. All amounts are in United States dollars unless otherwise indicated
Equinox Gold Corp. (TSX-V: EQX, OTC: EQXFF) (“Equinox Gold” or the “Company”) has released its audited consolidated financial statements (“Annual Financial Statements”) and related management’s discussion and analysis (“Q4 MD&A”) for the fourth quarter and fiscal year ended December 31, 2018.
2018 Key Achievements
Strong safety record with no lost-time incidents
Mesquite Gold Mine acquisition completed October 30, 2018
Immediately established Equinox Gold as a producer with 25,601 ounces of gold in 2018
Generated revenue of $30.2 million following the acquisition
Aurizona Gold Mine construction substantially complete
Energized the crusher and commenced commissioning in December 2018
Completed pre-production mining with more than 750,000 tonnes of ore stockpiled
Castle Mountain Gold Mine prefeasibility study completed July 2018
Phase 1 (years 1-3) averaging 45,000 ounces of gold production per year
Phase 2 (years 3-16) averaging 203,000 ounces of gold production per year
$763 per ounce life of mine AISC, $865 million after-tax life of mine cumulative cash flow1,2
483% increase to proven and probable gold reserves
New gold discoveries at Aurizona and Castle Mountain
Monetized non-core asset with the Koricancha sale
Spun-out copper assets to create Solaris Copper Inc.
Cash and cash equivalents at December 31, 2018 of $60.8 million
“Equinox Gold’s primary objective for 2018 was to transform from a developer to a gold producer,” said Christian Milau, Chief Executive Officer. “The Mesquite acquisition accelerated that transition, bringing immediate production and cash flow and significantly increasing the Company’s production profile for 2019 and beyond. With first gold pour at Aurizona expected in the next few weeks, Equinox Gold expects to produce more than 230,000 ounces of gold in 2019 and will continue to grow its production profile with Castle Mountain development, exploration success and strategic acquisitions.”
Aurizona construction is substantially complete and plant commissioning is well underway using the existing powerline. Substation upgrades to support the increased power demand are complete and pending final approval by the state utility. First ore has been processed through the crushing system and the SAG and Ball mill motors have been fully tested. The construction team is now completing electrical and instrumentation installation, including cable pulling in the CIP, detox and reagent areas and final motor and instrument connections. The Aurizona team has completed more than 1.2 million hours of construction with no lost-time injuries.
2018 Financial and Operating Performance
Operating results for the three months and year ended December 31, 20183
December 31, 2018
Operating data from Mesquite Unit
Gold produced oz 25,601
Gold sold oz 24,384
Realized gold price $/oz 1,237
Cash cost per gold oz sold1,4 $/oz 723
AISC per gold oz sold1,4 $/oz 819
Consolidated profit and loss data for the three months and year ended December 31, 2018 3)
Three Months ended December 31, 2018 Year ended December 31, 2018
Profit and loss data (in millions, except per share figures)
Revenues $ 30.2 30.2
Earnings from mine operations $ 8.0 8.0
Adjusted EBITDA from continuing operations $ - (24.0)
Net loss from continuing operations before taxes $ (9.6) (21.4)
Basic loss per share attributable to shareholders $/share (0.02) (0.05)
Additional information regarding the Company’s financial results, activities underway at Mesquite, Aurizona and Castle Mountain and the Company’s long-term business strategy is available in the Annual Financial Statements and accompanying Q4 MD&A, which are available for download on the Company’s website at www.equinoxgold.com and on SEDAR at www.sedar.com.
1. Cash cost per oz sold and AISC per oz sold are non-GAAP measures. See Cash Costs and All-in Sustaining Costs in Cautionary Notes.
2. Using a $1,250/oz gold price as outlined in the July 2018 prefeasibility study entitled “NI 43-101 Technical Report on the Preliminary Feasibility Study for the Castle Mountain Project” prepared by Kappes, Cassiday and Associates which is available on SEDAR.
3. Operating data, revenues, and earnings from mine operations are the same for the three months and year ended December 31, 2018 since Mesquite was acquired during the fourth quarter on October 30, 2018.
4. The cash cost and AISC reflect Equinox Gold’s cost of acquiring the gold in the leach pad inventory on the date of acquisition and the processing and selling costs associated with gold sold. They do not reflect expenditures incurred by the previous owner to mine and stack those ounces onto the leach pad.
On Behalf of the Board of Equinox Gold Corp.
CEO & Director
Equinox Vol. 87.500
Time X Price Chg Vol Buyer Seller Markers
10:02:32 X 1.24 +0.01 100 57 Interactive 39 Merrill Lynch K
10:00:33 V 1.24 +0.01 500 85 Scotia 1 Anonymous K
09:55:15 V 1.24 +0.01 300 79 CIBC 1 Anonymous K