Steppe Gold Announces Q2 2024 Financial Results Board Appointment and 2024 Production Guidance
Steppe Gold announced its Q2 2024 financial results, reflecting strong performance before its Boroo Gold acquisition on August 1. Revenue reached $10.39 million for the quarter and $18.36 million for the first half of 2024, driven by sales of 4,040 gold ounces and 36,672 silver ounces in Q2. The average realized gold price was $2,318 per ounce and silver at $26 per ounce.
Operating income before depreciation and depletion was $6.17 million in Q2, with an adjusted EBITDA of $2.34 million. The company reported All-in Sustaining Costs (AISC) of $1,124 per ounce sold in Q2. The cash balance as of June 30 was $3.21 million, with net debt of $66.86 million.
Steppe Gold's combined gold production for H2 2024 is projected between 30,000 to 35,000 oz. The Phase 2 Expansion is on track, with commissioning planned for Q1 2026. The Boroo acquisition is expected to accelerate growth, adding strong cash flow and production capabilities.
Steppe Gold ha annunciato i risultati finanziari del secondo trimestre del 2024, evidenziando una forte performance prima dell'acquisizione del Boroo Gold prevista per l'1 agosto. I ricavi hanno raggiunto 10,39 milioni di dollari per il trimestre e 18,36 milioni di dollari per il primo semestre del 2024, sostenuti dalla vendita di 4.040 once d'oro e 36.672 once d'argento nel Q2. Il prezzo medio dell'oro realizzato è stato di 2.318 dollari per oncia e quello dell'argento di 26 dollari per oncia.
Il reddito operativo prima di ammortamenti e riduzioni è stato di 6,17 milioni di dollari nel Q2, con un EBITDA aggiustato di 2,34 milioni di dollari. L'azienda ha riportato I costi sostenibili totali (AISC) di 1.124 dollari per oncia venduta nel Q2. Il saldo di cassa al 30 giugno era di 3,21 milioni di dollari, con un debito netto di 66,86 milioni di dollari.
La produzione complessiva d'oro di Steppe Gold per il secondo semestre del 2024 è prevista tra 30.000 e 35.000 once. L'espansione della Fase 2 è in programma, con avvio delle operazioni previsto per il primo trimestre del 2026. Si prevede che l'acquisizione di Boroo accelererà la crescita, aggiungendo un forte flusso di cassa e capacità di produzione.
Steppe Gold anunció sus resultados financieros del segundo trimestre de 2024, reflejando un sólido desempeño antes de la adquisición de Boroo Gold programada para el 1 de agosto. Los ingresos alcanzaron 10,39 millones de dólares para el trimestre y 18,36 millones de dólares para la primera mitad de 2024, impulsados por la venta de 4,040 onzas de oro y 36,672 onzas de plata en el Q2. El precio medio realizado del oro fue de 2,318 dólares por onza y el de la plata de 26 dólares por onza.
El ingreso operativo antes de depreciación y agotamiento fue de 6,17 millones de dólares en el Q2, con un EBITDA ajustado de 2,34 millones de dólares. La compañía reportó Costos de Sostenibilidad Totales (AISC) de 1,124 dólares por onza vendida en el Q2. El saldo de efectivo al 30 de junio era de 3,21 millones de dólares, con una deuda neta de 66,86 millones de dólares.
Se proyecta que la producción combinada de oro de Steppe Gold para el segundo semestre de 2024 esté entre 30,000 y 35,000 oz. La Expansión de Fase 2 está en camino, con la puesta en marcha planificada para el primer trimestre de 2026. Se espera que la adquisición de Boroo acelere el crecimiento, añadiendo un fuerte flujo de caja y capacidades de producción.
스텝 골드는 2024년 2분기 재무 결과를 발표하며 8월 1일 예정인 보로 골드 인수 이전의 강력한 실적을 반영했습니다. 2분기 수익은 1,039만 달러, 2024년 상반기에는 1,836만 달러에 도달했으며, 이는 4,040 온스의 금과 36,672 온스의 은 판매에 힘입은 것입니다. 평균 실현 금 가격은 온스당 2,318달러, 은은 온스당 26달러였습니다.
