Equinox Gold Reports First Quarter 2019 Financial Results Equinox Gold Reports First Quarter 2019 Financial Results
all dollar figures in US dollars, unless otherwise indicated
VANCOUVER, May 1, 2019 /PRNewswire/ – Equinox Gold Corp. (TSX-V: EQX, OTC: EQXFF) (“Equinox Gold” or the “Company”) is pleased to report its first quarter 2019 summary financial and operating results. The Company will release its unaudited condensed consolidated interim financial statements (“Q1 Financial Statements”) and related management’s discussion and analysis (“Q1 MD&A”) for the three months ended March 31, 2019 later today.
Highlights for the three months ended March 31, 2019
Corporate highlights
- No lost-time injuries at any of the Company’s sites
- Increased mineral resources at both Mesquite and Aurizona
- Cash and cash equivalents (unrestricted) at March 31, 2019 of $24 million
Operational highlights
- Produced 25,310 ounces (“oz”) of gold at Mesquite
- Cash cost of $766 per oz sold and all-in sustaining costs (“AISC”) of $873 per oz sold 1
- Sold 27,238 oz of gold generating revenue of $35.4 million
- Earnings from mine operations of $9.9 million
Development highlights
- As at May 1, Aurizona construction complete and plant commissioning ongoing
- First ore processed through Aurizona SAG mill in late April with first gold pour expected in early May
- Castle Mountain Phase 1 detailed engineering substantially complete and ready to commence construction in Q3-2019
Recent developments
- Closed the strategic investment by Mubadala Investment Company of $130 million in convertible notes with a 5-year term and a fixed interest rate of 5%, convertible at $1.05 per share
- Converted the $100 million Mesquite acquisition facility into a new $130 million corporate revolving credit facility
- Re-paid the $85 million Aurizona construction facility and the $20 million Mesquite acquisition facility
Aurizona Update
At the date of this press release, Aurizona construction is complete and plant commissioning is ongoing. The Aurizona team has completed more than 1.8 million hours of construction with no lost-time injuries. Substation upgrades to support the increased power demand were completed and approved by the state utility in March, allowing for full energization of the plant. The crushing and conveyor systems are fully commissioned. SAG mill commissioning is well advanced, leach and CIP circuits are operating with slurry, and various other plant systems such as water, air and reagents are being brought up to full operational capacity. Many of the key plant systems have been handed over from the commissioning team to the operations team. First ore was processed through the SAG mill in late April and the first gold pour at Aurizona is expected in early May.
Mesquite operating results for the three months ended March 31, 2019
| | | | |
| Operating data | | Unit | Three months ended
March 31, 2019 |
| Ore mined | | Kt | 5,644 |
| Waste mined | | Kt | 7,299 |
| Ratio of waste to ore | | | 1.29 |
| Average gold grade stacked to leach pad | | g/t | 0.37 |
| Gold produced | | oz | 25,310 |
| Gold sold | | oz | 27,238 |
| | | | |
| Unit cost analysis | | | |
| Realized gold price | | $/oz | 1,299 |
| Cash cost per ounce sold | | $/oz | 766 |
| All-in sustaining cost per ounce sold | | $/oz | 873 |
Selected consolidated financial results for the three months ended March 31, 2019
| |
| $ in millions, except per share amounts | Three months ended March 31 |
| | 2019 | | 2018 |
| Revenue | $ | 35.4 | $ | – |
| Operating costs | | (25.5) | | – |
| Earnings from mine operations | | 9.9 | | – |
| Exploration | | (2.9) | | (3.0) |
| General and administration | | (3.1) | | (3.4) |
| | | | | |
| Income (loss) from operations | | 3.8 | | (6.4) |
| | | | | |
| Other income (expenses) | | (7.3) | | 2.7 |
| | | | | |
| Net loss before taxes | | (3.5) | | (3.7) |
| | | | | |
| Tax expense | | (2.3) | | – |
| | | | | |
| Net loss from continuing operations | | (5.8) | | (3.7) |
| Net loss and comprehensive loss | | (5.8) | | (4.4) |
| Net loss per share from continuing operations attributable to | | | | |
| Equinox Gold shareholders, basic and diluted | $ | (0.01) | $ | (0.01) |
Additional information regarding the Company’s financial results, activities underway at Mesquite, Aurizona and Castle Mountain and the Company’s long-term business strategy will be available in the Company’s Q1 Financial Statements and accompanying Q1 MD&A, which will be available for download later today on the Company’s website at www.equinoxgold.com and on SEDAR at www.sedar.com.
On Behalf of the Board of Equinox Gold Corp.
“Christian Milau”
CEO & Director
About Equinox Gold
Equinox Gold is a Canadian mining company with a multi-million-ounce gold reserve base, gold production from its Mesquite Gold Mine in California, and near-term production from past-producing mines in Braziland California. Commissioning is ongoing at the Company’s Aurizona Gold Mine in Brazil and the Company is advancing its Castle Mountain Gold Mine in California. 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
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.