Steppe Gold Ltd (STGO)

[Louied91]

$STPGF $STGO Steppe Gold Announces Second Quarter 2023 Financial Results

https://www.newsfilecorp.com/release/177083

Ulaanbaatar, Mongolia--(Newsfile Corp. - August 14, 2023) - Steppe Gold Ltd. (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) ("Steppe Gold" or the "Company") is pleased to announce its financial results for the the second quarter ended June 30, 2023.

HIGHLIGHTS

Second Quarter Highlights (all figures, except per unit amounts, in US$000's unless stated otherwise)

Revenue for the three and six months ended June 30, 2023, was $14,272 and $23,797 on gold sales of 6,880 ounces and 11,888 ounces with average realized prices per ounce of $1,971 and $1,935 respectively. Silver sales for the same periods were 29,198 ounces and 29,850 ounces with average realized prices per ounce of $23 and $21 respectively.

Operating income from mine operations before depreciation and depletion was $8,770 and $14,794 for the three and six months ended June 30, 2023, respectively.

Adjusted EBITDA after stream payments was $2,775 and $4,916 for the three and six months ended June 30, 2023, respectively.

Site All in Sustaining Cost was $722 and $718 per ounce sold for the three and six months ended June 30, 2023, respectively.

All in Sustaining Cost was $1,081 and $1,089 per ounce sold for the three and six months ended June 30, 2023, respectively.

During the six months ended June 30, 2023, 219,863 tonnes of ore were mined, and 458,354 tonnes of ore were stacked on the leach pad with an average gold grade of 0.94 g/t and an average silver grade of 6.41 g/t.

As at June 30, 2023, cash amounted to $5,705; total bank and other debt was $16,670 and net debt was $10,965 including payables and other liabilities.

The Company completed a private placement of 11,000,000 shares resulting in $9,020 cash raised.

The acquisition of Anacortes Mining Corp. ("Anacortes") was completed on June 28, 2023. As a result, a further 19,473,948 shares were issued to Anacortes shareholders and a further 924,654 shares were issued to the advisors to the transaction.

On July 11, 2023, the Company announced it had signed a binding term sheet of $150,000 in financing to fully fund the construction and completion of the Phase 2 Expansion at the ATO Gold Mine (the "Phase 2 Expansion"). The terms of the financing comprise three tranches of $50,000 each for a total of $150,000, expected to be funded in line with the planned construction phase of the Phase 2 Expansion.

The Company is actively working on the engineering, procurement and construction ("EPC") arrangements for the Phase 2 Expansion. Construction and installation of the new fixed crushing unit is expected to be completed by fourth quarter 2023. Camp design is complete and the design phase for the major capital expenditure work is underway.

Outlook
With the Phase 2 Expansion financing announced on July 11, the focus for the Company now turns to finalizing EPC arrangements and the start to deployment of capital. Funds from the initial tranche of funding of $50m are expected to be available later in August. The Company anticipates to make a full announcement by September 2023 on the EPC arrangements.

Work is ongoing with the EPC contractor on plant design, capital expenditure review and updates and contract schedules. With the crusher installation now complete, the Company expects to complete power supply plans and commission the unit later in 2023. Camp design and expansion is already underway.

With funds from the recent private placement, the Company is also reinvigorating its exploration and development programs in Mongolia. The Company has conducted numerous site visits to license areas close to the ATO Gold Mine for potential cooperation, partnership and acquisitions.

Work continues on the recently acquired, highly prospective Tres Cruces project. The Company plans to release an update of the March 2022 preliminary economic assessment shortly and is conducting a review of source geological data as it looks to develop a plan for advancing this project, in consultation with local communities, and a revamped future drill program.

The Company's consolidated financial results for the quarter ended June 30, 2023 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.