- Partner News
- Media Releases
- Mainstream News
May 3, 2022 – Vancouver, BC – Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) (“Equinox Gold” or the “Company”) is pleased to announce its first quarter 2022 summary financial and operating results. The Company’s unaudited condensed consolidated interim financial statements and related management’s discussion and analysis for the three months ended March 31, 2022 will be available for download on SEDAR, on EDGAR and on the Company’s website. The Company will host a conference call and webcast on May 4, 2022 commencing at 7:30 am Pacific Time to discuss the Company’s first quarter results and activities underway at the Company’s projects. Further details are provided at the end of this news release.
Christian Milau, CEO of Equinox Gold, commented: “Over the first few months of 2022 we poured first gold at our new Santa Luz mine in Brazil, strengthened our balance sheet and investment portfolio with the sale of our non-core Mercedes mine, and made good progress with construction at our Greenstone project. We expect gold production to increase and costs to come down over the next three quarters with new production from Santa Luz, increased production from our other Brazil mines as the rainy season ends, and growing production at Mesquite. We are on track to achieve guidance for 2022, with 60% of production and more than 85% of cash flow forecast to come in the second half of the year. We look forward to achieving commercial production at Santa Luz and reporting on construction milestones at Greenstone as we ramp up activity heading into the summer season.”
HIGHLIGHTS FOR THE THREE MONTHS ENDED MARCH 31, 2022
Suite 1501 – 700 West Pender St., Vancouver, BC Canada V6C 1G8
[email protected] +1 604.558.0560 www.equinoxgold.com
Construction, development and exploration
POST QUARTER HIGHLIGHTS
CONSOLIDATED OPERATIONAL AND FINANCIAL HIGHLIGHTS
|Three months ended|
|March 31,||December 31,||March 31,|
|Average realized gold price||$/oz||1,862||1,792||1,786|
|Cash costs per oz sold(1)||$/oz||1,238||1,039||1,141|
|AISC per oz sold(1)(2)||$/oz||1,578||1,265||1,482|
|Earnings from mine operations||M$||28.5||99.4||44.2|
|Net (loss) income||M$||(19.8)||109.0||50.3|
|(Loss) earnings per share||$/share||(0.07)||0.37||0.21|
|Adjusted net (loss) income(1)||M$||(23.9)||72.2||(3.2)|
|Balance sheet and cash flow data|
|Cash and cash equivalents (unrestricted)||M$||151.2||305.5||317.5|
|Operating cash flow before changes in non-cash working capital||M$||33.5||122.2||62.0|
During Q1 2022, the Company recognized revenue of $223.2 million on sales of 119,324 ounces of gold, compared to revenue for the three months ended December 31, 2021 (“Q4 2021”) of $381.2 million on sales of 212,255 ounces of gold. Gold ounces sold and revenues are comparable to Q1 2021. The decrease in ounces sold from Q4 2021 to Q1 2022 was mainly due to decreased production at Los Filos, Aurizona, Mesquite and RDM. In accordance with the sites’ mine plans, waste stripping occurs early in the calendar year, resulting in the majority of ore tonnes being mined later in the year. In addition to this, Q1 2022 production for RDM and Aurizona was lower than Q4 2021 due to higher levels of rainfall impeding production.
In Q1 2022, earnings from mine operations were $28.5 million, a decrease compared to $99.4 million in Q4 2021. Earnings from mine operations was impacted by lower gold production and higher operating costs due to oil prices, supply chain constraints and inflationary pressures. Net loss in Q1 2022 was $19.8 million compared to net income of $ 109.0 million in Q4 2021, driven by the decrease in earnings from mine operations and a $18.7 million loss on the change in fair value of share purchase warrants in Q1 2022 compared to a gain of $27.5 million in Q4 2021.
Adjusted EBITDA for Q1 2022 of $43.4 million decreased from $130.0 million in Q4 2021 driven by lower earnings from mine operations in Q1 2022. Adjusted net loss was $23.9 million for Q1 2022 compared to adjusted net income of $72.2 million in Q4 2021.
SELECTED FINANCIAL RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
Three months ended
$ amounts in millions, except per share amounts
March 31, March 31,
|Cost of sales|
|Depreciation and depletion||(42.3)||(38.7)|
|Earnings from mine operations||28.5||44.2|
|Care and maintenance expense||(0.4)||(2.0)|
|General and administration expense||(11.8)||(7.4)|
|Income from operations||13.1||31.9|
|Share of net loss in associate||(1.6)||(2.7)|
|Other (expense) income||(19.0)||49.3|
|Net (loss) income before taxes||(16.1)||70.3|
|Income tax expense||(3.7)||(20.0)|
|Net (loss) income||$||(19.8)||$||50.3|
|Net (loss) income per share attributable to Equinox Gold shareholders|
Additional information regarding the Company’s financial results and activities underway at the Company’s projects is available in the Company’s Q1 2022 Financial Statements and accompanying management’s discussion and analysis for the three months ended March 31, 2022, which will be available for download on the Company’s website at www.equinoxgold.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.
Due to a reversal of previous decisions by SUPRAM (State Environmental Agency – Minas Gerais), permitting the next TSF raise at RDM is delayed. Discussions with regulatory authorities are ongoing. If the Company is not able to achieve satisfactory resolution prior to the need to start the next raise in Q2 2022, operations at the mine may be temporarily suspended commencing in Q2 or Q3 2022.
The RDM TSF is raised on an intermittent basis throughout the mine life to store additional tailings produced from ongoing operations. The TSF has been designed and is operated to industry best practices and is regularly inspected and audited by independent parties. A design alteration was filed with SUPRAM in 2017 to change from a centreline to a downstream design, which is considered the safest construction method, and since 2018 each raise has been completed using a downstream design. Permits to raise the TSF using a downstream design were granted in 2019 and 2020. In 2020, the Company requested a raise method formalization as an addendum to the license to operate, confirming the change to a downstream design, and in early 2021 SUPRAM granted the permit to raise the TSF to its current level. In 2021, the Company applied for a permit for the next TSF raise, which has not been granted to date.
230 total views, 2 views today