Equinox Gold (EQX) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 gold production, revenue, and adjusted EBITDA, driven by strong gold prices and the Greenstone Mine ramp-up.

• Greenstone Mine declared commercial production in November 2024, now the largest and lowest-cost operation in the portfolio.

• Safety performance remained strong with only two lost time incidents and no significant environmental incidents.

• Major community engagement and fundraising initiatives completed, including over CAD 1.3 million raised for a local hospital.

Financial highlights

• Q3 2024 revenue reached $428.4 million, with adjusted EBITDA of $141.9 million and net income of $0.3 million.

• Sold 173,973 ounces at an average realized price of $2,461/oz; cash cost per ounce sold was $1,720, AISC was $1,994/oz.

• Adjusted net income was $37.4 million ($0.09/share); cash flow from operations was $130.1 million ($139.5 million after working capital changes).

• Operating expenses increased to $268 million, mainly from Greenstone ramp-up.

• $140 million in convertible notes converted to shares, reducing net debt.

Outlook and guidance

• 2024 consolidated production guidance updated to 590,000–675,000 ounces at cash costs of $1,450–$1,550/oz and AISC of $1,820–$1,920/oz.

• Greenstone expected to contribute 110,000–130,000 ounces at $850–$950/oz cash costs and $1,050–$1,150/oz AISC.

• Q4 anticipated to be strong, with about one-third of annual production expected.

• Focus on funding growth in 2024, shifting to debt reduction as Greenstone ramps up.