Equinox Gold (EQX) 7 Nov 242024 Q3 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Equinox Gold Third Quarter 2024 Results and Corporate Update.

As a reminder, all participants are in listen-only mode and the conference is being recorded. [Operator Instructions] I would now like to turn the conference over to Rhylin Bailie, Vice President, Investor Relations for Equinox Gold. ahead. go Please

and this operator, everybody, joining for Thank thank here morning. us you, you,

of a We statements be course, will, making today. number forward-looking of

more over disclosure documents. So EDGAR would Smith. now raise website, our turn I President rest about the and to learn Greg call the continuous please and our the our SEDAR of like company to visit to and CEO,

morning, call. and good everyone, Rhylin, for the and Thanks, joining thanks

our Today, Doug Equinox broad Reddy, the more and overview of line Gold's of is operating details. I'll financial me quarter, Heffernan a CFO, the course, and with Exploration; EVP On then discussing Hardie, of and start over our COO, for Scott XXXX our Investor of Peter Doug call Relations, quarter turn we with our results Xrd the I'll VP Pete Rhylin are Bailie. to

safety. to start going I'm with

quarter time rolling stands no per Our X recorded safety sites our hours at performance had the and this of quarter incidents frequency worked. rate with X million recordable injury good. overall, our lost X.XX was for total XX-month

significant had We no also in incidents environmental QX.

cost company. other increasing sold terms revenue, XXX,XXX and $XX.XX production from the gold ounce gold of ounce and cash strong of this per of gold sustaining a metrics sold and sold and with the produced record just quarter adjusted per ounces for the EBITDA was sales, third $XX.XX an per a cost With prices, Greenstone in under ounce. all-in at

yet in for do include and cash cost costs ounce producing per that ounce QX. not as was all-in Greenstone not sustaining per cost Greenstone Note commercially

from do operating include and costs financial revenue in sales and statements costs Greenstone. However, the

at again, approximately of approximately and the sold cash per ounce, cost and per ounce cost of we XXX,XXX period, ounce from excluding produced production Greenstone. XXX,XXX X-month sustaining the all-in costs per for For $XX.XX $XX.XX ounces ounces

slightly slower ramp-up pour itself, expected. initially May, pace milling a of has gold than first mining in well though since Greenstone our at we and the Onto progressed

under QX, October since circuit gold, XX,XXX first X and first in just address just pour another in ounces ounces to XX,XXX process process Greenstone that to in other surface undertook and issues production of start-up. during QX produced the the of in the shutdowns We half During where over multi-day bringing total May.

We we and also of over pleased in the also October. expansion open meaningfully advanced of the with Greenstone were of results to very footprint into work with of yesterday first the and increasing, good throughput from production. seen September process through commercial and particularly October rates announce the last November, this increasing and is We've mining phase pit now the half that

of ramping Greenstone and of production the will of pace XXX,XXX throughput for for mining design reported the capacity. through year. adjusted XXX,XXX XXX,XXX updates reflect XXX,XXX guidance ounces in we production to full We to plant rates XXXX, which guidance To ramp-up continue the ounces October, toward in consolidated QX up to

in of touch and at mid-October, had are like to there recent analysts you'd get out reports so in on tour In an analyst detailed there Greenstone. available with the deck to our a analyst full was website, great Most so see tour. our attended on also there, our ramp-up there of information a This them. site far. Rhylin is The lot is for and download we

well. feel So that to reference as free slide deck

the was stakeholders. The Greenstone the event major the also there you This fundraiser and were on success. grand by of and opening was we opening of the completion video ride the made quarter, initiative. a event great encourage some website. speakers, our August. ended watch by a and I'd Greenstone local the comments great celebrated number [indiscernible] of This in mine to to of many was The Greenstone fundraising the a During attended also grand

charities We million in communities and we our also hospital Greenstone at support all $XXX,XXX sponsors, from the are raised others Hospital, at also and and the employees is our the make and difference to where for particularly local that this District Geraldton we the is communities hospital peers going associations. big the the raised Greenstone some our we the local appreciate supported and Mine, over for other CAD The to a endeavor donors and all received really which donation we Geraldton of gold X.X for which operate. industry

a with I'd to an thank that, Finally, and the last Fred in a October it take And stepping discuss I'll his him Board our Board year. guy, to Board. Directors change over had to with Pete excellent to was and for our contributions turn like of financial in we the Fred great member [indiscernible] opportunity off results. the over

Greg. Thanks,

Now in on Slide X the presentation.