감가상각 및 고갈 전 운영 수익은 2분기에 617만 달러였으며, 조정된 EBITDA는 234만 달러로 보고되었습니다. 회사는 2분기에 판매된 온스당 1,124달러의 전반적인 유지 비용 (AISC)를 기록했습니다. 6월 30일 기준 현금 잔고는 321만 달러였으며, 순 부채는 6,686만 달러로 나타났습니다.
스텝 골드의 2024년 하반기 금 생산량은 30,000~35,000 온스로 예상됩니다. 2단계 확장은 궤도에 올라 있으며, 2026년 1분기에 운영이 시작될 예정입니다. 보로 인수는 성장 속도를 가속화하고 강력한 현금 흐름과 생산 능력을 추가할 것으로 예상됩니다.
Steppe Gold a annoncé ses résultats financiers pour le deuxième trimestre 2024, reflétant une forte performance avant son acquisition de Boroo Gold prévue pour le 1er août. Les revenus ont atteint 10,39 millions de dollars pour le trimestre et 18,36 millions de dollars pour le premier semestre 2024, soutenus par la vente de 4.040 onces d'or et 36.672 onces d'argent au 2ème trimestre. Le prix moyen réalisé pour l'or était de 2.318 dollars par once et l'argent de 26 dollars par once.
Le revenu d'exploitation avant amortissements et épuisements s'est élevé à 6,17 millions de dollars au 2ème trimestre, avec un EBITDA ajusté de 2,34 millions de dollars. La société a rapporté des Coûts de Soutien Globaux (AISC) de 1.124 dollars par once vendue au 2ème trimestre. Le solde de trésorerie au 30 juin était de 3,21 millions de dollars, avec une dette nette de 66,86 millions de dollars.
La production totale d'or de Steppe Gold pour le second semestre 2024 est prévue entre 30.000 et 35.000 onces. L'expansion de la Phase 2 est sur la bonne voie, avec une mise en service prévue pour le premier trimestre 2026. L'acquisition de Boroo devrait accélérer la croissance, ajoutant un fort flux de trésorerie et des capacités de production.
Steppe Gold hat seine finanziellen Ergebnisse für das zweite Quartal 2024 bekannt gegeben, die eine starke Leistung vor der geplanten Übernahme von Boroo Gold zum 1. August widerspiegeln. Der Umsatz belief sich im Quartal auf 10,39 Millionen Dollar und auf 18,36 Millionen Dollar für das erste Halbjahr 2024, was durch den Verkauf von 4.040 Unzen Gold und 36.672 Unzen Silber im Q2 unterstützt wurde. Der durchschnittlich realisierte Goldpreis lag bei 2.318 Dollar pro Unze und Silber bei 26 Dollar pro Unze.
Das Betriebsergebnis vor Abschreibungen und Abnutzung betrug im Q2 6,17 Millionen Dollar, mit einem bereinigten EBITDA von 2,34 Millionen Dollar. Das Unternehmen berichtete über All-in Sustaining Costs (AISC) von 1.124 Dollar pro verkaufter Unze im Q2. Der Kassenbestand zum 30. Juni betrug 3,21 Millionen Dollar, mit einem Nettoschuldenstand von 66,86 Millionen Dollar.
Die kombinierte Goldproduktion von Steppe Gold für das zweite Halbjahr 2024 wird zwischen 30.000 und 35.000 Unzen prognostiziert. Die Phase-2-Erweiterung ist im Zeitplan, mit einer Inbetriebnahme, die für Q1 2026 geplant ist. Die Übernahme von Boroo wird voraussichtlich das Wachstum beschleunigen und einen starken Cashflow sowie Produktionskapazitäten hinzufügen.
- Revenue reached $10.39 million in Q2 and $18.36 million for H1 2024.
- Operating income before depreciation and depletion was $6.17 million in Q2.
- Adjusted EBITDA was $2.34 million in Q2.
- All-in Sustaining Costs (AISC) were $1,124 per ounce sold in Q2.
- The Boroo Gold acquisition is expected to enhance cash flow and production.
- Net debt stood at $66.86 million as of June 30, 2024.
