Steppe Gold Ltd (TSX:STGO, OTCQX:STPGF) said its move to acquire fellow Mongolia-focused miner is a “transformational step” for the company, accelerating its path to becoming a multi-asset mining group.
With projected additional operating cash flow from the Boroo deal, announced in April 2024, Steppe Gold aims to increase exploration activities and consider opportunistic acquisitions in Mongolia.
The company's near-term focus remains on maximizing production and cash flows at ATO Phase 1, completing the Phase 2 Expansion, and planning for the integration of Boroo Gold into its operations.
To that end, Steppe Gold unveiled its financial results for the quarter ending March 31, 2024, showcasing notable highlights and strategic developments.
In the first quarter, the company reported revenue of $7.97 million, generated from sales of 3,723 gold ounces and 19,506 silver ounces. The average realized prices for gold and silver stood at $2,043 per ounce and $19 per ounce, respectively.
Operating profit from mine operations before depreciation and depletion amounted to $4.32 million.
The site's All in Sustaining Cost (AISC) was $945 per ounce sold.
During this period, Steppe Gold mined 133,090 tonnes of ore and stacked 145,479 tonnes on the leach pad, with an average gold grade of 0.56 g/t. As of March 31, 2024, the company's cash balance stood at $6.74 million.
The Phase 2 Expansion, under a turnkey engineering, procurement, and construction contract with Hexagon Build Engineering LLC, is progressing as planned with commissioning scheduled for the first quarter of 2026.
Furthermore, the company entered into an amended and restated gold prepay agreement for an additional advance of $5 million and made a milestone payment of $37 million to the EPC contractor for the Phase 2 Expansion.