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Equinox Gold Ord Shs T.EQX

Alternate Symbol(s):  EQX

Equinox Gold Corp is a Canada-based mining company with seven operating gold mines. The Company is engaged in the operation, acquisition, exploration, and development of mineral properties, with a focus on gold. Its operating mines include Aurizona Gold Mine, Fazenda Gold Mine, Santa Luz Gold Mine, RDM Gold Mine, Los Filos Gold Mine, Castle Mountain Gold Mine, and Mesquite Gold Mine. Its projects include Greenstone Project, Los Filos Expansion, Aurizona Expansion, and Castle Mountain Expansion. Aurizona Gold Mine is an open-pit gold mine located in northeastern Brazil near the town of Godofredo Viana in Maranhao State. Fazenda Gold Mine is located within the Maria Preta mining district in Bahia State, Brazil. Santa Luz Gold Mine is located within the Maria Preta mining district in Bahia State. RDM Gold Mine is located in Minas Gerais State, Brazil, about 560 km north of the state capital city of Belo Horizonte. Los Filos Mine Complex is located in Guerrero State, Mexico.


TSX:EQX - Post by User

Post by Concojoneson Jun 24, 2022 10:24am
268 Views
Post# 34780051

How are they going to pay for Greenstone?

How are they going to pay for Greenstone?

Let's say it costs $800m if we assume a very slight cost overrun due to inflation. This is the amount they need to cough up in 2 years. 

If they sold their entire equity portfolio today, and paid off all debt, they'd have maybe $100m in the bank, if that (due to Solaris / copper price fall).

If gold stays at $1800 (that's a very big "if" in a rising rate environment) they could make $400m from operations if they stop all nonsustaining capex ($160m this year) in all mines.

If they max out their debt, they could make up the difference ($400m).

If gold doesn't hold at $1800 in a world where all asset classes are falling due to rising rates, they won't have the money.

Am I missing something or does their budget seem over-optimistic to you too?

Please only reply if you've done this analysis.

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