Earnings Call - SEABRIDGE GOLD INC

Explicit Guidance:

• Capital Expenditure & Drilling: Completing a combined 30,000 meters of drilling across the portfolio in 2026, with approximately 25,000 meters focused on the Russell and Moore Lake flagship projects; 3,600 meters at Getty East (JV with Denison) to commence immediately, followed by 5,000+ meters at Wheeler North (JV) starting "next week" or later in the month.
• Future Capex Timeline: Drilling programs and assay results expected to continue through year-end 2026, with a similar or larger drill program anticipated for 2027.
• Financial Impact: 11 partner companies (including new partner PureCore Metals) spending over $130 million potentially across 14 projects; for every $1 Sky Harbor spends on direct drilling, partners contribute an additional $1–$2.
• Share Capital: No explicit share buyback or dividend guidance; management notes equity dilution is kept minimal via the prospect generator model, with occasional flow-through financings.

Business-Segment Outlook:

• Russell Lake Project: Focus on the Wheeler North JV with Denison (targets 700m from Phoenix deposit); drilling 8–10 holes at Getty East (untested since 1980s) and targets along the Pink (RL) and Yellow (Wheeler North) claims; goal to identify high-grade mineralization near existing infrastructure (Phoenix/Griffin mines).
• Moore Lake Project: Completing ~10,000 meters of drilling to expand the Maverick deposit (shallow, high-grade); priority on testing basement rocks and regional targets (Nomad zone, 14km corridor); expecting news flow on pending assays in coming weeks/months.
• Prospect Generator Business: 11 partners spending across the portfolio; new partners (TerraClean, North Shore, Eura X, Future Fuels, Mustang Energy) planned to be active in 2027; 25+ internally owned 100% projects available for optioning, JVing, or sale.
• Operational Strategy: Leveraging road-accessible Russell camp to drill year-round (shoulder seasons/fall) to maintain sub-C$400/meter all-in drilling costs and avoid logistics competition.

Market and Competitive Outlook:

• Demand Trends: Anticipated "breakout" in uranium spot prices over the next 6–12 months driven by hyperscaler data center power demands (citing Google/Constellation PPA) and South Korea's $120 billion proposal for 8 new US reactors.
• Price Expectations: Spot prices currently volatile ($80–$90/lb) but setting up for higher levels; long-term contract prices rising, signaling early-stage bull market.
• Supply Dynamics: Structural deficit with 200M lbs annual demand vs. 170–175M lbs primary supply; Kazatomprom focusing on "value over volume," implying limited supply expansion.
• Equity Valuation: Expect juniors to outperform mid/large-caps later in the bull market (currently underperforming); average analyst target price for Sky Harbor noted as just below $1.00/share.
• Seasonality: Anticipation of strong equity performance seasonally from October through February.

Macro / Industry Outlook:

• Market Bifurcation: Western utilities focused on price, while Eastern demand (India, Russia, China) prioritizes long-term secure supply and stockpiling; Western utilities expected to return to the market meaningfully in coming years, driving prices higher.
• Regulatory/Permitting: Potential for improved economics and permitting regimes for surface mining methods (ISR, Sabre) at shallow deposits like Maverick.
• Capital Markets: U.S. market access expected via NASDAQ listing; potential for passive fund inflows following listing.

Strategic Initiatives:

• NASDAQ Uplist: Application in process; filing of Annual Information Form (AIF) underway; realistic timeline for completion is Q1 of next year to increase liquidity and access US capital.
• M&A / Partnerships: Continued active negotiations to bring new partners to 100%-owned properties; strategic partnerships with Denison (Wheeler North JV), Orano (Preston JV), and Rio Tinto (shareholder) deepening technical collaboration.
• Technology: Leveraging proprietary AI-backed claim monitoring platform to acquire and maintain tenure in the Athabasca Basin, securing ground adjacent to major producers (BHP, Paladin, NextGen activity noted in Western Basin).
• Board Expansion: Addition of Rob Chang (former Cantor Fitzgerald MD, ex-Fission director) to strengthen capital markets and mining oversight.

Risks and Headwinds to Outlook:

• Assay Uncertainty: All current drill assays pending; success of 2026 drilling program and subsequent 2027 plans are dependent on assay results.
• Market Disconnect: Junior equity performance has lagged spot price improvements; sentiment remains low, potentially delaying capital raising or partner activation.
• Execution Risk: Dependence on partner funding (e.g., Denison's $25M earn-in requirement for Wheeler North) and ability to manage logistics during shoulder seasons.
• Competition: Increased activity from major miners (BHP, Paladin, NextGen) in Western Athabasca could affect land acquisition costs or timing.

Management Tone on the Future:

• Confidence Level: High confidence in the next 6–12 months, citing "pivotal" nature of current drilling and "very very early stages" of the bull market.
• Strategic Stance: Aggressive growth posture with "well-funded" status through treasury cash and partner expenditures; focus on "discovery-ready" projects and asset monetization via prospect generator model.
• Market View: Believes current equity underperformance relative to spot prices signals a market bottom, expecting rapid re-rating upon positive news flow.

Miscellaneous:

• Drilling Costs: Achieving sub-C$400 CAD all-in drilling costs at Russell Lake due to infrastructure and year-round access.
• Team: VP of Exploration Siddhar Dhonmez brings 20+ years of experience (ex-Denison, ex-Atha); Board includes former Fission director and mining investment banking executives.
• Geographic Focus: Concentrated on Southeastern Athabasca Basin (infrastructure-rich) but expanding exposure to Western Basin (near Arrow/Triple R) and Northern Basin.