Please ensure Javascript is enabled for purposes of website accessibility

Why Seabridge Gold Inc.’s Stock Is Soaring Today

By Matthew DiLallo - Aug 10, 2018 at 11:56AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The gold exploration company announced some exciting new developments.

What happened

Shares of Seabridge Gold Inc. (SA -2.22%) rallied more than 13% by 11 a.m. EDT on Friday after the gold exploration company announced two new discoveries along with its second-quarter results.

So what

While Seabridge Gold reported another net loss in the second quarter, investors should expect that from an exploration-stage gold company. Instead, what matters more is the progress Seabridge Gold made on its exploration projects as well as in lining up financing to continue its work. The company announced successes in both areas during the second quarter, which increases the optimism about its future.

Gold nuggets on a flat surface.

Image source: Getty Images.

First, the company said that it discovered two new gold zones at its Courageous Lake project in Canada's Northwest Territories. The company noted that these finds, Olsen and Marsh Pond, had widths and ore grades similar to the Walsh Lake deposit it discovered in 2012. Because of that, Seabridge stated in its report to shareholders that it "sees the potential for making [the] Courageous Lake Project more economic at current gold prices." As a result, it plans to take the next step and develop a conceptual design for the region that could exploit these deposits.

And the company announced that it strengthened its balance sheet by completing a stock offering, which raised 19.7 million Canadian dollars ($15 million). That will give it more capital to continue exploring its resource base, including initiating an exploration program at the Snowstorm gold project in Nevada.

Now what

As an early-stage gold exploration company, Seabridge requires investors to have a very long-term mindset. While the company believes it has uncovered a meaningful amount of gold, there are no guarantees it will be able to turn these discoveries into profitable gold mines. Because of that, investors who are seeking to add some gold exposure to their portfolio might want to consider one of these top gold mining stocks instead.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Seabridge Gold Inc. Stock Quote
Seabridge Gold Inc.
$14.11 (-2.22%) $0.32

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.