Equinox Gold (EQX) Q2 2024 earnings summary

Executive summary

• Achieved first gold pour and ramp-up at Greenstone mine, now fully owned after acquiring the remaining 40% stake for $960.9 million, consolidating a major Canadian asset and increasing production and cash flow.

• Q2 2024 production was 122,221 oz gold, with 115,423 oz sold at a realized price of $2,328/oz; first half 2024 production totaled 234,000 oz.

• Net income for Q2 2024 surged to $283.8 million ($0.72/share basic), driven by a $470.4 million gain on Greenstone remeasurement; adjusted net loss was $5.8 million.

• 2024 is positioned as a transformative year with increased scale, lower costs, and higher cash flow, despite operational setbacks at Aurizona and Mesquite.

• Safety incident: one fatality at Fazenda mine in Brazil, leading to a temporary site-wide suspension and safety review.

Financial highlights

• Q2 2024 revenue was $269.4 million, nearly flat year-over-year, with earnings from mine operations of $26.6 million.

• Adjusted EBITDA was $51.3 million, flat sequentially but down from Q2 2023, impacted by realized losses on gold and FX contracts.

• Cash flow from operations before working capital changes was $45.1 million.

• Unrestricted cash at June 30, 2024 was $167.5 million; net debt was $1,308.9 million.

• Total assets increased to $6.68 billion at June 30, 2024, with total liabilities at $3.47 billion.

Outlook and guidance

• 2024 gold production guidance updated to 655,000–750,000 oz, with cash costs of $1,305–$1,405/oz and AISC of $1,635–$1,735/oz.

• Sustaining expenditures forecast at $210 million and non-sustaining at $255 million for 2024.

• Greenstone expected to contribute 175,000–205,000 oz at AISC $840–$940/oz in 2024, with commercial production targeted for Q3.

• Castle Mountain mining suspended for Phase 2 permitting; heap leach processing to continue.

• Los Filos guidance subject to successful land access agreements; may re-evaluate operations if not achieved.