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Equinox Gold to sell smaller assets

Equinox Gold aims to complete the sale of one or two of its smaller mines within the next few months to focus on its larger operations, president and CEO Christian Milau has said at this year's World Gold Forum.
Equinox Gold to sell smaller assets Equinox Gold to sell smaller assets Equinox Gold to sell smaller assets Equinox Gold to sell smaller assets Equinox Gold to sell smaller assets

Equinox Gold's Los Filos mine in Mexico

The company has several development stage projects that will see it increase production to about 1.2 million ounces a year in 2024, but with mining operations in four countries it is looking to let some assets go to maintain a manageable business.

"We want to move one or two assets out in the next month or two. COVID-19 has slowed that process somewhat," Milau said.

Equinox aims to produce 300,000-400,000oz/y in each of Brazil, Canada, Mexico and the USA. It has reserves of 16.4Moz with 3.4Moz in Brazil, 4.7Moz in Mexico, 4.9Moz in USA and a 60% interest in 5.5Moz in Canada.

Equinox's next big development will be the Hardrock project in Ontario, Canada, which is permitted, construction-ready and set to add more than 240,000oz/y of production.

Earlier this month the company said it had reached an agreement with the Carrizalillo community to allow development of the Bermejal expansion at its Los Filos mine in Mexico. Los Filos produced 58,453oz in 2020 and was expected to produce 170,000-190,000oz this year.

The company has some US$650 million of available liquidity at its disposal including $200 million under a revolving credit facility and unrestricted cash on hand of $450 million including C$82 million from the sale of some of its Solaris Resources shares.

Shares in Equinox Gold are trading at C$11.05, valuing the company at $3.3 billion.