Steppe Gold Announces Q3 2026 Financial Results

Rhea-AI Summary

Steppe Gold (STPGF) reported third-quarter 2026 revenue of $86.570 million, alongside higher gold production, sales and profit attributable to shareholders. Revenue compared with $29.398 million a year earlier; shareholder profit rose to $37.389 million from $7.066 million, and basic earnings per share increased to $0.148 from $0.028. Production reached 17,543 ounces versus 14,722, while operating cash flow rose to $44.951 million from $9.012 million.

The company maintained 2026 production guidance of approximately 68,000 ounces. It deferred $49.600 million of ATO Phase 2 loan principal to five instalments between March and August 2028. The revised expansion feasibility study is expected in the fourth quarter of 2026; further advancement depends on satisfactory review, financing and remaining approvals. Cash stood at $37.912 million, while working capital included $108.816 million in parent-issued bonds subject to counterparty credit and maturity risks.

18 points · 0 major

MixediHow this balance works

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1 major · 10 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointQ3 revenue rose to $86.570 million from $29.398 million; nine-month revenue reached $201.599 million versus $94.093 million.
• Moderate pointQ3 shareholder profit rose to $37.389 million from $7.066 million; nine-month profit reached $56.336 million versus $22.677 million.
• Moderate pointOperating cash flow rose to $44.951 million for Q3 and $82.917 million for nine months, versus $9.012 million and $5.669 million.
• Moderate pointQ3 gold production increased to 17,543 ounces from 14,722; nine-month production reached 51,726 ounces versus 47,583.
• Moderate pointQ3 gold sales increased to 19,984 ounces from 7,988; nine-month sales reached 44,211 ounces versus 38,590.
• Moderate pointRealised gold prices rose to $4,319 per ounce for Q3 and $4,545 for nine months, versus $3,412 and $2,367.
• Moderate pointQ3 cash cost fell to $1,304 per ounce sold from $1,405; all-in sustaining cost fell to $1,623 from $2,761.
• Moderate pointDebt repayments included the $14.300 million BORO bond in full, the TDB Gold II loan in full and $4 million of MIK. 5.8% of market cap
• Moderate pointATO Phase 2 loan principal of $49.600 million was deferred to five instalments between March and August 2028. 20% of market cap

9 minor points

• Minor pointBasic EPS increased to $0.148 for Q3 and $0.223 for nine months, versus $0.028 and $0.090.
• Minor pointAdjusted EBITDA, a non-GAAP measure, rose to $56.421 million for Q3 and $141.190 million for nine months, versus $17.194 million and $53.738 million.
• Minor pointATO mining resumed, with waste stripping in August and ore mining in September 2026.
• Minor pointQ3 mill recovery improved to 70% from 55%; tonnes milled increased to 491,070 from 484,103.
• Minor pointATO Phase 2 received required land permitting approval; engineering, procurement, construction, power-line work and water exploration continued.
• Minor pointTriple Flag quarterly obligations were satisfied with 1,250 gold-equivalent ounces each on August 14 and November 13, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 gold production guidance remains approximately 68,000 ounces.
• Minor point. Forward-looking: it has not happened yet and may not happen.ATO Phase 2's revised feasibility study is expected in Q4 2026.
• Minor pointSafety performance included zero lost-time injuries and a 0.00 frequency rate per 200,000 man-hours through September 30, 2026.

Negative

• Major pointATO Phase 2 commitments include an approximately $238.230 million EPC contract and approximately $57.300 million equipment contract, including VAT. 97% of market cap
• Moderate pointCost of sales rose to $31.434 million for Q3 and $64.056 million for nine months, versus $12.756 million and $43.917 million.
• Moderate pointNine-month cash cost rose to $1,222 per ounce sold from $916; all-in sustaining cost increased to $1,790 from $1,535.
• Moderate pointParent-issued bond investments of $108.816 million, maturing December 31, 2026, carry counterparty credit and maturity risks.
• Moderate point. Forward-looking: it has not happened yet and may not happen.ATO Phase 2 advancement remains conditional on satisfactory feasibility review, acceptable financing, remaining permits and regulatory approvals.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Expansion financing is not finalised; rising commitments may pressure cash before external financing or if operating cash flows disappoint.

4 minor points

• Minor pointNine-month expansion payments included $21.350 million in EPC advances and $21.302 million in mining equipment deposits.
• Minor pointQ3 tonnes leached fell to 481,821 from 666,074; mill grade declined to 1.14 g/t from 1.29 g/t.
• Minor point. Forward-looking: it has not happened yet and may not happen.Prolonged or more severe fuel shortages could affect supply availability and operating costs.
• Minor pointSafety results included one minor first-aid injury through September 30, 2026.

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Ulaanbaatar, Mongolia--(Newsfile Corp. - November 13, 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 nine months ended September 30, 2026.

HIGHLIGHTS
Third quarter ended September 30, 2026
(All amounts are in US dollars, expressed in thousands, unless otherwise indicated, except per share and per unit amounts.)

