Steppe Gold (STGO) AI Stock Analysis

• Market Cap: C$510.71M
• Dividend Yield: N/A
• Average Volume (3M): 511.15K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 1.70
• Revenue Growth: 104.75%
• EPS Growth: N/A
• Country: CA
• Employees: 275
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.04
• Shares Outstanding: 252,827,200
• 10 Day Avg. Volume: 676,656
• 30 Day Avg. Volume: 511,149
• PEG Ratio: <0.01
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 1.19
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: C$2.50 ▲(30.89% Upside)

The score is led by strong reported margins and an attractively low P/E, but is held back by materially weaker TTM cash conversion/free cash flow and meaningful (though improving) leverage. Technical signals are broadly neutral and do not materially improve the outlook.

Positive Factors

High Profitability

Sustained high gross and net margins indicate the ATO operation converts ore to profitable metal at relatively low unit cost. Durable margins provide a buffer through commodity cycles, supporting internal funding for sustaining capex and improving return metrics over time.

Improving Leverage

The material reduction in debt-to-equity reflects stronger balance-sheet repair and lowers refinancing and liquidity risks. Improved leverage enhances financial flexibility to fund exploration, sustain operations, and absorb price shocks without immediate external recapitalization.

Operating Asset Focus

A single, operating flagship mine with on-site processing concentrates operational control and visibility over production, metallurgical recovery and costs. Integrated operations plus nearby exploration upside support potential extensions to mine life and predictable long-term cash generation.

Negative Factors

Weak Cash Conversion

Sharp decline in free cash flow and poor cash conversion of reported earnings signal structural pressures on liquidity from working capital, capex or timing issues. Persistently weak cash generation reduces ability to organically fund growth, service debt, or return capital without external financing.

Revenue Softness and Volatility

A falling and historically volatile top line undermines predictability of earnings and cash flow. For a mining business, intermittent production, grade variability or exploration outcomes can create lasting variability, complicating long-term planning and capital allocation decisions.

Meaningful Remaining Debt

Leverage, while improving, remains material relative to equity which heightens sensitivity to lower gold prices or operational setbacks. Elevated debt servicing needs can constrain investment in growth projects and increase refinancing or covenant risk during sustained commodity downturns.

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 generates revenue primarily through the extraction and sale of gold. The company operates a gold mine where it processes ore to produce gold doré bars, which are then sold to refineries and bullion dealers. Key revenue streams include the direct sale of gold produced from its mining operations and potential by-product sales from associated minerals. Additionally, partnerships with local suppliers and international markets help enhance its operational efficiency and distribution capabilities. The price of gold, operational efficiency, and production volume are significant factors influencing its earnings, along with any strategic alliances that may provide access to additional resources or markets.

Steppe Gold Financial Statement Overview

Summary

Profitability is strong (TTM ~49.7% gross margin, ~29.3% net margin) and leverage has improved (debt-to-equity ~1.24 vs. ~1.70 in 2024). Offsetting this, TTM revenue declined (~-5.4%) and cash flow quality weakened sharply (free cash flow ~13.9M, ~-87% vs. 2024; operating cash flow covers ~52% of net income), creating higher uncertainty around earnings durability.

Income Statement

TTM (Trailing-Twelve-Months) profitability remains strong with ~49.7% gross margin and ~29.3% net margin, following an even stronger 2024 (net margin ~34.4%). However, the top line has softened: revenue is down ~5.4% in TTM after modest growth in 2024, and results appear volatile across years (including prior losses in 2020–2021 and unusually high margins in 2023), which reduces confidence in earnings stability.

Balance Sheet

Leverage is meaningful but improving: debt-to-equity is ~1.24 in TTM versus ~1.70 in 2024, a better position than the very high leverage seen in 2021. Equity base is solid (TTM equity ~133M vs. debt ~164M), and returns on equity are strong in recent periods. The key weakness is that debt remains high relative to equity, leaving the company more exposed if gold prices or operating performance weaken.

Cash Flow

Cash generation weakened materially in TTM (operating cash flow ~35.9M; free cash flow ~13.9M), with free cash flow down ~87% versus 2024 despite positive net income. Cash conversion is a concern: operating cash flow covers only ~52% of net income in TTM and free cash flow is ~39% of net income, a notable deterioration from 2024 when both were much stronger.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	140.31M	178.13M	54.24M	62.37M	24.05M	52.10M
Gross Profit	69.79M	96.28M	29.41M	30.82M	9.65M	28.45M
EBITDA	80.04M	109.85M	23.08M	26.52M	3.68M	9.05M
Net Income	41.08M	61.35M	56.34M	15.96M	-22.68M	-4.05M
Balance Sheet
Total Assets	342.71M	352.14M	98.29M	72.66M	146.28M	86.01M
Cash, Cash Equivalents and Short-Term Investments	107.69M	144.18M	6.01M	2.88M	4.07M	20.12M
Total Debt	164.47M	187.15M	36.05M	9.52M	81.50M	13.14M
Total Liabilities	210.05M	242.08M	50.29M	55.44M	139.26M	44.69M
Stockholders Equity	132.74M	110.09M	48.59M	17.72M	7.27M	41.53M
Cash Flow
Free Cash Flow	13.88M	67.66M	3.14M	12.79M	-15.95M	9.24M
Operating Cash Flow	35.90M	81.83M	8.20M	18.71M	-7.04M	11.41M
Investing Cash Flow	-16.33M	-11.99M	-5.23M	-5.92M	-3.88M	-7.21M
Financing Cash Flow	-17.59M	-37.61M	592.00K	-13.19M	-1.47M	10.28M

