Seabridge Gold, Inc. (USA) (NYSEMKT:SA)
CAPS Rating:
A development stage company engaged in the acquisition, exploration and development of mineral properties.
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A development stage company engaged in the acquisition, exploration and development of mineral properties.
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"Seabridge’s explicitly advertised and promoted investment premise is that it is a “call option” on the future price of gold. Citron believes this premise is utterly false.Aside from all the background noise about stock promotions, Seabridge investors invest in the stock because they hope it will rise in value as the price of gold rises. As the company has told them, it is a levered play on gold.But the price of Seabridge stock is not tied to the price of gold, it is tied only to the supply and demand for Seabridge shares. That places shareholder returns squarely dependent not upon the price of gold, but upon the actions of management and insiders. This is precisely why the past activities of Seabri"dge’s insiders are so troubling. "http://www.citronresearch.com/index.php/2010/03/01/seabridge-gold-amexsa-%E2%80%93why-the-majors-are-saying-no-while-wall-st-is-saying-yes/#more-421
40 mln plus outstanding shares and 30mln plus ounces gold in the ground just on 1 of the properties. Anyway you slice it there is at least 3/4 oz per share here with the other properties and much more to discover, minus costs of about $400 an ounce.... i'm thinking $280 but... OK. Gold is at at $1360/oz and poised to go much higher take off the $400 cost and what do you see? We didn't speak of the impressive amount of Silver or the mother load of copper here yet, keep that in mind.
If this is not a take over target, and I would be guessing, I don't know what a M&A would look like. Paramount, Rubicon and Seabridge look like about the best juniors I have seen so far.
It helps to actually look at the numbers.
$400/oz cost seems awfully low. Does that include all the costs involved in starting up a new mine (I assume they don't have one)? I have done no research on Seabridge, and have little knowledge of the gold mining process and all associated costs in general, but $400 doesn't sound right.