Steppe Gold Ltd. · TSX:STGO
Steppe Gold — Investor Presentation (May 2024)
30 slides from Steppe Gold's investor presentation, May 2024
Slide 1: Creating Mongolia's Leading Precious Metals Company
Mongolia’s Premier Precious Metals Company Creating Mongolia's Leading Precious Metals Company TSX: STGO I OTCQX: STPGF I WKN: A2JMMP Corporate Presentation May 2024 1 steppegold.com
Slide 2: Disclaimer
Steppe Gold - Corporate Presentation / May 2024 Disclaimer TECHNICAL INFORMATION The technical and geoscientific content in this presentation in respect of the ATO Gold Project has been compiled, reviewed and approved by Enkhtuvshin Khishigsuren, Vice President of Exploration of the Company and a “Q
Slide 3: Disclaimer
Steppe Gold - Corporate Presentation / May 2024 Disclaimer FORWARD-LOOKING INFORMATION This presentation, together with any supplements and any other information that may be furnished to prospective investors by the Company, includes “forward-looking information” or “forward-looking statements” with
Slide 4: Merging with Boroo Gold
Steppe Gold - Corporate Presentation / May 2024 MERGING WITH BOROO GOLD Steppe Gold is acquiring Boroo Gold LLC, via a share exchange, to create the largest gold producer in Mongolia 2024 55Koz 2025 90Koz 2026 04
Slide 5: Merging with Boroo Gold
Steppe Gold - Corporate Presentation / May 2024 MERGING WITH BOROO GOLD OVER US$1 BILLION IN AFTER-TAX CASHFLOW AT $2,300 GOLD PRICE ABOUT STEPPE GOLD ABOUT BOROO GOLD Over 1.2M recovered ounces of AuEq over a 12-year mine life, Boroo Gold-Strong Cash Flow with payable ounces of 1.03M, subject to fu
Slide 6: Multi-Asset Producer Expanding for Tomorrow
Steppe Gold - Corporate Presentation / May 2024 MULTI-ASSET PRODUCER EXPANDING FOR TOMORROW 95Koz AuEq 2023 combined production 150Koz AuEq targeted full year production following Two producing mines $186M in Revenue FY 2023 from combined operation ATO expansion with $133M in EBITDA (at $2,300/oz) I
Slide 7: Strong Reserve Position Poised for Production Growth
Steppe Gold - Corporate Presentation / May 2024 STRONG RESERVE POSITION POISED FOR PRODUCTION GROWTH PROVEN & PROBABLE RESERVES ANNUAL PRODUCTION OZ AUEQ Calibre 7.59 Calibre 283 Aris 5.49 Aris 226 Victoria 167 Victoria 3.26 Karora 160 Orla 2.88 Steppe 2027E 150 Orezone 2.40 Orezone 141 Steppe 2.37
Slide 8: Undervalued to Peer Group
Steppe Gold - Corporate Presentation / May 2024 UNDERVALUED TO PEER GROUP EV/OZ VS RESERVES C$EV/oz Moz Au P&P 1,000 7.59 8.00 950 900 831 7.00 800 6.00 5.49 700 581 5.00 600 500 458 4.00 3.26 400 2.88 3.00 2.40 2.37 300 260 229 228 224 2.00 1.66 201 198 198 Median 190 180 176 200 1.28 1.15 0.90 0.8
Slide 9: Our Operations
Steppe Gold - Corporate Presentation / May 2024 OUR OPERATIONS TWO PRODUCING CENTRES Boroo Mine: Already mining from adjacent deposit Russia 65-70Koz producer BOROO GOLD (100%) 430Koz to 2031 Selenge Dornod province province Ongoing acquisition deal ATO GOLD MINE (100%) ATO Mine: 5,459 hectares 50Ko
Slide 10: Boroo Gold Mine: Our Immediate and Expected Cash Flow Engine
Steppe Gold - Corporate Presentation / May 2024 BOROO GOLD MINE OUR IMMEDIATE AND EXPECTED CASH FLOW ENGINE BOROO STAND ALONE KPIS 2021 2022 2023 2024 – 2031 (total @ 2,000/oz) Au produced (oz) 70,837 61,774 67,315 431,250 Au sold (oz) 70,837 61,774 67,315 431,250 Ave Gold Price( $/oz) 1,641 1,708 1
Slide 11: ATO Gold Mine: Growing Our Core Asset
