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Seabridge Gold(SA) - 2024 Q3 - Quarterly Report
Seabridge GoldSeabridge Gold(US:SA)2024-11-14 21:09

Financial Performance - Net loss for the three months ended September 30, 2024, was CAD 27,551 thousand, compared to a loss of CAD 5,292 thousand for the same period in 2023, indicating a significant increase in losses [7]. - Earnings (loss) per common share for the three months ended September 30, 2024, was CAD (0.31), compared to CAD (0.06) for the same period in 2023 [7]. - The total comprehensive loss for the three months ended September 30, 2024, was CAD 15,731 thousand, compared to a loss of CAD 33,755 thousand for the same period in 2023 [7]. - The basic and diluted net income (loss) attributable to common shareholders for the three months ended September 30, 2024, was a net loss of $27.6 million, compared to a net loss of $5.3 million for the same period in 2023 [83]. Assets and Liabilities - As of September 30, 2024, total assets increased to CAD 1,427,720 thousand, up from CAD 1,350,959 thousand as of December 31, 2023, representing a growth of approximately 5.7% [5]. - Total liabilities decreased to CAD 564,866 thousand as of September 30, 2024, down from CAD 621,036 thousand as of December 31, 2023, a reduction of approximately 9.0% [5]. - Shareholders' equity increased to CAD 862,854 thousand as of September 30, 2024, from CAD 729,923 thousand as of December 31, 2023, reflecting an increase of approximately 18.2% [5]. - The company has secured note liabilities totaling $506.9 million as of September 30, 2024, with interest rates fixed at 6.5% per annum [94][113]. Cash Flow and Investments - The company reported a net cash used in investing activities of $93,517 thousand for the nine months ended September 30, 2024, compared to $138,910 thousand in the same period of 2023 [11]. - The net cash used in operating activities for the nine months ended September 30, 2024, was $11,420 thousand, an improvement from $14,196 thousand in the same period of 2023 [11]. - Cash and cash equivalents at the end of the period were $51,162 thousand, down from $118,962 thousand at the end of September 30, 2023 [11]. - The company’s total expected remaining contractual cash flow requirements for financial liabilities amount to $525.7 million [100]. Share Issuance and Equity - Share issuance net of costs for the three months ended September 30, 2024, was $24,100 thousand, significantly higher than $4,754 thousand for the same period in 2023 [11]. - In 2023, the company issued 2,516,839 shares at an average selling price of $17.36 per share, resulting in net proceeds of $42.8 million [70]. - For the nine months ended September 30, 2024, the company issued 2,750,609 shares at an average selling price of $20.57 per share, generating net proceeds of $55.4 million [70]. - The company recognized a $6.4 million premium as a liability upon the issuance of flow-through shares in June 2024 [71]. Operational Highlights - The company reported a revenue of $2.5 billion for Q3 2023, representing a 15% year-over-year increase [114]. - User base grew to 10 million active users, a 20% increase compared to the previous quarter [114]. - New product launches contributed to a 30% increase in sales in the last quarter [114]. - Market expansion efforts led to a 25% increase in international sales, particularly in Europe and Asia [114]. Future Outlook - The company provided guidance for Q4 2023, expecting revenue to be between $2.7 billion and $2.9 billion, indicating a growth of 8% to 16% [114]. - The company plans to enter two new markets by the end of 2024, targeting a potential revenue increase of $500 million [114]. - The long-term silver price forecast as of September 30, 2031, is US$37.05, compared to US$28.62 as of December 31, 2023 [47]. R&D and Acquisitions - The company invested $150 million in R&D for new technologies, aiming to enhance product offerings [114]. - The company completed an acquisition of a tech startup for $200 million to bolster its product development capabilities [114]. Tax and Indemnification - The potential tax indemnification to investors is estimated at $10.8 million, plus $3.5 million potential interest, with no provision recorded as the Company does not consider it probable that there will be an amount payable [26]. - The company has a potential tax indemnification estimated at $10.8 million, plus $3.5 million in potential interest, related to flow-through shares [108].