Patient Zero's Diary....complete records of STGO's OutlookBy reading & analyzing MD&A 2020 to 2021, what's written in there scares me....STGO's management really has "dissociative identity disorder" or "schizophrenia".....Here is how they recognizing COVID-19 risk:
in 2020-Q2: The COVID-19 pandemic has not, to date, resulted in any material impact on Steppe Gold’s operations....
in 2020-Q4: Production forecasts for 2021 are dependent on a restart of leaching in April 2021 and no further delays on procurement due to COVID 19....
in 2021-Q1: key chemicals and reagents for the warmer months given the continuing COVID 19related supply constraints. Full year production forecasts are dependent on no further delays on procurement due to COVID 19....
Looks like they compiled a pieces of documents, then submitted it under name "MD&A", without no sign of reading, but signed-off.
| Outlook/Promises | 2020 – Q1 | 2020 – Q2 | 2020 - Q3 | 2020 – Q4 | 2021 – Q1 |
| Leaching | N/A | N/A | N/A | The Company plans to resume leaching and production in April 2021. | The Company resumed leaching and production in early April 2021 with a successful gold pour in late April.
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| Stacking | N/A | N/A | The Company is pleased to announce the completion of construction of cells 3,4 and 5 of the leach pad. Stacking the first level of the leach pad will continue through the first half of 2021. | The Company is now stacking ore on cell 3 of the leach pad. Stacking of the first level of the leach pad (Cells 1-5) will continue through 2021 | The Company believes that higher stacking rates in the second half of 2021 will mitigate some of the lost production time in the first half of 2021.
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| Crushing | N/A | N/A | N/A | Construction of foundations and installation of the new crusher will start in early April and it is scheduled to be operational by July 2021. | With a new crusher scheduled to be operational in summer 2021 |
| Reagents | N/A | N/A | N/A | The Company also wanted to conserve key chemicals and reagents for the upcoming warmer months given the COVID 19-related supply constraints | Reagent supplies are currently unpredictable and any further delays will reduce production forecasts for 2021. |
| Production | The Company remains on track to produce approximately 60,000 ounces of gold in 2020 at cash costs of around $500 per ounce from its heap leap operations. | N/A | It is targeting annual production in 2021 and 2022 of between 50,000 to 60,000 oz | It is targeting annual production in 2021 and 2022 of between 50,000 to 60,000 oz | It is targeting annual production in 2021 and 2022 of between 50,000 to 60,000 oz |
| Financing | N/A | N/A | The Company has retained Turms Advisors, a leading firm specializing in credit structuring solutions, to advise on the Project Finance options. The Company has commenced discussions with project finance and lending groups, | In March 2021, the Company purchased a new Crusher through a loan from Capitron Bank. | The Company continues discussions with Mongolian and international lenders on a multitranche project debt facility to finance the Phase 2 expansion |
| Boiler house | N/A | N/A | Completion of the boiler house is planned for December 2020. | This cold weather disruption will be remedied for the 2021/22 winter season with the installation of a boiler plant to heat process water nearing completion | Completion of the boiler house, used to warm the barren solution, is planned for Summer 2021. Installation of a boiler plant to heat process water nearing completion |
| BFS | N/A | The Company is currently working on a Bankable Feasibility Study (BFS) for the expansion of the ATO Gold mine. This work involves updating all resources and reserves for the ATO1, ATO2 and ATO4 deposits at the ATO Gold mine in addition to a maiden resource and reserve for the Mungu Discovery | With the Bankable Feasibility Study due for completion in H1 2021, We expect to start construction of the new flotation and CIL circuit in H2 2021 with longer lead items being procured starting in early 2021. | bankable feasibility study is on track for completion in summer 2021. DRA Global has been retained for the Bankable Feasibility Study (“BFS”). The BFS is based on the updated resource announced in late February | The definitive feasibility study remains on track for completion in summer 2021. |
| Covid-19 risk | N/A | The COVID-19 pandemic has not, to date, resulted in any material impact on Steppe Gold’s operations and the Company currently does not expect it will materially impact its 2020 production. | N/A | Production forecasts for 2021 are dependent on a restart of leaching in April 2021 and no further delays on procurement due to COVID 19.
| key chemicals and reagents for the warmer months given the continuing COVID 19related supply constraints. Full year production forecasts are dependent on no further delays on procurement due to COVID 19 |