SEABRIDGE GOLD. Corporate Presentation August 2017

Transcription

1 Corporate Presentation August 2017

2 Forward Looking Statements All reserve and resource estimates reported by the Company were calculated in accordance with the Canadian National Instrument 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 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 other government 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 for the year ended December 31, 2016 and in the Company s Annual Report Form 40-F filed with the U.S. Securities and Exchange Commission on EDGAR (available at 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. 2

3 The Case for Seabridge Proven and Probable Reserves 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) Low Share Dilution 56.7M shares outstanding Low Valuation $14 Enterprise Value per oz of gold reserves Low Political Risk All reserves are located in Canada KSM is shovel ready; Environmental Assessment completed Exploration Upside Recent resource additions and new discoveries could add significant higher grade reserves to improve project economics New Acquisitions Iskut B.C.: District scale with high-grade epithermal gold potential Snowstorm Nevada: On the intersection of 3 major gold trends 3

4 Gold Reserves Reserves rank Seabridge among world s top ten gold companies Gold Reserves (M oz) M oz - Barrick Polyus Newmont Newcrest Anglogold Seabridge Goldcorp Kinross Yamana Agnico-Eagle NovaGold Polymetal Detour New Gold Pretium Alamos Buenaventura Source: Company data. Data as of July 31, Note: Companies shown include North America s largest gold companies and selected gold project development companies. 4

5 Seabridge Designed to Provide Leverage to Gold Seabridge ranks 1 st in reserves/share among leading gold companies Reserve oz/share Seabridge Polyus Anglogold Newmont Gold Reserves per Common Share Detour Agnico-Eagle Newcrest Barrick NovaGold Goldcorp Pretium Polymetal Alamos New Gold Kinross Yamana Buenaventura Source: Company data. Data as of July 31, Note: Companies shown include North America s largest gold companies and selected gold project development companies. 5

6 Seabridge Designed to Provide Leverage to Gold (cont.) Gold reserves/share equates to value/share that competitors cannot match Spot Gold Value per Common Share $1,200 $1,000 $800 $600 $400 $200 - $1,005 Ratio to Seabridge Average: 19x Spot Gold Value per Common Share Average: $118 70x 60x 50x 40x 30x 20x 10x - Ratio to Seabridge Seabridge Polyus Anglogold Newmont Detour Agnico-Eagle Newcrest Barrick NovaGold Goldcorp Pretium Polymetal Alamos New Gold Kinross Yamana Buenaventura Source: Company data. Data as of July 31, Note: Companies shown include North America s largest gold companies and selected gold project development companies. Averages exclude Seabridge. 6

7 Seabridge Designed to Provide Leverage to Gold (cont.) Significant Upside Potential From In-Situ Value of Reserves Share Price / In-Situ Value per Share 80% 70% 60% 50% 40% 30% 20% 10% % Spot Gold Value per Common Share Average: 19% Ratio to Seabridge Average: 16x 80x 70x 60x 50x 40x 30x 20x 10x - Ratio to Seabridge Seabridge Anglogold NovaGold Yamana Polyus New Gold Detour Kinross Newcrest Pretium Barrick Goldcorp Alamos Newmont Polymetal Agnico-Eagle Buenaventura Source: Company data. Data as of July 31, Note: Companies shown include North America s largest gold companies and selected gold project development companies. Averages exclude Seabridge. Ratio of In-Situ Value per Share is calculated as: (Share Price) / [((Spot Gold Price) * (Gold 2P Ounces)) / (Basic Shares Outstanding)] 7

8 Share Dilution Matters! Reserves and Resources continue to grow faster than shares outstanding Ounces of Gold (Millions) Shares Outstanding (Millions) Proven & Probable Gold Reserves Measured & Indicated Gold Resources Inferred Gold Resources Shares Outstanding Source: Company data. Data as of July 31, Note: For a breakdown of Seabridge s mineral reserves and resources by project, tonnes and grade, please visit 8

9 Historical Performance In a rising gold market, Seabridge is a stock to own 6,400% 5,900% 5,400% 4,900% 4,400% 3,900% 3,400% 2,900% 2,400% 1,900% 1,400% 900% 400% Seabridge Newmont Barrick Goldcorp HUI Gold (100%) Price Performance: +1,924% +77% +1% +428% +191% +344% Source: Company and index data Note: Price Performance represents performance over time from January 2000 through YTD

