Seabridge Gold (TSX: SEA) (NYSE: SA) reported net income of $117.5 million ($1.08 per share) for the three months ended June 30, 2026, marking a substantial increase from the $12.3 million ($0.12 per share) recorded in the second quarter of 2025. The company filed its Report to Shareholders, Interim Financial Statements, and Management’s Discussion and Analysis on SEDAR+ on August 13, 2026.

The dramatic rise in profitability was largely attributed to non-operational gains realized from the distribution of the Courageous Lake project. This strategic move completed the spin-out of the asset to shareholders, contributing significantly to the bottom line while streamlining the company’s portfolio focus.

Capital Allocation and Liquidity

During the quarter, Seabridge intensified its capital expenditure, investing $32.5 million in mineral interests, property, and equipment at its projects. This represents an increase from the $21.1 million invested in the second quarter of 2025, reflecting accelerated activity at key sites such as the KSM and Bronson Corridor projects.

To support these ongoing investments, particularly the summer season work programs at KSM, Seabridge arranged an unsecured short-term loan agreement with a strategic investor in July 2026. The facility provides access to up to US$100 million, drawable in minimum calls of US$10 million. Key terms include:

• Interest rate of 7% compounded monthly
• Maturity date of December 31, 2026
• Repayment options in cash or common shares (subject to TSX approval)

No amounts have been drawn on the loan as of the filing date. The company intends to utilize this facility to strengthen its consolidated liquidity position as required.

Balance Sheet Position

As of June 30, 2026, Seabridge’s net working capital stood at $53.6 million, down from $109.8 million at December 31, 2025. This contraction reflects the increased capital deployment and operational expenditures during the first half of the year.

What the Numbers Show

The divergence between the top-line operational activity and the bottom-line result is stark. While capital investments rose by approximately 54% year-over-year (from $21.1 million to $32.5 million), net income surged nearly ninefold. This disparity confirms that the profit growth was not driven by core mining operations or revenue generation, but rather by the one-time accounting gain from the Courageous Lake distribution. Investors should note that the underlying operational cash burn has increased, necessitating the new $100 million credit facility to maintain momentum on the KSM feasibility study and field programs.

Project Updates

Beyond financial results, Seabridge highlighted several corporate developments:

• The extensive 2026 KSM field program is advancing on schedule to support the feasibility study.
• Engagement continues with a preferred candidate for an earn-in joint venture.
• The BC Supreme Court has required a reconsideration of the KSM Substantially Started Designation.
• The company published its 2025 Sustainability Report and was awarded the Smithers Resource and Mining Excellence Award.

Seabridge Gold has secured a $100M unsecured short-term loan from an unnamed strategic investor to bolster its liquidity position. The facility matures on December 31, 2026, and carries an interest rate of 7% compounded monthly. No amounts have been drawn under the loan agreement as of now.

The loan is drawable at Seabridge Gold's election in minimum calls of $10 million each. Repayment can be made in cash at any time or, subject to TSX approval, in common shares of the company if the loan remains outstanding at maturity. The company holds the option to choose the repayment method under specific circumstances.

Key Loan Terms

The agreement includes customary conditions, representations, warranties, and covenants. Seabridge Gold stated that it intends to draw on the loan if required to strengthen its consolidated liquidity position. The facility provides the company with financial flexibility to manage its working capital needs.