Steppe Gold Announces Q1 2023 Financial Results
Steppe Gold Announces Q1 2023 Financial
Results
Ulaanbaatar, Mongolia--(Newsfile Corp. - May 15, 2023) -
Steppe Gold Ltd. (TSX: STGO)
(OTCQX:
STPGF) (FSE: 2J9)
("
Steppe Gold
" or the "
Company
") is pleased to announce its financial results for
the the quarter ended March 31, 2023.
HIGHLIGHTS
First Quarter Highlights
(all figures in US$000's unless stated otherwise)
Revenue for the three months ended March 31, 2023, was $9,525 on sales of 5,008 gold ounces
and 651 silver ounces with average realized prices per ounce of $1,899 and $19 respectively.
Production in the quarter was 6,993 ounces of gold and 19,877 ounces of silver.
Operating income from mine operations, before depreciation and depletion was $6,024.
Consolidated group adjusted EBITDA after stream payments for the quarter was $2,141.
Site AISC was $679 per ounce sold for the quarter.
During the three months ended March 31, 2023, 87,362 tonnes of ore were mined and 195,196
tonnes of ore were stacked on the leach pad with an average gold grade of 0.94 g/t and an
average silver grade of 5.81 g/t.
As at March 31, 2023, cash on hand was $1,339; total bank and other debt (excluding convertible
debentures) was $9,758 and net debt was $8,419.
In January 2023, the Company received a $5,000 working capital loan, due for repayment later in
2023.
On February 22, 2023, the Company announced plans to pursue a dual primary listing for its
common shares on the Main Board of the Stock Exchange of Hong Kong Limited, anticipated to
occur later in 2023.
On March 13, 2023, the Company announced the filing of an updated Technical Report in respect
of the ATO Project.
Outlook
The operational focus for the balance of 2023 will be on maximising production and accelerating
stacking rates as we look to bring on the new fixed crusher in the third quarter. The main strategic priority
will be to secure commitments for project finance for the Phase 2 Expansion at the ATO Gold Mine.
The first quarter of 2023 saw production levels above target while mining activity remained low, as
planned, in the prevailing winter conditions.
With the recent relaxation of the zero COVID restrictions in China, we have seen an improvement in
parts of the China/Mongolia supply chain and this has alleviated some of the bottlenecks in our supply
chain. While the border is now largely reopened, critical reagent supply is still restricted. Alternate supply
arrangements are operating adequately to support normal production levels.
On May 10, 2023, the Company announced that it had successfully completed a non-brokered private
placement. The private placement included participation from the Company's management and
2176423 Ontario, a company beneficially owned by Eric Sprott.
Under the Private Placement, the
Company issued an aggregate of 11,000,000 common shares of the Company at a price of C$1.10 per
Common Share for aggregate gross proceeds of C$12,100,000. The proceeds of the private placement
will be used to accelerate the Phase 2 Expansion currently underway, to fund ongoing exploration as well
as to support the announced plans to pursue a dual listing on the Hong Kong Stock Exchange.
On May 8, the Company announced that it had signed an Arrangement Agreement pursuant to which it
will acquire all of the issued and outstanding common shares of Anacortes Mining Corp. ("Anacortes")
by way of a court approved plan of arrangement under the Business Corporations Act (British
Columbia), in an all-share transaction (the "Transaction"). Under the terms of the Arrangement
Agreement, Anacortes shareholders will receive 0.4532 of a Steppe common share for each Anacortes
common share, which represented consideration of approximately C$0.48 per Anacortes common
share and a premium of 36% based on the closing prices of the Anacortes common shares on the TSX-
V and the Steppe common shares on the TSX, each as of the close of trading on March 3, 2023, the
date that the Transaction was publicly announced. On the closing of the Transaction, shareholders of
Steppe Gold and Anacortes will own approximately 79% and 21% of the combined company,
respectively, on a basic basis. The Transaction is subject to, among other things, the receipt of all
necessary regulatory, stock exchange and court approvals, and obtaining shareholder approval of the
Transaction at a meeting of the Anacortes shareholders, which is expected to be held on June 19, 2023.
The Company's consolidated financial results for the quarter ended March 31, 2023 have been filed on
SEDAR. The full version of the condensed interim 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.sedar.com
.
Steppe Gold Ltd.
Steppe Gold is Mongolia's premier precious metals company.
For Further information, please contact:
Bataa Tumur-Ochir, CEO and President
Jeremy South, Senior Vice President and Chief Financial Officer
Shangri-La office, Suite 1201, Olympic Street
19A, Sukhbaatar District 1,
Ulaanbaatar 14241, Mongolia
Tel: +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" 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, listing of common shares on the Hong Kong Stock
Exchange, economic, and political conditions in Hong Kong and Mongolia, consummation and timing of
the Transaction, the satisfaction of the conditions precedent to the Transaction, the strengths,
characteristics and potential of the resulting company and discussion of future plans, projections,
objectives, estimates and forecasts and the timing related thereto, including with respect to the ATO gold
mine.
The forward-looking statements contained in this news release reflect several material factors and
expectations and assumptions of the Company including, without limitation: required shareholder and
regulatory approvals, exercise of any termination rights under the Binding Agreement, meeting other
conditions in the Binding Agreement, 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, risks inherent to a possible Steppe Gold dual primary
listing, 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, change in government and 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 March 31, 2023, copies of which are available on the
Company's SEDAR profile at
www.sedar.com
. 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 obligations 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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/166181