10 Attractive Valuation Seabridge has a very low enterprise value per oz of gold reserves $400 Enterprise Value per Reserve oz $300 $200 $100 $14/oz - Polymetal Goldcorp Newmont Barrick Alamos Pretium Newcrest Kinross Yamana New Gold Polyus Detour Anglogold NovaGold Seabridge Source: Company data. Data as of July 31, (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 10

11 Low Political Risk Where would you rather be? Peru Illegal strikes and local opposition delay approved projects (Conga, Santa Anna, Tintaya) Argentina Open pit mining and use of cyanide banned in certain areas 100% tax on export earnings for some resource projects (Famatina, San Jose) Ecuador Increased taxes and royalties (Fruta del Norte) Indonesia Creeping expropriation through imposed local and government ownership (Batu Hijau, Grasberg, Tujuh Bukit) Chile Canada Increased royalty structure and challenging power supply issues (all projects) Local opposition delays approved projects (El Morro, Pascua-Lama) Stable regulatory and tax regime Established, reliable procedures for obtaining permits include deadlines for government agencies 11

12 KSM Project, British Columbia, Canada KSM is the world s largest undeveloped gold/copper project (by reserves) Located in mining friendly British Columbia near past producers Highly favorable logistics Estimated cash costs and total costs well below current industry averages Base Case exhibits outstanding capital efficiency BC Environmental Assessment approved July 30, Federal approval received December 2014 Signed Benefit Agreement with key Treaty Nation Newly added Deep Kerr and Lower Iron Cap deposits add significant upside potential 12

13 KSM Approved by BC and Canada 13

14 KSM Favorable Logistics 14

15 KSM Mitchell Zone 15

16 KSM Proven and Probable Reserves Average Grades Contained Metal Zone Mining Method Reserve Category Millions Tonnes Gold (gpt) Copper (%) Silver (gpt) Gold (million ounces) Copper (million pounds) Silver (million ounces) Mitchell Open Pit Proven , Probable , Block Cave Probable , Iron Cap Block Cave Probable Sulphurets Open Pit Probable ,495 8 Kerr Open Pit Probable ,586 9 Proven , Totals Probable 1, , Total 2, , Note: Reserves were calculated using $1200 gold, $2.70 copper and $17.50 silver 16

17 KSM 2016 Preliminary Feasibility Study The PFS projects a large, long-life mine Unit Years 1-7 LOM 53-Year Plan Average Grades: Gold gpt Copper % Silver gpt Molybdenum ppm Average Annual Production: Gold oz 933, ,000 Copper M lbs Silver M oz Molybdenum M lbs Note: Numbers above have been rounded. 17

18 2016 PFS: Before Tax Economic Analysis Case Unit Base Alternate Recent Spot Initial Capital Cost $M $5,000 $5,000 $4,800 Net Cash Flow $M $15,900 $26,300 $16,100 5% $M $3,300 $6,500 $3,500 Internal Rate of Return % 10.4% 14.6% 11.1% Payback Period years Operating Costs (LOM) $/oz Au $277 $183 $404 Total Costs (includes all capital) $/oz Au $673 $580 $787 Metal Prices: Gold $/oz $1,230 $1,500 $1,350 Copper $/lb $2.75 $3.00 $2.20 Silver $/oz $17.75 $25.00 $20.00 Molybdenum $/oz $8.49 $10.00 $7.00 US$/Cdn$ Exchange Rate 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. 18

19 2016 PFS: After Tax Economic Analysis Case Unit Base Alternate May 2012 Spot Initial Capital Cost $M $5,000 $5,000 $4,800 Net Cash Flow $M $10,000 $16,700 $10,100 5% $M $1,500 $3,700 $1,700 Internal Rate of Return % 8.0% 11.4% 8.5% Payback Period years Metal Prices: Gold $/oz $1,230 $1,500 $1,350 Copper $/lb $2.75 $3.00 $2.20 Silver $/oz $17.75 $25.00 $20.00 Molybdenum $/lb $8.49 $10.00 $7.00 US$/Cdn$ Exchange Rate Note: Taxes include B.C. Mineral Tax plus Canadian Federal and B.C. Corporate Income Taxes. Numbers above have been rounded. 19

