KSM Feasibility Study: $7.90B NPV, 16.1% IRR
Seabridge Gold Inc.'s KSM in British Columbia, Canada has a Feasibility Study outlining an after-tax NPV of $7.90B, an after-tax IRR of 16.1%, and initial capital of $6.40B. The mine plan runs 33 years at about 1027 koz Au per year.
Seabridge Gold Inc.'s KSM has reported Feasibility Study results for the gold and copper project in British Columbia, Canada. The study headlines an after-tax net present value of $7.90B at a 5% discount rate. It reflects Seabridge Gold Inc.'s (SEA.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $7.90B using a 5% discount rate. After-tax IRR is 16.1%. Initial capital expenditure is estimated at $6.40B, with life-of-mine sustaining capital of $3.20B. The study models a payback period of 3.7 years. All-in sustaining costs are pegged at 601 USD/oz Au. Economics are based on Base Case: Gold $1,742/oz, Copper $3.53/lb, Silver $18.0/oz, US$/C$ 0.77. Recent Spot: Gold $4,400/oz, Copper $6.55/lb, Silver $65.0/oz, US$/C$ 0.72.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 33 years. Average annual production is approximately 1027 koz Au. The open-pit strip ratio is 1:1.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: Note converts into 60% silver royalty at commercial production (Sprott Royalties and Ontario Teachers Pension Plan, US$225M); Note converts into 1.0% NSR at commercial production (Sprott Royalties, US$150M).
These figures are extracted from Seabridge Gold Inc.'s technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven & Probable | 2,292 M tonnes | 0.64 g/t Au, 0.14% Cu, 2.2 g/t Ag, 76 ppm Mo | 47.3 M oz Au, 7,320 M lbs Cu, 160 M oz Ag, 385 M lbs Mo |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 6,255 M tonnes | 0.47 g/t Au, 0.15% Cu, 2.3 g/t Ag, 61 ppm Mo | 95.5 M oz Au, 21,146 M lbs Cu, 460 M oz Ag, 837 M lbs Mo |
| Inferred | 8,469 M tonnes | 0.31 g/t Au, 0.23% Cu, 2.1 g/t Ag, 32 ppm Mo | 84.4 M oz Au, 42,722 M lbs Cu, 570 M oz Ag, 606 M lbs Mo |
Our Analysis
- IRR after-tax
- 16.1%
higher than 8% of 346 projects we track
- NPV after-tax
- $7.90B
higher than 98% of 443 projects we track
- Initial capex
- $6.40B
81% of NPV
costlier than 98% of 445 projects we track
- Payback
- 3.7yrs
slower than 76% of 281 projects we track
- Mine life
- 33yrs
- Discount rate
- 5%
- Study price assumption
- Base Case: Gold $1,742/oz, Copper $3.53/lb, Silver $18.0/oz, US$/C$ 0.77. Recent Spot: Gold $4,400/oz, Copper $6.55/lb, Silver $65.0/oz, US$/C$ 0.72
- Spot gold today
- $4,510.00/oz
The first question here is not whether this mine works, but who writes the cheque. At roughly 1.8x the company's entire US$3.54B market cap, the US$6.40B initial capex is far beyond what this mid-cap can quietly fund from its own balance sheet or operating cash flow. That scale of build implies either substantial equity dilution for existing holders, a major strategic partner, or a debt package that would leave the balance sheet stretched for years. The company does have room to maneuver: this is one of six projects in a diversified portfolio, not a single-asset gamble, which broadens the financing options. But the gap between the build cost and the equity value is the sharpest risk signal in this profile, and it will dominate the share price story long before the first pour.
The economics are respectable but not the headline. The 16.1% after-tax IRR sits in the bottom quartile of the 346 tracked projects, though it clears the roughly 15% threshold developers typically need to attract project finance. The US$7.90B NPV, about 2.2x the company's market cap, does offer a two-sided read: either the market has not priced in the asset, or it is discounting the financing, dilution, and 33-year build-out realities. The 5% discount rate flatters that NPV figure, sitting at the low end of reporting convention, and the 3.7-year payback is moderate. At feasibility level, the numbers carry real weight, but the price assumptions are the caveat: the base case uses gold at US$1,742/oz against a current spot of US$4,510/oz, so the returns are built on conservative metal prices, not optimistic ones.
British Columbia is a developed, mining-friendly jurisdiction, which supports the feasibility-stage confidence and the permitted status. The asset sits in a stable regulatory environment where the numbers can be read with less sovereign-risk discount than in higher-risk regions. The deciding question remains the funding pathway: whether the company can secure the US$6.40B build without diluting existing holders to the point where the NPV-to-market-cap gap closes for the wrong reason. That answer, not the IRR or the NPV, determines whether this project works.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.