Steppe Gold Announces Q2 2026 Financial Results
Rhea-AI Summary
Steppe Gold (OTCQX: STPGF) reported Q2 2026 gold production of 22,465 oz and sales of 13,724 oz, versus 13,000 oz and 15,058 oz a year earlier. Q2 2026 revenue rose to $61.8 million, with H1 2026 revenue of $115.0 million, driven by an average realised gold price of $4,493/oz.
The company posted a small Q2 2026 net loss attributable to shareholders of $0.2 million, but H1 2026 net profit rose to $19.0 million. Adjusted EBITDA reached $46.6 million in Q2 and $85.2 million in H1. Cash costs and AISC increased year over year, while inventories grew to $55.7 million.
Steppe Gold ended June 30, 2026 with cash of $19.9 million, working capital of $86.5 million, and bond investments of $107.1 million maturing December 31, 2026. The company settled its dispute with Triple Flag through an amended stream agreement and advanced the ATO Phase 2 expansion, while maintaining 2026 production guidance of about 68,000 oz.
Positive
- Revenue $61.8m Q2 2026 vs $32.3m in Q2 2025
- H1 2026 revenue $115.0m vs $64.7m in H1 2025
- Adjusted EBITDA $46.6m Q2 2026 vs $18.1m in Q2 2025
- H1 2026 net profit $19.0m vs $15.6m in H1 2025
- Average realised gold price $4,493/oz in Q2 2026
- Cash $19.9m and working capital $86.5m at June 30, 2026
- $107.1m bond investments maturing December 31, 2026
- BORO bond and TDB Gold II loan fully repaid in H1 2026
- Triple Flag settlement with fixed 34,770 oz deliveries through 2036
- ATO Phase 2 EPC contract value ~$238.2m with further advances
- Ore mined 1.41m tonnes vs 0.56m tonnes in Q2 2025
- Mill grade 1.55 g/t vs 0.94 g/t; recovery 79% vs 66%
- Zero Lost-Time Injuries and LTIFR 0.00 at June 30, 2026
- 2026 production guidance maintained at ~68,000 oz of gold
Negative
- Q2 2026 net loss $0.2m vs $9.0m profit in Q2 2025
- Q2 2026 cash cost $1,164/oz vs $888/oz in Q2 2025
- Q2 2026 AISC $1,716/oz vs $1,468/oz in Q2 2025
- H1 2026 AISC $1,924/oz vs $1,225/oz in H1 2025
- Total inventories $55.7m vs $35.2m at December 31, 2025
- Outstanding ATO Phase 2 Loan $49.6m now repayable in 2028
- Stream obligation of 34,770 oz to 2036 plus 1.5% tail stream
- ATO Phase 2 subject to execution, permitting, cost and schedule risks
- Potential pressure on liquidity as expansion capital increases without secured financing
AI-generated analysis. How Rhea-AI works. Not financial advice.
Ulaanbaatar, Mongolia--(Newsfile Corp. - August 14, 2026) - Steppe Gold Ltd. (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) ("Steppe Gold" or the "Company") is pleased to announce its financial results for the three and six months ended June 30, 2026.
HIGHLIGHTS
Second quarter ended June 30, 2026
(All amounts are in US dollars, expressed in thousands, unless otherwise indicated, except per unit amounts.)
Production and Sales: For the three months ended June 30, 2026, the Company produced 22,465 ounces of gold and sold 13,724 ounces, compared to 13,000 ounces produced and 15,058 ounces sold in the same period in 2025. For the six months ended June 30, 2026, the Company produced 34,183 ounces of gold and sold 24,227 ounces, compared to 32,861 ounces produced and 30,669 ounces sold in the corresponding period in 2025. The Company retained 9,958 ounces of finished gold inventory at June 30, 2026 as part of its inventory management strategy.
Revenue: Revenue increased to
$61,848 for the second quarter of 2026, compared to$32,327 in the same period in 2025, primarily reflecting higher realised gold prices. For the six months ended June 30, 2026, revenue was$115,028 , compared to$64,695 in the corresponding period in 2025.Pricing: The average realised gold price was
$4,493 per ounce in the second quarter of 2026, compared to$2,142 per ounce in the same period in 2025. The 2025 comparative reflects gold sales under a forward sales contract at a fixed price of$2,000 per ounce.Profitability: Net loss attributable to shareholders of the Company was
$175 for the second quarter of 2026, compared to net profit attributable to shareholders of$8,998 in the same period in 2025. For the six months ended June 30, 2026, net profit attributable to shareholders was$19,039 , compared to$15,610 in the corresponding period in 2025. Adjusted EBITDA was$46,626 for the second quarter of 2026, compared to$18,074 in the same period in 2025, and$85,171 for the six months ended June 30, 2026, compared to$36,559 in the corresponding period in 2025.
