Steppe Gold (STGO) AI Stock Analysis

• Market Cap: C$316.03M
• Dividend Yield: N/A
• Average Volume (3M): 169.84K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.92
• Revenue Growth: 148.01%
• EPS Growth: N/A
• Country: CA
• Employees: 275
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 252,827,200
• 10 Day Avg. Volume: 164,355
• 30 Day Avg. Volume: 169,839
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$1.49
• Price Target Upside: 27.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: C$1.50 ▲(28.21% Upside)

Steppe Gold's strong financial performance and undervaluation are the main positive factors driving the score. The company's strategic plans for expansion and effective cost management further enhance its outlook. While the technical analysis indicates short-term bearish sentiment, the overall fundamentals remain strong, positioning the company well in the gold industry.

Steppe Gold Business Overview & Revenue Model

Company Description

Steppe Gold Ltd. acquires, explores for, develops, and operates precious metals in Mongolia. Its principal projects are the Altan Tsagaan Ovoo gold and silver project comprising one mining license covering an area of approximately 5,492.63 hectares located in the territory of Tsagaan Ovoo soum, Dornod province of Eastern Mongolia; and the Uudam Khundii property that covers an area of 14,397 hectares located in Ulaanbaatar, Bayankhongor Province. The company was incorporated in 2016 and is headquartered in Ulaanbaatar, Mongolia.

How the Company Makes Money

Steppe Gold makes money through the exploration, mining, and sale of precious metals, primarily gold and silver. Its main revenue stream is derived from the production and sale of gold and silver extracted from its ATO Gold Mine. The company benefits from fluctuations in global precious metal prices, which can enhance revenue during periods of high market prices. Additionally, Steppe Gold may engage in strategic partnerships or joint ventures to optimize its mining operations and expand its resource base, further contributing to its earnings. The company also invests in exploration activities to identify new reserves, ensuring a sustained revenue stream over the long term.

Steppe Gold Financial Statement Overview

Summary

Steppe Gold demonstrates strong growth and profitability with impressive revenue and profit margins. The company maintains a robust cash flow, aligning well with its income growth. However, its reliance on debt requires careful management to mitigate financial risks. Overall, Steppe Gold is well-positioned in the gold industry with a strong financial foundation.

Income Statement

Steppe Gold has shown remarkable revenue growth, increasing from $54.2M in 2023 to $178.1M in 2024, a growth rate of 228%. The gross profit margin improved significantly, reaching 54%, and the net profit margin is at a healthy 34%. The company has also improved its EBIT and EBITDA margins to 49% and 62%, respectively, indicating strong operational efficiency. The rapid growth trajectory and improved profitability metrics position the company favorably in the gold industry.

Balance Sheet

The balance sheet shows a substantial increase in stockholders' equity to $110M. The debt-to-equity ratio is 1.70, indicating a moderate level of leverage. The return on equity is an impressive 55.7%, showcasing effective use of equity capital to generate profits. However, the equity ratio of 31% suggests a reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Operating cash flow has grown significantly, aligning with the increase in net income. The free cash flow to net income ratio is 1.10, indicating efficient cash generation relative to net income. The free cash flow growth rate is an impressive 2,054%, underscoring strong cash flow management. The operating cash flow to net income ratio of 1.33 further highlights sound cash flow performance.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	178.13M	54.24M	62.37M	24.05M	52.10M
Gross Profit	96.28M	29.41M	30.82M	9.65M	28.45M
EBITDA	109.85M	23.08M	26.52M	3.68M	20.03M
Net Income	61.35M	56.34M	15.96M	-22.68M	-4.05M
Balance Sheet
Total Assets	352.14M	98.29M	72.66M	146.28M	86.01M
Cash, Cash Equivalents and Short-Term Investments	144.18M	6.01M	2.88M	4.07M	20.12M
Total Debt	187.15M	36.05M	9.52M	81.50M	13.14M
Total Liabilities	242.08M	50.29M	55.44M	139.26M	44.69M
Stockholders Equity	110.09M	48.59M	17.72M	7.27M	41.53M
Cash Flow
Free Cash Flow	67.66M	3.14M	12.79M	-15.95M	9.24M
Operating Cash Flow	81.83M	8.20M	18.71M	-7.04M	11.41M
Investing Cash Flow	-11.99M	-5.23M	-5.92M	-3.88M	-7.21M
Financing Cash Flow	-37.61M	592.00K	-13.19M	-1.47M	10.28M

Steppe Gold Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.17
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:STGO, the sentiment is Neutral. The current price of 1.17 is below the 20-day moving average (MA) of 1.25, below the 50-day MA of 1.24, and above the 200-day MA of 0.85, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 41.01 is Neutral, neither overbought nor oversold. The STOCH value of 10.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:STGO.

Steppe Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STGO	78 Outperform	C$316.03M	4.04	44.39%	―	148.01%	―
Sector *	61 Neutral	$9.64B	7.20	-0.14%	3.12%	3.13%	-55.58%
GDRZF	―	$444.77M	―	-53.17%	―	―	―
THM	―	$261.09M	―	-6.29%	―	―	―
OMG	56 Neutral	C$476.34M	―	-64.22%	―	―	18.12%
TAU	55 Neutral	C$256.57M	53.85	-0.48%	―	―	12.63%
GLDG	―	$160.40M	―	-18.70%	―	―	―

Steppe Gold Corporate Events

Steppe Gold Announces AGM Voting Results and Board Changes

Steppe Gold Ltd. held its annual general and special meeting where shareholders elected seven individuals to the Board of Directors. However, nominee Byambats eren Tsogbadrak h received more votes withheld than in favor, prompting a required resignation submission. Additionally, Kingston Ross Pasnak LLP was re-appointed as the company’s auditors, while the proposed long-term incentive plan was not approved by shareholders.

Steppe Gold Reports Strong Q1 2025 Financial Results and Strategic Plans

Steppe Gold Ltd. reported strong financial results for Q1 2025, with total revenue of $32.4 million from gold sales and an adjusted EBITDA of $18.4 million. The company maintained a competitive all-in sustaining cost of $991 per ounce due to effective cost control. With higher gold prices anticipated in the latter half of 2025, Steppe Gold plans to restructure its debt and explore financing options for its Phase 2 Expansion. The company expects to exceed 70,000 ounces of gold production in 2025, supported by ongoing production at its Boroo Gold and ATO mine sites.