driven gold by ] per QX, contribution realized revenues During the is the sold for we sold ounces was by $X,XXX ounces on by driven and higher [ production for increase price. in higher the million. ounce XX,XXX sales Greenstone. The the quarter increase XXX,XXX in revenue $XXX of The of

was in it construction, year, Greenstone so mind in and Keep last sales. had no

revenues. expenses. in quarter, year XXXX, and increase expenses Greenstone $XXX of was ramp-up due million, an We was mine income $XX from increase an from construction Greenstone that's QX year, had primarily in thanks as operating the compared QX $XXX last million to the XXXX, operating For to increase primarily had no in and million QX operations to in last

had Filos. operating expenses at We Los higher also some

were pit as and mined cost less year per tonne open our than Our was last cost per processed. ton underground

year, the QX overall operating this stacked costs. tonnes than QX we higher However, and processed ore to more last which led in year

XXXX wasn't cost unit mind we to revenues an is compared our ounce, per of that related commercial cash sustaining production. per cost as in required $XXX cash recorded in QX for Greenstone included ounce. and Greg statement cost Greenstone's our ounce $XX.XX yet basis, results of which by and of increase cash in are reiterate, year's in IFRS, while as had sales all-in a metrics are not $XX.XX last QX cost income a per QX On Keep as per of those mentioned, I'll

is and XX,XXX ounces cash compared for costs primarily sales sustaining the QX last with quarter Our for in this to all-in Mesquite and driven increased QX our Arizona in lower year. volume at year net

of driven increase to per due QX compared XXXX, sustaining our of just from of and for ounce decreased year from $XX.XX the I QX reasons cost to $X.XX all-in year $XXX noted per costs is ounce. The last up cost per QX For per sustaining per ounce volume and ounce. ounce in last all-in is cash

a as project we with August Castle to and Mountain results all-in reduce amendment sustaining note continues August, the after are reported cash cost at while longer residual included should the that has Greenstone no as significantly permit I it end production, also XX, cost Cashflow that is in all-in leach our our sustained moved is its commercial now in expected to Now cash metrics. of or in metrics. process. development MD&A our and

We Castle as will related included from be statement. to and will record continue income in revenues ounces sold the costs the

million. to It QX EBITDA to $XXX year Our this in year's adjusted of EBITDA $XX $XX million million. XXXX EBITDA $XX Last adjusted and QX was last increased year. QX compared million, was compared million our $XXX

in in adjusted by increase the revenues. prior was increase EBITDA The quarters compared driven to

before or net working $XXX on $XX flow $X.XX of we $X.XX from basis, share. was operations in $XXX,XXX a quarter, million capital Cash changes income income the had per adjusted share. and an For noncash million or net of

commercial respect in we for million. quarter production that expenditures the wasn't $XX $XX Note Greenstone through million for of Non-sustaining sustaining were expenditures end With million, September. to QX, Greenstone. for the of spent $XX were which

sustaining. includes removal are all capital So amounts contaminated of This upgrades, tailings expenditures cetera. not fleet et for there expansion, soil, on spent considered QX camp historic lift,

of all note had September million note $XXX hand liquidity of outstanding retiring company convertible due of note to preserving shares to liquidity price of and unrestricted our debt. holders to million cash revolving our the million came debt at our with credit maturities conversion share. million The draw Moving facility. we on our $X.XX With of to $XXX $XXX Slide XX.X million XX, X. $XXX converting October, per respect and issued In our available holders available at on one

Also originally purpose ounces million a from $XX monthly the of to to and month in to XXXX per February deferral gold certain September deliveries defer while month the gold October, month ounces XXXX to of May was X,XXX arrangements October XXXX. The we prepay X,XXX Greenstone provide amended about per at due deliver first up. prices, cash liquidity through current ramping more a little finishes X

of shelf November. base the that we prospectus issuance period the a company's Canada permits months the October, expire one in of filed set securities replaces the it to effectively X U.S. over a and early in In short-form

active expect Equinox in discussed prospectus you As can going to base an shelf the forward. maintain past,

debt. produced Greenstone used to achieved, With as which deleveraging will the by X. be mines commercial cash free Slide Moving to pay focus, financial flow our down is production to

at few to loan been For been million consolidate QX. ownership we've years $XXX an the have Equinox methods mines so. additional building as XXX% for Greenstone funding of using term one past doing the of debt and during acquiring Gold, Including and

