Equinox Gold Corp (EQX) Q4 2024 Earnings Call Highlights: Record Production and Strategic Challenges

Yahoo

21-02-2025

Quarterly Gold Production: 214,000 ounces.
Quarterly Gold Sales: 218,000 ounces.
Quarterly Revenue: $575 million.
Cash Cost per Ounce (Q4): $1,458.
All-in Sustaining Cost per Ounce (Q4): $1,652.
Annual Gold Production (2024): 622,000 ounces.
Annual Gold Sales (2024): 623,000 ounces.
Annual Cash Cost per Ounce (2024): $1,598.
Annual All-in Sustaining Cost per Ounce (2024): $1,870.
Net Income (Q4): $28 million.
Adjusted Net Income (Q4): $77 million.
EBITDA (Q4): $185 million.
Adjusted EBITDA (Q4): $218 million.
Cash Flow from Operations (Q4): $213 million before changes in noncash working capital.
Unrestricted Cash (End of Q4): $239 million.
Debt Retired (2024): $180 million.
Gold Price Realized (Q4): $2,636 per ounce.
Greenstone Mine Production (Q4): 53,002 ounces.
Greenstone All-in Sustaining Cost (Q4): $1,141 per ounce.
Warning! GuruFocus has detected 10 Warning Signs with EQX.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Equinox Gold Corp (EQX) achieved record quarterly gold production of approximately 214,000 ounces in Q4 2024, marking the highest in the company's history.
The company reported a significant improvement in its S&P Global Corporate Sustainability Assessment score, increasing by over 13% compared to the previous year.
Equinox Gold Corp (EQX) successfully consolidated ownership of the Greenstone mine, achieving commercial production in November 2024.
The company reported a substantial increase in EBITDA for Q4 2024, reaching $185 million, which is a significant improvement over previous quarters.
Equinox Gold Corp (EQX) plans to increase production in 2025 to between 635,000 ounces and 750,000 ounces, driven by the ramp-up of the Greenstone mine.
Equinox Gold Corp (EQX) experienced a fatality at its Fazenda mine in 2024, highlighting ongoing safety challenges.
The company is facing uncertainty at its Los Filos mine in Mexico due to pending agreements with local communities, which could impact future operations.
Cash costs per ounce increased compared to Q4 2023, indicating rising operational expenses.
The company reported high all-in sustaining costs at several mines, including Aurizona and Santa Luz, impacting overall profitability.
Equinox Gold Corp (EQX) is dealing with geotechnical issues at the Piaba pit, which affected mining operations and required remediation efforts.
Q: If gold prices remain high, what are you going to do with the extra free cash flow? A: Peter Hardie, CFO: We love the current gold price environment, which positively impacts our financials. With higher production and sales, we expect more free cash flow. Our focus is on deleveraging, so any excess cash will strengthen our balance sheet.
Q: On Greenstone, could you give us some idea about the grade tons and recoveries for this year on average? A: Douglas Reddy, COO: Our budget and mine plan have us starting around a gram in the first quarter, ramping up to about 1.6 to 1.7 grams towards the end of the year. This increase is due to improved mining rates and selectivity.
Q: What is the discrepancy between the ASIC and total cash cost guidance? A: Gregory Smith, CEO: We will take this question offline and get back to you, as we cannot do the math in real-time during the call.
Q: If you decide to proceed with Los Filos, what does the sustaining capital look like going forward? A: Peter Hardie, CFO: We are awaiting clarity on the situation. Previously, during blockades, standby charges were $3-4 million per month. We expect lower costs on indefinite suspension and will provide more details as we move forward.
Q: At Los Filos, can you provide details on the agreement terms with the communities? A: Gregory Smith, CEO: We are discussing long-term agreements that encompass the entire mine life. We need agreements with all three communities to continue operations. Without these, we cannot proceed with the mine.
Q: Is there an update on the underground development at Aurizona? A: Douglas Reddy, COO: We are planning to start the portal and ramp as part of an exploration program to confirm mineability and access. This is not due to open pit constraints but to access a robust ore body underground.
Q: Do you see additional opportunities to extend the mine life at Mesquite with higher gold prices? A: Douglas Reddy, COO: With Ginger, we have extended the life to evaluate other pits. We continue to explore opportunities, and Scott Heffernan can provide more details on exploration efforts.
Q: Does the renewal of the base shelf include an ATM component? A: Gregory Smith, CEO: It gives us the ability to do ATMs, but we did not include an ATM on the renewal. We currently have no plans to implement an ATM.
Q: What are the plans for exploration at Greenstone? A: Scott Heffernan, EVP of Exploration: We are focusing on significant exploration potential within the pit and underground. This year, we will conduct desktop studies and geological work, with significant exploration expected in the next two years.
Q: Can you provide more clarity on the agreement status with the Los Filos communities? A: Douglas Reddy, COO: We reached agreement on key terms with all three communities, but only two have signed the final document. We need all three to sign to move forward.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.