Equinox Gold (EQX) Q4 2023 earnings summary

Executive summary

• FY2023 production was 564,458 oz, meeting guidance; Q4 was the strongest production quarter, at 154,960 oz.

• Greenstone construction was effectively complete at year-end, commissioning was underway, and first gold was targeted for H1 2024.

• 2024 production guidance is 660,000–750,000 oz from eight operating mines, including the attributable Greenstone share.

Financial highlights

• Q4 revenue was $297.8M, mine operating income $38.6M, adjusted EBITDA $95.3M, net income $3.9M and adjusted net income $2.4M.

• FY2023 revenue was $1,088.2M, mine operating income $109.0M, adjusted EBITDA $304.4M, net income $28.9M and adjusted net income $21.7M.

• FY2023 basic EPS was $0.09 and adjusted EPS $0.07; Q4 basic and adjusted EPS were each $0.01.

• Operating cash flow before working-capital changes was $168.2M in Q4 and $527.5M for FY2023; after working-capital changes, amounts were $125.9M and $358.5M.

Outlook and guidance

• 2024 guidance: production of 660,000–750,000 oz, cash costs of $1,340–$1,445/oz and AISC of $1,630–$1,740/oz.

• Greenstone attributable production guidance is 105,000–125,000 oz; production guidance includes pre-commercial ounces, while cost guidance reflects commercial production.

• Planned 2024 sustaining and non-sustaining expenditures are $212M and $213M, respectively; non-sustaining capital includes $95M for Greenstone through commercial production.

• Production and cash flow are expected to grow each quarter in 2024, with seasonality and Greenstone’s ramp-up; consolidated operating costs are expected to decline as Greenstone ramps up.

• Mine plans include Los Filos optimization and agreement discussions, Aurizona expansion work, and Santa Luz throughput or recovery improvements.