Equinox Gold Guides To 600,000 Ounces Of Gold Production In 2021

Equinox Gold Corp (TSX: EQX) this morning released its production guidance for 2021 across all of its operations. The company referred to 2021 as a “year of investment,” within the guidance, indicating it will be returning much of its capital to its portfolio of mines and growth projects.

The company has guided for overall production of 600,000 to 665,000 ounces of gold, which is a 33% increase over the 477,200 ounces of gold produced in 2020. The largest contributor to this is that of the Los Filos mine, which has been guided to 170,000 to 190,000 ounces of production, followed by the Mesquite mine in the USA with production of 130,000 to 140,000 ounces.

Cash costs per ounce meanwhile have been guided to $940 to $1,000m while all in sustaining costs are estimated to be between $1,190 and $1,275 per ounce. Sustaining capital across all projects is pegged at $178 million, while non-sustaining capital is anticipated to be $249 million.

The high dollar figures being placed into the mine are expected to pay off well for the company, with the company indicating that 2022 production should be roughly 900,000 ounces of gold, which is expected to be mined at “significantly lower costs.” The company also placed a target of one million ounces of gold being pulled out of the ground across all properties beginning in 2023.

Guidance is expected to be updated following the closing of the acquisition of Premier Gold Mines.

Equinox Gold last traded at $12.89 on the TSX.

Information for this briefing was found via Sedar and Equinox Gold. 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.

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