Ulaanbaatar, Mongolia--(Newsfile Corp. - August 14, 2024) - Steppe Gold Ltd. (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) ("Steppe Gold" or the "Company") is pleased to announce its financial results for the quarter ended June 30, 2024.
The second quarter results shown below do not reflect the impact of the acquisition of Boroo Gold which was completed on August 1, 2024. The impact of the Boroo Gold acquisition and the sale of the Tres Cruces Project will be reflected in the third quarter results.
HIGHLIGHTS
Second Quarter Highlights
(all figures in US
Revenue for the three and six months ended June 30, 2024 amounted to
$10,392 and$18,363 on sales of 4,040 and 7,763 gold ounces, and 36,672 and 56,178 silver ounces, respectively.Average realized prices for the three and six months ended June 30, 2024, were
$2,318 and$2,191 per gold ounce and$26 and$24 per silver ounce, respectively.Combined gold production for the second half of 2024 is expected to be between 30,000 to 35,000 oz.
Operating income from mine operations before depreciation and depletion for the three and six months ended June 30, 2024, were
$6,167 and$10,490 , respectively.Adjusted EBITDA after stream payments for the three and six months ended June 30, 2024 were
$2,337 and$2,027. Site All in Sustaining Costs were
$856 and$899 per ounce sold for the three and six months ended June 30, 2024.All in Sustaining Cost was
$1,124 and$1,315 per ounce sold for the three and six months ended June 30, 2024.During the six months ended June 30, 2024, 337,236 tonnes of ore were mined and 223,738 tonnes of ore were stacked on the leach pad, with an average gold grade of 0.72 g/t and an average silver grade of 4.28 g/t.
As at June 30, 2024, the cash balance was
$3,207 (including$30 recorded in assets classified as held for sale); total bank debt, payables and other debts (including liabilities of$87 recorded in assets classified as held for sale, excluding convertible debentures, Stream Agreement, lease liabilities, tax payables and asset retirement obligations was$70,070 with net debt of$66,863. On January 9, 2024 the Company entered into a turnkey engineering, procurement and construction contract with Hexagon Build Engineering LLC for the Phase 2 Expansion.
The Phase 2 Expansion is proceeding according to the projected timelines and budgets, with commissioning planned for the first quarter of 2026.
On March 15, 2024, the Company entered into an amended and restated Triple Flag Gold Prepay loan for an additional advance of
$5,000 with a repayment term over five months, commencing on August 15, 2024, in five equal monthly deliveries of 530 ounces of gold for a total of 2,650 ounces delivered to Triple Flag International Ltd.On March 26, 2024, a milestone payment of
$37,000 was made to the EPC contractor in relation to the Phase 2 Expansion (as defined below) to fund procurement of major long lead items, mobilization costs, early construction works and foundational work. The major long lead items include flotations cells, grinding mills, cluster cyclones, thickener units, filters and pumping systems.On April 11, 2024, the Company announced that it had entered into a share exchange agreement pursuant to which it would acquire all of the issued and outstanding common shares of Boroo Gold LLC from an indirect, wholly owned subsidiary of Boroo Pte Ltd. ("Boroo Singapore") in an all-share transaction (the "Boroo Gold Transaction").
Additionally, on April 11, 2024, the Company entered into share purchase agreements, as amended and restated on July 30, 2024 (the "A&R Share Purchase Agreements"), pursuant to which it would sell the Tres Cruces Project to Boroo Singapore (the "Tres Cruces Transaction" and together with the Boroo Gold Transaction, the "Transaction") for approximately CAD
$12 million in cash, payable over the next 18 months beginning as of the Closing Date (as defined in the A&R Share Purchase Agreements).On May 13, 2024, the Company filed meeting materials in respect of the proposed transaction with Boroo Gold, where shareholders would, among other matters, vote on Steppe acquiring Boroo Gold in exchange for common shares in the capital of the Company, resulting in Boroo Singapore holding approximately
55.9% of Steppe, and Boroo Singapore acquiring the Tres Cruces Project for approximately CAD$12 million .On June 24, 2024, the shareholders of the Company approved the acquisition of Boroo Gold pursuant to the share exchange agreement dated April 11, 2024 (the "Share Exchange Agreement") and the sale of the Tres Cruces Oxide Project to Boroo Singapore, pursuant to the A&R Share Purchase Agreements.
