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Steppe Gold Ltd T.STGO

Alternate Symbol(s):  STPGF

Steppe Gold Ltd is a Mongolia-focused precious metals company. The Company is focused on operating, developing, exploring and acquiring precious metal projects in Mongolia and Peru. Its projects include Altan Tsagaan Ovoo (ATO) gold and silver project, Mungu Project, and Uudam Khundii UK Project. The ATO Project is located in the territory of Tsagaan Ovoo soum of Dornod province in eastern Mongolia and is comprised of one mining license covering an area of 5492 hectares. The Mungu gold and silver discovery is located northeast of the ATO Project. It is a structurally controlled epithermal gold-silver system with localized bonanza grades. The Uudam Khundii property is comprised of one exploration license covering 14,397 hectares. The project area is located 800 km south-west of Ulaanbaatar. The property is located between and adjoining the Bayan Khundii gold discovery and Altan Nar epithermal gold deposits explored by Erdene Resource Development Corporation.


TSX:STGO - Post by User

Post by AlfTanneron Aug 15, 2024 4:39pm
171 Views
Post# 36181391

Q2 was bad

Q2 was badQ2 gold sales dropped to 4,040 ounces, and earnings were near zero.  Basic net earnings were barely positive at $.386M ($.008 per share).  "Change in fair value of stream liability" reduced earnings by $1.8M.

The press release did not even state the earnings, and I could not find adjusted earnings stated anywhere.  

Burried in the quarterly report was this statement:
In the six months ended June 30, 2024, gold production was 35% lower than the same period in 2023, while silver production was 29% higher than the same period in 2023. The Company has prioritized higher grade zones in previous periods and now gold grades are declining. In addition, the final active pit, ATO 2, is showing lower grades. Heap leach recoveries tend to decline over time.

The financials will likely be a mess next quarter with the Boroo merger.  The company will not reach its full potential until 2027 when ATO Phase 2 is completed.
 
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