PRECIOUS METALS

Equinox builds multi-mine momentum

New producer Equinox Gold (TSXV: EQX) expects the company’s “tremendous growth” to continue with its Aurizona gold mine in Brazil slated to achieve commercial production around the end of this quarter.

Staff reporter
 Aurizona is expected to achieve commercial production at the end of this quarter

Aurizona is expected to achieve commercial production at the end of this quarter

The Ross Beaty-backed company reported gold production of 26,000 ounces for the December quarter from its recently-acquired Mesquite operating gold mine in California.

Equinox expects to produce 230,000-265,000oz this year from Mesquite and Aurizona at all-in sustaining costs of US$900-$950/oz.

Mesquite is expected to produce more than half of the stated guidance, of 145,000-160,000oz.

"Equinox Gold has achieved tremendous growth over the last year and will soon become a multi-mine gold producer," CEO Christian Milau said.

"This momentum will continue in 2019 as we plan for construction at our Castle Mountain mine, capitalise on growth opportunities at our existing assets and continue to assess accretive acquisition opportunities."

The previously-mined Castle Mountain is about 320km north of Mesquite and is expected to initially produce 45,000oz per annum from 2020, increasing to more than 200,000ozpa during years four to 16.

Equinox said it was completing permitting for phase one and arranging financing in order to start construction mid-year at a cost of about $50 million.

The company reported a cash balance of $60 million (unaudited) with a further $10 million available under the Aurizona construction facility.

It is aiming to become a mid-tier gold producer and last year spun-out its copper assets into a new company called Solaris Copper and sold its stake in the Koricancha mill in Peru to Inca One.

Equinox shares are trading at similar levels to 12 months ago, closing down C2c yesterday to $1.04 to capitalise it close to $539 million.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.