• Production and Sales: The Company produced 17,543 ounces of gold and sold 19,984 ounces in the third quarter of 2026, compared to 14,722 ounces produced and 7,988 ounces sold in 2025. For the nine months ended September 30, 2026, production was 51,726 ounces and sales were 44,211 ounces, compared to 47,583 ounces and 38,590 ounces, respectively, in 2025. The Company retained 7,508 ounces of finished gold inventory at September 30, 2026 as part of its inventory management strategy.
• Revenue: Revenue increased to $86,570 in the third quarter of 2026, compared to $29,398 in the same period in 2025, reflecting higher gold sales volumes and higher realised gold prices. For the nine months ended September 30, 2026, revenue was $201,599, compared to $94,093 in the corresponding period in 2025.
• Pricing: The average realised gold price was $4,319 per ounce in the third quarter of 2026, compared to $3,412 per ounce in the same period in 2025, and $4,545 per ounce for the nine months ended September 30, 2026, compared to $2,367 per ounce in 2025. The increase primarily reflects higher market gold prices and the impact of a fixed-price gold sales agreement in the prior year, following which gold sales have been made at market prices.
• Profitability: Net profit attributable to shareholders of the Company was $37,389 for the third quarter and $56,336 for the nine months ended September 30, 2026, compared to $7,066 and $22,677, respectively, in 2025. Basic earnings per share were $0.148 for the quarter and $0.223 for the nine-month period, compared to $0.028 and $0.090, respectively, in 2025.
• Adjusted EBITDA: Adjusted EBITDA was $56,421 for the third quarter and $141,190 for the nine months ended September 30, 2026, compared to $17,194 and $53,738, respectively, in 2025.
• Costs: Cost of sales was $31,434 for the third quarter and $64,056 for the nine months ended September 30, 2026, compared to $12,756 and $43,917, respectively, in 2025. Cash cost was $1,304 per ounce sold and total all-in sustaining cost ("AISC") was $1,623 per ounce sold in the third quarter, compared to $1,405 and $2,761 per ounce, respectively, in 2025. For the nine-month period, cash cost was $1,222 per ounce sold and total AISC was $1,790 per ounce sold, compared to $916 and $1,535 per ounce, respectively, in 2025.
• Cash Flow: Net cash generated from operating activities was $44,951 for the third quarter and $82,917 for the nine months ended September 30, 2026, compared to $9,012 and $5,669, respectively, in 2025.
• Inventory: Total inventories were $53,083 at September 30, 2026, compared to $35,202 at December 31, 2025, reflecting higher ore stockpile, gold-in-circuit, finished-goods and consumables balances.
• Financial Position and Liquidity: As at September 30, 2026, the Company reported cash of $37,912 and working capital of $110,226, including bond investments of $108,816 issued by Boroo Singapore, the Company's indirect parent, maturing on December 31, 2026. Realisation of the bond investments remains subject to counterparty credit and maturity risks.
• Triple Flag Stream Deliveries: Following the June 2026 settlement with Triple Flag International Ltd. ("Triple Flag"), the Company satisfied its first scheduled quarterly delivery obligation on August 14, 2026 by purchasing and delivering metal credits equivalent to 1,250 ounces of gold. Subsequent to September 30, 2026, on November 13, 2026, the Company settled its second quarterly delivery obligation through the transfer of metal credits equivalent to 1,250 ounces of gold.
• Debt Management: During the nine months ended September 30, 2026, the Company fully repaid the $14,300 BORO bond and the TDB Gold II loan, and repaid $4,000 of the MIK loan. On August 7, 2026, the Company amended the ATO Phase 2 loan repayment schedule, deferring repayment of the $49,600 outstanding principal to five instalments between March and August 2028.
• ATO Phase 2 Expansion: The Company continued engineering, procurement and construction activities under the amended EPC agreement with Hexagon Engineering LLC, which has a total contract value of approximately $238,230. During the nine months ended September 30, 2026, the Company advanced $21,350 under the EPC agreement and paid $21,302 in mining equipment deposits under an equipment purchase agreement with Barloworld Mongolia LLC with a total contract value of approximately $57,300, including VAT. The Company has received the required land permitting approval, while work on the overhead power transmission line and water exploration activities is underway.
• Mining Activity: Mining activities resumed at the ATO Gold Mine during the quarter, with waste stripping commencing in August and ore mining in September. Across the Group, 491,070 tonnes were milled and 481,821 tonnes were leached during the quarter, compared to 484,103 tonnes and 666,074 tonnes, respectively, in 2025. Mill recovery improved to 70% from 55%, while mill grade was 1.14 g/t, compared to 1.29 g/t.
• Health and Safety: As at September 30, 2026, the Company recorded zero lost-time injuries and one minor first-aid injury, with 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 third quarter delivered higher gold production, increased sales volumes and strong operating cash flow. Higher realised gold prices and sales of gold previously held in inventory contributed to revenue of $86.6 million and net profit attributable to shareholders of $37.4 million.

