Steppe Gold Ltd (TSX:STGO, OTCQX:STPGF)’s ATO gold mine in Mongolia is expected to generate total gross revenue of $2.2 billion, based on an updated technical report, according to Stonegate Capital Partners analysts.
In an update to clients, the analysts placed a valuation range of C$4.43 to C$5.59 per share on Steppe Gold stock, with a mid-point of C$5, based on separate discounted cash flow (DCF) analysis of their mine models for the company.
Highlights from the technical report on ATO included an estimated 1.1 million ounces of gold and 11.7 million silver ounces at a grade of 1.13 grams per tonne (g/t) gold and 12.43 g/t silver.
They also noted that the ATO project is expected to produce more than 100,000 ounces of gold annually over an estimated mine life of 14 years.
Analysts at Stonegate added that funding for the Phase 2 Expansion at ATO is secured, with $9.6 million drawn in October from a potential of US$150 million in available funding based on a term sheet Steppe Gold signed in July, which "significantly de-risks the project."
