Approach

Seabridge evaluates risk limits and concentrations, and monitors markets to identify emerging risks and opportunities. This process relies on the collection, analysis, and distribution of information pertaining to risks.

Our trading desk constantly monitors the markets to obtain this data, and provides it to our clients’ CRO. We then collaborate with the CRO to integrate and interpret this information. The resulting analysis is used to assess and manage risks.

At Seabridge, it is our standard practice to hedge market price risks wherever possible.

In addition to hedging inventories, Seabridge routinely hedges future physical transactions.

Seabridge manages basis risk using our knowledge of the relationships between prices of related but different commodities.

Consistent with standard industry practice for commodities trading, Seabridge employs Value-at-Risk (VAR) as our measure of the overall price risk of our portfolio of physical and derivatives trading positions.