Steppe Gold
Financials:
Primary ticker: TSX:STGO, OTCQX:STPGF, FSE:2J9
Stage of development: Exploration, Development, Production
Primary minerals: Gold, Silver
Project to promote: ATO Gold Mine & Uudam Khundii
Project location: Mongolia
Website: steppegold.com
Steppe Gold is Mongolia’s premier precious metals company and Asia’s newest gold producer. Currently in Phase I of their operations, a recent feasibility study has reinforced the potential of producing ~100,000 of gold ounces per annum for the first 5 years of their Phase II operations, at their 100% owned flagship asset, the ATO Gold Mine.
In the last year, Steppe doubled its resources, released robust FS results adding another 10.5 years of mine life at double the current production profile, launched its Phase 2 infrastructure plans, secured a landmark US $60M financing package and was awarded Mongolia Bloomberg’s 2021 Development of the Year.
Cash: CAD40.4M
Debt: CAD11.2M
Major shareholder:
Eric Sprott – 10%
Bataa Tumur-Ochir – 8.7%
LIM Advisors – 7%
Fidelity International – 6%
Aneel Waraich – 5%
Management Ownership – 15%
Management Profile
Aneel Waraich – EVP & Director
Aneel is a financial services professional with 15 years of progressive experience in capital markets having worked on over $1B in deals. He is the founder of ATMA Capital Markets, focusing on advising public and private companies in the Natural Resources sector. Aneel also serves as Director of ION Energy, an emerging lithium explorer, and holds an MBA from the Goodman Institute of Investment Management at John Molson School of Business.
What is your rationale for taking part in 121 Mining Investment?
Lots of exciting new developments for the market, on Steppe Gold’s production, development & expansions.
What recent news would you like to highlight to investors attending?
October 2021 – Released robust FS results adding another 10.5 years of mine life at double the current production profile
November 2021 – Launched Phase 2 infrastructure plans & announced landmark US $65M Project Financing Package for expansions
December 2021 – Awarded Development of the Year by Mongolia Bloomberg
March 2022 – Restart of Production at ATO Gold Mine with healthy inventory of unprocessed ore and reagent supply
April 2022 – Exciting new discovery of multiple high grade zinc sulphide intercepts beneath the existing ATO Gold Deposits.
July 2022 – Maiden Exploration Drilling Commenced at “UK” Project in Bayankhongor and
further exploration at ATO Gold Mine
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Major equipment installations for Steppe’s Phase 2 Expansion, including crusher installation, chemical storage expansion and fuel storage expansion, which will allow the Company to drive higher crushing rates.
6 Months:
Expect a significant uptick in the production rate in the third quarter with internal guidance around 15,000 oz for Q3.
12 Months:
Discussions ongoing with international and Mongolian lenders and traders for project finance options for Phase 2 Expansion
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Global supply chain issues, geopolitical realities, and continuing to work with trusted suppliers and government partners to mitigate such risks.
What do you think makes your company such a compelling investment?
A strong in-country success story, that continues to deliver on the value proposition and responsible business planning that it has always committed to.
What are the top 3 key investor takeaways?
Mongolia’s top gold producer, with a seasoned team with proven track record in the mining sector, a trusted partner with all levels of government, committed to building up local communities and Mongolia’s future talent.