The World’s Largest Undeveloped Gold Project Nears a Deal | Rudi Fronk - Seabridge Gold

The Deep Dive Oct 9, 2026 13:17

Summary

Gold stocks trade near historic discounts to bullion, and Fronk expects gold to reclaim its roughly $5,500 record before year-end.

Fronk argues KSM's after-tax net present value (NPV) tops US$30 billion against a $3 billion market cap, an extreme discount.

The US$100 million unsecured credit facility from an undisclosed strategic investor funds KSM's advance into a bankable feasibility study.

A joint venture with the preferred partner is being documented now; completing it before year-end is the central milestone.

Grid hydropower at about 5 cents per kilowatt-hour and finished road access de-risk KSM ahead of its feasibility launch.

Chair and CEO Rudi Fronk says Seabridge has never been closer to securing its preferred joint venture partner for KSM, with transaction documentation now underway, and as of this interview he hopes to announce the partner and terms before the end of 2026, while stressing that terms matter more than timing.
Fronk argues Seabridge is deeply undervalued: at the metal prices discussed he puts KSM's after-tax net present value above US$30 billion against a market cap of about US$3 billion, meaning the company trades at under 10% of NPV while larger gold companies trade around 1.5 times NPV.
A US$100 million unsecured, low-interest credit facility from an undisclosed strategic investor is funding this year's early site construction program, which is centered on launching a bankable feasibility study for KSM.
Grid power has reached the project: Seabridge has secured an initial 25 megawatts at the energized Treaty Creek terminal, expandable to 245 megawatts for operations, at about 5 cents per kilowatt-hour versus the 15 to 25 cents Fronk says self-generated power would cost.
The court-ordered 90-day consultation window brought by a small indigenous group against KSM's 'substantially started' designation has closed, and Fronk expects the government to reconfirm the designation now that project spend has risen from US$444 million at the 2024 designation to roughly US$700 million, keeping the permits valid for the life of the project.

Top takeaway Host Steve Hyland frames KSM's newly secured grid power as a significant de-risking event for Seabridge, contrasting it with the low-grade, power-starved Yukon projects he has been reviewing in recent months.
He asserts that KSM is likely also a top-three project in silver and copper, not just the world's largest undeveloped gold project, a characterization the guest confirms.