbers above have been rounded.
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2016 PEA: After Tax Economic Analysis
23
Note: Taxes include B.C. Mineral Tax plus Canadian Federal and B.C. Corporate Income Taxes. As the PEA is preliminary in nature, it includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Numbers above have been rounded.
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Multi-Generational District Potential
24
• Mining focuses on highest grade and most economic portions of significant deposits
• Opportunity for additional drilling to establish more high grade material and further improve economics
Proven & ProbableGrade Contained
Zone Tonnes Au Cu Au Cu(Mt) (g/t) (%) (Moz) (Mlbs)
Mitchell 1,394 0.61 0.17 27.5 5,092Iron Cap 224 0.49 0.20 3.5 983Sulphurets 304 0.59 0.22 5.8 1,495Kerr 276 0.22 0.43 2.0 2,586Total 2,198 0.55 0.21 38.8 10,155
Measured & Indicated(1)Mitchell 1,795 0.60 0.16 34.3 6,638Iron Cap 423 0.41 0.22 5.6 2,051Sulphurets 382 0.58 0.21 7.1 1,766Kerr 378 0.22 0.41 2.7 3,445Total 2,977 0.52 0.21 49.7 13,900
InferredMitchell 478 0.38 0.10 6.4 1,232Iron Cap 1,899 0.45 0.30 27.5 12,556Sulphurets 182 0.46 0.14 2.7 563Kerr 2,002 0.31 0.41 19.7 17,672Total 4,561 0.38 0.32 56.3 32,023
7.5 billion tonnes and growingNote: Blue lines indicate KSM property boundaries.Note: Pretium owns 100% of the adjacent Snowfield property.(1) Inclusive of Mineral Reserves.
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25
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New Iron Cap Resources to Further Improve Economics
26
NSR Cutoff (C$) Resource Category Tonnes
(millions)
Contained Metal
Gold (gpt)
Copper (%)
Silver (gpt)
Gold (000
ounces)
Copper (million pounds)
Silver (000
ounces)
16 Indicated 423 0.41 0.22 4.6 5,576 2,051 62,559 Inferred 1,899 0.45 0.30 2.6 27,474 12,556 158,741
20 Indicated 361 0.44 0.24 4.7 5,107 1,910 54,550 Inferred 1,675 0.48 0.31 2.6 25,849 11,444 140,016
24 Indicated 274 0.50 0.25 5.1 4,405 1,510 44,927 Inferred 1,373 0.53 0.34 2.7 23,396 10,289 119,186
28 Indicated 195 0.56 0.27 5.3 3,511 1,160 33,228 Inferred 1,070 0.59 0.36 2.7 20,297 8,490 92,883
32 Indicated 132 0.64 0.28 5.5 2,716 815 23,341 Inferred 808 0.67 0.39 2.8 17,405 6,945 72,738
36 Indicated 87 0.72 0.29 5.6 2,014 556 15,664 Inferred 594 0.75 0.43 2.9 14,323 5,629 55,383
NSR Cutoff (C$)
Resource Category
Tonnes (millions)
Contained Metal
Gold (gpt)
Copper
(%)
Silver
(gpt)
Gold
(000
ounces)
Copper
(million
pounds)
Silver
(000
ounces)
16
Indicated
423
0.41
0.22
4.6
5,576
2,051
62,559
Inferred
1,899
0.45
0.30
2.6
27,474
12,556
158,741
20
Indicated
361
0.44
0.24
4.7
5,107
1,910
54,550
Inferred
1,675
0.48
0.31
2.6
25,849
11,444
140,016
24
Indicated
274
0.50
0.25
5.1
4,405
1,510
44,927
Inferred
1,373
0.53
0.34
2.7
23,396
10,289
119,186
28
Indicated
195
0.56
0.27
5.3
3,511
1,160
33,228
Inferred
1,070
0.59
0.36
2.7
20,297
8,490
92,883
32
Indicated
132
0.64
0.28
5.5
2,716
815
23,341
Inferred
808
0.67
0.39
2.8
17,405
6,945
72,738
36
Indicated
87
0.72
0.29
5.6
2,014
556
15,664
Inferred
594
0.75
0.43
2.9
14,323
5,629
55,383
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At Current Spot Prices Resource Additions Significantly Improve Economics – Iron Cap to Come
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Mine Plans: Pre-Tax Financial Results Unit 2016 PFS 2016 PEA 2020 PEA
Initial Capital Cost $M $4,800 $5,300Net Cash Flow $M $23,700 $34,500NPV @ 5% $M $5,900 $9,100Internal Rate of Return % 14.3% 16.4%Payback Period years 4.2 4.0Operating Costs (LOM) $/oz Au $293 -$155Total Costs (includes all capital) $/oz Au $671 $359Metal Price Assumptions:
Gold $/oz $1,500 $1,500Copper $/lb $2.60 $2.60
Silver $/oz $18.50 $18.50
US$/Cdn$ Exchange Rate 0.76 0.76
Note: For Operating and Total Costs, copper and silver revenues are taken as a by-product credits. Total Costs include all Initial Capital, Sustaining Capital and Closure Costs. As the PEA is preliminary in nature, it includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Numbers above have been rounded.
