- Steppe Gold (TSX:STGO) has revealed the production numbers for its second quarter of 2020
- The quarter was the company’s first quarter of production from its ATO gold mine in Mongolia.
- The company produced and sold 15,389 ounces of gold for an average price of C$2,336 per ounce, generating $34.27 million in net cash-flow
- The company is on track to produce 60,000 gold ounces for the year, with a very low production cash cost of $677 per ounce
- Steppe Gold (STGO) is in the grey and is trading at $2.00 per share
Steppe Gold (TSX:STGO) has revealed its quarterly performance after commencing production at its ATO gold mine in Mongolia.
The company made its first sales from gold mined at ATO on April 23, with gold and silver being sold every 14 days.
Thus far, the company has sold a total of 15,389 ounces of gold and 4,978 ounces of silver, in six separate deliveries. This generated a net cash flow of approximately C$34.27 million.
Matthew Wood, Executive Chairman of Steppe Gold, said he was delighted to report a solid start to product at ATO.
“With strong operating cash flows, we are now accelerating exploration and interpretation work and also planning a resource update to further underpin our view of the ATO Gold Mine as a large long life, low cost precious metals project,” he said.
Since April, the company has crushed, mined and stacked approximately 715,000 tonnes of ore with an average sale price of its gold sitting at approximately $2,336.
Impressively, the company has managed to begin production at the mine despite the effects coronavirus has had on international travel and the global economy.
The projections for the year show Steppe is on track to produce 60,000 gold ounces in the first year of production, at a low cash cost of approximately $677 per ounce.
Bataa Tumur-Ochir, President and CEO of Steppe Gold, said commencing commercial production was a major achievement for the company, as it works towards becoming Mongolia’s largest gold producer.
“Gold production plays a vital role in the Mongolian economy and the company receives excellent support from the Mongolia governing bodies at all levels” he said.
Steppe Gold (STGO) is in the grey and is trading at $2.00 per share.