Equinox Gold Posts US$224.6 Million In Revenue, US$78.7 Million Net Loss For Q2 2022

Equinox Gold Corp. (TSX: EQX) reported late on Thursday its financial and operational results for Q2 2022, which highlighted revenue of US$224.6 million. This is a marginal increase from last quarter’s US$223.2 million but a slight decrease from last year’s US$226.2 million.

But the company posted a US$78.7 million net loss which is a notable decrease from last quarter’s US$19.8 net loss and from last year’s US$403.7 million net income. The quarterly loss translates to US$0.26 per share.

Following the earnings release, the firm’s shares opened to a decline of at least 6% at the start of the trading day today.

The firm’s adjusted EBITDA for the quarter also dipped to US$24.1 million from last quarter’s US$43.4 million and last year’s US$51.9 million.

On the production side, the mining firm produced 120,813 gold ounces, an increase from last quarter’s 117,452 ounces but a decline from last year’s 122,656 ounces. The same trend goes for gold sales: 120,395 ounces during the quarter compared to 119,324 ounces last quarter and 124,712 ounces last year.

“Although we experienced operational challenges at several of our sites this quarter, we expect improved performance in the second half of the year with increased production and lower costs. Inflation has certainly increased the cost of consumables and our team is working hard to find offsetting savings so we can maintain a strong business during this market downturn,” said CEO Christian Milau.

All-in sustaining costs also spiked to US$1,657 per ounce for the quarter from US$1,577 per ounce last quarter and US$1,383 per ounce last year. Conversely, average realized gold price dipped to US$1,856 per ounce this quarter from US$1,862 per ounce last quarter but increased from last year’s US$1,806 per ounce.

The company generated operating cash flow of US$16.4 million during the quarter from last quarter’s US$33.5 million and last year’s US$31.6 million. This led to the firm ending the period with a net free cash outflow of US$13.0 million vis-a-vis an outflow of US$0.3 million last quarter and a free cash flow of US$14.3 million last year.

This also led the company to end the quarter with US$159.7 million in cash and cash equivalents, a marginal increase from its last quarter’s balance of US$151.2 million.

The firm reiterated its updated guidances of 550,000 – 615,000 ounces of gold production and AISC of US$1,470 – US$1,530 per ounce sold, taking into consideration the withdrawn guidance for the suspended operations at the RDM mine in Brazil during the quarter. For the first half of the year, the firm has produced a total of 238,265 ounces and averaged at US$1,433 AISC per ounce sold.

Equinox Gold last traded at $5.55 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.

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