Steppe Gold Limited (TSX: STGO) (OTCMKTS: STPGF) has releasedits financial results for the year ended December 31, 2021, as well as the filing of its restated annual financial statements for the periods ended December 31, 2020.
The Restated Financial Statements were prepared following a continuous disclosure review by Staff of the Ontario Securities Commission (OSC) of the company’s disclosure records.
HIGHLIGHTS
Financial Results for the year ended December 31, 2021
- Revenue for the year ended December 31, 2021 was $24,050 on sales of 12,899 gold ounces and 28,622 silver ounces with average realised prices per ounce of $1,837 and $24 respectively.
- Operating income from mine operations, before depreciation and depletion was $12,435.
- Consolidated Group Adjusted EBITDA for the year was $4,909.
- As at December 31, 2021 cash and restricted cash amounted to $71,817; total bank and other debt was $77,920 for net debt of $6,103.
In conjunction with preparation of the company’s financial statements for the year ended December 31, 2021 and as part of a continuous disclosure review by Staff of the OSC in relation to the accounting for the Streaming Agreement, dated August 11, 2017 between the company and Triple Flag Mine Finance Bermuda, Steppe Gold identified an error in how the arrangement has been reflected in the previously issued financial statements.
The company previously determined that the stream obligation was in substance a debt instrument (carried at amortised cost) with embedded derivatives (recognised at $nil value) linked to gold and silver commodity prices.
Upon further review of the arrangement the company has determined that the arrangement should be accounted for in its entirety as a derivative measured at fair value through profit and losses. The Restated Financial Statements resulted in changes to revenue, the stream liability and fair value gains/losses related to the liability. The adjustments did not impact the overall net cash flows of the company. The company evaluated the significance of the corrections and determined the adjustments were material to the consolidated financial statements for December 31, 2021.
Steppe Gold has therefore restated its annual financial statements for the year ended December 31, 2020, as well as the associated management’s discussion and analysis. Comparative figures for 2021 interim periods will also be restated in 2022 interim reports.
For further information please visit: https://steppegold.com/