Steppe Gold - Corporate Presentation / May 2024 ATO GOLD MINE GROWING OUR CORE ASSET ATO STAND ALONE KPIS in 2024 and 2025 2026 – 2038 (total @ 2,000/oz) Gold Silver Lead Zinc 2020 2021 2022 2023 (expected) (expected AuEq) Au produced (oz) 33,154 12,012 33,300 26,931 43,135 1,005,141 Ag produced (oz
Slide 12: Two Operating Mines with Expansion Underway
Steppe Gold - Corporate Presentation / May 2024 TWO OPERATING MINES WITH EXPANSION UNDERWAY PROJECTED ANNUAL PRODUCTION AUEQ Boroo AuEq STGO AuEq Total AuEq 160 140 139 141 140 129 113 120 105 96 95 88 100 88 86 90 82 91 79 74 74 40 70 Koz 80 20 23 82 60 47 96 95 40 82 68 74 70 74 65 65 54 51 49 47
Slide 13: Key Financial Metrics Combined LOM Operations
Steppe Gold - Corporate Presentation / May 2024 KEY FINANCIAL METRICS COMBINED LOM OPERATIONS 2024 – 2038 Expected LOM Au price sensitivity Gold Price ($/oz) 1,850 2,000 2,300 Silver Price ($/oz) 20.00 25.00 27.50 Lead Price ($/lb) 0.90 0.95 1.00 Zinc Price ($/lb) 1.02 1.10 1.30 Production AuEq 1,48
Slide 14: Opportunity for Growth
Steppe Gold - Corporate Presentation / May 2024 OPPORTUNITY FOR GROWTH MUNGU: Potential to expand Mungu pit to include drilled resources ATO Deep / Mungu ATO: Potential at depth to expand pits or mine ATO-330: 11.7m @ from underground Drill intercepts > 10m @ 200 g/t AgEq ULAANBULAG: Additional mine
Slide 15: Why Invest in Steppe Gold
Steppe Gold - Corporate Presentation / May 2024 WHY INVEST IN STEPPE GOLD ATTRACTIVE ENTRY POINT Poised for growth: expansion of current operation + acquisition of proven producer + exploration potential Undervalued relative to peers: trading at C$88/oz P&P of combined entity – well below peers juni
Slide 16: Appendices - Boroo
Steppe Gold - Corporate Presentation / May 2024 APPENDICES - BOROO 16
Slide 17: Mineral Resources & Reserves Boroo
Steppe Gold - Corporate Presentation / May 2024 MINERAL RESOURCES & RESERVES BOROO Boroo Mineral Resources as of January 01, 2024 Ulaanbulag Mineral Resources as of January 01, 2024 Category Tonnage (Kt) Average grade (g/t) Metal (oz) Category Tonnage (Kt) Average grade (g/t) Metal (oz) Measured 26,
Slide 18: Income Statement Last 3 Years Boroo
Steppe Gold - Corporate Presentation / May 2024 INCOME STATEMENT LAST 3 YEARS BOROO (US$’000) FULL YEAR 2023 FULL YEAR 2022 FULL YEAR 2021 Revenue 132,055 105,499 116,260 Cost of sales (55,347) (55,739) (56,693) Gross profit 76,708 49,760 59,567 General and admin expenses (3,200) (2,345) (2,247) Mar
Slide 19: Production & Sales Revenue Last 3 Years and 2024 Boroo
Steppe Gold - Corporate Presentation / May 2024 PRODUCTION & SALES REVENUE LAST 3 YEARS AND 2024 BOROO PLAN 2024 FULL YEAR 2023 FULL YEAR 2022 FULL YEAR 2021 Produced: Gold produced (oz) 70,745 67,315 56,304 64,643 Silver produced (oz) 14,451 15,140 15,505 11,069 Sold: Gold sold (oz) 70,745 67,315 5
Slide 20: Appendices - ATO
Steppe Gold - Corporate Presentation / May 2024 APPENDICES - ATO 20
Slide 21: ATO and Mungu Deposits All Resources
Steppe Gold - Corporate Presentation / May 2024 ATO AND MUNGU DEPOSITS ALL RESOURCES GRADES CONTAINED METAL Ore Category Material AuEq Au Ag Pb Zn Au Ag AuEq (kt) (g/t) (g/t) (g/t) (%) (%) (koz) (koz) (koz) Combined (ATO & MUNGU) ATO1 12.60 1.83 0.95 5.55 0.68 1.27 385 2,256 745 ATO2 3.20 1.01 0.44
Slide 22: ATO and Mungu Deposits All Reserves
Steppe Gold - Corporate Presentation / May 2024 ATO AND MUNGU DEPOSITS ALL RESERVES GRADES CONTAINED METAL Ore Category Material AuEq Au Ag Pb Zn Au Ag AuEq (kt) (g/t) (g/t) (g/t) (%) (%) (koz) (koz) (koz) Combined (ATO & MUNGU) Oxide 1,159 1.14 0.70 9.50 0.44 0.36 26 355 43 Proven Transition 361 1.
