Dahlman Rose Says Seabridge Could Return 476% (SA)

Dahlman Rose & Co. has a Buy rating on Seabridge Gold, Inc.

, and sees potential for a near 500% return in shares. It has a $167.34 price target on shares. In a note sent to investors, Dahlman writes, "Drilling this summer has been focused on upgrading Inferred Resources into the Measured and Indicated categories (needed to declare reserves). At current gold prices, we calculate that Courageous Lake has a fundamental value of roughly $2.1Bn (with size/cost similarities to Osisko and Detrour Gold). However, we do not think there is any value for Courageous Lake in the current stock price. At its current state of development, we think the project should fetch a market value between 0.1x to 0.2x of fundamental value, or $210MM to $420MM. Similar projects have been valued in the market from 0.2x to over 0.5x once reserve status has been achieved." Shares of SA are down 45 cents to $27.69, a loss of 1.6%.