Steppe Gold Ltd (TSX:STGO, OTCQX:STPGF) reported solid production and a sequential increase in revenue and earnings for the third quarter following the closing of its acquisition of Boroo Gold on August 1.
Total revenue was $37.3 million for the quarter which ended on September 30, 2024, the Mongolia-focused gold miner said on Friday.
Boroo Gold generated $27.4 million in revenue from the sale of over 12,600 gold ounces, while Steppe Gold contributed $9.9 million in revenue from 3,769 gold ounces.
Income for Boroo Gold was $16.8 million for the quarter, with Steppe Gold’s mine operations contributing $4.7 million.
Average realized gold prices were $2,167 per ounce for Boroo Gold and $2,623 per ounce for Steppe Gold.
The company noted that its all-in sustaining cost (AISC) remained low, enhancing profitability.
AISC for Boroo Gold was $1,095 per ounce for the quarter and for Steppe Gold was $1,610.
Steppe Gold noted the acquisition of Boroo Gold as a “transformational step” which “accelerates the path to a multi-asset Mongolia-focused mining group and, importantly, is projected to immediately provide strong cash flow to support growth plans, further improved with the recent strong gold prices.”
The company added that its near-term focus is on maximizing production and cash flows at both of its producing mines and executing the completion of the Phase 2 expansion at its ATO Mine.