Equinox Gold(US:EQX)2023-08-03 20:09Financial Data and Key Metrics Changes - The company reported cash costs per ounce of $13.61 for Q2 2023, similar to Q1 2023 and down from $14.82 in Q2 2022. The all-in sustaining cost per ounce was $15.02, down from $15.76 in Q1 2023 and $16.57 in Q2 2022 [11][17][19] - EBITDA for Q2 2023 was $64 million, or $71 million on an adjusted basis, with a net income of $5 million, resulting in basic and fully diluted earnings per share of $0.02. On an adjusted basis, there was a net loss of $6 million or $0.02 per share [11][19] Business Line Data and Key Metrics Changes - The company sold 138,000 ounces of gold in Q2 2023, generating $217 million in revenue, which is an increase of 15,000 ounces compared to Q1 2023 and 18,000 ounces compared to Q2 2022 [19] - At Los Filos, productivity improvements were noted with a 15% increase in open pit productivity and a 23% increase in underground ore tonnes mined [22] Market Data and Key Metrics Changes - The average realized price for gold sold in Q2 2023 was $19.62 per ounce, compared to $19.31 year-to-date [19] - The company experienced a net debt increase from $548 million at the end of Q1 to $661 million at the end of Q2 [95] Company Strategy and Development Direction - The company is focused on completing the Greenstone Gold mine, which is 85% complete and on track for first gold pour in H1 2024. The remaining construction budget is approximately $170 million [9][12][24] - The company aims to enhance its portfolio by acquiring larger, longer-life mines to improve production profiles, while currently prioritizing the completion of Greenstone [110] Management's Comments on Operating Environment and Future Outlook - Management noted tapering in unit input costs, particularly for diesel and cyanide in Brazil and the U.S., although these decreases are somewhat offset by currency strength in Brazil and Mexico [3] - The company is optimistic about achieving strong production in the second half of the year, with 55% of the annual production expected in this period [13] Other Important Information - The company reported a tragic fatality at the Santa Luz mine in June, leading to a one-week suspension of operations for investigation and safety training refresh [40] - The company has a right of first refusal (ROFR) on Orion's 40% stake in Greenstone, indicating interest in potentially increasing ownership [72][126] Q&A Session Summary Question: What is the plan for the $140 million convertible notes due next April? - Management is exploring options, including issuing equity if the notes are in the money, and is in discussions with the holders [30] Question: How much of the $170 million remaining for Greenstone will fall into the next fiscal year? - Management indicated that they are on track for the $277 million planned spend this year, but specific splits were not available [31] Question: Can you provide details on the fatality at Santa Luz? - Management declined to provide details out of respect for the employee's family [81] Question: How is the permitting process for Castle Mountain Phase 2 progressing? - Management reported that the application is straightforward and is currently in the permitting process, expected to be completed in 2025 [91] Question: What is the status of liquidity and capital spend? - Management expressed satisfaction with existing liquidity and indicated no immediate plans to bolster it outside of current operations [88]