Equinox funding and XXXX trend using measured were increased lever consequence completed by that debt leverage acquisitions company demonstrates XXXX historical a debt-to-EBITDA we slide pro of This net mines through built. see were is leverage Gold's construction. This one leverage is forma general being QX acquisitions ratio is and and as -- The analyst through consensus. XXXX per XXXX. QX the for from in QX as natural as

of completed. QX Arizona Leverage and Greenstone completed construction as was in was construction and the was after peaked again, construction, a months Luz Santa mine of in XXXX XXXX few ongoing late

the new are by is has as the of leverage trend EBITDA Gold mine. chart Another the in ramped cash that mines generated decreases flow and see Equinox up, we benefit our commissioned

to the In of to environment, beginning capacity flows resulting the to deleveraging. we this high Retirement full of for deleveraging continue and up the this the marks convertible the continuing of look cycle cash Greenstone Equinox. first million forward to strong notes gold ramp $XXX October price

that, with the of will through us Doug And operations. a lead review

of Pete. Slide Thanks, presentation. now X We're on the

XX very we for to our coming October. in, cost produced was a annual Throughput QX. nameplate all-in we sustaining of look Greenstone, an tonnes production. XX,XXX of through of had forward production day should August about the that's XX% of get of as At ramp-up ounces the XX%, the and continued of overall QX gold good XX-day in X/X average an And ounce. mine we a achieved $XXX noted, a and As QX XX,XXX rolling

XX% X, as being capacity. of ramp-up. and was was conveyors XX% the typical with We've addressed. It still pumps in Recovery been mill, the And is average of screens, November in issues the quarter. XX-day of a addressing

adding be we day. a X The over tonnes that All and through fleets of have of we on year being XX,XXX site, XX into and shovels resolved are we'll throughput the QX. trucks through went and October, as now have to with or been addressed these haul fleet end the had

gold At stripping sustaining XXXX. Mesquite to QX the ounce. of an mine, in production continued ounces part leach the goes and the cost of in latter pit with in Waste was majority all-in on the starting from Ginger pit that of pad ore an XX,XXX $X,XXX

stacked pit. leach during the quarter. leach during slope of We also the inventory pad the production side rehandled and that XXXX, a of for mostly rest our and leaching pad And up material ore comes leaching of Vista will some the additional be Ginger the the leaching stripping began old drawdown

sustaining can QX Filos, gold the economic QX into in And a mining X the state quarter Equinox all and mine. ounces, mine. we've the towards as and to to working We're underground Filos for was for agreements added area XX,XXX the viability QX second acquired second since in highest improve stability ounce. dialogue well the and should Diegos during Production continues Los this [indiscernible] contractor we met communities our of our increased long-term continued establishing as that and all-in underground has $X,XXX we so continue per the Underground partners the At new with community mine. and with the municipality the cost mine as representatives. Los production ensure

the the $X.XXX an And Current Piaba Eastern to at end mostly processing weeks we all-in production of pit, next On with plant Piaba cost suspension the XX,XXX as in mining we of began open following mine to page. which ends of about compared in is restarted per Tatajuba the after In we sustaining the ounce. Aurizona and quarter, was In on ore coming July, transitioned grade pit. is Brazil, average open of of lack to the Tatajuba the pit. pit of ore, the Piaba a ounces out the the X Western from and the towards lower [indiscernible] pit well. and mining

holes X We are are wall in we've in completion pit that the dewatering part areas. the the of most on work the of We've Piaba drilled of doing coming to been recontouring information. of XX,XXX mine cost our all-in been $X,XXX program for reviews At geotechnical ounces quarter. external the Fazenda through of sustaining the per hydrogeological and the and we've was ounce was that production

we've from XX%. have underground is pit, Plant open the from Underground we duration, added ship equipment up our catching are had is now ounce. was development and Fazenda. XX% rates modification of ounces currently XX% underground per is feed as cost recovery plan production and fleet the additional At a sustaining was underground mine and to RDM, at $X,XXX to overall production increasing the gold and all-in XX,XXX

mining productivity. the We changed rental have fleet and mining increased

cyclone compacted being gold ounces Santa cost with ounce. dry established a and Luz, per we facility, up was tailings of Production in production. an our all-in new At sustaining second area. then operation best also the quarter had XX,XXX which We now in and dried of at placed is storage $X.XX stack with tailings fully

