Equinox Gold (TSX: EQX) this morning announced that it has halted operations at its RDM Mine in Brazil. The production halt comes as a result of delayed permits related to its tailings storage facility.
Presently, the company is awaiting on officials to provide permits for a scheduled tailings storage facility raise on site to be able to continue with production. With the delay of permits, the company has indicated it will temporarily suspend operations at the site until permits are received. Once received, the company estimates it will take roughly two months for the contractor to mobilize and complete the work required to resume operations at the site.
Previously 2022 production guidance provided for 70,000 to 70,000 ounces of gold production for the year. The guidance has now been withdrawn. The figure represents roughly 11% of previously forecasted gold production by the company as a whole.
The most recent quarter saw the RDM mine account for $13.4 million in revenue, represents just 6.0% of Equinox’s total revenue for the quarter. The mine also posted a loss from operations of $1.3 million for the three month period ended March 31, 2022.
The company currently anticipates receiving the required regulatory approval in the current quarter.
Equinox Gold last traded at $7.14 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.