Mongolian mining specialist Steppe Gold Limited (TSX: STGO) (OTCQX: STPGF) has announced its financial results for the three months ended March 31, 2022, following recent positive operational updates.
First Quarter Highlights (all figures in US$000’s unless stated otherwise)
- Revenue for the three months ended March 31, 2022, was $5,457 on sales of 2,893 gold ounces and 248 silver ounces with average realized prices per ounce of $1,850 and $24 respectively.
- Operating income from mine operations, before depreciation and depletion was $2,814.
- Consolidated group adjusted EBITDA for the quarter was $1,135.
- During the three months ended March 31, 2022, 69,613 tonnes of ore were mined and 192,680 tonnes of ore were stacked on the leach pad with an average gold grade of 1.83 g/t and an average silver grade of 18.33 g/t.
- As at March 31, 2022, cash and restricted cash amounted to $59,736; total bank and other debt (excluding convertible debentures) was $70,986 and net debt was $11,250.
- Progress has been made on the construction and installation of the new fixed crushing unit and it is expected to be operational by summer 2022. This is the first major equipment installation for the fresh rock phase, and it will also allow the Company to drive higher crushing rates in the remaining oxide phase with ample excess capacity in the plant.
Outlook
With the resumption of supply of key reagents in March 2022, and the company’s recent operational update that highlighted ramped-up production levels, the focus for the balance of 2022 will be to continue to maximise oxide production from the substantial inventories on hand.
Production will ramp up gradually as the reagent supplies build up and more cells are under leach. Exploration efforts have identified high grade zinc and lead and further exploration and pit optimisation work in 2022 will be directed at expanding the resource at ATO.
With the 2021 Gold 2 Loan package now in place and production resumed, the company also plans to move forward with securing the balance of the Phase 2 Expansion project finance.
For further information please visit: https://steppegold.com/