??
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Courageous Lake
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• At 6.5M oz, (91 million tonnes at 2.2 gpTAu) Courageous Lake (“CL”) is Canada’s 2nd largest undeveloped gold reserve (KSM is 1st)
• Excellent open pit grade of 2.2 gpt Au
• 2012 Preliminary Feasibility Study shows profitable project with exceptional leverage to higher gold prices
• Wholly owned 53 km greenstone belt provides excellent exploration potential
• Located in Northwest Territories within 100 km of Diavik and Ekati, two large operating open pit diamond mines
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Courageous Lake – Project Location
29
• Project located on winter ice road, in close proximity to the Diavik and Ekati mines– Demonstrating that year round
open pit bulk tonnage operations are feasible
• Nearby mines provide “real-time” estimates for capital and operating costs– Additionally, with mines scheduled
to close over the next several years, a local and trained workforce will be readily available
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Courageous Lake – PFS Pre-Tax Summary
30
Exceptional leverage to gold price
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Courageous Lake – PFS After-Tax Summary
31
Exceptional leverage to gold price
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Courageous Lake – PFS Pre-Tax Summary at Recent Spot Prices
32
Weaker C$ and higher gold price significantly improves projects economics Case
Unit Base Recent Spot
Gold Price $/oz $1,384 $1,500
Initial Capital Cost $M $1,520 $1,165
Mine Life years 15.0 15.0
Average Annual Gold Production ounces 385,000 385,000
Net Cash Flow $M $1,507 $3,648
NPV @ 5% $M $303 $1,705
Internal Rate of Return % 7.3% 19.7%
Payback Period years 11.2 3.9
Operating Costs (years 1-5) $/oz Au $674 $526
Operating Costs (LOM) $/oz Au $780 $607
Total Costs (includes all capital) $/oz Au $1,123 $867
US$/Cdn$ Exchange Rate - 0.98x 0.75x
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CL – Value Enhancing Opportunities
33
• Access to hydro-electric generated power• Examine year round road access
opportunities
Improve Capital and Operating
Costs
• Exploring for higher grade material that could be exploited in the early years of production
• History of high grade production along belt
HigherGrades
• Exploring for additional bulk mineable deposits that could extend project life beyond the current 15 year estimate
Additional Deposits
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Courageous Lake – Exploration Potential
34
• Existing 6.5M oz reserve (91 million tonnes at 2.2 gpT Au) covers only2 km of an under explored green-stone belt that stretches 53 km– Owned 100% by Seabridge
• Two former producing mines on belt (Salmita and Tundra) had average grades of ~1 opt Au (30 gpt)
• Seabridge now exploring for additional deposits that could extend the estimated 15 year mine life– With potentially higher grades
mined in early years
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Walsh Lake Resources (March 2014)
35
Approximately 50% higher grade than Courageous Lake’s reserves
Walsh Lake Inferred Resource
Note: Mineral resources which are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources have a high degree of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category.
Cut-Off GoldGrade Tonnes Grade Inferred(g/T) (K) g/t (K oz)
0.20 6,647 2.37 506
0.30 5,987 2.60 500
0.40 5,477 2.81 495
0.40 5,022 3.03 489
0.60 4,624 3.24 4820.70 4,278 3.45 475
0.80 3,986 3.65 468
0.90 3,727 3.84 460
1.00 3,512 4.02 454
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Courageous Lake 2018 Drilling Targets
36
2018 drill program discovers two new gold zones:
Olsen:40 meters @ 3.04 g/T
Marsh Pond:14 meters @ 3.08 g/T24 meters @ 2.13 g/T18 meters @ 1.72 g/T
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SnipGold Acquisition
37
• In June 2016 Seabridge issued 695,000 shares to acquire 100% of SnipGold to obtain 100% of very large Iskut Project
• Iskut Project reports 2.2 million ounces of NI 43-101 measured and indicated gold resources at the Bronson Slope prospect
• Iskut historically produced high-grade gold and hosts many unexplored targets for high-grade gold and porphyry deposits
• Iskut is located 30 kilometers from KSM, offering optimal synergies for Seabridge knowledge and infrastructure
• 2019 exploration program confirms large porphyry target below Quartz Rise lithocap – 2020 drill program to test new target
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Iskut Location and Access
3838
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•3939
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Snowstorm Acquisition
40
• In June 2017 Seabridge acquired 100% of the Snowstorm gold project in Nevada from Paulson & Co. for 700,000 common shares plus 500,000 common share purchase warrants
