Mixed fortunes for Canada builders B2 and Equinox

Equinox Gold reported a net income of US$5.4 million on revenues of $470.9 million for the June quarter, more than double that achieved a year ago, although down 10% on the March quarter.The company produced 137,661oz, a 14% increase over 2022 and 12% up on the March quarter, which helped pare its all-in sustaining cost to $1502/oz, 9% lower than a year ago and 9% lower than in the March quarter, and their lowest level since the December 2021 quarter.Earlier this week, the company said the $1.23 billion Greenstone development project in Ontario, Canada, a 60:40 joint venture with Orion Mine Finance, is 85% complete, on schedule and on budget to pour gold in the first half of 2024.Greenstone will produce more than 400,000ozpa over the first five years of a 14-year mine life. As of June 30, $937 million (76%) of the budget had been spent, with $170 million remaining for Equinox to fund through to project completion.With the company ending the quarter with a cash balance of $174.4 million and its AISC reducing, the possibility of it needing additional financing to complete the Greenstone build has diminished.B2Gold's gooseThe market was less forgiving for B2Gold, which produced 262,701oz of gold, including 16,740oz of attributable production from its 24% ownership interest in Calibre Mining, at an all-in-sustaining cost of $1214/oz. This was a 9.5% increase year-on-year and a 14.5% increase from the March quarter, and its highest level ever, bringing it to the peer group average.The company reported a net income of $91.9 million on revenues of $271.6 million for the June quarter, compared with a loss of $78.7 million a year ago, although earnings fell 69% from the March quarter's $17.4 million.B2Gold ended the quarter with cash of $506 million and an undrawn $600 million revolving credit facility, which was increased to $700 million in July. The company also maintained its 4c per share quarterly dividend.B2Gold completed the Sabina Gold & Silver acquisition for $937 million in April, paying 216 million shares to obtain the Back River project in Nunavut, Canada, where the Goose deposit is under construction.B2Gold extinguished various of Sabina's construction financing obligations for $112 million, including the senior secured debt facility, gold prepay facility, the gold metal offtake agreement and one-third of the gold stream obligation."We like the prospectivity at Goose and Back River, so it makes sense to take what are essentially royalties on the property out up front," said B2Gold SVP finance and CFO Mike Cinnamond during the conference call.The company said the inaugural winter ice road season was completed with all critical materials necessary to maintain the schedule for construction completion of the mill in the March quarter of 2025. The project has an estimated two-year construction period, which is expected to be completed in the March quarter of 2025.In June, B2Gold announced an initial capital expenditure estimate of C$800 million for Goose and decided to accelerate underground mining development to increase annual gold production over the first five years of the mine plan at an estimated additional of C$90 million. Some C$550 million is expected to be spent up to the completion of construction in the March quarter of 2025.B2Gold also approved a $20 million exploration programme at Back River Gold for 25,000m of drilling around Goose and the George area. "Sabina was spending C$5 million. We have five rigs planned for surface drilling at Goose, and as we get access to the underground, we will add one or two more later this year," said SVP exploration Victor King.MaliAt the Fekola operation in Mali, chief executive Clive Johnson said during the results conference call that the company is looking to publish a year's end study about possibly building a new mill at Fekola.Johnson also said B2Gold does not expect any impacts on Fekola due to a government proposal to amend its mining code. "It is still a proposal, but we will continue under the 2012 mining code. The government owns 20% of Fekola. W have contributed more than $1.2 billion to Mali since we started production, and it receives over 50% of the economic benefit of the mine," he said.

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