Seabridge Gold Corporate Presentation - February 2014

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  • Corporate Presentation February 2014 SEABRIDGE GOLD
  • Forward Looking Statements All reserve and resource estimates reported by the Company were calculated in accordance with the Canadian National Instrument 43-101 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 Companys 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 1995. 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 Companys 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 Companys 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 Companys Annual Information Form filed with SEDAR in Canada (available at for the year ended December 31, 2012 and in the Companys 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 Companys management or its independent professional consultants on the date the statements are made. SEABRIDGE GOLD 2
  • The Case for Seabridge Proven and Probable Reserves 44.7M oz Au 10B lbs Cu Low Share Dilution 47.1M shares outstanding Low Valuation Low Political Risk Exploration Upside SEABRIDGE GOLD $8 enterprise value per ounce of gold reserves All reserves are located in Canada New discoveries could add significant higher grade reserves to improve project economics 3
  • Gold Reserves Reserves rank Seabridge among worlds top ten gold companies Gold Reserves (M oz) 150 120 90 45M oz 60 30 Alamos AuRico Buenaventura Polymetal Osisko Gabriel Allied Nevada Detour New Gold Agnico-Eagle NovaGold Yamana Seabridge Kinross Goldcorp Anglogold Polyus Newcrest Newmont Barrick - Source: Company data. Data as of January 27th, 2014. Note: Companies shown include North Americas largest gold companies and selected gold project development companies. SEABRIDGE GOLD 4
  • Low Share Dilution Gold Reserves per Common Share Seabridge ranks 1st in reserves/share among leading gold companies 1.20 0.95 oz/share 1.00 0.80 0.60 0.40 0.20 New Gold Alamos Osisko Polymetal Gabriel Polyus AuRico Yamana Buenaventura Kinross NovaGold Goldcorp Agnico-Eagle Detour Newcrest Allied Nevada Barrick Anglogold Newmont Seabridge - Source: Company data. Data as of January 27th, 2014. Note: Companies shown include North Americas largest gold companies and selected gold project development companies. SEABRIDGE GOLD 5
  • Low Share Dilution (cont.) Resources have grown more than 10x faster than shares outstanding 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 Ounces of Gold (Millions) 90 10 - Shares Outstanding (Millions) 90 2003 2004 Proven & Probable Gold Reserves 2005 2006 2007 2008 Measured & Indicated Gold Resources 2009 2010 2011 Inferred Gold Resources 2012 Common Shares Outstanding Source: Company data. Data as of January 27th, 2014. Note: For a breakdown of Seabridges mineral reserves and resources by project, tonnes and grade, please visit SEABRIDGE GOLD 6
  • Attractive Valuation Enterprise Value per Reserve oz Seabridge has a very low enterprise value per ounce of gold reserves $500 $400 $300 $200 $8/oz $100 Seabridge Allied Nevada Gabriel NovaGold Detour Kinross Polyus Anglogold Newcrest AuRico Newmont New Gold Barrick Osisko Alamos Goldcorp Yamana Agnico-Eagle Buenaventura Polymetal - Source: Company data. Data as of January 27th, 2014. (1) Enterprise Value calculated as market capitalization (basic) plus net debt and minority interest Note: Companies shown include North Americas largest gold companies and selected gold project development companies SEABRIDGE GOLD 7
  • Low Political Risk Where would you rather be? Peru Argentina Ecuador Indonesia Chile Canada SEABRIDGE GOLD Illegal strikes and local opposition delay approved projects (Conga, Santa Anna, Tintaya) Open pit mining and use of cyanide banned in certain areas 100% tax on export earnings for some resource projects (Famatina, San Jose) Increased taxes and royalties (Fruta del Norte) Creeping expropriation through imposed local and government ownership (Batu Hiju, Grassberg, Tujuh Bukit) Increased royalty structure and challenging power supply issues (all projects) Local opposition delays approved projects (El Morro, Pascua-Lama) Stable regulatory and tax regime 8
  • Kerr, Sulphurets and Mitchell KSM is the worlds 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 Environmental Assessment approval expected mid 2014 Nearing completion of Impact Benefit Agreement with key Treaty Nation Newly discovered Deep Kerr deposit adds significant upside potential SEABRIDGE GOLD 9
  • 0 40 40 40 40 20 20 20 10 - -- - Source: Company data. SEABRIDGE GOLD Au Au Reserves Cu Cu Reserves Au Reserves Cu Reserves Reserves Cu Reserves 12 10 30 30 30 8 20 6 4 - 10 10 10 10 10 10 8 88 8 6 66 6 4 44 4 2 Cu Reserves (B lbs) Cu Reserves (B lbs) Cu Reserves (B lbs) Cu Reserves (B lbs) 0 KSM Pueblo Viejo KSM KSM KSM Donlin Cerro Casale Donlin Donlin Donlin Pueblo Viejo Boddington Pueblo Viejo Pueblo Viejo Pueblo Viejo Cerro Casale Caspiche Cerro Casale Cerro Casale Cerro Casale Boddington Pascua-Lama Boddington Boddington Boddington Caspiche Penasquito Caspiche Caspiche Caspiche Pascua-Lama Conga Pascua-Lama Pascua-Lama Pascua-Lama Penasquito Telfer Penasquito Penasquito Penasquito Conga Morro ElConga Conga Conga Telfer Agua Rica Telfer Telfer Telfer El Morro Galore Creek El Morro El Morro El Morro Agua Rica Agua Rica Agua Rica Agua Rica Galore Creek Galore Creek Galore Creek Galore Creek 0 Donlin 30 Au Reserves (M oz) Au Reserves (M oz) Au Reserves (M oz) Au Reserves (M oz) 0 Au Reserves Cu Reserves (B lbs) KSM KSM is World Class! KSM is a World Class Gold-Copper Project 12 12 12 12 10 2 22 2 - -- - 10
  • KSM Favorable Logistics SEABRIDGE GOLD 11
  • KSM Mitchell Zone SEABRIDGE GOLD 12
  • KSM Project Layout SEABRIDGE GOLD 13
  • KSM Preliminary Feasibility Study The PFS projects a large, long-life mine Unit Years 1-7 LOM 55-Year Plan Average Grades: Gold gpt 0.79 0.55 Copper % 0.23 0.21 Silver gpt 2.39 2.74 Molybdenum ppm 46.2 44.8 851,000 508,000 Average Annual Production: Gold oz Copper M lbs 195 147 Silver M oz 2.1 2.2 Molybdenum M lbs 1.3 1.1 SEABRIDGE GOLD 14
  • KSM PFS Pre-Tax Summary 50+ year mine plan Unit Base Case Alternate Initial Capital Co