Steppe Gold Announces Q1 2026 Financial Results

• Q1 2026 Financial Results: Reported revenue of $53.18M, a significant increase from $32.37M in Q1 2025. Adjusted EBITDA rose to $38.4M from $18.37M.
• Production Metrics: Gold produced dropped to 11,719 ounces compared to 19,860 ounces in Q1 2025 (a ~41% decrease). Silver production was 8,251 ounces.
• Pricing Anomaly: Average realized gold price reported at $5,064 per ounce, a massive increase from the $2,000/oz average in Q1 2025. This is likely driven by timing sales into high spot prices or inventory liquidation rather than sustainable spot pricing.
• Costs: Site AISC increased to $1,438/oz (Total AISC $1,668/oz) compared to $991/oz in Q1 2025.
• Liquidity: Net cash position improved to $56.7M as of March 30, 2026, up from $35.2M at Year End 2025. Working capital stands at $105.7M including bond investments maturing Dec 31, 2026.
• Debt Management: Repayment of BORO bond totaling $14.3M was executed during the quarter.
• Expansion: Advanced $21.35M to Hexagon Engineering LLC for ATO Phase 2 development activities. Revised feasibility study expected in H2 2026.
• Guidance: Maintained 2026 full-year gold production guidance at approximately 68,000 ounces.

• Positive Financials vs. Operational Decline: While revenue and EBITDA surged due to the reported $5,064/oz realized price, the underlying operational volume dropped significantly (11k oz vs 20k oz). This suggests earnings quality is inflated by timing of sales rather than organic production growth.
• Debt Reduction Success: The repayment of the BORO bond and improved net cash position ($56.7M) materially strengthens the balance sheet, reducing refinancing risk and aligning with previous strategic goals announced in FY 2025 results.
• Cost Efficiency Concerns: AISC increased by ~68% year-over-year ($991 to $1,668). This indicates higher operational costs or lower grade ore processing despite the high gold price environment, which could compress margins if prices normalize.
• ATO Phase 2 Progress: The $21.35M advance to Hexagon Engineering confirms capital deployment for expansion but highlights ongoing cash burn requirements before feasibility completion in H2 2026.
• Market Expectation: The production guidance of 68,000 oz for the full year implies Q1 represents only ~16% of annual targets (11k/68k), whereas last year Q1 was ~25% (19k/76k). This suggests a slower ramp-up than historical norms.

• Company: Steppe Gold Ltd. operates primarily in Mongolia.
• Flagship Project: Boroo Mine (Boroo Gold LLC) is the primary producing asset, alongside the ATO mine for leaching operations.
• Development: The ATO Phase 2 Expansion is the key growth initiative, currently in development with Hexagon Engineering.
• Operations: Focuses on gold and silver production. Recent updates indicate fleet upgrades completed in 2025 to improve efficiency.
• Management: Tserenbadam Dugeree serves as CEO. Bataa Tumur-Ochir is Chairman & CEO (noted in Q3/Q2 2025 news). New COOs appointed in Aug 2025 for Boroo Gold and Steppe Gold LLC.