Equinox Gold Guides 2022 Production To 625,000 – 710,000 Gold Ounces
Equinox Gold Corp. (TSX: EQX) shared today its 2022 production guidance, targeting 625,000 – 710,000 gold ounces for the year. This is an increase from its 2021 production of 602,100 ounces.
“Our 2022 guidance represents the fourth consecutive year of production growth at Equinox Gold,” said CEO Christian Milau.
The annual production in 2021 met the guidance of 560,000 – 625,000 ounces. The production this year is expected to include results from the newly commissioned Santa Luz mine in Brazil.
The firm is also estimating cash costs and all-in sustaining costs for 2022 to be US$1,080 – US$1,140 and US$1,330 – US$1,415 per ounce, respectively. In 2021, the firm’s guidance for these costs are US$1,025 – US$1,075 and US$1,300 – US$1,375 per ounce, respectively.
The company also earmarked US$195 million for sustaining capital expenditures as it works towards “becoming a million-ounce producer.” This investment is expected to focus on stripping campaigns at the Mesquite, Aurizona, and Santa Luz mines, and the delayed underground development work at the Los Filos mine.
Milau added that the firm’s key focus in 2022 is the Greenstone project construction, which is estimated to take up US$326 million of the estimated non-sustaining capital of US$487 million next year.
After releasing its Q4 and full-year 2021 production results, the company saw BMO Capital Markets reiterate their $14.50 12-month price target and outperform rating for the firm.
Equinox Gold last traded at $8.71 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.