Equinox Gold(US:EQX)2024-11-07 19:05Financial Data and Key Metrics Changes - In Q3 2024, the company produced and sold just under 174,000 gold ounces, achieving revenues of $428 million, driven by higher production and gold prices [5][13] - Adjusted EBITDA for Q3 2024 was $142 million, an increase of $61 million compared to Q3 2023 [19] - The cash cost per ounce sold was $1,720, while the all-in sustaining cost was $1,994 per ounce [5][17] - Net income for the quarter was $300,000, with adjusted net income of $37 million or $0.09 per share [20] Business Line Data and Key Metrics Changes - Greenstone produced just over 42,000 ounces of gold in Q3, with total production since May reaching just under 59,000 ounces [7][8] - At Mesquite, gold production was 15,223 ounces with an all-in sustaining cost of $1,421 per ounce [30] - Los Filos produced 48,462 ounces, marking the second highest quarter since acquisition, with an all-in sustaining cost of $2,153 per ounce [31] - Aurizona produced 17,181 ounces at an all-in sustaining cost of $2,145 per ounce [32] Market Data and Key Metrics Changes - The company achieved record gold sales and the highest revenue and adjusted EBITDA for any quarter, attributed to strong gold prices [37] - The average cash cost at Greenstone is expected to be significantly lower now that it is in commercial production [40] Company Strategy and Development Direction - The company aims to focus on deleveraging, using free cash flow from mines to pay down debt [25] - With Greenstone now in commercial production, the company plans to ramp up mining rates and plant throughput through Q4 [8][25] - The company is actively engaged in negotiations with communities around Los Filos to secure long-term operational agreements [52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Q4, expecting it to be another strong quarter due to increasing production and favorable gold prices [38] - The ramp-up at Greenstone is progressing well, with expectations for significant cash flow generation [28] Other Important Information - The company raised over CAD1.3 million for the Geraldton District Hospital and $200,000 for local charities [11] - A change in the board of directors occurred with Fraz Siddiqui stepping down [12] Q&A Session Summary Question: Clarification on commercial production criteria for Greenstone - Management explained that the criteria for declaring commercial production were conservative, and the mine's performance justified the declaration [39][40] Question: Unit costs at Greenstone - Management indicated that mining costs are on plan and will provide more data offline [41][42] Question: Recovery rates at Santa Luz - Recovery rates are currently averaging about 68% without de-sliming, with plans to refine the de-sliming circuit for better performance [43][46] Question: Update on Aurizona and Piaba pit - Management confirmed that Q4 was always the target for starting work in the Piaba pit, and they are on track with expectations [47][48] Question: Deleveraging plan and timeline - The company plans to retire maturing debt and optimize its debt maturity ladder as part of its deleveraging strategy [49][50] Question: Community negotiations at Los Filos - Management noted that constructive discussions are ongoing, and securing new agreements is critical for the mine's future [52][53]