Equinox Gold Corp. (TSX: EQX) reported today its financial and operational results for Q2 2021, which highlighted revenue of US$226.2 million. This is an increase from last year’s US$215.4 million.
But the company posted US$325.7 million net income for the quarter which is a notable increase from last year’s net loss of US$77.8 million. The quarterly income translates to US$0.96 earnings per diluted share.
The increase in the bottom line is mainly due to an approximately US$281.8 million gain from the sale of Solaris Resources shares, fair value adjustment of the company’s investment in Solaris, and the sale of Pilar Mine. Before taking these gains into consideration, the company’s income from operations came in at US$18.2 million compared to US$32.1 million last year.
However, the mining firm’s gold production and sales for the quarter dipped to 122,656 ounces and 124,712 ounces from last quarter’s 129,233 ounces and 128,555 ounces, respectively. The company attributes this to lower production at Aurizona and Fazenda sites, and the suspension of activities at Los Filos site. While the company acquired Mercedes mine in April 2021, its throughput is offset by the sale of Pilar mine.
Equinox Gold ended the quarter with a cash and cash equivalents balance of US$333.9 million, compared to US$344.9 million on December 31, 2020.
The company also updated its 2021 production guidance to 560,000 – 625,000 gold ounces as it adjusts to the recent performance of its properties in Brazil and the temporary suspension of activities at Los Filos. To date, Equinox Gold has produced 251,919 gold ounces for the year.
You may see the full details of Equinox Gold’s Q2 2021 financial and operational results here.
Equinox Gold last traded at $8.69 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.