Steppe Gold Announces 2023 Annual Financial Results
01 April 2024 - 11:02PM
Steppe Gold Ltd. (TSX: STGO) (OTCQX:
STPGF) (FSE: 2J9) (“
Steppe Gold” or the
“
Company”) is pleased to announce its
financial results for the year ended December 31, 2023.
HIGHLIGHTS
Fourth quarter and year ended December
31, 2023 Highlights
(all figures in US$000’s unless stated
otherwise, except per unit figures which are in US$)
- Revenue for the
three months and year ended December 31, 2023 amounted to $14,677
and $54,239 on sales of 7,242 and 27,050 gold ounces and 17,673 and
71,367 silver ounces, respectively.
- Average realized
prices for the three months and year ended December 31, 2023 were
$1,977 and $1,948 per gold ounce and $20 and $21 per silver ounce,
respectively.
- Operating income
from mine operations before depreciation and depletion for the
three months and year ended December 31, 2023 was $7,906 and
$31,606, respectively.
- Adjusted EBITDA
after stream payments for the three months and year ended December
31, 2023 was $2,639 and $11,297, respectively.
- Site All in
Sustaining Costs were $984 and $839 per ounce sold respectively for
the three months and year ended December 31, 2023. All in
Sustaining Cost was $1,281 and $1,140 per ounce sold for the three
months and year ended December 31, 2023, respectively.
- During the three
months and year ended December 31, 2023, 244,501 and 726,059 tonnes
of ore were mined and 207,943 and 913,343 tonnes of ore were
stacked on the leach pad, respectively, with an average gold grade
of 0.87 g/t and 0.86 g/t, respectively, and an average silver grade
of 4.93 g/t and 4.24 g/t, respectively.
- As at December 31,
2023, the cash balance was $6,034 (including $28 recorded in
‘disposal group held for sale’); total bank debt, payables and
other debts (including liabilities of $959 recorded in ‘disposal
group held for sale’, but excluding convertible debentures and
stream arrangements) was $23,150 with net debt of $17,116.
- On May
11, 2023, the Company completed a private placement of 11,000,000
common shares resulted in $9,020 cash being raised.
- On March
21, 2024, the Company announced that it had entered into an amended
and restated gold prepay agreement of US$5 million.
-
The acquisition of Anacortes Mining Corp.
(“Anacortes”) was completed on June 28, 2023. As a
result, a further 19,437,948 common shares were issued to Anacortes
shareholders and a further 924,654 common shares were issued to the
advisors to the transaction.
-
On August 22, 2023, the Company announced the filing of a technical
report in respect of its 100% owned Tres Cruces Gold Oxide Project
located in Peru (the “Tres Cruces Project”).
- On July 11,
2023, the Company announced it had signed a binding term sheet with
Trade and Development Bank of Mongolia and affiliated entities for
$150,000 in financing to fully fund the construction and completion
of the Phase 2 Expansion at the ATO Gold Mine (the “Phase 2
Expansion”). The terms of the financing comprise three
tranches of $50,000 each for a total of $150,000, expected to be
funded in line with the planned construction phase of the Phase 2
Expansion. On August 30, 2023, the Company signed a loan agreement
for the first tranche of $50,000 and, on October 9, 2023, made its
first draw down of $9,600. The second draw down of $40,400 from the
project finance package was funded on March 20, 2024, with a total
of $50,000 now drawn from the first tranche of the $150,000 project
finance package since October 2023.
- On January 9, 2024,
the Company announced that it had entered into a turnkey
engineering, procurement and construction contract (the
“EPC Contract”) with Hexagon Build Engineering LLC
(“Hexagon Build”) for the Phase 2 Expansion.
- An announcement was
made on March 26, 2024 providing further details regarding the EPC
Contract and the Phase 2 Expansion, with a payment of $37,000 made
towards the Phase 2 Expansion, to include funding for procurement
of major long lead items, mobilization costs, early construction
works and foundational work. The major long lead items include the
flotations cells, grinding mills, cluster cyclones, thickener
units, filters and pumping systems.
- The Phase 2
Expansion is proceeding according to projected timelines and
budgets, with commissioning planned for Q1 2026.
- On January 22,
2024, the Company announced that it had entered into a binding term
sheet (the “Term Sheet”) pursuant to which Steppe
Gold, either directly or through a wholly-owned subsidiary, will
acquire all of the issued and outstanding common shares of Boroo
Gold LLC (“Boroo Gold”) in an all-share
transaction. The Term Sheet also provides Boroo Pte Ltd., or one of
its affiliates, the first right to acquire the Tres Cruces Project
at fair market value following the completion of the
transaction.
