Steppe Gold (STGO) Q2 2024 earnings summary

Executive summary

• Reported Q2 2024 revenue of $10.4M on sales of 4,040 gold oz and 36,672 silver oz; six-month revenue was $18.4M on 7,763 gold oz and 56,178 silver oz.

• Completed acquisition of Boroo Gold and sale of Tres Cruces Project on August 1, 2024; these will impact Q3 results.

• Board appointment of Dulguun Erdenebaatar following Boroo Gold Transaction.

Financial highlights

• Average realized prices: $2,318/oz gold and $26/oz silver in Q2; $2,191/oz gold and $24/oz silver for six months.

• Operating income from mine operations before depreciation and depletion: $6.2M in Q2, $10.5M for six months.

• Adjusted EBITDA after stream payments: $2.3M in Q2, $2.0M for six months.

• Site All-in Sustaining Costs (AISC): $856/oz in Q2, $899/oz for six months; total AISC: $1,124/oz in Q2, $1,315/oz for six months.

• Cash balance at June 30, 2024: $3.2M; net debt: $66.9M.

Outlook and guidance

• Combined gold production for H2 2024 expected between 30,000–35,000 oz.

• Boroo Gold acquisition expected to provide immediate strong cash flow and support growth plans.

• Focus on maximizing production and cash flows at both mines and completing Phase 2 Expansion.

• Plans to increase exploration and consider opportunistic acquisitions in Mongolia.