Steppe Gold Ltd (TSX:STGO, OTCQX:STPGF) delivered strong 2Q financial results to support the gold producer in its diversification into Peru.
Revenue during the second quarter ended June 30, 2023, reached $14.3 million, driven by gold sales of 6,880 ounces and silver sales of 29,198 ounces.
Operating income from mine operations before depreciation and depletion stood at $8.8 million for the same period, with adjusted EBITDA after stream payments of nearly $2.8 million.
The company mined 219,863 tonnes of ore and stacked 458,354 tonnes of ore on the leach pad during the first six months of 2023, with an average gold grade of 0.94 g/t and an average silver grade of 6.41 g/t.
Steppe ended the quarter with $5.7 million cash on hand.
The firm’s acquisition of Anacortes Mining Corp and its Tres Cruces project in Peru was successfully completed on June 28, 2023, giving the combined company a resource base of over 4.5 million gold equivalent ounces.
During the quarter, Steppe secured $150 million in financing to fully fund the construction and completion of the Phase 2 Expansion at the ATO Gold Mine.
With the Phase 2 Expansion financing secured, Steppe Gold is focusing on finalizing EPC arrangements and beginning capital deployment. Funds from the initial tranche of funding, $50 million, are expected to be available in August.
The company is progressing with EPC arrangements, plant design, and capital expenditure review, with the aim of announcing full EPC arrangements by September 2023.
Meanwhile, exploration and development activities are set to continue. The company said it plans to release an update on the Tres Cruces project's preliminary economic assessment while conducting a comprehensive geological data review.
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