Seabridge Gold(SA) - 2025 Q1 - Quarterly Report

Consolidated Statements of Financial Position](index=2&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) Seabridge Gold Inc.'s financial position strengthened by March 31, 2025, with increased assets and equity, and reduced liabilities Assets Seabridge Gold Inc.'s total assets grew to $1,597,275 thousands of CAD by March 31, 2025, driven by increased cash and mineral interests | Category | March 31, 2025 (CAD '000s) | December 31, 2024 (CAD '000s) | | :----------------------------- | :-------------------------- | :-------------------------- | | Current Assets | | | | Cash and cash equivalents | 156,761 | 49,815 | | Amounts receivable & prepaid | 2,709 | 2,928 | | Marketable securities | 6,617 | 5,403 | | Total Current Assets | 166,087 | 58,146 | | Non-Current Assets | | | | Investment in associate | 829 | 913 | | Long-term receivables & other | 135,547 | 119,947 | | Mineral interests, P&E | 1,272,723 | 1,251,424 | | Reclamation deposits | 22,089 | 22,307 | | Total Non-Current Assets | 1,431,188 | 1,394,591 | | Total Assets | 1,597,275 | 1,452,737 | - Cash and cash equivalents saw a substantial increase from $49,815 thousands of CAD at December 31, 2024, to $156,761 thousands of CAD at March 31, 2025[3] - Mineral interests, property and equipment increased from $1,251,424 thousands of CAD to $1,272,723 thousands of CAD[3] Liabilities and Shareholders' Equity Total liabilities decreased slightly to $601,435 thousands of CAD by March 31, 2025, while shareholders' equity significantly increased to $995,840 thousands of CAD due to share issuances and net earnings | Category | March 31, 2025 (CAD '000s) | December 31, 2024 (CAD '000s) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Current Liabilities | | | | Accounts payable & accrued | 8,767 | 11,281 | | Flow-through share premium | 6,645 | 6,940 | | Lease obligations | 271 | 348 | | Provision for reclamation | 1,750 | 1,750 | | Total Current Liabilities | 17,433 | 20,319 | | Non-Current Liabilities | | | | Secured note liabilities | 556,353 | 562,552 | | Deferred income tax liabilities | 21,172 | 20,304 | | Lease obligations | 949 | 1,002 | | Provision for reclamation | 5,528 | 5,542 | | Total Non-Current Liabilities | 584,002 | 589,400 | | Total Liabilities | 601,435 | 609,719 | | Shareholders' Equity | 995,840 | 843,018 | | Total Liabilities & Equity | 1,597,275 | 1,452,737 | - Shareholders' equity increased by $152,822 thousands of CAD, from $843,018 thousands of CAD to $995,840 thousands of CAD, primarily due to share issuances[3] - Current liabilities decreased from $20,319 thousands of CAD to $17,433 thousands of CAD, mainly due to a reduction in accounts payable and accrued liabilities[3] Consolidated Statements of Operations and Comprehensive Income (Loss)](index=3&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) The company reported net earnings and positive comprehensive income for Q1 2025, a significant improvement driven by foreign exchange gains Net Earnings (Loss) and Comprehensive Income (Loss) For the three months ended March 31, 2025, Seabridge Gold Inc. reported net earnings of $10,551 thousands of CAD, a significant improvement from a net loss of $8,173 thousands of CAD in the same period of 2024, with total comprehensive income turning positive | Item | Three months ended March 31, 2025 (CAD '000s) | Three months ended March 31, 2024 (CAD '000s) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Remeasurement of secured notes | 16,281 | 14,640 | | Corporate and administrative expenses | (4,354) | (4,647) | | Foreign exchange gain (loss) | 1,926 | (12,901) | | Other income - flow-through shares | 295 | 248 | | Interest income | 878 | 311 | | Finance costs and other | (130) | (51) | | Earnings (loss) before income taxes | 14,896 | (2,400) | | Income tax expense | (4,345) | (5,773) | | Net earnings (loss) | 10,551 | (8,173) | | Other comprehensive income (loss) | | | | Remeasurement of secured notes | (7,102) | (21,351) | | Change in fair value of marketable securities | 1,214 | 395 | | Tax impact | 1,755 | 5,713 | | Total other comprehensive loss | (4,133) | (15,243) | | Total comprehensive income (loss) | 6,418 | (23,416) | - Basic and diluted earnings per common share improved significantly to $0.11 in Q1 2025 from a loss of $0.09 in Q1 2024[4] - A foreign exchange gain of $1,926 thousands of CAD in Q1 2025 contrasted sharply with