Equinox expects to produce up to 750,000 oz of gold in 2024

“Equinox Gold finished 2023 with its strongest quarter of production at the lowest cash costs for the year, bringing full-year production to 564,458 ounces of gold at all-in sustaining costs of $1,622 per ounce," said Greg Smith, President and CEO. 

"Greenstone was a significant focus during 2023. After 2.5 years, construction was substantially complete at year end, which is a huge accomplishment for the team. The focus at Greenstone has shifted now to hot commissioning and operations ramp up with first gold on schedule for the first half of 2024.

Equinox Gold Corp. has released its audited consolidated financial and operating results and related management's discussion and analysis for the fourth quarter and fiscal year ended December 31, 2023. 

"Looking forward, we expect to produce between 660,000 to 750,000 ounces of gold in 2024 with cash costs of $1,340 to $1,445 per ounce and all-in sustaining costs of $1,630 to $1,740 per ounce. We started 2024 with $360 million in total liquidity which, along with cash flow from our operating mines and marketable investments currently worth about $100 million, leaves us well funded to achieve our 2024 objectives and advance Greenstone to commercial production."

HIGHLIGHTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2023

Operational

• Produced 154,960 ounces of gold
• Sold 149,861 ounces of gold at an average realized gold price of $1,983 per oz
• Total cash costs of $1,330 per oz and all-in sustaining costs ("AISC") of $1,657 per oz(1)
• Three lost-time injuries and a total recordable injury frequency rate (TRIFR)(2) of 1.35 for the Quarter 
• Significant environmental incident frequency rate (SEIFR)(2) of 0.00 for the Quarter

Earnings

• Income from mine operations of $38.6 million
• Net income of $3.9 million or $0.01 per share (basic) 
• Adjusted net income of $2.4 million or $0.01 per share(1)

Financial

• Cash flow from operations before changes in non-cash working capital of $168.2 million, which includes $75.6 million in proceeds from gold prepay arrangements ($125.9 million after changes in non-cash working capital) 
• Adjusted EBITDA of $95.3 million(1)
• Sustaining expenditures of $44.5 million and non-sustaining expenditures of $99.2 million
• Received $75.0 million on closing of the gold purchase and sale arrangement ("Sandbox Arrangement")
• Issued 5.0 million common shares under the at-the-market equity program ("ATM Program") at an average share price of $5.01 per common share for total gross proceeds of $24.9 million
• In November and December, entered into gold collar contracts with an average put strike price of $1,980 per ounce and an average call strike price of $2,198 per ounce, for 11,332 ounces per month beginning January 2024 through to June 2024
• In October, repaid $166.0 million of the Revolving Facility with proceeds from the 2023 Convertible Notes

Construction, Development and Exploration

• Advanced Greenstone construction with the following achieved:
  • Completed more than 5.9 million hours project-to-date with one lost-time injury; 12-month rolling average TRIFR of 2.39
  • Tailings facility permitted and ready for use
  • Hot commissioning of crushing circuit and ore storage dome complete
  • Wet commissioning underway in the ball mills, high-pressure grinding rolls, thickener and leach tanks
  • Approximately 1 million tonnes of ore stockpiled for startup
  • Spent $74 million (Equinox Gold's 60% share) during the Quarter 
  • On track to pour gold in H1 2024

RECENT DEVELOPMENTS

• Provided 2024 production and cost guidance of 660,000 to 750,000 ounces of gold at cash costs of $1,340 to $1,445 per oz and AISC of $1,630 to $1,740 per oz(1)
• Provided 2024 sustaining and non-sustaining expenditure guidance of $424 million 
  • $212 million of sustaining expenditures, of which $196 million is sustaining capital expenditures(1)
  • $213 million of non-sustaining expenditures, of which $205 million is non-sustaining capital expenditures
  • Non-sustaining capital expenditures includes $95 million to advance Greenstone through to commercial production
• Since January 1, 2024, the Company has issued 5.0 million common shares under the ATM Program at an average share price of $4.56 per common share for total gross proceeds of $22.9 million

FULL-YEAR 2023 HIGHLIGHTS

Operational

• Achieved 2023 production guidance, with 564,458 ounces of gold produced
• Sold 559,481 ounces of gold at an average realized gold price of $1,941 per oz
• Beat 2023 cash costs guidance, with cash costs of $1,350 per oz(1)
• Achieved 2023 AISC guidance, with AISC of $1,612 per oz(1)
• Seven lost-time injuries, one fatality; four sites had no lost-time injuries
• Achieved a total recordable injury frequency rate(2) of 1.47, a 31% improvement compared to 2022

Earnings

• Income from mine operations of $109.0 million 
• Net income of $28.9 million or $0.09 per share
• Adjusted net income of $21.7 million(1) or $0.07 per share(1)

Financial

• Cash flow from operations before changes in non-cash working capital of $527.5 million, which includes $225.0 million in proceeds from gold prepay arrangements ($358.5 million after changes in non-cash working capital) 
• Adjusted EBITDA of $304.4 million(1)
• Sustaining expenditures of $129.1 million and non-sustaining expenditures of $404.1 million
• Cash and cash equivalents (unrestricted) of $192.0 million at December 31, 2023
• Net debt(1) of $733.0 million at December 31, 2023

Corporate

• Strengthened balance sheet
  • Issued $172.5 million of unsecured senior convertible senior notes with a conversion price of $6.30 (the "2023 Convertible Notes") and used the net proceeds to repay $166.0 million of the revolving credit facility (the "Revolving Facility")
  • Completed $225.0 million in gold prepay and gold purchase and sale arrangements
  • Sold a portion of the Company's shares in i-80 Gold Corp. (TSX: IAU) for initial proceeds of C$32.0 million
  • Issued 9.3 million common shares under the ATM Program at an average share price of $4.48 per common share for total gross proceeds of $41.8 million
• Gold collar contracts in place at December 31, 2023 had a weighted average put strike price of $1,954 per ounce and an average call strike price of $2,166 per ounce, for delivery of an average of 18,687 ounces per month from January to June 2024, representing approximately 30% of estimated production during that time period

Construction, Development and Exploration

• Advanced Greenstone on schedule with installation activities effectively completed at December 31, 2023 and commissioning underway to pour first gold in H1 2024
• Advanced permitting and front-end engineering for the Castle Mountain Phase 2 expansion
• Advanced technical studies for the Aurizona underground expansion and received a permit to commence underground portal development in the Piaba deposit. Received a permit to develop the Tatajuba open pit deposit
• Successfully replaced reserves through 57,969 metres of reserve replacement drilling and strategic mine planning updates
• Completed 44,260 metres of step-out drilling across the portfolio with a focus on mine life extension, and completed 16,321 metres of regional drilling to delineate new deposits

Responsible Mining

• Achieved a SEIFR(1) of 0.29, a 54% improvement compared to 2022
• Published the Company's annual ESG (Environment, Social and Governance) Report, updated the Tailings Management Report, and submitted greenhouse gas (GHG) emissions data to CDP (formerly the Carbon Disclosure Project) 
• Published the Company's first Water Stewardship Report and its first Climate Action Report, outlining a strategy to achieve a 25% reduction in GHG emissions by 2030 compared to "business as usual" emissions

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