Equinox Gold Posts First Quarter Net Loss, Says It’s On Track To Meet 2022 Guidance

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(Kitco News) – Equinox Gold (TSX: EQX) announced yesterday that the company produced 117,452 ounces of gold during the quarter, down 9% from 129,233 ounces produced in the first quarter of 2021.

The company said it resumed operations at the RDM plant on March 14 after a temporary suspension on February 26 to reduce water levels in the tailings storage facility, adding that the mining and storage of ore continued during the suspension.

During the first quarter of 2022, the company recorded revenue of $223.2 million on sales of 119,324 ounces of gold, compared to revenue for the three months ended December 31, 2021 of $381.2 million on sales of 212,255 ounces of gold. Gold ounces sold and revenue are comparable to Q1 2021.

The decrease in the number of ounces sold from Q4 2021 to Q1 2022 is mainly due to lower production at Los Filos, Aurizona, Mesquite and RDM. In accordance with site mine plans, waste stripping takes place at the beginning of the calendar year, resulting in the majority of tonnes of ore being mined later in the year.

On top of that, first quarter 2022 production for RDM and Aurizona was lower than fourth quarter 2021 due to higher levels of precipitation hampering production, the company added.

Net loss in Q1 2022 was $19.8 million, compared to net profit of $109.0 million in Q4 2021, due to lower profit from mining operations and a $18.7 million loss on change in fair value of equity warrants in Q1 2022, compared to a gain of $27.5 million in Q4 2021.

The company expects gold production to increase and costs to decline over the next three quarters with new production from Santa Luz, increased production from its other Brazilian mines as the rainy season ends and increasing production in Mesquite.

Importantly, Equinox said it is on track to meet its 2022 targets, with 60% of production and more than 85% of cash flow forecast in the second half.

Equinox Gold is a Canadian-based mining company operating entirely in the Americas, with six operating gold mines, one mine commissioning and a plan to achieve over one million ounces of annual gold production from a pipeline of development and expansion projects.

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Ann J. Cox