An anonymous director reports

STONEGATE CAPITAL PARTNERS UPDATES 3Q24 REPORT ON STEPPE GOLD LTD. (STGO)

Stonegate Capital Partners has provided updates to coverage on Steppe Gold Ltd. In April of 2024 the company announced an agreement to acquire Boroo Gold from Boroo Singapore with closing announced on Aug. 1, 2024, bringing the Boroo mine located in Mongolia under the Steppe umbrella and creating the leading gold producer in the country. The Boroo mine currently produces approximately 65,000 oz (ounces) to 70,000 oz of gold per year with an expected 430,000 oz production to 2031. The combined companies are expected to produce 80,000 oz to 85,000 oz in 2024 and 2025. Per the most recent technical report the Boroo Mine has an NPV (net present value) of $260.1-million using a discount rate of 7.5 per cent and a gold price of $2,300 per ounce. The company notes that this gold price per ounce is significantly than current spot prices giving upside to the last stated NPV. The company notes that the Boroo mine has produced approximately 57,244 oz as of Q3 2024. The immediate cash flows from the acquisition provide additional financial flexibility. Additional cost savings and synergies are anticipated as Steppe and Boroo integrate their operations. The company is already seeing strong revenue growth in H2 2024 from this acquisition.

Key takeaways:

• Revenues of $37.3-million in the quarter;
• Boroo Gold acquisition closed on Aug. 1, 2024;
• Tres Cruces sale closed on Aug. 1, 2024.