All dollar figures are in US dollars, unless otherwise indicated.
This is a "designated news release" for the purposes of the Company's prospectus supplement
dated
The 2022 production and cash balance figures are preliminary and subject to change when the Company releases its Q4 2022 and annual 2022 financial and operating results in late February.
"We ended the year well funded and with strong liquidity, with approximately
Operations
- Produced 532,319 ounces of gold, sold 532,127 ounces of gold
- Cash costs and all-in-sustaining costs will be provided with the Company's annual 2022 financial and operating results in late February
Development
- Advanced Greenstone to 65% complete overall at year-end 2022, while remaining on budget and on track to achieve first gold pour in H1 2024
- Completed construction and achieved commercial production at Santa Luz
- Commenced permitting for the Castle Mountain Phase 2 expansion, which would extend the mine life to 21 years and increase production to on average more than 200,000 ounces per year
- Increased Los Filos Mineral Reserves by 44% and completed a positive feasibility study for construction of a carbon-in-leach plant to process higher-grade ore concurrent with existing heap leach processing, which would extend the mine life and increase production to on average 280,000 ounces per year, with peak production of 360,000 ounces per year
- Received permits for three portal locations for an exploration ramp in anticipation of underground development at Aurizona, continued to drill the underground resource, advanced the expansion feasibility study
Corporate
- Strengthened balance sheet:
- Expanded the credit facility to
$700 million with an additional$100 million accordion feature, and extended the maturity date toJuly 2026 with the option for a one-year extension - Sold a portion of the Company's shares in Solaris Resources (TSX: SLS) for gross proceeds of
C$70 million and receivedC$50 million from the sale of Solaris shares on the exercise of warrants the Company granted in 2021 - Closed the sale of the
Mercedes Mine for$75 million cash, a$25 million note receivable, a 2% net smelter return and 24.73 million shares of Bear Creek Mining Corporation (TSXV: BCM) - Ensured financial resiliency by filing a
$500 million base shelf prospectus and implementing a$100 million at-the-market equity offering program Launched Sandbox Royalties Corp. , a new diversified metal royalties company in whichEquinox Gold holds a 34% interest- Cash balance (unrestricted) at
December 31, 2022 of approximately$200 million (unaudited), with an additional$127 million available to draw under the revolving credit facility plus the$100 million accordion feature, and an equity investment portfolio with a market value of approximately$275 million atJanuary 6, 2023
ESG (Environment, Social and Governance)
- Achieved a Total Recordable Injury Frequency Rate per million hours worked of 2.17, 36% better than the 2022 target and 29% better than 2021 performance
- Achieved a Significant Environmental Incident Frequency Rate per million hours worked of 0.63, 61% better than the 2022 target and 7% better than 2021 performance
- Entered into wind and solar power contracts for select
Brazil operations, which will result in reduced greenhouse gas (GHG) emissions and approximately$70 million in savings over the 10-year contracts - Expanded ESG reporting disclosure to include
Global Reporting Initiative (GRI) andSustainability Accounting Standards Board (SASB) metrics
Production increased during Q4 2022 to 150,439 ounces of gold, the strongest production quarter for the year. However, full-year production of 532,319 ounces of gold was below the lower end of production guidance as the result of operational challenges earlier in the year at Los Filos and Aurizona that continued to affect production in the fourth quarter, as forecast in the Company's third quarter results release. Production was further affected by lower-than-expected recoveries at Santa Luz, including during the fourth quarter. While operations largely improved during Q4 2022, including at Los Filos and Aurizona, the Company continues to work on improving recoveries at Santa Luz and managing costs across the operations, and plans to provide 2023 production and cost guidance in late February.
2022 Actuals (oz of gold) | 2022 Guidance (oz of gold)1 | |
Mesquite | 123,965 | 120,000 - 130,000 |
23,227 | 25,000 - 35,000 | |
133,723 | 155,000 - 170,000 | |
Mercedes2 | 13,631 | - |
Aurizona | 102,368 | 120,000 - 130,000 |
Fazenda | 65,641 | 60,000 - 65,000 |
37,625 | 45,000 - 55,000 | |
RDM | 32,139 | 25,000 - 30,000 |
Total3 | 532,319 | 550,000 - 615,000 |
1. Guidance was updated on |
Tel: +1 604-558-0560
Email: ir@equinoxgold.com
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 Greenstone and the expansions at Los Filos, Aurizona and
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 effect of blockades and community issues on the Company's production and cost estimates; 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; risks relating to expropriation; increased competition in the mining industry; a successful relationship between the Company and Orion; the failure by Bear Creek, Inca One or
Technical Information
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
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