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Steppe Gold Limited: Paving the Way for Responsible Mining and Sustained Growth



Steppe Gold Limited is a Canadian junior mining company primarily engaged in exploration, development, and production of precious metals, notably gold, in Mongolia. The company operates the flagship ATO Gold Mine in Mongolia’s Dornod province, with a focus on sustainable and responsible mining practices.

While the stock price has taken a sound beating in the past year, the company has met many of its milestones and has maintained production. There are not many juniors that offer production with such a high possibility of expansion, at these levels. On top of this, there is notable funding of $150 million from the Trade and Development Bank of Mongolia. This shows commitment from the government and deals with the obvious entry risk for individual retail investors, which being the location.






The ATO Gold mine has shown promise with consistent production levels. Expansion plans and exploration activities in adjacent areas could further enhance the company’s reserves and production capacity. Altan Tsagaan Ovoo (ATO) Mine: Located in the Dornod province of eastern Mongolia, is the company’s primary asset. The mine has demonstrated promising reserves and resources, with ongoing exploration activities to expand its potential. Steppe Gold has employed both open-pit and heap leach mining methods, utilizing modern technologies and environmentally conscious practices. The mine passed the 100,00 oz threshold of production back in October, and is increasing its annual production from 30,000oz in 2023 and 2024 to over 100,000oz by end of 2025.

Cost Efficiency:

The company anticipates saving approximately $100 per oz in operating costs, reducing the estimated AISC from $900 per oz to $800 per oz.

Renewable Energy Initiatives: 

Steppe Gold is exploring the use of 100% renewable energy in its ongoing camp expansion.





Steppe Gold has shown significant growth in gold production since commencing operations at the ATO mine. Annual production figures have been consistent, reflecting the company’s operational efficiency and resource richness.

The obvious and crucial milestone to point out is the news release from July 11, 2023, in which the company announced a signed binding term sheet for 150 million to fund the Phase 2 expansion of the ATO mine.

Financially, the company has exhibited positive signs, achieving milestones in revenue generation and cost management. This stability has been integral in sustaining operations and funding further exploration.





Steppe Gold places a strong emphasis on sustainable mining practices and community engagement. They have implemented environmental management systems and prioritize the well-being of local communities by investing in social initiatives and infrastructure development.

Environmental and Social Initiatives: Steppe Gold has implemented environmental management systems and invests in local community development. Their Inaugural ESG Report in August 2023 highlights their commitment to environmental stewardship and stakeholder engagement.

The company adheres to international standards and regulations concerning environmental impact and worker safety, show casing a commitment to responsible mining practices.




Exploration & Development: Steppe Gold’s exploration efforts beyond its current mine sites will be crucial for future growth. Successful exploration projects can diversify the company’s portfolio and potentially mitigate risks that are often associated with single mine operation.





Revenue: Steppe Gold’s revenue has shown steady growth due to increased gold production. The company’s ability to ramp up production has positively impacted its top line.

Cost Management: Efforts in cost optimization and operational efficiencies have been noticeable, leading to improved margins. However, maintaining cost controls in the volatile mining industry remains a challenge.

Profitability: While revenue growth is promising, net profitability might be affected by operating costs, capital expenditures, and variations in gold prices.

Debt and Liquidity: An assessment of the company’s debt structure and liquidity position is crucial. Debt levels and the ability to service it without compromising growth prospects are key indicators.



Market Volatility: The company’s financial performance heavily relies on gold prices. Fluctuations in commodity prices could impact revenues and profitability.

Regulatory and Environmental Risks: Compliance with local regulations and maintaining environmentally sustainable practices are paramount. Any regulatory hurdles or environmental issues can significantly impact operations.

Geopolitical Factors: Operating in Mongolia exposes the company to geopolitical risks, including changes in government policies, geopolitical tensions, and infrastructure challenges.



Strengths: Strong production growth, promising exploration potential, and a focus on responsible mining practices are key strengths.

Concerns: Reliance on gold prices, operational risks in a geopolitically sensitive region, and potential regulatory challenges pose concerns for investors.



In a recent interview EVP and Director, Aneel Waraich emphasized Steppe Gold’s efficient mining practices, market dynamics, and expansion plans. Waraich also praised the company’s commitment to environmental sustainability and social responsibility. The overarching sentiment is that Steppe Gold, with its focus on sustainable practices and adaptability, is well-positioned for continued growth in the gold mining sector.

And as a last-minute addition to this article Steppe Gold announced its plans to acquire Boroo Gold LLC, a strategic move that will not only triple its annual gold production but also reinforce its position as Mongolia’s preeminent gold producer.

This development is a milestone in Steppe’s journey, marking a significant expansion of its operational capacity with a now combined average gold production of over 60,000 oz. per annum and an expected mine life of beyond 2030. This will increase Steppe’s existing annual production of 30,000 oz. from the ATO (Altan Tsagaan Ovoo) gold mine by over three times. 

In response to this development, Steppe Gold witnessed a substantial 1.5% rise in its share value by midday on January 22nd, a clear indication of the market’s trust in this expansion. Consequently, the firm’s market value soared, reaching C$70 million (approximately $52 million), underscoring the enthusiastic market response to this announcement.

A critical aspect is the strategic roadmap, emphasizing the importance of leveraging existing assets while exploring new opportunities for growth. Waraich articulated the significance of diversification and prudent investment in infrastructure to propel Steppe Gold toward its envisioned expansion goals.



Steppe Gold Limited demonstrates promise in the junior mining sector balancing its production growth, exploration initiatives, and commitment to sustainable mining practices. Undoubtedly, the region and political risk is the highest concern. We do feel that the company has mitigated this risk sufficiently. We have confidence that the country is making positive steps to attract more Western investment and business moving forward now that they have a good model to grow from.

Continued focus on sustainable practices, community engagement, and prudent investment strategies will fortify Steppe Gold’s position as a key player in the mining industry. Steppe Gold has demonstrated commendable progress in its mining operations, particularly with the development of the ATO mine. The company’s commitment to responsible mining, combined with strong leadership and a promising resource base, positions it favorably for continued growth in the gold mining sector. We show great interest in this developing story.



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