Steppe Gold (STGO) Q1 2025 earnings summary

Executive summary

• Reported Q1 2025 revenue of $32.4 million from sales of 15,611 ounces of gold, with production just under 20,000 ounces and strong cost control reflected in an AISC of $991 per ounce.

• Average realized gold price was $2,041 per ounce, influenced by a forward sales contract; spot pricing expected to resume in June 2025.

• Positive working capital of $139.8 million as of March 31, 2025, including $98.7 million in bond investments maturing at year-end.

Financial highlights

• Adjusted EBITDA after stream payments and maintenance capex was $18.4 million for Q1 2025.

• Net debt stood at $157.2 million at quarter-end, with ongoing efforts to restructure and reduce higher-rate loans.

• Income tax payments totaled $15.6 million in the quarter.

• All-in sustaining costs (AISC) were $991 per ounce, driven by cost control and lower capex.

Outlook and guidance

• Gold production for 2025 expected to exceed 70,000 ounces, with Boroo Gold production in line with expectations and ATO production mainly from residual leaching.

• Preparatory work for ATO Phase 2 Expansion continues, with ongoing negotiations for optimal financing structure.

• Anticipates higher achieved gold prices and strong cash flow in H2 2025, supporting debt restructuring and growth initiatives.

• Capital expenditures projected to rise in Q2 and Q3 due to new fleet additions.