Equinox Gold(US:EQX)2023-05-03 19:29Financial Data and Key Metrics Changes - The company reported an unrestricted cash balance of $285 million at the end of the quarter, an increase of $85 million from year-end [25] - Cash cost per ounce increased to $1,376 in Q1 2023 from $1,238 in Q1 2022, while all-in sustaining cost per ounce rose to $1,658 from $1,578 [27] - EBITDA for Q1 was $65 million, with a net income of $17 million, translating to basic earnings per share of $0.06 [61] Business Line Data and Key Metrics Changes - At Los Filos, improved productivity was noted with more tons being placed in the quarter, although recovery was impacted by high copper grade ore [42][43] - At Arizona, mine production was good, with higher throughput than planned, and the process plant produced slightly above plan for the quarter [44] - At RDM, the process plant was restarted after a permitting delay, and mining was ahead of prior quarters [45] Market Data and Key Metrics Changes - The average realized price for gold was $1,895 per ounce on the sale of 123,000 ounces, generating $234 million in revenue [36] - The company expects to meet its 2023 production guidance of 550,000 to 625,000 ounces of gold, with cash costs between $1,355 and $1,460 per ounce [57] Company Strategy and Development Direction - The company is focused on completing the Greenstone construction, which is 73% complete, with first production expected in the first half of 2024 [46] - The company is advancing its permitting and met test work in support of Phase 2 at Castle Mountain, with environmental assessment work expected during 2023 [74] - The company aims to enhance its financial position through various measures, including hedging and a gold prepay arrangement [63][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting production and cost guidance for 2023, emphasizing a focus on continuous improvement and productivity [61][112] - The company noted a continued reduction in its total recordable injury rate and good environmental performance, with a greenhouse gas emissions reduction target of 25% by 2030 [59] - Management indicated that the permitting for Castle Mountain would not be impacted by the designation of the national monument [84] Other Important Information - The company has hedged approximately 164,000 ounces of gold with a floor price of $1,910 per ounce and significant upside participation [64] - The company has paused the use of its at-the-market facility after drawing about $25 million from it, leaving $75 million available [40] Q&A Session Summary Question: What is the impact of the national monument designation on permitting? - Management stated that it should have zero impact on the timing of permitting and expressed satisfaction with the language used in the monument proclamation [84] Question: Can you provide clarity on the inventories and their impact on costs? - Management explained that the increase in inventories at Los Filos was due to stacking activity, which would come out in the back half of the year [88] Question: What is the current status of the Greenstone project? - Management confirmed that the project is on track, with critical path items being addressed and productivity levels maintained [96]