During the quarter, we resumed mining at ATO and completed the first scheduled delivery under the amended stream agreement with Triple Flag. We also extended the ATO Phase 2 loan principal repayment schedule to 2028, reducing near-term principal repayment requirements.

We continue to advance ATO Phase 2 while maintaining a disciplined approach to capital commitments. Completion of the revised feasibility study and securing the required financing remain important conditions for further project advancement, and preserving financial flexibility remains a priority."

Outlook

The Company maintains its 2026 production guidance of approximately 68,000 ounces of gold.

The revised feasibility study for ATO Phase 2 is expected to be completed in the fourth quarter of 2026 and is intended to further define the project's scope, capital requirements, schedule and economic parameters. Further advancement remains subject to 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.

The Company continues to evaluate debt and equity financing alternatives for the revised project scope. Financing arrangements have not yet been finalised, and there can be no assurance that the required financing will be obtained or that the project will proceed as currently contemplated.

As capital commitments associated with the expansion increase, the Company may experience additional pressure on available cash resources, 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 be closely managed to balance project advancement with broader liquidity requirements, including debt servicing and working capital needs.

The Company continues to monitor fuel availability and regional supply conditions in Mongolia. Existing supply arrangements have enabled operations to continue without material disruption to date; however, prolonged or more severe fuel shortages could affect supply availability and operating costs.

Financial Statements and MD&A

The Company's condensed interim consolidated financial statements for the three and nine months ended September 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 at www.steppegold.com or under the Company's profile on SEDAR+ at www.sedarplus.ca.

Technical Information

The scientific and technical information in the Company's Q3 2026 MD&A, from which the operational information in this news release is drawn, was reviewed and approved by Tuvshinbayar Tumurkhuyag, MAusIMM (CP), an external consultant to the Company and a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

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 AISC per ounce sold. These measures do not have standardised meanings under IFRS Accounting Standards and may not be comparable to similarly titled measures presented by other issuers. They should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Management believes these measures, together with IFRS measures, provide investors with additional information to evaluate the underlying operating and financial performance of the Group.

EBITDA is defined as earnings before finance costs, income taxes, depreciation and depletion. Adjusted EBITDA is calculated as EBITDA adjusted for foreign exchange gains or losses, non-recurring expenses and exploration and evaluation expenditures. Cash cost per ounce sold reflects cash operating costs attributable to gold sold, net of silver by-product credits. Total AISC per ounce sold incorporates cash costs, sustaining capital expenditures, corporate administration and other sustaining costs, less certain non-recurring items, divided by gold sales volumes used in the cost schedule.

The disclosures required by National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure relating to these measures, including their composition and reconciliations to the most directly comparable IFRS measures, are incorporated by reference from the section entitled "Non-GAAP Performance Measures" on pages 24 and 25 of the Company's Management's Discussion and Analysis for the three and nine months ended September 30, 2026, dated November 13, 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 forward-looking statements and information ("forward-looking statements") under applicable securities laws. These statements are based on management's expectations, assumptions and currently available information and include statements regarding the Company's 2026 production guidance; repayment and realisation of bond investments at maturity; advancement, financing and development of the ATO Phase 2 Expansion Project; completion of the revised feasibility study; permitting and regulatory approvals; future operating performance and cash flows; debt servicing; fuel availability and supply conditions; 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 and its MD&A for the three and nine months ended September 30, 2026.

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. These risks include, among others, lower gold prices; operating or supply disruptions; increases in capital and operating costs; delays or unfavourable results from the revised feasibility study; inability to obtain financing, permits or approvals; failure of counterparties to repay bond investments when due; and inability to meet obligations under the amended stream agreement or other financing arrangements.

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/323974

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Steppe Gold's Q3 2026 earnings and revenue?

Steppe Gold reported $86.570 million in revenue and $37.389 million in net profit attributable to shareholders for the quarter ended September 30, 2026. These compared with $29.398 million and $7.066 million, respectively, a year earlier. Basic earnings per share increased to $0.148 from $0.028.

What is Steppe Gold's 2026 gold production guidance?

Steppe Gold maintained production guidance of approximately 68,000 ounces of gold for 2026. Production for the nine months ended September 30, 2026 was 51,726 ounces, compared with 47,583 ounces in the corresponding 2025 period.

How much gold inventory did Steppe Gold hold at September 30, 2026?

Steppe Gold held 7,508 ounces of finished gold inventory at September 30, 2026 as part of its inventory management strategy. Total inventories were $53.083 million, compared with $35.202 million at December 31, 2025, reflecting higher ore stockpile, gold-in-circuit, finished-goods and consumables balances.

Why did Steppe Gold's realised gold prices increase in 2026?

Steppe Gold attributed the increase primarily to higher market gold prices and the impact of a fixed-price gold sales agreement in the prior year. Following that agreement, gold sales have been made at market prices.

How much working capital did Steppe Gold report at September 30, 2026?

Steppe Gold reported $110.226 million in working capital at September 30, 2026. This included $108.816 million in bonds issued by Boroo Singapore, its indirect parent, maturing December 31, 2026. Realisation of those investments remains subject to counterparty credit and maturity risks.