Stonegate Capital Partners Updates Coverage on Seabridge Gold Inc. (NYSE: SA) 2Q26

Stonegate Capital Partners has updated its coverage on Seabridge Gold Inc. (NYSE: SA), highlighting that the company's second-quarter 2026 results materially strengthened the development and financing setup for its flagship KSM project. The company continues to advance an earn-in joint venture with its preferred partner, while a subsequent US$100 million strategic facility provides funding certainty for planned KSM work and represents an additional validation point as the partnership process advances. Quarterly financials remain secondary, with Q2 net income largely reflecting the one-time Courageous Lake distribution gain.

The KSM partnership is viewed as the primary rerating catalyst. Seabridge is advancing an earn-in JV with its preferred partner, under which the partner would be expected to commit capital and advance the project to earn a majority interest. Naming the partner and defining the funding structure would provide the clearest external validation of KSM and could materially reduce the financing and execution discount currently reflected in SA shares.

The US$100 million strategic facility strengthens both liquidity and the broader KSM setup. The unsecured facility provides Seabridge with the ability to continue the 2026 KSM program and feasibility work while partnership agreements are finalized. No amounts had been drawn as of August 13. While the strategic investor has not been identified, the size, unsecured structure, and timing of the facility are important signals of confidence in KSM and a meaningful reduction in near-term funding risk.

The valuation gap remains significant. Seabridge trades at roughly 10% of KSM's $33.3 billion after-tax recent-metal-price NPV(5%), versus materially higher P/NAV multiples for development-stage peers. Much of that discount reflects uncertainty around the partner and funding path rather than the quality or scale of KSM itself. As the earn-in JV, feasibility work, and long-term financing structure become clearer, there is meaningful potential for SA to move higher on the P/NAV curve.