Steppe Gold Limited (TSX:STGO, OTCQX:STPGF), Mongolia's premier precious metals company, has announced its financial results for the three months ended June 30, 2022, and issued a July production update.
The company posted revenue for the three-month period of $17,237 on sales of 8,907 gold ounces and 717 silver ounces with average realized prices per ounce of $1,933 and $22 respectively.
Operating income from mine operations, before depreciation and depletion was $9,950. Consolidated group adjusted EBITDA for the quarter was $7,939 and site All In Sustaining Cost (AISC) was $811 per ounce sold for the three-month period
The company noted that 2022, 502,572 tonnes of ore were mined in the period and 237,603 tonnes of ore were stacked on the leach pad with an average gold grade of 2.04 grams per ton (g/t) and an average silver grade of 12.17 g/t.
READ: Steppe Gold anticipates 2Q gold production of around 10,400 ounces from its ATO mine in Mongolia
As of June 30, 2022, the company's cash and restricted cash amounted to $40,384; total bank and other debt (excluding convertible debentures) was $51,562 and net debt was $11,178.
Steppe Gold said the construction and installation of its new fixed crushing unit is expected to be completed by September 2022. This is the first major equipment installation for Steppe Gold's Phase 2 Expansion, which will also allow the company to drive higher crushing rates in the remaining oxide phase.
Other major ongoing works include fuel storage and camp expansion, it added, with plant design for Phase 2 scheduled to commence soon.
The company pointed out that the ramp-up at Phase I continues with July gold production of 3,693 ounces.
Steppe Gold said the focus for the balance of 2022 will be on maximizing gold production from the leach pad and continuing to work on operational efficiencies and strengthening supply chain logistics at the ATO Gold Mine.
The company noted that it has built up a significant inventory of precious metals and is working hard to maximize the yield from this inventory. With planned revenues from gold production for the balance of 2022, the company aims to reduce or refinance its debt obligations in 2022 and progress discussions on project financing for the Phase 2 Expansion that is already underway.
Contact the author at jon.hopkins@proactiveinvestors.com