Equinox Gold (TSX: EQX) is anticipating the cost of production to rise in 2024 across its portfolio, while production at its Greenstone project is expected to begin after two and a half years of production.
The company is anticipating cash costs of $1,340 to $1,445 per gold ounce, and all in sustaining costs of $1,630 to $1,740 per ounce for 2024. For comparison purposes, cash costs in 2023 amounted to $1,350 per ounce, while all in sustaining costs were $1,612 an ounce.
Those growing costs are largely attributable to two mines within Equinox’s portfolio of eight producing properties in 2024. The US-based Castle Mountain project is expected to see AISC come in between $2,125 and $2,200 an ounce, while the Mexican Los Filos mine is expected to produce at AISC of $2,090 and $2,190 an ounce. Notably both mines are expected to produce at a cost higher than the current price of gold, which sits at $2,025 currently.
Los Filo’s cost estimates are also subject to change based on the execution of new social and land access agreements, and new collective agreements with unions.
Production however is also anticipated to grow, with the 564,458 ounces produced in 2023 guided to grow to between 660,000 and 750,000 ounces. That growth is largely attributed to Greenstone, which is to produce 105,000 to 125,000 ounces of gold at an AISC between $840 and $940 an ounce.
For the full year of 2023, Equinox reported income from mine operations of $109.0 million, and net income of $28.9 million, or $0.09 per share. Adjusted net income came in at $21.7 million, or $0.07 per share. Adjusted EBITDA amounted to $304.4 million.
Equinox Gold last traded at $6.19 on the TSX.
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