a loss of $12,901 thousands of CAD in Q1 2024, contributing to the positive earnings[4] Consolidated Statements of Changes in Shareholders' Equity](index=4&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity significantly increased due to substantial share issuances and net income for the period Shareholders' Equity Changes Shareholders' equity increased substantially from $843,018 thousands of CAD at December 31, 2024, to $995,840 thousands of CAD at March 31, 2025, driven by significant share issuances and net income | Item | Number of Shares | Share Capital (CAD '000s) | Total Equity (CAD '000s) | | :------------------------------------ | :--------------- | :----------------------- | :----------------------- | | As at December 31, 2024 | 91,912,919 | 1,051,755 | 843,018 | | Share issuance - Bought deal and private placement, net of costs | 8,180,000 | 136,787 | 136,787 | | Share issuance - Interest expense paid in shares | 323,445 | 5,247 | 5,247 | | Share issuance - At-The-Market offering | 126,750 | 2,255 | 2,255 | | Share issuance costs | - | (669) | (669) | | Deferred tax on share issuance costs | - | 1,722 | 1,722 | | Stock-based compensation | - | - | 1,062 | | Other comprehensive loss | - | - | (4,133) | | Net income for the period | - | - | 10,551 | | As at March 31, 2025 | 100,543,114 | 1,197,097 | 995,840 | - The company issued 8,180,000 common shares through a bought deal and private placement, contributing $136,787 thousands of CAD to share capital[6] - Net income for the period of $10,551 thousands of CAD also contributed positively to the increase in total equity[6] Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents significantly increased, primarily driven by strong financing activities from share issuances Cash Flow Activities For the three months ended March 31, 2025, Seabridge Gold Inc. experienced a significant increase in cash and cash equivalents, primarily driven by strong financing activities | Activity | Three months ended March 31, 2025 (CAD '000s) | Three months ended March 31, 2024 (CAD '000s) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Net cash used in operating activities | (1,639) | 1,353 | | Net cash used in investing activities | (29,635) | (39,300) | | Net cash from financing activities | 138,241 | 10,834 | | Effects of exchange rate fluctuation | (21) | 368 | | Increase (decrease) in cash | 106,946 | (26,745) | | Cash and cash equivalents, beginning | 49,815 | 82,438 | | Cash and cash equivalents, end | 156,761 | 55,693 | - Net cash from financing activities increased significantly to $138,241 thousands of CAD in Q1 2025 from $10,834 thousands of CAD in Q1 2024, primarily due to share issuances[8] - Net cash used in investing activities decreased to $29,635 thousands of CAD in Q1 2025 from $39,300 thousands of CAD in Q1 2024, mainly due to lower expenditures on mineral interests, property and equipment[8] Notes to the Condensed Consolidated Interim Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Detailed notes provide context on the company's reporting entity, accounting policies, financial instruments, and commitments 1. Reporting entity Seabridge Gold Inc. is a Canadian company focused on acquiring, exploring, and advancing gold-focused mineral properties in Canada and the USA - Seabridge Gold Inc. is engaged in acquiring, exploring, and advancing mineral properties, with an emphasis on gold resources, located in Canada and the United States of America[9] - The Company's common shares are listed on the Toronto Stock Exchange (SEA) and the New York Stock Exchange (SA)[9] 2. Basis of preparation The interim financial statements are prepared in accordance with IAS 34, using consistent accounting policies, with new IFRS standards under assessment - The unaudited interim condensed consolidated financial statements were prepared in accordance with IAS 34, Interim Financial Reporting[10] - Amendments to IAS 21, effective January 1, 2025, regarding currency exchangeability, did not have an impact on the Company's consolidated interim financial statements[11] - The Company is currently assessing the impact of IFRS 9 amendments (effective January 1, 2026) and IFRS 18 (effective January 1, 2027) on its financial statements[15] 3. Amounts receivable and prepaid expenses Amounts receivable and prepaid expenses decreased slightly to $2,709 thousands of CAD at March 31, 2025, from $2,928 thousands of CAD at December 