Steppe Gold Ltd, the Mongolia-focused gold miner, told investors that it sold 12,899 ounces of the yellow metal and 28,622 ounces of silver in 2021,while revenue came in at around US$24 million (M).
Operating income from mine operations, before depreciation and depletion for the year to December 31, 2021 was US$12.4M, while the group adjusted earnings before interest, tax, depreciation and amortization was US$4.9M.
As at the year-end, Steppe Gold's cash and restricted cash amounted to US$71.8M, while total bank and other debt was US$77.9M for net debt of US$6.1M.
In March 2022, the group reported that it had restarted heap leach processing to recover gold and silver at its flagship ATO mine in Mongolia after receiving a shipment of key reagents following significant supply issues related to coronavirus (COVID 19) lockdowns and border closures in 2021.
READ: Steppe Gold back in production at ATO gold mine in Mongolia after receiving key reagents
In the 202 results statement, Steppe Gold also announced the filing of its restated annual financial results for the period to December 31, 2020.
In preparing the 2021 results and as part of a continuous disclosure review by staff of the OSC in relation to the accounting for the Streaming Agreement, dated August 11, 2017, between Steppe Gold and Triple Flag Mine Finance Bermuda, the company said it had identified an error in how the arrangement has been reflected in the previously issued financial statements.
It previously determined that the stream obligation was in substance a debt instrument (carried at amortized cost) with embedded derivatives (recognized at $nil value) linked to gold and silver commodity prices.
Upon further review of the arrangement, the company said it has determined that the arrangement should be accounted for in its entirety as a derivative measured at fair value through profit and losses.
The restated financial statements resulted in changes to revenue, the stream liability and fair value gains/losses related to the liability though the adjustments did not impact the overall net cash flows of the company.
"Steppe Gold has therefore restated its annual financial statements for the year ended December 31, 2020, as well as the associated management's discussion and analysis. Comparative figures for 2021 interim periods will also be restated in 2022 interim reports," the company said.
Contact the writer at giles@proactiveinvestors.com