Mongolia’s Premier Precious Metals Company
Stock Code:
TSX: STGO, OTCQX: STPGF
Company Exposure:
Gold
Project Locations:
Mongolia
Steppe Gold stands as Mongolia’s premier precious metals producer, advancing from an IPO in 2018 to commercial production at the oxide zone of its ATO Gold Mine in 2020.
With a skilled work force, strong local support and financial backing, the company brought a total of 110Koz of gold and 200Koz of silver to market (approximately $210M in revenue project to date).
Steppe Gold is well-positioned to significantly increase earnings as it embarks on an impressive growth path with precious metal prices projected to stay strong over the near to medium term.
With a forward-thinking growth strategy, the Company has secured US$150M to fully finance the Phase II expansion of the mine. ATO Phase II is scheduled to begin commissioning in H1 2026 with an average annual production of over 90Koz AuEq over 12 years at an all-in sustaining cost (AISC) of approximately $1,000/oz.
Additionally, Steppe Gold has successfully completed negotiations to acquire the Boroo Gold Mine, positioning itself as a multi-mine production company in a region brimming with untapped potential. The new combined company is expected to produce over 85Koz AuEq per annum over the next two years, and up to 150Koz AuEq annually starting in 2026 as ATO Gold Mine Phase II Expansion comes online.
Investment Highlights
Transformational value creation in full swing:
- Acquisition of producing Boroo Gold mine:
– Boosts 2024 production to over 90Koz AuEq with EBITDA over $65M
– Adds 8+ year mine life with 697Koz AuEq high-margin reserve (431Koz AuEq recoverable)
– Increases production to over 1.3Moz AuEq and EBITDA to over $875M over 12 years - Phase 2 Expansion at ATO:
– Increase production to 90Koz/yr AuEq per annum starting mid 2026 with EBITDA averaging over $50M/yr
– Provides 12+ year mine life with 1.7Moz AuEq high-margin reserve - Improving Economics:
– Exploring technologies to enhance recoveries, improve project logistics, and further reduce costs
– Recently reduced annual overheads by 45% (over $2Mpa) - Excellent Potential to Grow Resources/Reserves:
– Near mine targets to drill including depth targets just outside current pit shells (11m @655g/t AgEq and 55m @193g/t AgEq)
– M&A and exploration targets are available in Mongolia - Proven in-country team:
– Track record of value creation, operational excellence, financial discipline, and strong corporate governance
– Demonstrated ability to enhance operations, increase mineral resources, obtain permits, and deliver construction/expansion projects - Compelling Valuation:
– Trading at <$65/oz P&P of combined entity – well below other junior producers ($150-200/oz)
