Equinox Gold releases 2024 production targets

Equinox Gold releases 2024 production targets
Share this article

 

VANCOUVER -Equinox Gold Corp. [EQX-TSXV, EQX-NYSE] has released its production guidance for 2024 saying it expects to produce between 660,000 to 750,000 ounces this year at an all-in sustaining cost of US$1,630 to US$1,740 per ounce.

Equinox Gold operates entirely in the Americas. It has seven operating gold mines located in the U.S., Mexico and Brazil. The company is currently in the commissioning phase at its Greenstone Project near Geraldton, Ontario, approximately 275 kilometres northeast of Thunder Bay. The project is held 60% by Equinox and 40% by Orion Mine Finance.

“Greenstone was a significant focus during 2023,’’ said Equinox President and CEO Greg Smith. “After 2.5 years, construction was substantially complete at year-end, which is a huge accomplishment for the team,’’ he said. “The focus at Greenstone has shifted now to hot commissioning and operations ramp up with the first gold pour on schedule for the first half of 2024.”

Smith went on to say that the company started 2024 with $360 million in total liquidity which, along with cash flow from the company’s operating mines and marketable investments currently worth about $100 million, leaves Equinox well funded to achieve its 2024 objectives and advance Greenstone to commercial production.

Equinox has said Q4, 2023, was the strongest quarter of the year, when it produced 155,000 ounces of gold, enabling the company to achieved guidance with total production of 564,500 ounces in 2023. The company ended the year with approximately $192 million in cash and equivalents.

Getting Greenstone into production will put Equinox on track to achieve more than one million ounces of annual gold production, via the advancement of a number of expansion projects.

They include four development and expansion projects that will add nearly 600,000 ounces of annual gold production.

A feasibility study at Greenstone has outlined the design of an open-pit mine that will produce over 5.0 million ounces of gold over an initial 14-year mine life

Gold production during the first five years is expected to average more than 400,000 ounces annually, with a life-of-mine production average of more than 360,000 ounces.

Meanwhile, for the year ended December 31, 2023, the company sold 5.0% more ounces compared to 2022. The increase in gold sales was primarily due to higher production at Los Filos (Mexico), RDM, Aurizona and Santa Luz (Brazil), offset partially by lower production at Mesquite (California) and not having production from the Mercedes mine (Mexico), which was sold to Bear Creek Mining Corp. [BCM-TSXV] in April, 2022.

Aside for advancing Greenstone to commercial production, the company is advancing engineering and permitting the Castle Mountain Phase 2 expansion. It also expects to start underground development for the Aurizona underground expansion in the second half of the year. The company is also advancing dialogue with local communities at Los Filos to agree on a long-term development plan for the mine.

The update was released after the close of trading on February 21, 2024, when Equinox shares closed at $6.19. The shares trade in a 52-week range of $7.89 and $4.61.

Related posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.