Gold has been a major topic in my writing, particularly with its price spike this year. Yet, only recently have gold-related stock promotions started appearing more frequently. Unlike past rallies, retail investors now seem more captivated by the stock market’s growth and the excitement around AI than by opportunities in the gold extraction industry.
As gold promotions ramp up, investor sentiment could change. Last week, I explored Marin Katusa’s gold investment insights, and today, I’ll break down another perspective from Karim Rahemtulla of Monument Trading Group, with more to come. Rahemtulla begins his pitch by showcasing a single-ounce Krugerrand coin, using it to promote the idea of acquiring gold at reduced price.
Rahemtulla refers to a stock he dubs “My Exclusive Gold Opportunity” by signing up for his Catalyst Cash Outs LIVE program, investors gain access to this pick. The service appears focused on short-term investing, with weekly live sessions led by Rahemtulla, Bryan Bottarelli, likely involving options. However, past promotions have included long-term plays, such as Rahemtulla’s successful Rolls Royce recommendation.
Fortunately, the ad reveals enough clues for us to identify the stock without the hefty subscription fee. In fact, the registration form itself provides key details on how it’s marketed.
And…
If gold doesn’t pique your interest, what about copper? Many commodity experts have been touting it as the must-rise metal in recent years—and this pitch has something to offer on that front as well.
Don’t get swept up in the excitement—if you’re unfamiliar with mining or the complexities of these investment pitches, keep in mind that gold still trapped underground, requiring extensive extraction and processing, holds far less immediate value than gold already stored in a secure storage facility. The level of discount varies based on factors like the time needed to develop a mine, its proximity to production, and the likelihood of securing permits.
Rahemtulla, however, presents this as a particularly efficient and affordable gold project.
That gives us enough to work with—we don’t need to sift for the remainder of his pitch.
This approach mirrors David Eifrig’s earlier promotion in May, as both spotlight the same company: Seabridge Gold.
For the past two decades, Seabridge Gold operated like a “gold reserves” vault. Under CEO Rudi Fronk, the company has aggressively accumulated gold reserves, betting on a future surge in value. However, they’ve been conservative with spending, opting to wait for gold prices to climb high enough to attract a major partner willing to fund the development of their flagship project.
Seabridge boasts significant assets, claiming roughly 2 ounces gold and over 80 pounds copper per share—primarily tied to its KSM Mine in British Columbia, however additional exploration sites are also in play. Here’s what industry experts have to say:
Back in spring, I took a speculative position in Seabridge December expiry options. Those positions have performed decently as gold prices pushed SA shares higher. If gold climbs a little more, I might break even—but if it surges, the returns could be substantial.
So, should you hurry to purchase SA to help my trade? Just kidding!
The key update is that Seabridge secured the “Significantly Initiated” classification from the authorities. This milestone, achieved after preliminary site development investments, ensures their permits remain valid—eliminating concerns about regulatory setbacks.
Financially, not much has changed. Their KSM project data still aligns with the 2022 pre-feasibility study, supplemented by initial-phase projects like Courageous Lake. Reserves stand at about 1/2 an ounce per share, with total resources nearing two ounces per share. Copper reserves sit at 82 pounds per share, with an additional 665 pounds in broader resource estimates. The economics make sense at $1500 per ounce of gold, but at $2700, the upside could be enormous—assuming prices hold.
The success of Seabridge’s investment return in the coming years largely depends on securing partner to develop the KSM deposit, the terms of that partnership. The company has RBC Capital as its investment bank to assist in finding partners and recently hosted representatives from five major mining firms for a tour of KSM project. Though ongoing discussions are happening, there is no clear timeline for a deal.
The KSM deposit represents a significant asset, with the initial stage requiring an estimated $1,500 million in capital a few years ago. Seabridge has been cautious with its exploration and preliminary construction, raising funds through small royalty sales to avoid excessive dilution. In the future, a major mining corporation with the expertise to manage large-scale projects will likely need to invest hundreds of millions, secure a billion-dollar loan, and fund the construction of the mine.
If the company misses the ongoing gold price surge, the future of Rudi Fronk’s strategy could be at risk. However, there may still be room for a agreement regardless of whether gold prices dip back to $2000 per ounce, or they could delay the KSM development until gold prices rise again, similar to a previous period when prices fell. Their patience has worked in the past, but if they are unable to secure a deal now, with significant investments already made in the project, the future could be uncertain.
It remains to be seen how this develops. Occasionally, rumors of a deal emerge, but Seabridge only states that “discussions and work continue.” Despite 20 years of experience, Rudi Fronk still actively promotes the company at mining conferences, engaging with the media. However, the company does not typically hold quarterly earnings calls as shown in Mining.com article from July.
In their latest quarterly filing, Seabridge clarified the current status by noting the “Substantially Started” designation, which helps them maintain their permits that were granted after the last quarter.
Until Seabridge confirms that a deal is in the works, this is all we can infer. We might get an update next quarter, though it’s also possible they won’t announce anything and the mine may remain unbuilt. While it seems plausible they’ll seize the current gold price surge to secure a deal soon, we’ve thought that in the past as well. The potential outcomes are still uncertain.
As a bonus, Karim Rahemtulla offers a preview of his special report, “Get Rich with Gold Royalties,” as part of the subscription. Here’s a glimpse of what he promises:
Karim Rahemtulla draws attention to past periods when Franco-Nevada (FNV) outperformed gold and the broader stock market, reinforcing that he’s referring to this prominent player in the gold royalty sector. While Franco-Nevada remains a reputable company, it’s still recovering from the significant blow caused by the Cobre Panama mine shutdown by the Panamanian government last year, which was their largest cash producer and most costly royalty acquisition.
As for Seabridge and its KSM project, it’s an exciting and risky proposition. The KSM deposit has significant potential, but securing a development partner and navigating through the gold price fluctuations are crucial factors. I’d love to hear your thoughts—do you think Seabridge represents “The Pinnacle of Gold Investments” as Rahemtulla suggests? Or do you have a favorite gold royalty company you’re betting on? Feel free to share your views in the comments below.