31, 2024 | ($000s) | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | HST | 1,189 | 1,312 | | Prepaid expenses and other | 1,520 | 1,616 | | Total | 2,709 | 2,928 | 4. Investments Investments in marketable securities increased to $6,617 thousands of CAD at March 31, 2025, while investment in associate decreased slightly to $829 thousands of CAD | ($000s) | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Investments in marketable securities | 6,617 | 5,403 | | Investment in associate | 829 | 913 | - The Company recorded its proportionate share of Paramount's net loss of $0.1 millions of for the three months ended March 31, 2025, compared to a net income of $0.02 millions of in the prior year[14] 5. Long-term receivables and other assets Long-term receivables and other assets increased to $135,547 thousands of CAD at March 31, 2025, mainly due to prepayments for the KSM Project, and the BCMETC receivable was successfully defended | ($000s) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | BC Hydro | 122,320 | 106,720 | | Canadian Exploration Expenses (CEE) | 9,361 | 9,361 | | British Columbia Mineral Exploration Tax Credit (BCMETC) | 3,866 | 3,866 | | Total | 135,547 | 119,947 | - The Company made $122.3 millions of in prepayments to BC Hydro as at March 31, 2025, with an additional $24.4 millions of paid subsequent to quarter end[16] - A judgment was rendered substantially in favor of the Company on March 26, 2025, supporting the recoverability of the BCMETC receivable, with the CRA not appealing the ruling[16] 6. Mineral Interests, Property and Equipment Mineral interests, property and equipment increased to $1,272,723 thousands of CAD at March 31, 2025, driven by construction in progress at the KSM Project | Category | December 31, 2024 (Net Book Value) | March 31, 2025 (Net Book Value) | | :-------------------------- | :------------------------------- | :------------------------------ | | Mineral interests | 802,590 | 807,224 | | Construction in progress | 277,979 | 295,453 | | Property & equipment | 169,530 | 168,866 | | Right-of-use assets | 1,325 | 1,180 | | Total | 1,251,424 | 1,272,723 | 6. Mineral Interests, Property and Equipment | Project | Three months ended March 31, 2025 Additions (CAD '000s) | | :---------------- | :------------------------------------------------ | | KSM additions | 20,010 | | Courageous Lake | 165 | | Iskut | 745 | | Snowstorm | 561 | | 3 Aces | 627 | | Total Additions | 22,108 | - Construction in progress additions at KSM included $8.7 millions of of capitalized borrowing costs for the current quarter, up from $7.7 millions of in the prior year[19] 7. Accounts payable and accrued liabilities Accounts payable and accrued liabilities decreased to $8,767 thousands of CAD at March 31, 2025, from $11,281 thousands of CAD at December 31, 2024, primarily due to a reduction in trade payables | ($000s) | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Trade payables | 2,988 | 7,701 | | Non-trade payables and Accrued liabilities | 5,779 | 3,580 | | Total | 8,767 | 11,281 | 8. Provision for reclamation liabilities The total provision for reclamation liabilities remained stable at $7,278 thousands of CAD at March 31, 2025, with the Company maintaining significant reclamation deposits and surety bonds | ($000s) | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Beginning of the period | 7,292 | 7,435 | | Disbursements | (51) | (843) | | Environmental rehabilitation expense | - | 450 | | Accretion | 37 | 250 | | End of the period | 7,278 | 7,292 | | Provision for reclamation liabilities - current | 1,750 | 1,750 | | Provision for reclamation liabilities - long-term | 5,528 | 5,542 | - The Company has placed $22.1 millions of on deposit as security against reclamation liabilities as at March 31, 2025[22] - The Company had $10.0 millions of of uncollateralized surety bond in support of environmental closure costs obligations related to the KSM Project[22] 9. Secured Note liabilities Seabridge Gold Inc. holds two secured notes, the 2022 Secured Note (US**$225 millions of**) and the 2023 Secured Note (US**$150 millions of**), both tied to the KSM Project and accounted for at fair value through profit or loss 9.i. 2022 Secured Note The 2022 Secured Note, valued at US**$225 millions of**, is exchangeable for a 60% gross silver royalty on the KSM Project upon maturity, with its fair value at $317.3 millions of CAD as of March 31, 