Steppe Gold Ltd (TSE:STGO), which is now producing gold from its ATO mine in Mongolia, has told investors it ended the first quarter to end-March, 2020, with US$1.8 million in cash, up from US$0.67 million at the end of 2019.
The increase was mainly due to cash received from financing, offset by cash used for operations, the miner said in a statement.
READ: Steppe Gold generates cash flow of US$8.5 million from gold and silver sales from its ATO mine in Mongolia
The group announced on March 25 this year that it had begun gold production at the flagship mine after its Adsorption-Desorption Recovery (ADR) plant was fully commissioned by the Professional Inspection Agency of Mongolia and declared ready for use on January 20.
Subsequent to the quarter-end, Steppe began its first gold sales and sold a total of 5,233 ounces of the yellow metal and 1,372 ounces of silver in two deliveries to the Central Bank of Mongolia, generating net cash flow before stream obligations of US$8.5 million.
On May 11, Steppe said it was on track to produce 60,000 ounces of gold this year at cash costs of around US$500 per ounce.
The group's loss from operations for the three months to March 31 was US$3.9 million, versus a loss of US$0.5 million for the same quarter last year.
"Positive cash flows from the ATO Mine will go towards studies to expand the open pit and processing facilities for the company to increase gold production to a targeted 150,000 ounces of gold per annum," the firm said in a statement earlier this month.
"Exploration drilling results for approximately 11,000 metres of diamond core drilling targeting extensions at depth on the ATO1, ATO4 and Mungu deposits will be available in the coming months," it added.
Contact the author at giles@proactiveinvestors.com