Equinox reaches commercial production at Ontario gold mine
Equinox Gold Corp. [EQX-TSXV, EQX-NYSE] said its Greenstone mine in northern Ontario has reached the commercial production phase.
The announcement came as Equinox reported its third quarter, 2024, financial and operating results. “This was a record quarter for Equinox Gold with our best ever third-quarter production and all-time highest quarterly revenue and adjusted EBITDA, reflecting the ongoing ramp-up at our Greenstone Mine and strong gold prices,’’ said Equinox President and CEO Greg Smith.
Equinox shares advanced on the news, rising 2.0% or 15 cents to $7.40. The shares trade in a 52-week range of $8.79 and $5.34.
The company reported net adjusted net income of $37.4 million or $0.09 per share in the quarter ended September 30, 2024 when the company produced 173,983 ounces of gold.
“With the Greenstone mine continuing to ramp-up and generating positive cash flow, we are pleased to announce commercial production at our newest and largest gold mine,’’ said Smith. “This milestone marks the culmination of three years of construction and commissioning, accomplished during the challenges of a global pandemic, supply chain disruptions and inflationary pressures.’’
Equinox is an Americas-focused company that aims to join the ranks of top tier gold miners with annual production of over one million ounces of gold.
The high-grade open pit Greenstone mine forms a key component of that strategy because it is expected to produce over 390,000 ounces of gold annually during the first five years of commercial production, and 330,000 ounces annually for an initial 15-year mine life.
It makes Greenstone a cornerstone asset in a portfolio of seven other mines, which produced 564,000 ounces of gold in 2023. This year the company has set a production target of between 590,000-750,000 ounces of gold with an all-in-sustaining cost of US$1,820-US$1,920 an ounce. That includes up to 110,000-130,000 ounces from Greenstone.
During the third quarter of 2024, the Greenstone mine processed an average of 14,300 tonnes per day, representing 53% of design throughput, producing 42,400 ounces of gold an average recovery rate of 79% and a cash cost of US$930 per ounce.
The average throughput during the quarter includes three multi-day shutdowns to address issues identified during the ramp up process. Through put steadily increased through October and, as of Nov. 5, the trailing 20-day throughput averaged over 20,400 tonnes per day, representing 76% of design. The crushing and grinding circuits have demonstrated operation at the full production rate of 27,000 tonnes per day (crushing over 32,000 tonnes per day, milling over 27,000 tpd). Gold recovery has reached daily highs of over 90% and averaged 78% through October. The current focus is on increasing plant availability and recoveries.
Equinox has assembled a portfolio that includes eight operating mines. Aside from Greenstone, they include the Mesquite and Castle Mountain mines in California, the Los Filos mine in Mexico, plus the Aurizona, Fazenda, Santa Luz and RDM mines in Brazil.