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

Rhea-AI Summary

Stonegate Capital Partners updated its coverage on Seabridge Gold (NYSE: SA), highlighting that 2Q26 developments materially strengthened the KSM project’s development and financing framework. Seabridge is advancing an earn-in joint venture with a preferred partner, under which the partner is expected to fund and advance KSM to earn a majority interest.

Stonegate also points to a new US$100M unsecured strategic facility/b), which it views as enhancing funding certainty for the 2026 KSM program and feasibility work; no amounts had been drawn as of August 13. The update notes that Q2 net income mainly reflected a one-time Courageous Lake distribution gain and that Seabridge trades at roughly 10% of KSM’s .

Positive

• US$100M unsecured strategic facility available to fund 2026 KSM work, with no amounts drawn as of August 13
• Advancing earn-in JV structure where a partner would commit capital and advance KSM to earn a majority stake
• Seabridge trades at about 10% of KSM’s $33.3B after-tax NPV(5%), indicating a substantial valuation gap versus development peers

Negative

• KSM earn-in JV partner has not yet been named and funding structure is not yet defined
• Strategic investor for the US$100M facility remains unidentified, leaving some opacity around this funding source
• Q2 net income largely reflects a one-time Courageous Lake distribution gain, limiting insight into recurring earnings

News Explained

The US$100 million unsecured facility provides capacity for planned KSM work, but no amount had been drawn as of August 13; it therefore adds potential funding rather than cash already received, while the earn-in partner’s capital commitment remains expected rather than completed.

Market Context

Current short positioning was relatively low, according to the platform data. Against that backdrop,...

Analysis

Current short positioning was relatively low, according to the platform data. Against that backdrop, the KSM update remained dependent on partnership definition and funding execution, while regulatory reconsideration was the key risk to watch.

Key Figures

Strategic facility: US$100M KSM after-tax NPV: $33.3B KSM valuation: 10% +1 more

4 metrics

Strategic facility US$100M Funding for planned 2026 KSM work

KSM after-tax NPV $33.3B Recent-metal-price NPV(5%)

KSM valuation 10% Of KSM's after-tax NPV(5%)

Facility draw status No amounts drawn As of August 13

Historical Context

5 past events · Latest: Aug 13 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 13	Q2 financial filing	Positive	+4.2%	Q2 filing reported higher net income and continued KSM development activity
Jul 20	Credit facility	Positive	+0.6%	US$100M unsecured facility supported ongoing KSM work programs
Jun 24	Annual meeting results	Positive	+3.2%	Shareholders approved board, auditor and executive compensation items
Jun 08	Court ruling	Negative	-0.1%	Court required consultation before reconsideration of KSM designation
Jun 08	Sustainability report	Positive	-5.4%	Report detailed safety, environmental and community performance

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Four of five recent events aligned with their observed price direction; the 2025 Sustainability Report was the exception.

Key Terms

earn-in joint venture, npv(5%), p/nav

3 terms

earn-in joint venture financial

"Seabridge is advancing an earn-in JV with its preferred partner"

An earn-in joint venture is a deal where one party gradually wins an ownership stake in a project by meeting pre-agreed milestones—such as paying cash, funding exploration or development work, or reaching production targets—rather than buying the stake outright. Think of it like earning shares in a group project by doing specific tasks; for investors it clarifies who bears costs, who takes technical risk, how ownership can change over time, and what future cash commitments or rewards may follow.

npv(5%) financial

"KSM's $33.3B after-tax recent-metal-price NPV(5%)"

Net present value at 5% is the sum of a project’s or investment’s expected future cash flows converted into today’s dollars using a 5% yearly discount rate. Think of it as how much future money is worth today after accounting for the idea that a dollar now is worth more than a dollar later; using 5% shows the investment’s value when investors require or expect a 5% return. A positive NPV(5%) suggests the investment should add value to shareholders, while a negative value suggests it would destroy value.

p/nav financial

"versus materially higher P/NAV multiples for development-stage peers"

Price-to-NAV (P/NAV) is the ratio of a security’s market price to its net asset value per share, where net asset value equals the company’s assets minus liabilities divided by outstanding shares. It shows whether the market is valuing the shares above (premium) or below (discount) the underlying asset value, like comparing what shoppers pay for a basket of goods to the basket’s sticker price. Investors use it to gauge relative valuation for asset-heavy firms such as funds, real estate firms, and resource companies.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Dallas, Texas--(Newsfile Corp. - August 20, 2026) - Seabridge Gold Inc. (NYSE: SA): Stonegate Capital Partners Updates Coverage on Seabridge Gold Inc. (NYSE: SA). Seabridge's 2Q26 materially strengthened the KSM development and financing setup. The Company continues to advance an earn-in JV with its preferred partner, while the subsequent US$100M strategic facility provides funding certainty for planned KSM work and, in our view, 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.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• The KSM partnership is 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. In our view, 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$100M 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, we view the size, unsecured structure and timing of the facility as an important signal 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 $33.3B after-tax recent-metal-price NPV(5%), versus materially higher P/NAV multiples for development-stage peers. We believe 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.

Click image above to view full announcement.

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About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/310673

FAQ

What did Stonegate Capital Partners highlight in its August 20, 2026 update on Seabridge Gold (SA)?

Stonegate Capital Partners emphasized Seabridge Gold’s KSM partnership process and a new US$100M strategic facility. According to Stonegate, these developments strengthen KSM’s development and financing setup, while quarterly financials are viewed as secondary due to a one-time Courageous Lake distribution gain.

How does the US$100 million strategic facility affect Seabridge Gold’s KSM project (SA)?

The US$100M unsecured strategic facility gives Seabridge funding flexibility for its 2026 KSM program and feasibility work. According to Stonegate Capital Partners, no amounts had been drawn by August 13, which it views as reducing near-term funding risk while partnership agreements are finalized.

What is the earn-in joint venture structure Stonegate describes for Seabridge Gold’s KSM project (SA)?

Stonegate reports Seabridge is advancing an earn-in JV with a preferred partner, where the partner would commit capital and advance KSM to earn a majority interest. According to Stonegate, formally naming the partner and funding structure could help validate KSM and clarify the funding path.

Why does Stonegate see a valuation gap in Seabridge Gold (SA) relative to KSM’s NPV?

Stonegate notes Seabridge trades at roughly 10% of KSM’s $33.3B after-tax NPV(5%). According to Stonegate, the discount likely reflects uncertainty around the partnership and funding route rather than KSM’s project scale, suggesting potential re-rating as these elements become clearer.

What role did the Courageous Lake distribution play in Seabridge Gold’s 2Q26 results (SA)?

Stonegate indicates 2Q26 net income largely reflected a one-time distribution gain from Courageous Lake. According to Stonegate, this makes quarterly financials secondary in its thesis, with more emphasis placed on KSM’s partnership, financing setup, and long-term project value.

Has Seabridge Gold (SA) drawn on the US$100 million strategic facility mentioned by Stonegate?

No, Seabridge had not drawn any amounts under the US$100M strategic facility as of August 13. According to Stonegate Capital Partners, the undrawn, unsecured facility still enhances liquidity for ongoing KSM work while final partnership agreements and long-term financing structures are pursued.