2025 - The 2022 Secured Note is for US$225 millions of and will be exchanged for a 60% gross silver royalty on the KSM Project upon maturity[23] - The fair value of the 2022 Secured Note was $317.3 millions of CAD as at March 31, 2025, recorded as the fair value of the Silver Financing Put, which is expected to become exercisable in 2027[27] - The Company issued 323,445 common shares to satisfy the interest payment on the 2022 Secured Note for the three months ended March 31, 2025[24] 2022 Secured Note Key Inputs and Assumptions | Key Inputs and assumptions | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Forecast silver production (thousands of ounces) | 166,144 | 166,144 | | Silver spot price | US$ 34.90 | US$ 29.66 | | Risk-free rate | 4.6% | 4.8% | | Credit spread | 4.6% | 4.8% | | Share price volatility | 60% | 60% | | Silver royalty discount factor | 13.1% | 11.6% | 9.ii. 2023 Secured Note The 2023 Secured Note, for US**$150 millions of**, will be exchanged for a 1% NSR on the KSM Project upon maturity, with its fair value at $239.1 millions of CAD as of March 31, 2025 - The 2023 Secured Note is for US$150 millions of and will be exchanged for a 1% Net Smelter Royalty (NSR) on the KSM Project upon maturity, with potential increases to 1.25% or 1.5% under certain conditions[35] - The fair value of the 2023 Secured Note was $239.069 millions of CAD at March 31, 2025, and the Company recorded a $9.7 millions of gain on remeasurement through profit or loss for the three months ended March 31, 2025[39][41] - Payment of quarterly interest due on or before June 29, 2025, will be deferred and payable in a lump sum on or before December 29, 2025, or KSMCo can elect to increase the size of the NSR[35] 2023 Secured Note Key Inputs and Assumptions | Key inputs and assumptions | March 31, 2025 | December 31, 2024 | | :------------------------------------ | :------------- | :---------------- | | Forecast NSR: Gold (thousands of ounces) | 10,500 | 10,500 | | Forecast NSR: Silver (thousands of ounces) | 29,876 | 29,876 | | Forecast NSR: Copper (millions of pounds) | 19,322 | 19,322 | | Forecast NSR: Molybdenum (millions of pounds) | 152 | 152 | | Metals spot prices: Gold per ounce | US$ 3,060.20 | US$ 2,617.20 | | Metals spot prices: Silver per ounce | US$ 34.90 | US$ 29.66 | | Metals spot prices: Copper per pound | US$ 4.44 | US$ 4.06 | | Metals spot prices: Molybdenum per pound | US$ 20.13 | US$ 21.37 | | Risk-free rate | 4.6% | 4.8% | | Credit spread | 4.6% | 4.8% | | Share price volatility | 60% | 60% | | NSR royalty discount factor | 13.1% | 11.6% | 10. Shareholders' equity Shareholders' equity increased significantly due to equity financings, with capital management focused on funding mineral property development through external financing 10.a) Equity financings%20Equity%20financings) In Q1 2025, Seabridge Gold Inc. completed a bought deal and private placement, issuing 8,180,000 common shares for gross proceeds of $142.5 millions of CAD (US**$100.2 millions of**) - On February 13, 2025, the Company issued 8,180,000 common shares through a bought deal and private placement for aggregate gross proceeds of $142.5 millions of CAD (US$100.2 millions of)[47] - During Q1 2025, the Company issued 126,750 shares for net proceeds of $2.2 millions of CAD under its ATM offering, with US$98.9 millions of still available[49] - The ATM offering program was renewed, allowing the Company to sell up to an additional US$100 millions of in common shares until February 2027[48] 10.b) Stock options and restricted share units%20Stock%20options%20and%20restricted%20share%20units) The Company's stock option plan was cancelled in 2024, with compensation now primarily through RSUs and DSUs, totaling 831,802 units outstanding at March 31, 2025 | Item | Number of units | Amortized value (CAD '000s) | | :-------------------------- | :-------------- | :------------------------- | | Outstanding January 1, 2025 | 837,301 | 4,198 | | Expired/forfeited RSUs | (5,499) | (24) | | Amortized value of RSUs and DSUs | - | 1,086 | | Outstanding at March 31, 2025 | 831,802 | 5,260 | - In December 2024, 54,500 DSUs were granted to Board members, and 316,420 RSUs were granted to senior management and other employees[53] - The vesting of RSUs granted to senior management is dependent on corporate objectives, including a positive construction decision at KSM and the Company's share price outperforming market