The 1961 discovery of the Carlin gold deposit in Nevada launched a world-class gold mining district and life-changing riches for investors. Carlin gold was a new type – fine gold that was invisible to the naked eye and couldn’t be panned.
Invisible gold can be the most valuable kind.
It’s especially true with gold powering through US$2,000 an ounce and holding its gains. The precious metal is poised to once again reclaim its mantle as the currency of kings.
As for gold mining stocks, when gold is flat or declining, they are terrible investments. When the precious metal is making a powerful upwards move, however, fortunes can be made.
One overlooked gold stock is Steppe Gold (STGO-T), Asia’s newest gold producer. Steppe began pouring gold from its ATO open-pit oxide gold mine in eastern Mongolia in 2020. In October, the rapidly growing producer passed the 100,000-ounce milestone. By the end of 2025, thanks to expansion plans backed by a US$150-million deal with the largest state bank in Mongolia, Steppe will be producing 100,000 ounces annually.
It costs Steppe about US$900, all-in, to produce an ounce of gold. That’s a healthy $1,000 margin for each ounce produced. Not only is Steppe’s ATO mine producing gold, it’s printing money. Once the Company ties into the main electrical grid they expect their AISC to get closer to $800.
Yet the stock remains invisible, even to most investors in the gold sector. Invisible gold can be the most valuable kind.
A record high gold price combined with Steppe’s rapid production growth sets the stage for a powerful and potentially explosive move in Steppe Gold shares. The stock trades on the Toronto Stock Exchange.
Another key to Steppe’s success is jurisdiction. Mongolia is a pro-mining country renowned in mining circles as home to one of the world’s largest and richest mineral deposits: Oyu Tolgoi. The 2001 Oyu Tolgoi copper discovery by Ivanhoe Mines in a country that had seen little modern exploration was a huge win for shareholders. It also helped make financier Robert Friedland a billionaire.
Oyu Tolgoi is now being mined for copper and gold by Rio Tinto, the world’s second largest mining company. Friedland recently received Mongolia’s Order of the Polar Star, Mongolia’s highest honor for a foreign citizen.
Clearly, Mongolia’s mineral riches extend far beyond Oyu Tolgoi. Steppe Gold holds 14,400 hectares in a highly prospective gold belt, much of it yet to be explored. The exploration upside doesn’t end in Mongolia either.
Earlier this year, Steppe acquired Anacortes Mining Corp. and its high-grade Tres Cruces oxide gold project in Peru. It was an opportunistic move at the bottom of the market that positions Steppe as a dynamic junior gold producer, just as gold gets its shine back.
That’s no coincidence. Steppe’s Chairman and CEO, Mr. Bataa Tumur-Ochir, is a Mongolian citizen with a wealth of experience in mining and oil and gas. He has shepherded Steppe to multiple business and mining industry awards. Aussie Matt Wood, a Steppe director and former chairman, sold his Mongolia-focused Hunnu Coal for US$330 million.
Wood has also been honoured with Mongolia’s Order of the Polar Star – the same award given to Robert Friedland.
Invisible gold can be the most valuable kind. Sometimes, it’s not the metal in the ground but a yet-to-be-discovered “diamond in the rough” with explosive upside potential. Steppe Gold fits the bill.
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Eight reasons Steppe Gold shares could be poised for a breakout:
- Currently in production with $10mm to $15mm in free cash flow
- $150mm USD non dilutive funding from the the largest bank in the country
- Full funding of stage 2 mine production with a seamless funded transition from current phase 1 production
- Resource growth through further pit and brownfields drilling with over 5mm Au Eq ounces on the balance sheet
- Industry low roughly $800 AISC when connected to the main power grid
- Upcoming listing on the Hong Kong Exchange, with only a handful of peers that see multiples of valuations as those seen in Canada
- Trading at a massive discount to their Canadian peers from a large institutional and management shareholder base with little retail awareness
- Steppe Gold’s CEO has invested over $2,000,000 of his own money this year alone, insiders own over 25% and haven’t sold a share aligning management with shareholders.
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Stonegate Capital Partners updates coverage on on Steppe Gold Ltd
Technical report shows expected gross revenues for ATO of $2.2B
Phase 2 Expansion funding is secured with $9.6M drawn in October
ATO expected to generate over 100,000 oz of gold annually…
