Equinox achieves record quarterly production

The Santa Luz project (pictured) is a previously operating open-pit mine acquired as part of the merger with Leagold. Credit: Equinox Gold

Equinox Gold (TSX: EQX) had its best quarterly gold production and earnings from mine operations in the first quarter this year, the company reported on Friday, despite having to navigate challenges related to the covid-19 pandemic.

In the past quarter, the company produced 88,951 ounces of gold and sold 82,629 ounces, excluding Leagold production prior to the merger close on March 10.

Earnings from mine operations came in at $43.2 million, resulting in net income of $10.9 million or $0.08 per share. Cash flow from operations before changes in working capital was $23.2 million.

"With more than $350 million of cash on hand, Equinox Gold is in a strong financial position and fully funded for its organic growth plans," Equinox CEO Christian Milau stated in a press release.

So far, the Castle Mountain Phase 1 construction in California is 75% complete, and the company recently completed a positive preliminary economic assessment for development of an underground mine at Aurizona in Brazil.

The Los Filos mine expansion in Mexico and restart of the Santa Luz project in Brazil are both expected to "significantly increase production over the course of 2021 and 2022," Milau said.

He added that while the temporary suspension of mining activities at the Los Filos mine will affect Q2 production, the company's other mines have experienced only "minimal covid-19 disruption" to date.

With the Mexico government recently declaring mining an essential activity, allowing operations to restart as early as June 1, the company is preparing to restart work at the Los Filos mine.