The a in new that's by and QX, us tons [indiscernible] about gave in for installed Luz. at and our record that started throughput tail the us increase the was quarter XX%, end to throughput enabled up of at that Santa QX

we've removal fines we've circuit the below was desliming and carbon-rich also some the recovery comes removing was due carbon but work gold. part the works, to the commissioning XX% contained that However, to been in circuit. of plan that of the too for been much at desliming the The the organic that with doing quarter, remove ore, in of is

required And Greg. XX% with In the desliming to it to is without back I'll we So we meantime, back the in recovery that, work bring additional before from that online. over operate hand and XX% October. ranges

make Q&A. before of I'm to closing move on Thanks, just comments going a Doug. to couple we

the we we noted production had on at flow EBITDA here adjusted started and slide even the are prices, highest So online. Greenstone the at and up, Greenstone and quarter. that point inflection any call, We really at coming I you And were see for Gold with we third though Greenstone last Equinox effect quarter. gold our strong the having. quarterly the an cash adjusted with on ramping all-time still gold just sales is revenue had for record And also operating can

we prices minds gold for further quarter increasing the production, to And a over QX coming be should great should investing strong in well be at quarters these the for deleverage position current with and another as us, and as our in future.

there, Q&A. and Rhylin, think up to I wrap we can I'll move

you Sure. questions. to Operator, can remind people how please ask the

Instructions] [Operator

Thank the you that online question here. first I'll you. [indiscernible] got we've take Will from

you said achieving calculation that So Could is calculate that Greenstone than at different congratulations QX. in noted on you your you production how I had initially commercial what explain? of

Sure.

quarter, So throughput cost back a certainly substantial sustaining We've the amount declaring November. third or contribution yes, certainly for meaningfully and over of was over it. mine the production conservative, The our internal of reality all peers margin. criteria our more all-in many from and seen rates commercial we increased into ultimately half the announced October of where is, than generated

only week. becomes per can very hard every $X,XXX when it's argue is gold you at ounce, commercially it to sort mine you're And not cost increasing producing of producing the cash sub and --

And of et in we'll statements. the it. be perspective, is the costs So being declare the sustaining what our accounting cash X and to Greenstone perspective cost costs into from it and operating sense incorporated made have an cetera, over an from the all reflected depreciation, for last months here, and financial means that will year

period, Greenstone even in lowest and now commercially our it's there's that is cost really, mine debate is largest The producing. ramp-up no and this reality

we Perfect. phone, question Thank you. the that Operator, please. take from can

from Our first question CIBC. comes Anita from Soni

commercial a And flow first positive declared off, production to congratulations this free at cash for swinging quarter Greenstone. and

some hoping model just on processing. Secondly, at my mining if the and I us color are was some from give to costs I was could hoping get you how trending. unit Greenstone on data

it's quarter days, it's know full right a to just want now. early I pegging see but or at where

come back minute. that a just to and in to take We're going up

I a that But we it anticipated. our on do offline. we some and Anita, -- data through at plan went site of do tour. mining as perspective, cost what this of have that data in where From effectively maybe we'll we're -- conversation some think the have we a we can is pull we

Okay.

Second question Santa to was with respect Luz.

do I rates like as along recovery think go-forward next trying Or achieve if into year Doug when little so, well, recovery a higher? the we to on to addressed bit, expectation And but more tier number? target lines the rate? are of you still XX% something is it expect perhaps

we're we're XX%. like I So actually around, averaging XX%, desliming, operating to said, without XX% about

de-sliming, the default, comes work desliming do see at readjust with because problem the a meant trend that as without the to that desliming our as it properly the works. increased we continue to time we consider cyclones able to do But doing but the So we'll the the same on we feet. intend be have and doing to throughput is to

are we to guys we try do intend originally desiming. But through long these get testing it the We without the do bring still that not a it back to intended. and term albeit where working recovery, decent again. So lining, try to

Santa And the our Luz, just could and chemistry that. volatile. where I we I where is that the and have recovery plummets. Luz use kind What the of recovery the we in plant I is say changes then Santa quite is And add if Anita, to have something would targets. exceeding with would excellent at word recovery periods periods

work some to continuing is and struggle on that get And that's we're to something stability. we're to continuing with something trying

just forecast our us challenging recoveries volatility, making this we're think it's of trending because calls some of as this and can out all for see Santa for mean, -- through the to headway great I has Luz year, you worked been good So very us. I our

volatility into the into Luz last help project recoveries future to multiple don't probably I seen want said, desliming going all Santa as at weeks this refine because year X and really seen stable. think relatively circuit, been that and to have we've X or actually going this I times. to that's The over But going But Doug we've the XXXX. best the we're

more and when February guidance, a better By this, released hopefully, on you we XXXX have our we'll give can handle details.

