Equinox Gold Reports Third Quarter 2019 Financial Results

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Overig advies 31/10/2019 06:27
October 30, 2019
all dollar figures in US dollars, unless otherwise indicated

Equinox Gold Corp. (TSX-V: EQX, NYSE American: EQX) (“Equinox Gold” or the “Company”) is pleased to report its third quarter 2019 summary financial and operating results. The Company will file its unaudited condensed consolidated interim financial statements (“Q3 Financial Statements”) and related management’s discussion and analysis (“Q3 MD&A”) for the three and nine months ended September 30, 2019 later today, and will host a conference call and live webcast to discuss the results at 8am PT (11am ET) on October 31, 2019. Dial-in and login details are provided at the end of this news release.

“Equinox Gold continues to deliver on its growth strategy, increasing production at Mesquite and Aurizona and announcing the start of Phase 1 construction at Castle Mountain, which will be our third producing gold mine. After a quick ramp-up at Aurizona, the third quarter demonstrated strong earnings and cash flow from our two operating mines, resulting in an increased cash balance and our first quarter of consolidated net income.”

Highlights for the three months ended September 30, 2019

Operational and financial highlights
•Achieved commercial production at Aurizona
•No lost-time injuries
•Produced 62,656 ounces (“oz”) of gold
•Mine cash costs(1) of $800 per oz sold and all-in sustaining costs (“AISC”)(1) of $953 per oz sold
•Sold 62,379 oz of gold, generating revenue of $91.9 million
•Earnings from mine operations of $30.8 million
•Adjusted EBITDA(1) of $38.2 million ?Cash from operations of $38.0 million

•Cash and cash equivalents (unrestricted) increased to $45.5 million from $33.0 million in Q2
•Repaid in full the $20 million short term loan from the Company’s Chairman

Development highlights
•Commenced early works Phase 1 construction activity at Castle Mountain
•Initiated Phase 2 Castle Mountain feasibility study
•Re-commenced drilling of the Tatajuba target at Aurizona

Corporate highlights
•Commenced trading on the NYSE American under symbol “EQX” ?Completed a 5:1 share consolidation to pursue the U.S. stock exchange listing

Recent developments
•Commenced full-scale Phase 1 construction at Castle Mountain with an approved $58 million budget ?Expect first gold pour in Q3 2020

•Receipt of $1.0 million cash from Koricancha sale

2019 outlook
•Maintaining 2019 production guidance of 200,000-235,000 oz of gold at AISC of $940-$990/oz of gold sold ?125,000-145,000 oz of gold from Mesquite at AISC of $930-$980 per oz of gold sold
?75,000-90,000 oz of gold from Aurizona at AISC of $950-$1,025 per oz of gold sold

•Updating 2019 non-sustaining capital expenditure guidance ?Total 2019 non-sustaining capital expenditure of $75.6 million comprising expenditures at Mesquite ($8.0 million), Aurizona ($39.6 million) and Castle Mountain ($28.0 million) with $47.8 million spent through September 30, 2019, including: ?Aurizona: $37.6 million on initial capital for construction
?Mesquite: $6.7 million on reserve expansion
?Castle Mountain: $3.5 million on early works Phase 1 construction

•Advancing Tatajuba exploration and underground studies at Aurizona
•Advancing Phase 2 feasibility study at Castle Mountain

1 Cash cost per ounce sold, AISC per ounce sold and adjusted EBITDA are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.

Quarterly and YTD highlights from all operations

see &

Equinox Gold Commences Phase 1 Construction of the Castle Mountain Gold Mine.

All dollar amounts are shown in United States dollars

VANCOUVER, Oct. 30, 2019 /CNW/ - Equinox Gold Corp. (TSX-V: EQX, NYSE American: EQX) ("Equinox Gold" or the "Company") is pleased to announce that the Company's Board of Directors has approved the start of Phase 1 construction at the Castle Mountain Gold Mine ("Castle Mountain") in California. Castle Mountain is an open-pit heap leach mine expected to produce on average 45,000 ounces ("oz") of gold annually for the first three years of operations ("Phase 1") while the Company completes the studies and permit amendments required for the Phase 2 expansion, which is expected to average 200,000 oz of gold annually for an additional 13 years for total life of mine production of 2.8 million oz of gold.

Early works construction has been underway at Castle Mountain since the third quarter of 2019. Activities to date have focused on detailed engineering, procurement, installation of piping and other infrastructure, and heap leach earthworks. The Company expects to commence installation of leach pad liners in November, with first gold pour targeted for Q3-2020.

Construction Milestones Achieved to Date

Detailed engineering complete
Contractors mobilized to site
Plant area and heap leach topsoil removal complete
Site road upgrades complete
First deliveries of pipe and liner material to site
Christian Milau, Equinox Gold's CEO, commented: "Castle Mountain will be Equinox Gold's third producing gold mine and our second mine in California. Construction of Phase 1 of Castle Mountain is the first step in building a project that will ultimately be a long-life 200,000 oz per year gold mine, bringing significant benefits to Equinox Gold's shareholders, local communities and the State of California."

Project Highlights

Equinox Gold's Board of Directors has approved a Phase 1 construction budget of $58 million based on firm supplier quotes following detailed engineering, of which approximately $3.5 million has been spent to date. The budget includes working capital and a 12% contingency. Castle Mountain Phase 1 construction is fully funded from Equinox Gold's existing treasury, cash flow based on current gold prices and available funding facilities.

A significant portion of Phase 1 infrastructure and more than 50% of Phase 1 capital expenditures are considered "early build" for Phase 2. The phased ramp-up approach allows the Company to use existing permits to expedite production while completing the feasibility study and permit amendments for the Phase 2 expansion.

Phase 1 will consist of a run-of-mine heap leach operation processing primarily 12,700 tonnes per day ("t/d") of stockpiled ore from previous operations. Loaded carbon from Castle Mountain will be trucked to Equinox Gold's Mesquite Mine, 200 miles south, and processed in the Mesquite ADR (adsorption, desorption and refining) plant, resulting in increased operating efficiencies for both mines.

Phase 2 will increase production to 200,000 oz per year and throughput to 41,000 t/d of ore, of which 2,300 t/d of higher-grade ore will be processed through a milling circuit. Although Phase 2 will operate within the existing mine boundary, the increased mining and water extraction rates will require amendments to permits for the Project. The Phase 2 feasibility study is underway with completion targeted for the second half of 2020, at which point Equinox Gold will submit the application to amend its existing plan of operations and permits to support the Phase 2 expansion.

On Behalf of the Board of Equinox Gold Corp.

"Christian Milau"
CEO & Director

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