Costs: Cost of sales was
$18,139 for the second quarter of 2026, compared to$16,315 in the same period in 2025, and$32,621 for the six months ended June 30, 2026, compared to$31,160 in the corresponding period in 2025. Cash cost was$1,164 per ounce sold and total AISC was$1,716 per ounce sold in the second quarter of 2026, compared to$888 per ounce and$1,468 per ounce, respectively, in the same period in 2025. For the six months ended June 30, 2026, cash cost was$1,168 per ounce sold and total AISC was$1,924 per ounce sold, compared to$792 per ounce and$1,225 per ounce, respectively, in the corresponding period in 2025.Inventory: Total inventories increased to
$55,687 at June 30, 2026 from$35,202 at December 31, 2025, primarily reflecting the build-up of finished gold inventory and continued capitalized stripping activities.Financial Position and Liquidity: As at June 30, 2026, the Group reported cash of
$19,889 and working capital of$86,490 , including bond investments of$107,119 m aturing on December 31, 2026.Triple Flag Settlement: On June 11, 2026, the Company completed a settlement with Triple Flag International Ltd. ("Triple Flag"), resolving the outstanding obligations, arbitration and litigation relating to the previous stream arrangement and Gold Prepay Loan. The parties entered into an amended and restated stream agreement providing for fixed deliveries totaling 34,770 ounces of gold through 2036, followed by a
1.5% production-based tail stream capped at 500 ounces per quarter. Subsequent to June 30, 2026, on August 14, 2026, the Company satisfied its first scheduled delivery obligation under the A&R Stream Agreement by purchasing and delivering metal credits equivalent to 1,250 ounces of gold for cash, in accordance with the contractual delivery terms.Debt Management: During the six months ended June 30, 2026, the Company fully repaid the
$14,300 B ORO bond and the TDB Gold II loan. Subsequent to June 30, 2026, on August 7, 2026, the Company entered into an amendment to the ATO Phase 2 Loan agreement with TDB to revise the principal repayment schedule. Under the amended repayment schedule, the outstanding principal balance of$49,600 is repayable in five instalments:$9,600 on March 9, 2028, followed by four instalments of$10,000 on May 9, June 9, July 9 and August 9, 2028, respectively.ATO Phase 2 Expansion: The Company advanced the ATO Phase 2 Expansion Project, including an additional
$21,350 advance under the EPC agreement and a$17,190 advance for mining equipment. The amended EPC scope has a total contract value of approximately$238,230 . The Company also received the required land permitting approval, while work on the overhead power transmission line and water exploration activities are underway.Mining Activity: During the quarter, 1,405,575 tonnes of ore were mined and 945,812 tonnes were processed, comprising milled and leached ore, compared to 557,766 tonnes mined and 671,524 tonnes processed in the same period in 2025. Average mill grade increased to 1.55 g/t from 0.94 g/t and mill recovery improved to
79% from66% .Health and Safety: As at June 30, 2026, the Company recorded zero Lost-Time Injuries and a Lost Time Injury Frequency rate of 0.00 per 200,000 man-hours worked.
Management Commentary
Steppe Gold's Chief Executive Officer, Tserenbadam Dugeree, stated, "The second quarter of 2026 delivered strong operational performance, with higher production, improved grades and recoveries, and significantly higher revenue supported by strong realised gold prices.
During the quarter, we also completed the Triple Flag settlement, resolving the related arbitration and litigation and establishing a revised long-term stream arrangement. We continued to strengthen the balance sheet through repayment of the BORO bond and TDB Gold II loan, while actively managing our remaining debt obligations and liquidity.
ATO Phase 2 remains an important potential growth opportunity, however, the project continues to carry execution, permitting, cost and schedule risks. EPC activities, equipment procurement and permitting are progressing, while the revised feasibility study remains underway and may result in further refinement to the project's scope, schedule and capital requirements. Until this work is completed and greater project certainty is achieved, the Company intends to maintain a measured approach to further capital commitments, with priority given to disciplined capital allocation and preserving financial flexibility."