• Snowstorm sits on the intersection of three major Nevada gold belts: Getchell, Carlin and the Northern Nevada Rift Zone
• Geologic, geochem and geophysical data documents hydrothermal alteration zones and structural settings consistent with large Nevada gold deposits
• Snowstorm is contiguous and on strike with several large producing gold projects including Getchell/Turquoise Ridge, Twin Creeks and Midas
• Seabridge’s 2020 drill program focused on Twin Creeks and Turquoise Ridge type targets
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Snowstorm/Goldstorm Location
4141
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New Discoveries are Lagging Production
42
• From 1990 to 1999, the industry on average found 1.4 ounces of gold reserves and resources for every ounce produced
• For 2000 to 2009, only 0.7 ounces of gold reserves and resources were found for every ounce produced
• For 2010 to 2016, the industry estimates that at best 0.3 ounces of gold may have been found per ounce produced
• The majors need new deposits with scale and capital efficiency that can be permitted in safe jurisdictions…KSM checksall the boxes
Source: S&P Global Market Intelligence, Paradigm Capital
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124.6
86.5
43.4
73.1
46.6
33.2
16.7 17.9
nil
76.6
65.9
52.346.9
25.5
48.6
22.1 18.7
45.3
Barri
ck
New
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Angl
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Seab
ridge
2007 Reserves vs. 2018 Reserves for Select Major Gold Companies
2007 Reserves (m oz) 2018 Reserves (m oz)
Majors’ Gold Reserves are Declining
43
Source: S&P Global Market Intelligence, Seabridge Gold Inc.
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Gold Industry Production in Major Decline
44
Majors require new projects to replace depleting production
(2) Source: Consensus estimate. Includes CPM Group, GFMS and Metals Focus
-
$203 $191$221
$135
$857
$291
$327
$282
nil
$76 $63 $63$97
$129
$38
$83 $82
$6
Bar
rick
New
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Gol
dcor
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Ang
loG
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Kin
ross
New
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Agn
ico-
Eag
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Yam
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Sea
brid
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Cost Per Gold Ounce of Acquisition vs. Exploration from 2008 - 2017
Acquisition-derived reserves Exploration-derived reserves
Cheaper to Find Reserves Than Buy Them
45
Source: S&P Global Market Intelligence, Seabridge Gold Inc.
-
Seabridge Best in Class in Finding Reserves
46
Source: S&P Global Market Intelligence, Seabridge Gold Inc.
11.09.5
23.2
7.510.0
31.6
5.4 5.4
nil
27.6
36.9
23.9
27.9
8.9
22.3
11.0 11.2
45.3
Bar
rick
New
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t
Gol
dcor
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Ang
loG
old
Kin
ross
New
cres
t
Agn
ico-
Eag
le
Yam
ana
Sea
brid
ge
Gold Ounces Added by Acquisition vs. Exploration from 2008 - 2017
Au Oz Added by Acquisition (m oz) Au Oz Added by Exploration (m oz)
-
Four Catalysts for a Higher Valuation
47
Enhanced De-Risking Premium •Fewer safe jurisdictions•More difficulty permitting•KSM has permits and social license in Canada
Outstanding Exploration Record•Over 44 Mn oz Au and29 Bn lbs Cu added over past 5 years at superior grades
•Industry exploration not replacing production:in-ground resources will soon be re-valued
•KSM, CL, Iskut and Snowstorm have best-of-class potential for adding resources
Joint Ventures•KSM is a top candidate for a production JV on friendly terms
•Major companies now more deal-capable
•World’s largest mining companies under CA
•Project continues to improve
•Acceptable terms may need improved market conditions
Leverage to theGold Price• Seabridge outperforms
in a gold bull market
-
Corporate Information
48
• NYSE: SA• TSX: SEA• Included in GDXJ, S&P/TSX Composite, Global Mining and Global Gold
Listings
• 63.3 M shares outstanding• 66.8 M fully dilutedShare Structure
• No debt• > $20 million in working capitalBalance Sheet
• Interests are aligned with shareholders• Insiders own over 30% of common sharesManagement and Board
• Own ~25% of common shares• Investors include National Bank, Century Management, Van Eck, Weiss,
TD Bank, Sprott, Fidelity, Paulson & Co.Financial Institutions
• Royal Gold (holds option to acquire 2% gold/silver NSR at KSM for $160 million in cash)Strategic Investors
-
Experienced Management
49
Over 30 years of experience in the gold business, primarily as a senior officer and director of private and publicly traded companies including Gedex, Greenstone Resources, Columbia Resources, Behre Dolbear & Company, Riverside Associates and DRX.