20 New Discoveries at Grades Higher Than Reserves 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 Initial inferred resource at Lower Iron Cap zone estimated at 164 million tonnes at 0.59 g/t gold and 0.27% copper Additions to resources since 2013 total 22.1 million ounces of gold and 18.3 billion pounds of copper at grades 50+% higher than existing reserves. Deep Kerr 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 these new higher-grade resources. 20

21 S 4000m Elev. NSR $/T > $ N 2000m Elev. KERR SULPHURETS MITCHELL IRON CAP PIT MODELS 000m Elev. Proposed Exploration Adit projected to section CAVE MODELS Proposed Access Tunnel projected to section KSM PROJECT LONG SECTION 2016 NSR BLOCK MODEL -2000m Elev. 2000m

22 PEA Mine Plan Reduces Waste by 2.4 Billion Tonnes Average Grades Contained Metal Zone Mining Method Resource Category Millions Tonnes Gold (gpt) Copper (%) Silver (gpt) Gold (million ounces) Copper (million pounds) Silver (million ounces) Open Pit Mitchell Block Cave Iron Cap Block Cave Sulphurets Open Pit Kerr Block Cave Totals M&I , Inferred M&I , Inferred Indicated Inferred Indicated Inferred Indicated Inferred , M&I 1, , Inferred 1, , Note: Mine plans were constructed using $1200 gold, $2.70 copper and $17.50 silver 22

23 KSM 2016 Preliminary Economic Assessment The PEA incorporates Deep Kerr and Lower Iron Cap with170k tpd throughput capacity Unit Years 1-7 LOM 51-Year Plan Average Grades: Gold gpt Copper % Silver gpt Average Annual Production: Gold oz 1,150, ,000 Copper M lbs Silver M oz 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. 23

24 2016 PEA: Before Tax Economic Analysis Case Unit Base Alternate Recent Spot Initial Capital Cost $M $5,500 $5,500 $5,300 Net Cash Flow $M $26,300 $38,700 $24,100 5% $M $6,100 $10,200 $5,700 Internal Rate of Return % 12.7% 16.9% 12.9% Payback Period years Operating Costs (LOM) $/oz Au -$179 -$319 $32 Total Costs (includes all capital) $/oz Au $358 $218 $553 Metal Prices: Gold $/oz $1,230 $1,500 $1,350 Copper $/lb $2.75 $3.00 $2.20 Silver $/oz $17.75 $25.00 $20.00 US$/Cdn$ Exchange Rate 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. 24

25 2016 PEA: After Tax Economic Analysis Case Unit Base Alternate Recent Spot Initial Capital Cost $M $5,500 $5,500 $5,300 Net Cash Flow $M $16,700 $24,700 $15,300 5% $M $3,400 $6,000 $3,200 Internal Rate of Return % 10.0% 13.4% 10.1% Payback Period years Metal Prices: Gold $/oz $1,230 $1,500 $1,350 Copper $/lb $2.75 $3.00 $2.20 Silver $/oz $17.75 $25.00 $20.00 US$/Cdn$ Exchange Rate 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. 25

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29 Courageous Lake At 6.5M oz, (91 million tonnes at 2.2 gpt Au) Courageous Lake ( CL ) is Canada s 2nd largest undeveloped gold reserve (KSM is 1 st ) Excellent open pit grade of 2.2 gpt Au 2012 Preliminary Feasibility Study shows viable 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 29

30 Courageous Lake Project Location 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 30

31 Courageous Lake PFS Pre-Tax Summary Exceptional leverage to gold price Case Unit Base Alternate Gold Price $/oz $1,384 $1,925 Initial Capital Cost $M $1,520 $1,520 Mine Life years Average Annual Gold Production ounces 385, ,000 Net Cash Flow $M $1,507 $4,519 5% $M $303 $2,080 Internal Rate of Return % 7.3% 18.7% Payback Period years Operating Costs (years 1-5) $/oz Au $674 $689 Operating Costs (LOM) $/oz Au $780 $796 Total Costs (includes all capital) $/oz Au $1,123 $1,141 US$/Cdn$ Exchange Rate x 0.99x 31

32 CL Value Enhancing Opportunities Improve Capital and Operating Costs Higher Grades Access to hydro-electric generated power Examine year round road access opportunities Exploring for higher grade material that could be exploited in the early years of production History of high grade production along belt Additional Deposits Exploring for additional bulk mineable deposits that could extend project life beyond the current 15 year estimate 32

