Steppe Gold (STGO) AI Stock Analysis

• Market Cap: $214.90M
• Dividend Yield: N/A
• Average Volume (3M): 269.03K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.85
• Revenue Growth: 92.01%
• EPS Growth: -24.44%
• Country: CA
• Employees: 275
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Gold
• EPS (TTM): 0.10
• Shares Outstanding: 252,827,200
• 10 Day Avg. Volume: 184,834
• 30 Day Avg. Volume: 269,033
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.39
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Steppe Gold's strong financial performance, highlighted by significant growth in revenue and profit, positions it well within the gold industry. The company's undervaluation relative to its P/E ratio provides an attractive proposition for investors. However, reliance on debt and limited technical indicators suggest cautious optimism. The recent strategic growth and M&A activities bolster its long-term potential, reinforcing a positive outlook.

Steppe Gold Business Overview & Revenue Model

Company Description

Steppe Gold Ltd. (STGO) is a precious metals exploration and development company focused on advancing its portfolio of precious metal projects in Mongolia. The company's flagship project is the Altan Tsagaan Ovoo (ATO) Gold Mine, which is located in eastern Mongolia and is currently in production. Steppe Gold aims to become a leading gold producer in Asia by leveraging its strong local expertise and strategic location.

How the Company Makes Money

Steppe Gold primarily generates revenue through the extraction and sale of gold and silver from its ATO Gold Mine. The company employs open-pit mining techniques to extract ore, which is then processed to produce gold and silver doré bars. These bars are sold to international precious metal refiners and traders at market prices. Steppe Gold's revenue model is heavily reliant on the fluctuations in global gold and silver prices, as well as its production efficiency and output. Additionally, the company may engage in strategic partnerships and joint ventures to explore and develop additional mining opportunities, further contributing to its revenue streams.

Steppe Gold Financial Statement Overview

Summary

Steppe Gold presents a mixed financial picture. The company demonstrates strong revenue and cash flow growth, with operational efficiencies leading to solid EBIT and EBITDA margins. However, the negative net income and high leverage pose risks to financial stability and profitability. While the ability to generate cash flow is commendable, the reliance on debt and the negative ROE highlight areas needing strategic focus. Moving forward, addressing net profitability while managing leverage will be crucial for sustained financial health.

Income Statement

Steppe Gold's income statement shows a strong recovery in revenue, with a notable TTM increase to $70.37M from $54.24M in 2023. The gross profit margin is healthy at approximately 50.2%, demonstrating effective cost management. However, the net profit margin is negative at -6.26%, indicating challenges in achieving net profitability. EBIT and EBITDA margins are relatively strong at 30.74% and 39.84%, respectively, showing operational efficiency. The primary concern is the transition from a net income gain in 2023 to a loss in the TTM, which may suggest underlying cost or revenue challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.52, which is significant within the mining industry and suggests high leverage. Despite this, the company has maintained a reasonable equity ratio of 31.15%, indicating a fair proportion of assets financed by equity. The return on equity (ROE) is negative due to the negative net income, highlighting inefficiencies in generating returns from shareholder equity. These factors point to a mixed stability, with potential risks due to high leverage.

Cash Flow

Steppe Gold's cash flow statement reflects strong free cash flow generation, growing significantly to $55.71M in TTM. The operating cash flow to net income ratio is robust, showcasing good cash generation relative to earnings. However, the free cash flow to net income ratio is negative due to net losses, indicating cash flow strength not translating into net profitability. The ability to generate operating cash flow is a positive sign, but sustainability amidst net income losses is a concern.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
54.24M	62.37M	24.05M	52.10M	0.00
	Gross Profit
29.41M	30.82M	9.65M	28.45M	-169.54K
	EBIT
19.96M	25.24M	900.00K	16.50M	-4.55M
	EBITDA
23.08M	26.52M	3.68M	20.03M	-4.38M
	Net Income Common Stockholders
9.43M	15.96M	-22.68M	-4.05M	-6.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.01M	2.88M	4.07M	20.12M	671.42K
	Total Assets
98.29M	72.66M	146.28M	86.01M	53.44M
	Total Debt
36.05M	9.52M	81.50M	13.14M	4.76M
	Net Debt
30.05M	7.00M	78.86M	-1.95M	4.09M
	Total Liabilities
50.29M	55.44M	139.26M	44.69M	42.37M
	Stockholders Equity
48.59M	17.72M	7.27M	41.53M	11.18M
Cash Flow		Free Cash Flow
3.14M	12.79M	-15.95M	9.24M	-13.77M
	Operating Cash Flow
8.20M	18.71M	-7.04M	11.41M	-5.63M
	Investing Cash Flow
-5.23M	-5.92M	-3.88M	-7.21M	-8.14M
	Financing Cash Flow
592.00K	-13.19M	-1.47M	10.28M	7.62M

Steppe Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.84 is above the 20-day moving average (MA) of 0.79, above the 50-day MA of 0.74, and above the 200-day MA of 0.70, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 53.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:STGO.

Steppe Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NGD	74 Outperform	$4.58B	25.08	14.62%	―	23.61%	―
ELD	74 Outperform	$5.78B	12.62	8.91%	―	41.46%	187.54%
ORV	74 Outperform	C$83.34M	16.49	7.12%	―	-2.98%	―
STGO	72 Outperform	$214.90M	8.09	18.60%	―	92.01%	-24.44%
EQX	66 Neutral	$4.33B	10.55	9.23%	―	41.78%	619.60%
BTO	66 Neutral	C$5.78B	―	-18.54%	4.42%	-0.18%	-2195.85%
Sector *	49 Neutral	$1.96B	-1.23	-21.20%	3.72%	0.88%	-29.24%

Steppe Gold Corporate Events

Steppe Gold Reports Record Production and Strategic Growth in 2024

Steppe Gold Ltd. announced its 2024 financial results, highlighting a record production of 88,347 ounces of gold and 93,837 ounces of silver. The integration of Boroo Gold’s operations has been pivotal, reducing overhead costs and streamlining management. The company aims to capitalize on strong gold prices by restructuring debt, increasing mining capacity, and advancing the Phase 2 Expansion of the ATO Mine. The acquisition of Boroo Gold has accelerated Steppe Gold’s growth, providing strong cash flow to support future expansion plans.