Steppe Gold Ltd.
Fully Funded to Triple Production
Published: 11/24/2023
Author: Sid Rajeev, B.Tech, CFA, MBA
Sector: Basic Materials | Industry: Gold
| Metrics | Value |
|---|---|
| Current Price | US $0.7 |
| Fair Value | US $2.97 |
| Risk | 4 |
| 52 Week Range | US $0.60-1.36 |
| Shares O/S (M) | 105 |
| Market Cap. (M) | US $73 |
| Current Yield (%) | n/a |
| P/E (forward) | 4.5x |
| P/B | 1.1x |
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Report Highlights
Highlights
In Q3-2023, production from Steppe’s flagship ATO gold mine in Mongolia was up 18% QoQ, surpassing our foreast by 7%. Revenue was up 10% QoQ, and EPS (adjusted) was up 33% QoQ. Revenue and EPS exceeded our estimates by 10% and 29%, respectively.
STGO has started drawing funds from a $150M financing, from the Trade and Development Bank of Mongolia, for phase two expansion. The company is on track to increase its production from the current 25-30 Koz/year, to 100+ Koz by late 2025.
An updated Preliminary Economic Assessment (PEA) for the recently acquired Tres Cruces project (Peru) has confirmed the inputs used in a PEA completed in 2022. The latest study returned an AT-NPV5%
