Steppe Gold reports strong operational and financial results in Mongolia www.kitco.com
Steppe Gold (TSX: STGO) today announced that the company’s revenue for the year ended December 31, 2020 was $52 million on sales of 31,733 gold ounces and 13,710 silver ounces with average realized prices per ounce of $1,822 and $20, respectively.
The company’s operating income from mine operations, before depreciation and depletion, was $33 million and consolidated group adjusted EBITDA for the year was $24 million. Year-end cash, restricted cash and savings accounts balance was $33 million.
During the year ended December 31, 2020, 1,138,209 tonnes of ore were mined and 699,204 tonnes of ore stacked with an average gold grade of 2.03 g/t and an average silver grade of 8.88 g/t.
Steppe Gold noted that it is very pleased with a strong start to production at the ATO gold mine in Mongolia, with operating cash flow from mine operations in 2020 of $33 million, on revenue of $52 million, in an approximate 9 months of production.
President and CEO Bataa Tumur-Ochir added, "We have now mined approximately 1.7m tonnes of ore and 1.25m tonnes stacked on the leach pad. With a new fixed crusher in place this summer, we are planning a record year for stacking in 2021. With the ATO resource now at 2.45m oz Au Eq, and procurement of long lead capital items underway, we are focused on increasing our production run rate from the oxide phase through 2021 and 2022 and executing the Phase 2 expansion which has already begun."
Steppe Gold is targeting annual production in 2021 and 2022 of between 50,000 to 60,000 oz and then a transition to the fresh rock ores in 2023. Production forecasts for 2021 are dependent on a restart of leaching in April 2021 and no further delays on procurement due to COVID-19.
Published Date:2021-03-31