all dollar figures are in US dollars, unless
otherwise indicated
VANCOUVER, BC, Jan. 13, 2022 /CNW/ - Equinox Gold Corp. (TSX:
EQX) (NYSE American: EQX) ("Equinox Gold" or the "Company") is
pleased to announce record production in Q4 2021 of 210,400 ounces
("oz") of gold. Equinox Gold achieved fiscal 2021 guidance with
602,100 oz of gold produced, a 26% increase over 2020 production.
Full financial and operating results will be reported in late
February.
Christian Milau, CEO of Equinox
Gold commented: "Equinox Gold had a strong fourth quarter.
Outstanding performance at Mesquite and Aurizona was supported by a
full quarter of operations at Los Filos and consistent performance
at our other mines. During the quarter we commenced construction at
our Greenstone project in Ontario,
Canada and made significant construction progress at Santa
Luz in Brazil. These new mines
will produce more than 400,000 ounces (of which 60% is attributable
to Equinox Gold) and 100,000 ounces of gold annually, respectively.
We drew no additional debt during 2021 and also announced the sale
of our Mercedes Mine, an agreement that will further strengthen
both our balance sheet and investment portfolio.
"During 2021, Equinox Gold produced its millionth ounce of gold
as a company and realized over $1
billion in revenue. In addition to strong cash flow from our
operating mines, Equinox Gold has more than $300 million in cash, $200
million available to draw on our revolving credit facility,
expected proceeds from the Mercedes sale and an investment
portfolio worth approximately $450
million at current market prices. Equinox Gold is in a
strong position to deliver on our ambitious growth strategy in
2022, including commencing production at our new Santa Luz mine,
advancing construction at Greenstone and conducting exploration
programs across our operations."
The Company's Los Filos mine outperformed expectations and
exceeded the top end of guidance following five months of
consistent operations in H2 2021 and the commencement of mining the
new Guadalupe and Bermejal deposits. The Mesquite and Aurizona
mines had strong fourth quarters, with 66,900 and 41,300 ounces of
production, respectively, underpinning total Q4 2021 production of
210,400 oz of gold.
|
2021 Production
(oz of gold)
|
|
Actuals
|
Guidance1
|
Mesquite
|
137,500
|
130,000 -
140,000
|
Aurizona
|
135,000
|
130,000 -
140,000
|
Fazenda
|
60,400
|
60,000 -
65,000
|
RDM
|
58,800
|
60,000 -
65,000
|
Los Filos
|
144,100
|
120,000 -
140,000
|
Mercedes2
|
31,800
|
30,000 -
35,000
|
Castle
Mountain
|
25,300
|
20,000 -
30,000
|
Pilar3
|
9,334
|
9,334
|
Total –
Mines4
|
602,100
|
560,000 -
625,000
|
1. Guidance updated
on May 5th to reflect the acquisition of Premier Gold and sale of
Pilar and again on August 4th to reflect solid performance at the
Brazil sites and the disruption to mining and development
activities at Los Filos as the result of blockades, which were
removed at the end of July. 2. Production attributable to
Equinox Gold post completion of the Premier Gold acquisition on
April 7, 2021. Full-year production was more than 42,000 oz of
gold. 3. Actuals attributable to Equinox Gold prior to
completion of the Pilar Mine sale on April 19, 2021. 4. Totals
may not sum due to rounding.
|
The 2021 production, cash balance and cost figures are
preliminary and subject to change when the Company releases its Q4
2021 and audited full-year 2021 financial and operating results in
late February. Equinox Gold expects to provide 2022 production and
cost guidance around the end of January.
2021 Highlights
- Achieved guidance (560,000 to 625,000 oz) with total production
of 602,100 oz of gold
- Cash costs and all-in-sustaining costs1 are expected
to be within guidance of $1,025 to
$1,075 per oz and $1,300 to $1,375
per oz sold, respectively
- Achieved 17% and 60% better safety and environmental
performance compared to 2020, respectively, released an inaugural
ESG report, continued quarterly online reporting of safety and
environmental data
- Continued proactive COVID-19 health and safety protocols with
no production days lost due to COVID-19
- Completed acquisition of Premier Gold, increasing
diversification and scale with the multi-million-ounce, low-cost,
long-life Greenstone project in Canada
- Increased Greenstone ownership interest to 60% of what will
become a cornerstone asset for the Company
- Commenced Greenstone construction with first gold pour targeted
for H1 2024
- Advanced Santa Luz construction with first gold pour targeted
for late Q1 2022
- Increased Aurizona Mineral Reserves by 73% and completed a
positive pre-feasibility study for the addition of an underground
mine to the existing open-pit operation, extending the Aurizona
mine life to 11 years and increasing annual production
- Increased Castle Mountain Mineral Reserves by 17% and completed
a positive feasibility study for the Phase 2 expansion, extending
the Castle Mountain mine life to 21 years with production
increasing to more than 200,000 oz annually during Phase 2
- Advanced Los Filos expansion projects: commenced mining the new
Guadalupe open-pit and Bermejal underground deposits
- Strengthened balance sheet by selling a portion of the
Company's shares in Solaris Resources (TSX: SLS) for gross proceeds
of C$82.5 million with potential for
an additional C$50 million in Q1
2022
- Strengthened balance sheet and investment portfolio by selling
the Pilar Mine for $38 million, a 1%
net smelter return royalty and 11.6 million shares of Pilar Gold
Inc.
