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Steppe Gold Announces Third Quarter Financial Results and October Production Update

Ulaanbaatar, Mongolia–(Newsfile Corp. – November 7, 2022) – Steppe Gold Limited (TSX: STGO) (OTCQX: STPGF) (FRA: 2J9) (“Steppe Gold” or the “Company“) is pleased to announce its financial results for the three and nine months ended September 30, 2022.

Three and Nine months ended September 30, 2022 – Highlights

(all figures in USD rounded unless stated otherwise)

  • Revenue for the three and nine months ended September 30, 2022, was $21,710,000 and $44,404,000 on sales of 11,709 and 23,510 gold ounces respectively.
  • Average realized prices in the third quarter and nine months ended September 30, 2022 per gold ounce of $1,806 and $1,863, reflecting a 5% premium to LME spot paid by MongolBank; per silver ounce $18 and $21 respectively.
  • Operating income from mine operations, before depreciation and depletion for the three and nine months ended September 30, 2022 were $12,656,000 and $25,420,000 respectively.
  • Consolidated group adjusted EBITDA for the three and nine months were $10,478,000 and $19,552,000 respectively, for an EBITDA margin of 48% and 44%, and a margin of 33% and 26% after stream payments.
  • Site All in Sustaining Costs were $738 and $793 per ounce sold respectively for the three and nine months ended September 30, 2022.
  • During the three and nine months ended September 30, 2022, 266,295 and 838,480 tonnes of ore were mined and 230,400 and 660,683 tonnes of ore were stacked on the leach pad respectively with an average gold grade of 1.57 g/t and 1.82 g/t and an average silver grade of 9.02 g/t and 12.87 g/t.
  • As at September 30, 2022, cash and restricted cash amounted to $37,841,000; total bank debt and other debts (excluding convertible debentures and accounts payable and accrued liabilities) was $43,970,000 with net debt was $6,129,000.
  • The new fixed crushing unit installation is now substantially complete. With winter conditions in place the Company has decided to wait until April 2023 to make it operational. This is the first major equipment installation for the Phase 2 Expansion, which will also allow the Company to drive higher crushing rates in the remaining oxide phase.
  • Major work ongoing includes the camp expansion and plant design for the Phase 2 Expansion. The Company expects to make further announcements shortly on the Phase 2 Expansion and updated financing plans.

The Company produced approximately 4,150 oz of gold in October 2022 from the regular pour schedule. With winter conditions now in place, the Company will see a slowing of production over the next few months.


The focus for the balance of 2022 and into 2023 will be on maximizing gold production from the strong inventory on hand and to commence preparations for the Phase 2 Expansion at the ATO Gold Mine.

The Company has built up a significant inventory of precious metals and it is working hard to maximize the yield from this inventory. Assuming consistent reagent supply, and solid revenues from gold production, the Company aims to finalize discussions shortly on project finance and EPC arrangements for the Phase 2 Expansion already underway.

The Company’s consolidated financial results for the three months ended September 30, 2022 have been filed on SEDAR. The full version of the condensed interim consolidated financial statements and associated management’s discussion & analysis can be viewed on the Company’s website at or under the Company’s profile on SEDAR at

Steppe Gold Limited

Steppe Gold is Mongolia’s premier precious metals company.

For Further information, please contact:
Bataa Tumur-Ochir, CEO and President

Shangri-La office, Suite 1201, Olympic Street
19A, Sukhbaatar District 1,
Ulaanbaatar 14241, Mongolia
Tel: +976 7732 1914

Non-IFRS Performance Measures

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as adjusted earnings before interest, taxes, depreciation and amortization. Further details of Non-IFRS Performance Measures noted above can be found in the Company’s management’s discussion & analysis.

Cautionary Note Regarding Forward-Looking Statements

The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include, among other things, statements regarding the trading of the common shares and business, economic, and political conditions in Mongolia. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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