The Rising Influence of Rising Affluence

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If you are inclined to believe that, on a global basis, electric generation and uses will continue to ramp up and move away from fossil fuels, copper looks like a good long term investment. If inflation remains high going forward copper producers will be faced with the prospect of expanding capital requirements to bring new greenfield projects online, year after year. Already a daunting task to justify the cost associated with opening a new mine, it makes sense to look at prospective projects in development. One only has to look at the Resolution mine situation to see why copper producers aren't anxious to explore new potential mines. But that doesn't solve the growing problem of future copper production shortfalls, it just compounds the problem. Copper is a commodity that there aren't many options to work around or substitute with other metals that work as well. From a long term investing perspective copper assets look attractive. For me (but I'm bias since I have an equity position) it makes a lot of sense to look at Seabridge Gold. For any mining company looking for a greenfield project with long term known recovery amounts, KSM is an outstanding opportunity. The risk is (as with all mining projects) the legal roadblocks that detractors, have and in the future may file to slow, or derail the project. So far SA has been able to win the arguments and move forward. Assuming the current legal issue can be resolved in SA's favor, I believe SA will be able to attract JV partners. With a market cap of 1.23 billion, the potential upside for SA is attractive. One thing is for certain, if the world demand for copper in the future meets current projections, the world needs many projects the size of KSM. If KSM is never developed and abandoned, it's virtually impossible for future copper demand to be met.

I do own shares of SA and my cost basis on my shares is right at the current price, and IMO the greatest risks to the project are resolved with the current legal issue, again IMO, going to have a favorable outcome for SA and KSM making KSM one of the largest potential copper producing mines close to moving beyond speculation. Of course until the project clears all the possible legal roadblocks that risk of never being fully developed exists.