Equinox Gold (ASE) ((TSE:EQX)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Equinox Gold Corp’s recent earnings call revealed a balanced outlook, with the company celebrating record gold production and improved financial performance. However, the company also faced operational challenges and high costs at certain mines, as well as unresolved community agreements affecting the Los Filos site.
Record Gold Production
Equinox Gold Corp. reported a record annual gold production of approximately 622,000 ounces, with sales reaching 623,000 ounces in 2024. This achievement marks a significant milestone for the company, reflecting its strong performance in gold production.
Lowest Quarterly Cash Costs
The company achieved the lowest quarterly cash cost of $1,458 per ounce in Q4 2024. This reduction in cash costs highlights Equinox Gold’s ongoing efforts to optimize operations and manage expenses efficiently.
Greenstone Mine Milestone
The Greenstone mine reached a major milestone by achieving commercial production in November 2024. It contributed significantly to the company’s Q4 performance, producing 53,022 ounces at an all-in sustaining cost of $1,141 per ounce.
Financial Performance Improvement
In Q4 2024, Equinox Gold saw its revenue increase to $575 million, driven by higher gold prices and increased sales volume. The company’s EBITDA rose to $185 million, marking a notable improvement from both Q3 2024 and Q4 2023.
Improved Environmental and Safety Performance
Equinox Gold made significant strides in its environmental and safety performance. The company reported an improved environmental incident frequency rate and a 13% increase in its S&P Global Corporate Sustainability Assessment score.
Strong Cash Flow and Debt Reduction
The company generated $213 million in cash flow from operations before changes in non-cash working capital and retired $180 million in debt during 2024, showcasing its strong financial management.
Fatality at Fazenda Mine
Equinox Gold reported a regrettable fatality at the Fazenda mine, underscoring the importance of continued focus on safety measures across all operations.
High Costs at Los Filos and Aurizona
The Los Filos and Aurizona mines reported high all-in sustaining costs of $2,051 and $2,229 per ounce, respectively, in Q4 2024, highlighting challenges in managing operational costs at these sites.
Los Filos Community Agreement Uncertainty
Operational uncertainty looms at the Los Filos mine due to unresolved agreements with one of three communities, impacting the company’s ability to provide guidance for 2025.
Operational Challenges at Various Mines
Aurizona faced geotechnical issues, and Santa Luz experienced recovery challenges, both contributing to higher all-in sustaining costs of $2,224 per ounce for the year.
Forward-Looking Guidance
Equinox Gold anticipates production to increase in 2025, with expectations of producing between 635,000 and 750,000 ounces. The company projects cash costs to range from $1,075 to $1,175 per ounce and all-in sustaining costs between $1,455 and $1,550 per ounce. Despite the challenges faced, Equinox surpassed its safety targets for the year.
In summary, Equinox Gold’s earnings call presented a balanced view of its recent achievements and ongoing challenges. The company celebrated record production and improved financial metrics, yet it faces high costs and community agreement uncertainties. Looking ahead, Equinox aims to increase production and maintain a strong focus on cost management and safety improvements.