- Invested C$51 million in i-80
Gold (TSX: IAU) to maintain an approximate 25% interest on a fully
diluted basis
- Announced agreement to sell the Mercedes Mine for $100 million, a 2% net smelter return and 24.73
million common shares of Bear Creek Mining Corporation (TSX-V:
BCM)2
- Current market value of Equinox Gold's investment portfolio,
not including shares in Bear Creek Mining that will be issued upon
completion of the Mercedes sale, is approximately $450 million
- Cash balance (unrestricted) at December
31, 2021 of approximately $310
million (unaudited) with an additional $200 million available to draw under the
revolving credit facility
1. AISC per oz sold
is a non-IFRS measure. See Non-IFRS Measures and AISC per Ounce
Sold in Cautionary Notes. 2. Subject to completion of
definitive documentation, customary closing conditions and
regulatory approvals.
|
About Equinox Gold
Equinox Gold is a growth-focused Canadian mining company
operating entirely in the Americas, with seven operating gold mines
(including Mercedes) and a clear path to achieve more than one
million ounces of annual gold production from a pipeline of
development and expansion projects. Equinox Gold's common shares
are listed on the TSX and the NYSE American under the trading
symbol EQX. Further information about Equinox Gold's portfolio of
assets and long-term growth strategy is available at
www.equinoxgold.com or by email at ir@equinoxgold.com.
Cautionary Notes
Technical Information
Doug Reddy, Msc, P.Geo.,
Equinox Gold's COO, is the Qualified Person under National
Instrument 43-101 for Equinox Gold and has reviewed and approved
the technical information in this document.
Non-IFRS Measures
This news release refers to all-in sustaining costs ("AISC")
per ounce sold, which is a measure with no standardized meaning
under International Financial Reporting Standards ("IFRS") and may
not be comparable to similar measures presented by other companies.
Its measurement and presentation is intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. Non-IFRS measures are widely used in the mining industry as
measurements of performance and the Company believes that they
provide further transparency into costs associated with producing
gold and will assist analysts, investors and other stakeholders of
the Company in assessing its operating performance, its ability to
generate free cash flow from current operations and its overall
value. Refer to the "Non-IFRS measures" section of the Company's
Management's Discussion and Analysis for the period ended
September 30, 2021, for a more
detailed discussion of this non-IFRS measure and its
calculation.
Cautionary Note to U.S. Readers Concerning Estimates of
Mineral Reserves and Mineral Resources
Information about mineral reserve and resource estimates in
this news release has not been prepared in accordance with the
requirements of U.S. securities laws. The technical information in
this news release has been prepared in accordance with Canadian
reporting standards and certain estimates are made in accordance
with NI 43-101. NI 43-101 is a rule developed by the
Canadian Securities Administrators that establishes standards for
all public disclosure an issuer makes of technical information
concerning mineral projects. Unless otherwise indicated, all
mineral reserve and resource estimates contained in this news
release have been prepared in accordance with NI 43-101 and
the Canadian Institute of Mining, Metallurgy and Petroleum
Definition Standards on Mineral Resources and Reserves (CIM
Definition Standards). Canadian standards, including NI 43-101,
differ significantly from the historical requirements of the
Securities and Exchange Commission (the SEC), and mineral reserve
and resource estimates contained in this news release, or
incorporated by reference, may not be comparable to similar
information disclosed by U.S. companies. The SEC has adopted
amendments to its disclosure rules to modernize the mineral
property disclosure requirements for issuers whose securities are
registered with the SEC (the SEC Modernization Rules). The SEC
Modernization Rules replace the historical property disclosure
requirements for mining registrants that are included in SEC
Industry Guide 7. U.S. companies must provide disclosure on mineral
properties under the SEC Modernization Rules for fiscal years
beginning January 1, 2021 or later.
Under the SEC Modernization Rules, the definitions of proven
mineral reserves and probable mineral reserves have been amended to
be substantially similar to the corresponding CIM Definition
Standards and the SEC has added definitions to recognize measured
mineral resources, indicated mineral resources and inferred mineral
resources which are also substantially similar to the corresponding
CIM Definition Standards; however, there are still differences in
the definitions and standards under the SEC Modernization Rules and
the CIM Definition Standards. Therefore, the Company's mineral
resources and reserves as determined in accordance with NI 43-101
may be significantly different than if they had been determined in
accordance with the SEC Modernization Rules.