Slide 23: ATO and Mungu Deposits & Reserves Reconciled
Steppe Gold - Corporate Presentation / May 2024 ATO AND MUNGU DEPOSITS & RESERVES RECONCILED GRADES CONTAINED METAL Ore Category Material AuEq Au Ag Pb Zn Au Ag AuEq (kt) (g/t) (g/t) (g/t) (%) (%) (koz) (koz) (koz) Combined (ATO & MUNGU) Total Resource (Fresh) 38,200 1.75 1.02 16.65 0.37 0.72 1,246
Slide 24: 2024 - 2037 Projections
Steppe Gold - Corporate Presentation / May 2024 2024 - 2037 PROJECTIONS ATO & BOROO ANNUAL REVENUE (AT $2,000/OZ AU) ATO Revenue Boroo Revenue Total Revenue 280.0 283.4 278.8 258.0 226.4 210.5 102.8 107.4 94.8 192.7 189.7 182.3 98.7 171.5 61.0 164.2 150.0 148.8 140.5 130.5 136.8 93.5 130.6 184.0 180
Slide 25: 2024 - 2037 Projections
Steppe Gold - Corporate Presentation / May 2024 2024 - 2037 PROJECTIONS ATO & BOROO ANNUAL REVENUE (AT CURRENT METAL PRICES $2,300/OZ AU) ATO Revenue Boroo Revenue Total Revenue 320.4 325.0 319.1 296.0 259.4 241.5 109.0 118.2 123.5 113.5 219.9 216.5 209.5 70.1 197.1 187.6 171.3 170.1 160.3 150.1 157
Slide 26: Management Team & Board
Steppe Gold - Corporate Presentation / May 2024 STEPPE GOLD LEADERSHIP MANAGEMENT TEAM & BOARD MANAGEMENT TEAM WITH PROVEN TRACK RECORD BATAA TUMUR-OCHIR BYAMBATSEREN TSOGBADRAKH PATRICK MICHAELS MARINA LERNER Chairman and CEO President, Director Director Director Mr. Bataa Tumur-Ochir, a Mongolian
Slide 27: Why Mongolia?
Steppe Gold - Corporate Presentation / May 2024 WHY MONGOLIA? UNTAPPED MINERAL RESOURCES Exploration license 3.3% Mining license 1.2% of Mongolia’s territory ~10% of mining licenses in operation, contributing: 24% OF GDP 83% OF FDI 94% OF EXPORTS A PROUD MINING JURISDICTION Investor friendly governm
Slide 28: ESG Commitments
Steppe Gold - Corporate Presentation / May 2024 ESG COMMITMENTS SAFETY AT THE CENTRE Scholarships and financial aid to 1,740 local students ENVIRONMENTAL: SOCIAL: GOVERNANCE: 95% Implementation Score on 2023 Community Relations is at the core of Regularly liaise and consult with all levels of Enviro
Slide 29: Capital Structure
Steppe Gold - Corporate Presentation / May 2024 CAPITAL STRUCTURE MANAGEMENT OWNS 20% AND BACKED BY THE INDUSTRY LEADING INVESTORS CAPITAL STRUCTURE CURRENT SHARE STRUCTURE STGO Current Issued 109,030,613 Convertible Debentures 4,411,765 20% 20% Directors and Management Warrants 0 15% US & Europe Fa
Slide 30: Thank You
Steppe Gold - Corporate Presentation / May 2024 THANK YOU 30