Okay. night. And the But I sure to and the had reiteration or was is always different. think a a companies pit. it the into I it little expecting then it that question I earlier? it of bit on to it expectation of like Or last Piaba not at if I'm like get -- said a was target? QX Arizona if a this couldn't QX. was lot change report last you're expecting Were into -- is you Piaba get in --

we QX. the in was and QX opportunity exactly said. target, Yes. We're eastern had on is in West but to doing October End actually, the start what well, it the Piaba we of

Sorry.

No, today. I the... what know I feel to don't

bringing track and much [indiscernible] our that as on that. very with on We're we did would expectations well, we indicate do

there So well. were in as

we be us more X had mining. lot have essentially last into gives season, rainy and we year going it that than continue can areas a the So we to flexibility

time on We'll to deleveraging? more the is your potentially online. give or take for Are one line from for clarity Peter. any you you, This plan able

this debt in some September, treasury? you'll converted share That or will notes, do the of retire retire because it's in money of as instance, next get right convertible the things. the either matures think $XXX from is, year the matures, million for likely the not a which as that. see we'll I it price, One of second will of us combination

cash facility from paying optimize be with with us mines. loan aggressive credit consolidate flow ownership revolving of and you'll took think debt The that opportunistic in And out then we maturity to I see the Greenstone, as term will well. down that

to extending our or maturing approach then of on will, outright it combined to if and also the deleveraging. you a take work retirement debt we'll it maturities, ladder So

Operator, go ahead.

from comes Next Genuity. Hoy question Canaccord Jeremy from

provide there for discussions [indiscernible] the all And could with end me. be as mentioned one a drag believe I to XXXX expectation? XXXX. into that color the Just Previously, that it could that resolution was guys just you a you that any Or on by well? could more communities quick Is thought the

Sure, Jeremy.

secure agreements that things only so So give you that is the effectively. we're Filos. Los certainty, can much XXXX, and a the future able in operations to of a we to is so a we toward timing it, not of of say few can color. -- through of this suspension do that with then these would to the have to occur move appreciate do quarter negotiation, and There's I need commercial some would I the long-term renegotiate If first course

the discussions I want constructive said, think We operate. say being obviously, That that us. to stakeholders, with it's all community that mind we've had communities all members, government, fair to

think it's I to But everybody -- is goal of are the Nobody wants So get these agreement. mine. this close a to an to negotiation.

if place. we're year agreements don't we're with we date. going to line in long early this to this toward term that But to So not QX, the a sand in the end by of we're because run mine have the somewhere these to a and for not move as going have

these are we agreements anyways because And new expiring. need agreements also,

continue for is on resolution. So everybody engaged, this, And time a engaged and working I we and we critical we'll there, that. working involved toward it's all it a is get would and certainly, in us, we're -- and we're very say very hope

realize I do specifics, tough color appreciate but Great. Okay. provide to the it's I

Jeremy? done all You

Yes, that's it for me.

of permitting We online an Castle line time questions our the and couple Mountain, have just expansion plans. on about update for a

we doing was part that Phase that So we've agglomeration -- the of I. low-grade and were as Those all contractor we've Castle, mining as provided. said, crushing and of suspended material

under and continue and have do from reduced and drawing do ounces off site, continue leaching to well to residual of on areas on leaching we've re-leaching size to been So team the previously pad, irrigation. a we that minimum with

through possible as permitting as that long the So continue will phase.

already we're engaged process. dealt review forward the agreed having BLM county. BLM and through of documents, we'll interaction new the EIS, the and with on had -- have of to the for then we'll looking of a hope notice contract good to coming intent, in notice see provide that for of already We the our work or to we and then and for to We've completion into permitting the year way support whole be with

So it's advancing well.

I we questions no more do phones. online, you from want have remarks? Greg, some and Okay. have closing more questions no to the do

mean I quarter reiterate, course, I Yes. X third Equinox quarter. We're Rhylin. just very for ways. this a gold think strong to looking into the forward much Thanks, of quarter And Obviously, in Greenstone to was strong very record prices. XXXX. very strong really a here of lot ramps fourth as enjoying up a

so for February we'll to again year-end. in talk everyone here And

reach other take any our has bit of months. free you feel over course, questions, the And at. we'll you of reach doing out couple and Rhylin, out to to next website be have to want of a any to information If me, to look a little might marketing

So thanks, everyone. I appreciate it.

Thanks you Operator, conclude for us can now the joining call. today.

brings a This close conference today's call. to

you lines. your and participating, disconnect pleasant a may You for have day. Thank