Outlook
The Company maintains its 2026 production guidance of approximately 68,000 ounces of gold.
The revised feasibility study is expected to be completed in the second half of 2026 and is intended to further define the project's scope, capital requirements, schedule and economic parameters. Further advancement of ATO Phase 2 remains subject to a number of important conditions and uncertainties, including completion and satisfactory review of the revised feasibility study, availability of financing on acceptable terms, receipt of remaining permits and regulatory approvals, and continued assessment of project execution, cost and schedule risks.
As capital commitments associated with the expansion increase, the Company may experience additional pressure on available cash resources and financial flexibility, particularly if project expenditures are incurred ahead of securing external financing or if operating cash flows are below expectations. The timing and structure of future expenditures will therefore be closely managed to balance project advancement with the Company's broader liquidity requirements.
The Company continues to evaluate debt and equity financing alternatives for the revised project scope. Until greater certainty is established around project economics, funding requirements and execution parameters, the Company intends to maintain a disciplined approach to additional capital commitments and preserve financial flexibility.
Financial Statements and MD&A
The Company's condensed interim consolidated financial statements for the three and six months ended June 30, 2026 and the associated management's discussion and analysis have been filed on SEDAR+. The documents can also be viewed on the Company's website or under the Company's profile on SEDAR+.
About Steppe Gold Ltd.
Steppe Gold is a Mongolia-focused precious metals producer and developer.
For further information, please contact:
Tserenbadam Dugeree, Chief Executive Officer
Ariuntsetseg Batsaikhan, Interim Chief Financial Officer
Elisa Tagarvaa, Investor Relations Manager
7th floor, Blue Sky Tower, Peace Avenue 17
Sukhbaatar District 1, Ulaanbaatar 14241, Mongolia
Tel: +976 7732 1914
Non-GAAP Performance Measures
The Company uses certain non-GAAP financial measures and ratios in this news release, including Adjusted EBITDA, cash cost per ounce sold and total all-in sustaining cost ("AISC") per ounce sold. These measures do not have standardized meanings under IFRS Accounting Standards and may not be comparable to similarly titled measures presented by other issuers. Management believes these measures, together with measures determined in accordance with IFRS, provide investors with additional information to evaluate the underlying operating and financial performance of the Group.
Adjusted EBITDA is calculated as EBITDA adjusted for certain items that management believes are not reflective of the Group's underlying operating performance, including foreign exchange gains or losses, legal expenses related to the Triple Flag stream settlement, the one-time stream settlement fee, and exploration and evaluation expenditures. Cash cost per ounce sold and total AISC per ounce sold are used by management to assess operating performance and cost trends.
The disclosures required by National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure relating to these measures are incorporated by reference from the section entitled "Non-GAAP Performance Measures" in the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2026, which is available under the Company's profile on SEDAR+ at www.sedarplus.ca.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain statements or disclosures relating to the Company that are based on the expectations of its management as well as assumptions made by and information currently available to the Company which may constitute forward-looking statements or information ("forward-looking statements") under applicable securities laws. All such statements and disclosures, other than statements of historical fact, which address activities, events, outcomes, results or developments that the Company anticipates or expects may or will occur in the future should be considered forward-looking statements. In particular, this news release contains forward-looking statements relating to, among other things, the Company's 2026 production guidance; the expected repayment of bond investments at maturity; advancement, financing and development of the ATO Phase 2 Expansion Project; equipment delivery; completion of the revised feasibility study; permitting and regulatory approvals; future operating performance; and the Company's ability to maintain financial flexibility and fund its capital requirements.
The forward-looking statements contained in this news release reflect several material factors, expectations and assumptions of the Company, including, without limitation, general economic and market conditions; gold prices; operating performance; the financial capacity of counterparties; availability of financing on acceptable terms; the outcome of discussions with financing partners; completion and results of the revised feasibility study; availability of required permits and approvals; equipment delivery schedules; geopolitical developments and related supply chain risks; and other risk factors detailed from time to time in Steppe Gold's public disclosure documents, including its annual information form for the year ended December 31, 2025.
Forward-looking statements are based on information available at the time those statements are made and management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by such forward-looking statements. Forward-looking statements speak only as of the date they are made. Except as required by applicable law, Steppe Gold assumes no obligation to update or publicly announce the results of any change to any forward-looking statement to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements. All forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/309667