Forward-looking Statements
This news release contains certain forward-looking
information and forward-looking statements within the meaning of
applicable securities legislation and may include future-oriented
financial information. Forward-looking statements and
forward-looking information in this news release relate to, among
other things: the strategic vision for the Company and expectations
regarding exploration potential, production capabilities and future
financial or operating performance; the Company's ability to
successfully advance its growth and development projects, including
the construction of Santa Luz and Greenstone and the expansions at
Los Filos, Aurizona and Castle Mountain; the expectations for the
Company's investments in Solaris Resources, i-80 Gold and
Pilar Gold; completion of the sale
of the Mercedes Mine; the duration, extent and other implications
of the novel coronavirus (COVID-19); and the Company's production
and cost guidance. Forward-looking statements or information
generally identified by the use of the words "will", "strategy",
"expects", "expected", "advancing", "clear path", and similar
expressions and phrases or statements that certain actions, events
or results "could", "would" or "should", or the negative
connotation of such terms, are intended to identify forward-looking
statements and information. Although the Company believes that the
expectations reflected in such forward-looking statements and
information are reasonable, undue reliance should not be placed on
forward-looking statements since the Company can give no assurance
that such expectations will prove to be correct. The Company has
based these forward-looking statements and information on the
Company's current expectations and projections about future events
and these assumptions include: Equinox Gold's ability to achieve
the production, cost and development expectations for its
respective operations and projects; prices for gold remaining as
estimated; currency exchange rates remaining as estimated;
construction at Santa Luz and Greenstone being completed and
performed in accordance with current expectations, expansion
projects at Los Filos, Castle Mountain and Aurizona being completed
and performed in accordance with current expectations; tonnage of
ore to be mined and processed; ore grades and recoveries;
availability of funds for the Company's projects and future cash
requirements; capital, decommissioning and reclamation estimates;
Mineral Reserve and Mineral Resource estimates and the assumptions
on which they are based; prices for energy inputs, labour,
materials, supplies and services; no labour-related disruptions and
no unplanned delays or interruptions in scheduled construction,
development and production, including by blockade; the Company's
working history with the workers, unions and communities at Los
Filos; that all necessary permits, licenses and regulatory
approvals are received in a timely manner; the Company's ability to
comply with environmental, health and safety laws; the strategic
vision for i-80 Gold and its ability to successfully advance its
projects; the strategic vision for Solaris Resources and its
ability to successfully advance its projects; the exercise of the
Solaris Resources warrants; and the ability of Pilar Gold to successfully operate the Pilar
mine and to meet its payment commitments to the Company. While the
Company considers these assumptions to be reasonable based on
information currently available, they may prove to be incorrect.
Accordingly, readers are cautioned not to put undue reliance on the
forward-looking statements or information contained in this news
release.
The Company cautions that forward-looking statements and
information involve known and unknown risks, uncertainties and
other factors that may cause actual results and developments to
differ materially from those expressed or implied by such
forward-looking statements and information contained in this news
release and the Company has made assumptions and estimates based on
or related to many of these factors. Such factors include, without
limitation: fluctuations in gold prices; fluctuations in prices for
energy inputs, labour, materials, supplies and services;
fluctuations in currency markets; operational risks and hazards
inherent with the business of mining (including environmental
accidents and hazards, industrial accidents, equipment breakdown,
unusual or unexpected geological or structural formations,
cave-ins, flooding and severe weather); inadequate insurance, or
inability to obtain insurance to cover these risks and hazards;
employee relations; relationships with, and claims by, local
communities and Indigenous populations; the Company's ability to
obtain all necessary permits, licenses and regulatory approvals in
a timely manner or at all; changes in laws, regulations and
government practices, including environmental, export and import
laws and regulations; legal restrictions relating to mining
including those imposed in connection with COVID-19; risks relating
to expropriation; increased competition in the mining industry; a
successful relationship between the Company and Orion; the failure
by Pilar Gold to meet one or more of
its payment commitments to the Company; and those factors
identified in the Company's MD&A dated March 19, 2021 and its Annual Information Form
dated March 24, 2021, both of which
relate to the year-ended December 31,
2020, and in the Company's MD&A dated November 3, 2021 for the three and nine months
ended September 30, 2021, all of
which are available on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov/edgar. Forward-looking statements and information are
designed to help readers understand management's views as of that
time with respect to future events and speak only as of the date
they are made. Except as required by applicable law, the Company
assumes no obligation to publicly announce the results of any
change to any forward-looking statement or information contained or
incorporated by reference to reflect actual results, future events
or developments, changes in assumptions or changes in other factors
affecting the forward-looking statements and information. If the
Company updates any one or more forward-looking statements, no
inference should be drawn that the Company will make additional
updates with respect to those or other forward-looking statements.
All forward-looking statements and information contained in this
news release are expressly qualified in their entirety by this
cautionary statement.
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SOURCE Equinox Gold Corp.