33 Courageous Lake Exploration Potential Existing 6.5M oz reserve (91 million tonnes at 2.2 gpt Au) covers only 2 km of an under explored greenstone 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 33

34 Walsh Lake Resources (March 2014) Approximately twice the grade of Courageous Lake s reserves Walsh Lake Inferred Resource Cut-Off Gold Grade Tonnes Grade Inferred (g/t) (K) g/t (K oz) , , , , , , , , , 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. 34

35 SnipGold Acquisition 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 measured and indicated gold resources at the Bronson Slope prospect Iskut historically produced high-grade gold and hosts many unexplored targets for high-grade material Iskut is located 30 kilometers from KSM, offering optimal synergies for Seabridge knowledge and infrastructure exploration program now underway to test Quartz Rise high-grade target 35

36 Iskut Location and Access 36

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38 Snowstorm Acquisition 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 Annual holding costs less than US$300,000 38

39 Snowstorm Location 39

40 Seabridge s Newest Shareholder Seabridge Acquires Snowstorm Project June 2017 "We chose Seabridge as the best home for the Snowstorm project because they share our vision of the project s geologic potential and their exploration team has done an outstanding job of growing the resources and reserves on their existing projects. Moreover, Seabridge s projects, particularly KSM, will provide us with significant leverage to a higher gold price - John Paulson, President of Paulson & Co. 40

41 Catalysts for Success EA/EIS Approval BC environmental approval received July 2014 Federal approval received Dec 2014 Exploration Success Pursuing KSM exploration opportunities that will improve project economics Over 22 million ounces of gold and 18 billion pounds of copper added over past 4 years at grades much higher than reserves 2017 drill program at KSM and Iskut Joint Ventures KSM being de-risked to drive joint venture terms World s largest mining companies under CA Transactions dependent on improved market conditions 41

42 Industry Not Making New Gold Discoveries Majors have limited options for new projects (1) Source: SNL Metals Economics Group 42

43 Gold Industry Production in Major Decline Majors require new projects to replace depleting production (2) Source: Consensus estimate. Includes CPM Group, GFMS and Metals Focus 43

44 Corporate Information Listings NYSE: SA TSX: SEA Included in GDXJ, S&P/TSX Global Mining and Global Gold Indices Share Structure 56.7 M shares outstanding 60.3 M fully diluted Balance Sheet No debt >$30 M in working capital Management and Board Interests are aligned with shareholders Insiders own over 30% of common shares Financial Institutions Own ~25% of common shares Investors include National Bank, Century Management, Van Eck, Weiss, TD Bank, Sprott, Fidelity Strategic Investors Royal Gold (holds option to acquire 2% gold/silver NSR at KSM for $160 million in cash) 44

45 Experienced Management Rudi Fronk Co-Founder, Chairman & CEO Over 30 years of experience in the gold business, primarily as a senior officer and director of publicly traded companies including Greenstone Resources, Columbia Resources, Behre Dolbear & Company, Riverside Associates, Phibro-Salomon, Amax, and DRX Jay Layman Director, President & COO 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 Bill Threlkeld Senior VP, Exploration 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 Peter Williams Senior VP, Technical Services Over 30 years of experience in mine engineering, design, strategic analysis and start-up Formerly a Group Executive, Mine Engineering at Newmont Mining Corporation Christopher Reynolds VP, CFO Has 20 years of mining industry and public accounting experience and has been a CGA since 1994 Currently a director of Paramount Gold and Silver Brent Murphy VP, Environmental Affairs Over 25 years of experience, responsible for developing and managing Seabridge's environmental programs and community engagement strategies Bruce Scott VP, Corporate Affairs Has practiced law in the areas of corporate finance and securities, corporate and mining since 1993 and has been counsel to Seabridge Gold since

46 Board of Directors Frederick Banfield 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 worldwide Eliseo Gonzalez-Urien Chair, Compensation Committee 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 Richard Kraus Chair, Audit Committee Currently serves as the Executive Chairman of The RMH Group, Inc. Former CEO (and previously COO and CFO) of Echo Bay Mines John Sabine Chair, Governance and Nominating Committee Gary Sugar Over 40 years of legal expertise in mining, securities, financing, and mergers and acquisitions Former CEO of Anvil Mining and current director of Algold Resources Inc. and Uranium One 32 years of investment banking experience Former director of Osisko Mining and Romarco Minerals. Director of Stillwater Mining 46