Outlook
With the landmark financing package secured and
the first tranche of $50,000 fully drawn down, the Company’s main
operational focus is execution of development of the Phase 2
Expansion with its EPC partners at Hexagon Build.
This will involve acceleration of the ordering
of long lead items, commencement of early construction and
foundational works and mobilization to site by Hexagon Build.
The potential acquisition of Boroo Gold is
proceeding well with the due diligence process now in the latter
stages. The Company is also in negotiations regarding the sale of
the Tres Cruces Project.
The Company’s consolidated financial results for
the year ended December 31, 2023 have been filed on SEDAR+. The
full version of the annual consolidated financial statements and
associated management's discussion & analysis can be viewed on
the Company's website at www.steppegold.com or under the Company's
profile on SEDAR + at www.sedarplus.ca.
Steppe Gold Ltd.
Steppe Gold is Mongolia’s premier precious
metals company.
For Further information, please
contact:Bataa Tumur-Ochir, Chairman and CEO
Jeremy South, Senior Vice President and Chief
Financial Officer
Shangri-La office, Suite 1201, Olympic Street19A, Sukhbaatar
District 1,Ulaanbaatar 14241, MongoliaTel: +976 7732 1914
Non-IFRS Performance
Measures
EBITDA is defined as earnings before interest,
taxes, depreciation and amortization. Adjusted EBITDA is defined as
adjusted earnings before interest, taxes, depreciation and
amortization. Further details of Non-IFRS Performance Measures
noted above can be found in the Company’s management's discussion
& analysis.
Cautionary Note Regarding
Forward-Looking Statements
This news release contains certain statements or
disclosures relating to the Company that are based on the
expectations of its management as well as assumptions made by and
information currently available to the Company which may constitute
forward-looking statements or information (“forward-looking
statements”) under applicable securities laws. All such statements
and disclosures, other than those of historical fact, which address
activities, events, outcomes, results, or developments that the
Company anticipates or expects may, or will, occur in the future
(in whole or in part) should be considered forward-looking
statements. In some cases, forward-looking statements can be
identified by the use of the words “continued”, “focus”,
“scheduled”, “will”, “potential”, “planned” and similar
expressions. In particular, but without limiting the foregoing,
this news release contains forward-looking statements pertaining to
the following: trading of the Company's common shares and business;
economic, and political conditions in Mongolia and Peru; and
discussion of future plans, projections, objectives, estimates and
forecasts and the timing related thereto, including with respect to
the ATO Gold Mine, the Phase 2 Expansion, the EPC Contract, the
Boroo Gold transaction and the sale of the Tres Cruces Project.
The forward-looking statements contained in this
news release reflect several material factors and expectations and
assumptions of the Company including, without limitation: exercise
of any termination rights under the Term Sheet; the negotiation of
definitive agreements in respect of the acquisition of Boroo Gold
and the sale of the Tres Cruces Project; material adverse effects
on the business, properties and assets of the Company; changes in
business plans and strategies; market and capital finance
conditions; risks inherent to any capital financing transactions;
changes in world commodity markets; currency fluctuations; costs
and supply of materials relevant to the mining industry; change in
government; and changes to regulations affecting the mining
industry.
The Company believes the material factors,
expectations and assumptions reflected in the forward-looking
statements are reasonable at this time, but no assurance can be
given that these factors, expectations and assumptions will prove
to be correct. The forward-looking statements included in this news
release are not guarantees of future performance and should not be
unduly relied upon. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements, including, without
limitation: changes in world commodity markets, equity markets,
costs and supply of materials relevant to the mining industry;
changes in government; changes to regulations affecting the mining
industry; and certain other risks detailed from time to time in the
Company’s public disclosure documents, including, without
limitation, those risks identified in this news release and in the
Company’s annual information form dated April 1, 2024, copies of
which are available on the Company’s SEDAR+ profile at
www.sedarplus.ca. Readers are cautioned that the foregoing list of
factors is not exhaustive and are cautioned not to place undue
reliance on these forward-looking statements.
The forward-looking statements contained in this
news release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
The Toronto Stock Exchange has not reviewed and
does not accept responsibility for the adequacy or accuracy of the
content of this news release.
Steppe Gold (TG:2J9)
Historical Stock Chart
Von Okt 2024 bis Nov 2024
Steppe Gold (TG:2J9)
Historical Stock Chart
Von Nov 2023 bis Nov 2024