Equinox Gold Shines with Record Production and Strategic Moves

Equinox Gold (ASE) ((TSE:EQX)) has held its Q3 earnings call. Read on for the main highlights of the call.

Equinox Gold’s recent earnings call painted a picture of strong operational performance, highlighted by record gold production and notable improvements at its Greenstone and Valentine mines. Financially, the company demonstrated robust results, marked by substantial debt reduction and a strategic asset sale. However, challenges remain with high all-in sustaining costs and ongoing deleveraging efforts.

Record Gold Production

Equinox Gold achieved a milestone in the first full quarter by delivering over 236,000 ounces of gold, including contributions from Calibre assets. This record production underscores the company’s strong operational capabilities and sets a positive tone for future performance.

Financial Performance

The company reported an adjusted net income of $147 million, or $0.19 per share, alongside an adjusted EBITDA of $420 million. Equinox Gold ended the quarter with a healthy cash balance of $348 million, reflecting its solid financial footing.

Greenstone Performance Improvement

Greenstone mine saw significant performance improvements in Q3, with mining rates exceeding 185,000 tonnes per day—a 10% increase over Q2. Additionally, process grades improved by 13%, contributing to the mine’s enhanced output.

Valentine Mine Ramp-Up

The Valentine mine commissioning is progressing ahead of expectations, with plant throughput averaging over 6,200 tonnes per day, or 91% of nameplate capacity, in October. This rapid ramp-up is a promising sign for future production.

Debt Reduction

Equinox Gold demonstrated disciplined capital allocation by retiring $139 million of debt during Q3 and an additional $25 million in October. This effort underscores the company’s commitment to strengthening its balance sheet.

Sale of Nevada Assets

In a strategic move, Equinox Gold closed the sale of its Nevada assets for $115 million, including $88 million in cash. This sale is part of the company’s broader strategy to optimize its asset portfolio.

High All-In Sustaining Costs

Despite strong production, the company reported an all-in sustaining cost of just over $1,800 per ounce. This high cost level poses a challenge to maintaining healthy profit margins.

Deleveraging Challenges

With net debt around $1.3 billion, deleveraging remains a significant challenge for Equinox Gold. While reducing debt is a priority, it will require continued focus and strategic financial management.

Forward-Looking Guidance

Equinox Gold remains on track to meet its full-year production guidance of 785,000 to 915,000 ounces, with significant contributions expected from the Greenstone and Valentine mines. The company anticipates strong production and cash flow improvements in 2026, supported by expanding operations at these key sites.

In summary, Equinox Gold’s earnings call highlighted a strong operational performance with record gold production and improvements at key mines. Financially, the company showcased robust results, although high costs and deleveraging challenges persist. Looking ahead, Equinox Gold is poised for continued growth, supported by strategic asset management and operational efficiency.