Equinox Gold(US:EQX)2023-05-02 16:00Production and Sales - Produced 122,746 ounces of gold and sold 123,295 ounces at an average realized price of $1,895 per ounce[14] - For Q1 2023, Mesquite produced 16,405 ounces of gold, a 4% decrease from 17,050 ounces in Q1 2022, with an AISC of $1,780 per ounce compared to $1,142 per ounce in Q1 2022[27][28][30] - Castle Mountain produced 4,455 ounces of gold in Q1 2023, down from 5,231 ounces in Q1 2022, with an AISC of $1,567 per ounce, significantly lower than $2,338 per ounce in Q1 2022[37][39] - Los Filos produced 39,574 ounces of gold in Q1 2023, an increase from 38,856 ounces in Q1 2022, with an AISC of $1,696 per ounce, down from $1,776 per ounce in Q1 2022[47] - Aurizona produced 25,800 ounces of gold in Q1 2023, up from 22,936 ounces in Q1 2022, with an AISC of $1,634 per ounce, slightly lower than $1,651 per ounce in Q1 2022[60] - Fazenda produced 15,685 ounces of gold in Q1 2023, an increase from 14,741 ounces in Q1 2022, with an AISC of $1,279 per ounce compared to $1,188 per ounce in Q1 2022[71] - RDM produced 6,342 ounces of gold in Q1 2023, down from 7,160 ounces in Q1 2022, with an AISC of $2,368 per ounce compared to $1,824 per ounce in Q1 2022[81] - Santa Luz produced 14,485 ounces of gold in Q1 2023, slightly lower than 14,680 ounces in Q4 2022, with an AISC of $1,610 per ounce, significantly improved from $2,761 per ounce in Q4 2022[90] Financial Performance - Net income increased to $17.4 million or $0.06 per share, compared to a net loss of $19.8 million in Q1 2022[22] - Adjusted EBITDA was $57.0 million, up from $43.1 million in Q1 2022[23] - Revenue for Q1 2023 was $234.1 million, a 4% increase from $223.2 million in Q1 2022, driven by sales of 123,295 ounces of gold[133] - Operating expenses increased by 13% to $172.2 million in Q1 2023 from $152.4 million in Q1 2022, primarily due to higher costs at Santa Luz and Aurizona[136] - The company recognized a gain of $34.5 million from the sale of its partial interest in i-80 Gold, contributing to other income of $31.9 million in Q1 2023[128][139] - Cash flow from operations before changes in non-cash working capital was $195.4 million[14] - Cash provided by operating activities in Q1 2023 was $143.4 million, a significant increase from cash used in operating activities of $16.4 million in Q1 2022[156] - Revenue for Q1 2023 was $234.1 million, a decrease of 9.7% from $259.3 million in Q4 2022[145] - Net income for Q1 2023 was $17.4 million, compared to a net income of $22.6 million in Q4 2022[145] Cost and Expenditures - Total cash costs were $1,376 per ounce and all-in sustaining costs (AISC) were $1,658 per ounce[14] - Total sustaining and non-sustaining capital expenditures for Q1 2023 were $32.5 million and $95.0 million, respectively[24] - Mesquite's sustaining capital expenditures for Q1 2023 were $10.2 million, primarily related to stripping of the Vista East pit and phase 3 of the Brownie pit[32] - Sustaining capital expenditures for Los Filos in 2023 are budgeted at $40 million, including $12 million for Guadalupe open-pit stripping and $12 million for Los Filos North underground development[54] - Aurizona's sustaining capital expenditures for 2023 are budgeted at $45 million, which includes $18 million for capitalized waste stripping and $15 million for tailings storage facility expansions[66] - Budgeted sustaining expenditures for Fazenda in 2023 are $14 million, primarily for underground development and waste stripping[77] Debt and Cash Management - Net debt decreased to $547.8 million at March 31, 2023, down from $627.3 million at December 31, 2022[20] - Total debt as of March 31, 2023, was $832.7 million, an increase from $828.0 million in the previous quarter and significantly up from $536.2 million in the same quarter of 2022[183] - Cash and cash equivalents at March 31, 2023, were $284.9 million, up from $200.8 million at December 31, 2022[150] - Current liabilities decreased to $260.7 million at March 31, 2023, from $271.7 million at December 31, 2022[155] Guidance and Future Projections - Provided 2023 production guidance of 555,000 to 625,000 ounces of gold at cash costs of $1,355 to $1,460 per ounce and AISC of $1,575 to $1,695 per ounce[14] - Mesquite's estimated production for 2023 is between 80,000 to 90,000 ounces of gold, with cash costs projected at $1,345 to $1,410 per ounce and AISC at $1,415 to $1,480 per ounce[34] - Castle Mountain's production for 2023 is estimated at 25,000 to 30,000 ounces of gold, with cash costs of $1,765 to $1,850 per ounce and AISC of $1,865 to $1,950 per ounce[42] - Los Filos expects production for 2023 to be between 160,000 and 180,000 ounces of gold, with cash costs estimated at $1,460 to $1,620 per ounce and AISC of $1,680 to $1,865 per ounce[52] - Aurizona's production forecast for 2023 is estimated at 120,000 to 130,000 ounces of gold, with cash costs projected at $1,065 to $1,130 per ounce and AISC of $1,410 to $1,500 per ounce[65] - Fazenda's estimated production for 2023 is between 60,000 to 65,000 ounces of gold, with cash costs projected at $1,170 to $1,210 per ounce and AISC at $1,390 to $1,430 per ounce[76] - RDM's production forecast for 2023 is estimated at 50,000 to 60,000 ounces of gold, with cash costs expected to be between $1,460 to $1,620 per ounce and AISC between $1,685 to $1,870 per ounce[86] - Estimated production for 2023 at Santa Luz is between 60,000 to 70,000 ounces of gold, with cash costs projected at $1,535 to $1,695 per ounce and AISC at $1,775 to $1,950 per ounce[96] Projects and Developments - Advanced Greenstone construction, achieving 73% completion and on track to pour gold in H1 2024[19] - The Greenstone Project is expected to produce over 5 million ounces of gold over an initial 14-year mine life, with first five years estimated at more than 400,000 ounces annually[98] - The Castle Mountain Phase 2 expansion is expected to increase production to an average of 218,000 ounces per year for 14 years, with life-of-mine production estimated at 3.4 million ounces[106] - The Aurizona expansion aims to extend the mine life to over 10 years and increase annual production through the development of a new underground mine[110] Environmental and Regulatory - The company aims for a 25% reduction in greenhouse gas emissions by 2030, targeting Scope 1 and Scope 2 emissions[122] - Equinox Gold received an ESG Risk Rating of 35.9, indicating a 16.5% improvement and lower risk compared to many peers in the gold sub-industry[123] - The company is assessing the impact of new mining legislation in Mexico, which includes proposals for tighter regulations and profit-sharing requirements with local communities[56] Legal and Compliance - The company recognized a provision of $9.6 million for legal matters as of March 31, 2023, an increase from $9.2 million at the end of 2022[162] - Environmental fines related to turbidity in the local water supply at Aurizona totaled $10.1 million as of March 31, 2023, up from $9.7 million at the end of 2022[163] Shareholder Information - The fully diluted outstanding share count as of the date of the report was 365,674,645 shares[159] - The company issued 4,369,615 common shares under the ATM Program, generating total gross proceeds of $16.9 million at an average price of $3.88 per share[132]