Rudi FronkCo-Founder, Chairman & CEO
Over 30 years of experience in the mining sector and responsible for designing and managing the technical programs required to advance Seabridge's two main assets towards feasibility.Former Vice President of Solutions and Innovation for Newmont Mining Company
Jay LaymanDirector, President & COO
Over 30 years of exploration experience and is responsible for the design and execution of Seabridge’s exploration and resource delineation programs.Previously served as Exploration Manager and Vice President with Placer Dome
Bill ThrelkeldSenior VP, Exploration
Over 30 years of experience in mine engineering, design, strategic analysis and start-up.Formerly a Group Executive, Mine Engineering at Newmont Mining Corporation
Peter WilliamsSenior VP, Technical Services
Over 25 years of experience, responsible for developing and managing Seabridge's environmental programs and community engagement strategies
Brent MurphySenior VP, Environmental Affairs
Has 25 years of mining industry and public accounting experience and is a CPA.Currently a director of Paramount Gold Nevada Corp.
Christopher ReynoldsVice President Finance and CFO
Has practiced law in the areas of corporate finance and securities, corporate and mining since 1993 and has been counsel to Seabridge Gold since 1999
Bruce ScottVice President, Corporate Affairs
Over 25 years of mining experience in various technical, operational and leadership roles from early stage studies to mine operations through to mine reclamation.Previously with Newmont Mining
Mike SkurskiVice President, Technical Services
20 years’ experience as a Biologist and Environmental Specialist in BC and Canada’s north.Responsible for the environmental and reclamation programs for Seabridge for the past 9 years.
Elizabeth MillerVice President, Environment and
Social Responsibility
-
Board of Directors
50
• Founder and Chairman of Mintec, Inc. and one of the original developers of MineSight™, recognized as the pre-eminent reserves modeling and mine design software system with more than 300 installations worldwideFrederick Banfield
• Over 30 years of experience, Mr. Gonzalez-Urien is one of the most highly regarded exploration geologists in the mining industry. Ran global exploration for Placer Dome from 1989 through 2001
Eliseo Gonzalez-UrienChair, Compensation
Committee
• Currently serves as the Executive Chairman of The RMH Group, Inc.• Former CEO (and previously COO and CFO) of Echo Bay Mines
Richard KrausChair, Audit Committee
• Former Vice President, Supply Chain Management at both Barrick and Newmont• Past General Manager at Barrick’s Hemlo OperationsMelanie Miller
• Over 40 years of legal expertise on mining, securities, financing and mergers and acquisitions• Former CEO of Anvil Mining and current director of Algold Resources Inc. and Uranium One
John SabineChair, Governance and Nominating Committee
• Over 30 years experience in resource-related environmental consulting• As founder and CEO of Rescan, managed numerous EIS and permitting for major mining projects including KSM
Clem PelletierChair, Technical Committee
• 32 years of investment banking experience• Former director of Osisko Mining and Romarco Minerals. Director of Stillwater MiningGary Sugar
Slide Number 1Forward Looking StatementsThe Case for SeabridgeGold ReservesSeabridge Designed to Provide Leverage to GoldShare Dilution Matters!Historical PerformanceAttractive ValuationLow Political RiskKSM - A Rare, World Class Project in a Top Mining JurisdictionKSM – Approved by BC and CanadaSignificant Existing Local InfrastructureKSM – Mitchell Zone2016 PFS: Proven and Probably ReservesKSM – 2016 Preliminary Feasibility Study2016 PFS: Before Tax Economic Analysis2016 PFS: After Tax Economic AnalysisNew Discoveries at Grades Higher Than ReservesSlide Number 192016 PEA: Production PlanKSM – 2016 Preliminary Economic Assessment2016 PEA: Before Tax Economic Analysis2016 PEA: After Tax Economic AnalysisMulti-Generational District PotentialSlide Number 25New Iron Cap Resources to Further Improve Economics At Current Spot Prices Resource Additions Significantly Improve Economics – Iron Cap to ComeCourageous LakeCourageous Lake – Project Location Courageous Lake – PFS Pre-Tax SummaryCourageous Lake – PFS After-Tax SummaryCourageous Lake – PFS Pre-Tax Summary at Recent Spot PricesCL – Value Enhancing OpportunitiesCourageous Lake – Exploration PotentialWalsh Lake Resources (March 2014)Courageous Lake 2018 Drilling TargetsSnipGold AcquisitionIskut Location and AccessSlide Number 39Snowstorm AcquisitionSnowstorm/Goldstorm LocationNew Discoveries are Lagging ProductionMajors’ Gold Reserves are DecliningGold Industry Production in Major DeclineCheaper to Find Reserves Than Buy ThemSeabridge Best in Class in Finding ReservesFour Catalysts for a Higher ValuationCorporate InformationExperienced ManagementBoard of Directors
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