- Steppe Gold (STGO) has posted a second quarter net loss of approximately C$3.06 million, despite starting production at its ATO gold mine in Mongolia
- However, the company’s losses were offset somewhat by $3.96 million in convertible debentures that were issued during the quarter
- In its first quarter of production, the ATO mine produced 15,389 gold ounces and 4,978 silver ounces
- This led to sales of approximately $25.76 million for the quarter, with an average cash cost of approximately $785 per ounce
- Steppe is currently developing a s bankable feasibility study for its expansion of the ATO mine site
- Steppe Gold (STGO) is up 4.85 per cent and is trading at $2.81 per share
Steppe Gold (STGO) has posted a second quarter net loss of approximately C$3.06 million, despite starting production at its ATO gold mine in Mongolia.
However, the company’s losses were offset somewhat by $3.96 million in convertible debentures that were issued during the quarter.
In its first quarter of production, the ATO mine produced 15,389 gold ounces and 4,978 silver ounces. This led to sales of approximately $25.76 million for the quarter, with an average cash cost of approximately $785 per ounce.
At an average sale price of approximately $2,263 per gold ounce and $19 per silver ounce, this resulted in an operating income from mining operations before depreciation and depletion of $15.98 million.
Steppe Gold is in the process of completing its bankable feasibility study for the expansion of the ATO gold mine.
The company finished the year with approximately $22.64 million in total assets, which included approximately $9.08 million in cash.
Steppe Gold CEO Bataa Tumur-Ochir said he was pleased that the company had managed to bring the ATO gold mine to production during the quarter.
“With cash costs under $600 in this ramp up phase, and over 1 million tonnes of ore now mined and paid for, we are seeing the strong cash flow generation of this first phase of the ATO project.
“We have continued our unblemished safety record and we have largely avoided the impacts of COVID-19, with uninterrupted production in the period.
“We are now also turning our attention to finalising the ATO resource update, incorporating the Mungu discovery, and the bankable feasibility study update at the fresh rock phase of the ATO project,” he said.
Steppe Gold (STGO) is up 4.85 per cent and is trading at $2.81 per share at 2:03pm EDT.
