Equinox Gold(US:EQX)2023-02-21 16:00Financial Position - As of December 31, 2022, total assets amounted to $3,856,397, a decrease from $3,967,361 in 2021, reflecting a decline of approximately 2.8%[30] - Cash and cash equivalents decreased to $200,769 from $305,498, representing a decline of about 34.3% year-over-year[30] - Total liabilities increased to $1,503,313 from $1,382,016, marking an increase of approximately 8.7%[30] - The total equity decreased to $2,353,084 from $2,585,345, reflecting a decline of about 9%[30] - The company’s accounts payable and accrued liabilities increased to $239,808 from $190,116, representing an increase of approximately 26%[30] - The Company’s trade payables increased to $122.5 million in 2022 from $109.3 million in 2021, representing a growth of 12%[206] - Accrued liabilities rose to $103.5 million in 2022, up from $75.2 million in 2021, indicating a 38% increase[206] Revenue and Profitability - Revenue for 2022 was $952,196, a decrease of 12.0% from $1,082,286 in 2021[32] - Net loss for 2022 was $106,027 compared to a net income of $554,889 in 2021, representing a significant decline[34] - Income from mine operations dropped to $84,970 in 2022, down 63.2% from $230,590 in 2021[32] - Total comprehensive loss for 2022 was $256,040, contrasting with a comprehensive income of $639,828 in 2021[34] - Operating cash flow before changes in non-cash working capital was $144,293, down from $264,122 in 2021[36] Asset Management - The company's mineral properties, plant, and equipment rose to $2,840,499 from $2,497,919, indicating an increase of about 13.7%[30] - The Company capitalized $318.7 million in costs at Greenstone and $47.9 million at Santa Luz during 2022, compared to $70.1 million at Santa Luz and $66.4 million at Greenstone in 2021[181] - The net book value of mineral properties, plant, and equipment increased to $2,840,499 as of December 31, 2022, up from $2,497,919 in 2021, representing a growth of about 13.7%[179] - The Company reclassified $123.5 million in capitalized development and construction costs from construction-in-progress to mineral properties and plant and equipment for Santa Luz[182] Impairment and Valuation - The recoverable amount of the Los Filos cash-generating unit was assessed as higher than its carrying amount, indicating no impairment loss was required[17] - The Company performed an impairment test for the Los Filos CGU as of September 30, 2022, concluding no impairment loss was required as the fair value less costs of disposal exceeded the carrying amount[140][141] - The Company evaluates its non-financial assets on a property-by-property basis for impairment testing, ensuring accurate financial reporting[90] Shareholder Equity and Financing - The company issued 2,281,402 shares in public offerings, raising $7,995 in 2022[37] - The weighted average shares outstanding increased to 304,001,631 in 2022 from 284,932,357 in 2021[32] - The Company expects to recognize an adjustment of $1.3 million to decrease opening retained earnings as of January 1, 2022, due to the initial application of amendments to IAS 12[120] Business Combinations and Acquisitions - The Company concluded that the acquisition of Premier on April 7, 2021, met the criteria for accounting as a business combination, while the acquisition of an additional 10% interest in Greenstone on April 16, 2021, was determined to be an asset acquisition[126] - The acquisition of Premier on April 7, 2021, involved a total consideration of $408.3 million, with a bargain purchase gain of $81.4 million recognized in 2021[154][157] - The fair value of net assets acquired in the Premier acquisition was $489.7 million, including cash, receivables, and mineral properties[155] Investments and Marketable Securities - The Company recognized a gain of $186.1 million on the reclassification of its investment in Solaris Resources Inc. after its interest decreased to 19.9%[129] - The Company reported a net loss of $135.2 million on the remeasurement of the fair value of marketable securities for the year ended December 31, 2022, compared to a net gain of $101.2 million in 2021[171] - The fair value of the Company's retained investment in Solaris was $197.7 million, leading to a gain of $186.1 million recognized in other income for the year ended December 31, 2021[168] Inventory Management - The Company's total inventories increased to $413.2 million as of December 31, 2022, compared to $325.9 million in 2021[176] - During the year ended December 31, 2022, the Company recognized $52.9 million in write-downs of inventories to net realizable value, primarily related to heap leach ore at Los Filos[177] Financial Reporting and Compliance - The consolidated financial statements were prepared in accordance with IFRS and approved by the Board of Directors on February 21, 2023[43] - The Company recognizes investments in associates using the equity method, initially at cost, and adjusts for its share of net income or loss and other comprehensive income (OCI) thereafter[70] - The Company has a note receivable from PGI amounting to $8.8 million as of December 31, 2022, compared to $7.6 million in 2021[203] Other Financial Metrics - Basic net income (loss) per share is calculated by dividing net income or loss attributable to common shareholders by the weighted average number of common shares outstanding during the period[117] - Deferred income tax assets and liabilities are recognized for temporary differences and measured at expected tax rates applicable when they reverse[114] - The Company capitalizes borrowing costs directly attributable to the acquisition and construction of qualifying assets[112]