Stonegate Capital Partners Updates 3Q24 Report on Steppe Gold Ltd. (STGO)

Dallas, Texas--(Newsfile Corp. - December 5, 2024) - Steppe Gold Ltd. (TSX: STGO): Stonegate Capital Partners Updates Coverage on Steppe Gold Ltd. (TSX: STGO). In April of 2024 the Company announced an agreement to acquire Boroo Gold from Boroo Singapore with closing announced on August 1, 2024, bringing the Boroo Mine located in Mongolia under the Steppe umbrella and creating the leading gold producer in Country. The Boroo Mine currently produces approximately 65Koz to 70Koz of gold per year with an expected 430Koz production to 2031. The combined companies are expected to produce 80Koz to 85Koz in 2024 and 2025. Per the most recent technical report the Boroo Mine has an NPV of $260.1M using a discount rate of 7.5% and a gold price of $2,300 per ounce. We note that this gold price per ounce is significantly than current spot prices giving upside to the last stated NPV. We note that the Boroo mine has produced ~57,244oz as of 3Q24. 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 2H24 from this acquisition.

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Key Takeaways:

• Revenues of $37.3M in the quarter.
• Boroo Gold acquisition closed on August 1, 2024.
• Tres Cruces sale closed on August 1, 2024.

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About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

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