On August 1, 2024 the Company successfully completed the Transaction between the Company and Boroo Singapore and its affiliates. Pursuant to the Boroo Gold Transaction, Boroo Singapore was issued 143,796,574 common shares of the Company at a deemed issue price of
$0.59 per common share. Prior to the Boroo Gold Transaction, Boroo Singapore did not hold any securities of the Company and upon completion of the Boroo Gold Transaction, Boroo Singapore holds approximately55.9% of the common shares of the Company. Pursuant to the Tres Cruces Transaction, the Company sold the Tres Cruces Project to Boroo Singapore for CAD$11.7 million in cash, payable in four instalments in 18 months from August 1, 2024.
Outlook
The acquisition of Boroo Gold is a transformational step for the Company. It accelerates the path to a multi-asset Mongolia-focused mining group and, importantly, is projected to immediately provide strong cash flow to support growth plans, further improved with the recent strong gold prices.
The near-term focus for the Company is on maximizing production and cash flows at both producing mines and, executing on a successful completion of the Phase 2 Expansion, where construction activity continues,
With the projected additional operating cash flow accruing from the Boroo Gold Transaction, the Company expects to be well-placed to increase exploration activities at both production centres with the aim of extending resources, reserves and production. The Company will also consider opportunistic acquisitions in Mongolia.
The Company's condensed interim consolidated financial results for the quarter ended June 30, 2024 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.sedarplus.ca.
Board Changes
As a result of the Boroo Gold Transaction, and subject to stock exchange approval, Dulguun Erdenebaatar has been appointed to the board of Steppe Gold pursuant to the Share Exchange Agreement.
Steppe Gold Ltd.
Steppe Gold is Mongolia's premier precious metals company.
For Further information, please contact:
Bataa Tumur-Ochir, Chairman and CEO
Jeremy South, Senior Vice President and Chief Financial Officer
Elisa Tagarvaa, Investor Relations elisa@steppegold.com
Shangri-La office, Suite 1201, Olympic Street
19A, Sukhbaatar District 1,
Ulaanbaatar 14241, Mongolia
Tel: +976 7732 1914
Non-IFRS Performance Measures
The Company uses the following non-IFRS measures: Adjusted EBITDA, EBITDA and AISC. EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as adjusted earnings before interest, taxes, depreciation and amortization. AISC is calculated using cash costs in addition to general and administration, asset retirement costs, and sustaining capital, less certain non-recurring costs (notably exploration costs at the Mungu deposit) to provide an overall company outlook on the total cost required to sell an ounce of gold.
Management believes that these non-IFRS measures provide useful information to investors in measuring the financial performance of the Company for the reasons outlined below. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these measures is meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with IFRS. These measures are not necessarily standard and therefore may not be comparable to other issuers. Further details of non-IFRS measures noted above can be found in the Company's management's discussion & analysis for the six months ended June 30, 2024.
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", "projected", "opportunity", "expected", "planned" and similar expressions. In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to the following: the anticipated benefits of the Boroo Gold Transaction; the potential for value creation to Steppe Gold's shareholders; payments to be made under the amended and restated gold prepay agreement; 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 Phase 2 Expansion and the ATO gold mine; and the consideration of opportunistic acquisitions in Mongolia.
The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of the Company including, without limitation: management team and board of directors of Steppe Gold; 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; 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; discrepancies between actual and estimated production and test results, mineral reserves and resources and metallurgical recoveries; and such other risk factors detailed from time to time in Steppe Gold's public disclosure documents, including, without limitation, those risks identified in Steppe Gold's annual information form for the year ended December 31, 2023, which is available on SEDAR+ at www.sedarplus.ca.
Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by such forward-looking statements. Forward-looking statements speak only as of the date those statements are made. Except as required by applicable law, Steppe Gold assumes no obligation to update or to publicly announce the results of any change to any forward-looking statement contained or incorporated by reference herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements. If Steppe Gold updates any one or more forward-looking statements, no inference should be drawn that the company will make additional updates with respect to those or other forward-looking statements. All forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219924
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