The update report is titled, 'Output Improving as Supply Chain Eases, Phase II Expansion Offers Valuation Growth.'
Report excerpt: 'STGO has made major strides since our last update on the company, where we highlighted the commencement of production at flagship project ATO and the ascension of the company to the early production phase of the miner life cycle. In the interim, key developments for STGO have included: Ramp up of production at ATO, where STGO has focused on building inventories to a level capable of supporting stable production rates. STGO is now looking to scale up to the forecasted nameplate capacity of up to 60,000 ounces of gold-equivalent per annum.
STGO has released FS results for the Phase II expansion of the
Continued exploration initiatives across its key mineral assets, which not only includes its ATO production asset but also the exploration asset Uudam Khundii, where STGO is focused on four discovery targets that are prospective for mineralization.
As expected, STGO has undergone major change since our last coverage, with execution of production targets supported by a pipeline of catalysts built around future development and exploration milestones. Our investment thesis on the company is backed by a business model that has a foundation in a growing cash flow stream, with growth upside on development and exploration initiatives that have the potential to provide scaling leverage on a forward basis. In addition, STGO has also demonstrated robust access to capital, having secured debt financing for project development that lowers equity dilution risk. As a result, we believe STGO's positioning for the near-term is highly favourable, and its current valuation fails to capture the growth potential we see the company being exposed to.'
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