Message #9 From:
NewsBot Date: October 23, 2006 09:00:00 AM
SA News Dutton Associates Announces Investment Opinion: Seabridge Gold Strong Buy Rating Maintained by Dutton Associates
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Dutton Associates updates its initial report coverage of Seabridge Gold
(AMEX:SA) maintaining a Strong Buy rating and increasing its target
price to $20.00. The 24-page report by Dutton senior analyst Les
Childress is available at www.jmdutton.com
as well as from First Call, Bloomberg, Zacks, Reuters, and other leading
financial portals.
Seabridge remains an attractive and under-valued resource play because,
as a non-miner, it provides maximum leverage to the price of gold and
because it continues to achieve organic resource growth regardless of
the trend or absolute level of gold’s price.
We are raising our price target from $16.50 to $20.00 per share premised
on the four elements we discuss in our report. Our valuation for
Seabridge is predicated on our independent valuation of the separate
assets, i.e. projects, prospects, plays, properties, based on the
optionality potential of its in-ground resources. However, we have
included the potential resource quantity to allow the reader some sense
of our sense of the potential of these projects based on discussions
with management and our own observations. We have assumed a gold price
at a constant $650 level and excluded Seabridge’s
copper resource to concentrate on the Company’s
potential as a gold play only. We have used a $62 per ounce value for
in-ground reserves based on recent acquisitions in the gold mining
sector. Based on our estimate of 12.68 million ounces of potential
reserves from the Company’s already reported
18.1 million ounces of total gold resources, Seabridge’s
net asset value is approximately $786 million, or $20.53 per fully
diluted share.
About Dutton Associates
Dutton Associates is one of the largest independent investment research
firms in the U.S. Its 31 senior analysts are primarily CFAs, and have
expertise in many industries. Dutton Associates provides continuing
analyst coverage of over 140 enrolled companies, and its research,
estimates, and ratings are carried in all the major databases serving
institutions and online investors.
The cost of enrollment in our one-year continuing research program is US
$39,500 prepaid before commencement of our research activities,
consisting of 4 Research Reports, typically published quarterly, and
requisite Research Notes. Dutton Associates received $58,000 from the
Company for 8 Research Reports with coverage commencing on 6/04/2004.
The Firm does not accept any equity compensation. Our principals and
analysts are prohibited from owning or trading in securities of covered
companies. The views expressed in this research report accurately
reflect the analyst's personal views about the subject securities or
issuer. Neither the analyst's compensation nor the compensation received
by us is in any way related to the specific ratings or views contained
in this research report or note. Please read full disclosures and
analyst background at www.jmdutton.com
before investing.