Steppe Gold Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.91 is below the 20-day moving average (MA) of 2.09, below the 50-day MA of 1.97, and above the 200-day MA of 1.58, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 22.44 is Neutral, 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
MMY	78 Outperform	C$438.55M	6.73	31.06%	―	78.96%	376.52%
STGO	66 Neutral	C$510.71M	6.73	35.92%	―	104.75%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LGD	52 Neutral	C$606.75M	-18.28	-49.70%	―	―	0.31%
MAI	48 Neutral	C$608.29M	-7.35	-180.41%	―	119.95%	-79.81%
FDR	47 Neutral	C$429.51M	-31.61	―	―	―	46.54%

Steppe Gold Corporate Events

Steppe Gold Beats Q4 Output Guidance, Extends Intercompany Debt and Secures Royalty Option

Steppe Gold reported a strong operational performance in the fourth quarter of 2025, producing 29,280 ounces of gold, above its revised guidance of 23,000 ounces, and achieving unaudited gold sales of 37,357 ounces for the quarter, bringing full-year group production and sales to approximately 76,000 ounces. The company also extended the maturity of intercompany bonds between its subsidiary Boroo Gold and related party Boroo Singapore by one year to December 31, 2026, preserving existing economic terms and relying on minority protection exemptions under Canadian securities rules, while entering into a royalty buyback option agreement that gives Steppe Gold the right, starting in late 2029, to fund the repurchase of a 0.25% net smelter return royalty on the Alturas gold project in Chile for US$7.5 million, potentially enhancing its future economic exposure to that asset.

The most recent analyst rating on (TSE:STGO) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Steppe Gold stock, see the TSE:STGO Stock Forecast page.

Steppe Gold Strengthens Leadership Amid Growth Initiatives

Steppe Gold has announced a significant leadership transition, with Mr. Bataa Tumur-Ochir stepping down as Chairman and CEO, replaced by Dulguun Erdenebaatar as Chairman and Tserenbadam Dugeree as CEO. These appointments are aimed at driving sustainable growth, enhancing governance standards, and building on the company’s strong operational foundation. Both incoming leaders bring extensive experience in Mongolia’s mining sector, signaling an emphasis on strategic execution and shareholder value. The outgoing Chairman remains a long-term shareholder and supporter of the company, highlighting the continuity in its strategic direction.

The most recent analyst rating on (TSE:STGO) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Steppe Gold stock, see the TSE:STGO Stock Forecast page.

Steppe Gold Boosts Q4 Production Outlook and Changes Auditor

Steppe Gold has upgraded its production guidance for the fourth quarter of 2025, expecting to exceed 23,000 ounces, a significant increase from the prior guidance of 15,000 ounces. The company has also changed its auditor to Emmerich, Córdova y Asociados, aligning with its current audit relationships, ensuring consistency and transparency across the group.

The most recent analyst rating on (TSE:STGO) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Steppe Gold stock, see the TSE:STGO Stock Forecast page.

Steppe Gold Reports Strong Q3 2025 Financial Results and Plans for Expansion

Steppe Gold Ltd. reported strong financial results for Q3 2025, with total Group revenue of $27.3 million from gold and silver sales, and additional revenue from processing third-party ore. The company anticipates robust cash flow in Q4 2025, driven by continued production at the Boroo Gold mine, and is actively working on debt restructuring and financing options for its Phase 2 Expansion. The company is also focusing on extending mine life at Boroo and Ulaanbulag through exploration activities supported by high gold prices.

The most recent analyst rating on (TSE:STGO) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Steppe Gold stock, see the TSE:STGO Stock Forecast page.

Steppe Gold Releases 2024 ESG Report, Emphasizing Sustainability and Growth

Steppe Gold Ltd. has released its 2024 ESG Report, highlighting its commitment to sustainability and transparency following the acquisition of Boroo Gold LLC. The report aligns with GRI and SASB frameworks, covering health and safety, environmental stewardship, and community relations, and underscores the company’s dedication to creating lasting value for stakeholders.

The most recent analyst rating on (TSE:STGO) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Steppe Gold stock, see the TSE:STGO Stock Forecast page.