Exceeds Revised Guidance with 477,200 Ounces of Gold Produced in 2020
all dollar figures are in US dollars, unless otherwise indicated
"
"We will continue to deliver on our ambitious growth strategy through 2021 as we advance construction at Santa Luz in
2020 Highlights
- Exceeded revised guidance1 of 425,000 to 465,000 oz with total production of 477,200 oz of gold, with all-in-sustaining costs expected to be within guidance of
$975 to$1,025 per oz of gold sold2 - Created the premier
Americas gold producer with completion of the Leagold merger, increasing diversification and scale with four new mines and a development-stage project inMexico andBrazil - Strong safety and environmental performance with proactive implementation of COVID-19 "test, trace, isolate" policies, no lost-time incidents at
Castle Mountain during construction, improved total recordable injury frequency and reportable environmental incident rates, and commencement of online ESG reporting - Refinanced
Equinox Gold debt with a low-cost$500 million corporate credit facility - Increased average daily trading liquidity from
C$3 million in 2019 to overC$40 million in 2020 - Achieved inclusion in global indices including the GDX, GDXJ,
FTSE and S&P/TSX Composites - Increased Mesquite Reserves by 28% and Measured & Indicated Resources by 94%, and identified new exploration targets
- Extended Aurizona mine life with exploration success and completed maiden Indicated Resource for the Tatajuba deposit
- Completed positive PEA for potential Aurizona underground development showing 740,500 oz of gold production over a 10-year mine life with an after-tax
$288 million NPV5% and 38% IRR at$1,620 /oz gold3 - Completed
Santa Luz feasibility study showing 903,000 oz of gold production over an initial 9.5-year mine life with an after-tax$362 million NPV5% and 67% IRR at$1,600 /oz gold - Commenced
Santa Luz construction with first gold pour targeted for Q1 2022 Achieved Castle Mountain commercial production- Announced acquisition of Premier Gold Mines (TSX: PG)
- Invested
C$6 million in May andC$10.4 million in December in Solaris Resources to maintain an approximate 30% interest on a fully diluted basis; current market value ofEquinox Gold's basic interest is approximatelyC$190 million - Cash balance (unrestricted) at
December 31, 2020 of approximately$345 million (unaudited) with an additional$200 million available to draw under the revolving credit facility plus the plannedC$75 million acquisition related equity financing4 expected to close upon completion of the Premier acquisition
1 Guidance was updated on |
2 AISC per oz sold is a non-IFRS measure. See Non-IFRS Measures and AISC per Ounce Sold in Cautionary Notes. |
3 The Preliminary Economic Assessment ("PEA") is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the results contemplated in the PEA will be realized. |
4 Subject to completion of definitive documentation, customary closing conditions and regulatory approvals, including TSX approval for the pricing and other terms of the financing. |
Total 2020 gold production of 477,200 oz exceeded the Company's revised guidance of 425,000 to 465,000 oz. The Company's RDM mine significantly outperformed expectations, with the
2020 Production (oz of gold) | ||
Actuals | Guidance | |
58,500 | 44,837 | |
141,300 | 130,000 - 140,000 | |
Aurizona | 130,300 | 120,000 - 130,000 |
Fazenda1 | 51,600 | 50,000 - 55,000 |
RDM1 | 59,300 | 50,000 - 55,000 |
Pilar1 | 30,900 | 25,000 - 30,000 |
5,300 | 5,000 - 10,000 | |
Total – Mines | 477,200 | 425,000 - 465,000 |
1 Production attributable to |
2 |
The 2020 production, cash balance and cost figures are preliminary and subject to change when the Company releases its Q4 2020 and audited full-year 2020 financial and operating results in March.
About
Cautionary Notes
Technical Information
Non-IFRS Measures
This news release refers to all-in sustaining costs ("AISC") per ounce sold, which is a measure with no standardized meaning under International Financial Reporting Standards ("IFRS") and may not be comparable to similar measures presented by other companies. Its measurement and presentation is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Non-IFRS measures are widely used in the mining industry as measurements of performance and the Company believes that they provide further transparency into costs associated with producing gold and will assist analysts, investors and other stakeholders of the Company in assessing its operating performance, its ability to generate free cash flow from current operations and its overall value. Refer to the "Non-IFRS measures" section of the Company's Management's Discussion and Analysis for the period ended
Forward-looking Statements
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation and may include future-oriented financial information. Forward-looking statements and forward-looking information in this news release relate to, among other things: the Company's ability to successfully complete the Premier acquisition and achieve the benefits contemplated in the transaction; the Company's ability to successfully advance and achieve production at Santa Luz; the strategic vision for the Company and expectations regarding exploration potential, production capabilities and future financial or operating performance; and the Company's ability to successfully advance its growth and development projects, including the Hardrock project and the expansion at Los Filos. Forward-looking statements or information generally identified by the use of the words "will", "targeted", "target", "clear path", "underway", "expected" and similar expressions and phrases or statements that certain actions, events or results "could", "would" or "should", or the negative connotation of such terms, are intended to identify forward-looking statements and information. Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, undue reliance should not be placed on forward-looking statements since the Company can give no assurance that such expectations will prove to be correct. The Company has based these forward-looking statements and information on the Company's current expectations and projections about future events and these assumptions include: the consummation and timing of the Premier acquisition; the strengths, characteristics and potential of
The Company cautions that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements and information contained in this news release and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in gold prices; fluctuations in prices for energy inputs, labour, materials, supplies and services; fluctuations in currency markets; operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather); inadequate insurance, or inability to obtain insurance to cover these risks and hazards; employee relations; relationships with, and claims by, local communities and indigenous populations; the Company's ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner or at all; changes in laws, regulations and government practices, including environmental, export and import laws and regulations; legal restrictions relating to mining including those imposed in connection with COVID-19; risks relating to expropriation; increased competition in the mining industry; and those factors identified in the Company's MD&A dated
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