benchmarks[53] 10.c) Basic and diluted net earnings (loss) per common share%20Basic%20and%20diluted%20net%20earnings%20(loss)%20per%20common%20share) Basic and diluted net earnings per common share improved to $0.11 for the three months ended March 31, 2025, compared to a loss of $0.09 in the prior year | Item | March 31, 2025 | March 31, 2024 | | :------------------------------------ | :------------- | :------------- | | Basic weighted average shares outstanding | 95,651,182 | 86,399,071 | | Weighted average shares dilution adjustments: Restricted share units | 370,594 | - | | Diluted weighted average shares outstanding | 96,021,776 | 86,399,071 | - Basic and diluted net earnings per common share were $0.11 for the three months ended March 31, 2025, a significant improvement from a loss of $0.09 in the same period of 2024[4][57] 11. Cash flow items Non-cash adjustments within operating activities totaled $163 thousands of CAD for the three months ended March 31, 2025, a decrease from a negative $292 thousands of CAD in the prior year | ($000s) | March 31, 2025 | March 31, 2024 | | :------------------------------------ | :------------- | :------------- | | Equity loss of associate | 84 | (19) | | Depreciation | 21 | 34 | | Finance costs, net | 37 | 61 | | Effects of exchange rate fluctuation on cash and cash equivalents | 21 | (368) | | Total | 163 | (292) | 12. Fair value of financial assets and liabilities The Company classifies its financial instruments using a three-level fair value hierarchy, managing credit, liquidity, and market risks to ensure sufficient liquidity | ($000s) | Carrying Amount (March 31, 2025) | Level 1 | Level 2 | Level 3 | Total Fair Value | | :-------------------------- | :------------------------------- | :------ | :------ | :------ | :--------------- | | Assets | | | | | | | Investment in marketable securities | 6,617 | 6,617 | - | - | 6,617 | | Liabilities | | | | | | | Secured note liabilities | 556,353 | - | - | 556,353 | 556,353 | - The Company's credit risk is primarily attributable to short-term deposits, convertible notes receivable, and amounts receivable, with management believing the risk of loss to be remote[67] - The Company renewed its ATM offering for up to an additional US$100 millions of of common shares until February 2027 to ensure sufficient liquidity, though sales are restricted until after May 20, 2025, due to a covenant[68][69] 13. Corporate and administrative expenses Corporate and administrative expenses decreased to $4,354 thousands of CAD for the three months ended March 31, 2025, from $4,647 thousands of CAD in the prior year | ($000s) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Employee compensation | 1,723 | 1,720 | | Stock-based compensation | 1,062 | 1,190 | | Professional fees | 309 | 705 | | Other general and administrative | 1,260 | 1,032 | | Total | 4,354 | 4,647 | 14. Related party disclosures No payments to related parties other than compensation to key management personnel were made during the three months ended March 31, 2025 and 2024 - No payments to related parties other than compensation to key management personnel were made during the three months ended March 31, 2025 and 2024[77] 15. Commitments and contingencies Seabridge Gold Inc. has total commitments and contingencies of $288,773 thousands of CAD, with $93,602 thousands of CAD due in 2025, including secured note interest and capital expenditures | ($000s) | Total | 2025 | 2026-2027 | 2028-2029 | 2030-2031 | | :-------------------------- | :---- | :--- | :-------- | :-------- | :-------- | | 2022 Secured Note - interest | 125,675 | 15,769 | 42,050 | 42,050 | 25,806 | | 2023 Secured Note - interest | 111,189 | 37,917 | 28,034 | 28,034 | 17,204 | | Capital expenditure commitments | 21,608 | 19,872 | 1,736 | - | - | | Flow-through share expenditures | 18,914 | 18,914 | - | - | - | | Mineral interests | 9,026 | 620 | 1,634 | 3,386 | 3,386 | | Lease obligation | 2,361 | 511 | 880 | 820 | 150 | | Total | 288,773 | 93,602 | 74,334 | 74,290 | 46,546 | - The estimated cost to complete construction of BC Hydro facilities for the KSM Project is $86.2 millions of, of which $78.8 millions of has been paid, with a remaining balance of $7.4 millions of due in July 2025[79] - The Company also has $74.7 millions of in security or cash required for BC Hydro system reinforcement, with $67.7 millions of paid and $7.0 millions of due in July 2025[79]