Here’s Why Seabridge Gold Is Worth Considering
If you think gold prices will soar, you want to consider owning an asset that is going to maximize leverage this price action. When I say “soar,” I don’t mean a rise to $1,500 or $1,750. I mean a rise to $2,500 or even $5,000, or perhaps even higher. If you expect this sort of price action, then you want to find a mining company.
In particular, you want to find a mining company that cannot operate profitably at the current gold price, but which can operate profitably at a much higher gold price. The benefit in such a company is that it will likely be incredibly inexpensive now, almost as if it were an out of the money call option. It has little value now, but if gold soars, it can be worth a lot — these are the sorts of investments, which, if chosen wisely, can make you wealthy.
If you’re looking for such a company, I think Seabridge Gold (NYSE:SA) is worth considering.
Seabridge Gold has a market capitalization of $425 million. The company owns a very large undeveloped gold resource in British Columbia called Kerr-Sulphurets Mitchell (KSM). It also owns some smaller properties, most notably its undeveloped Courageous Lake gold deposit in the Northwest Territories, although I will focus on KSM in this article, as it comprises the bulk of the company’s value.