Equinox Gold boosts 2020 production 137%, earnings from mine operations surge three-fold
(Kitco News) - Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) reported Thursday that the company exceeded its revised production guidance with total production of 477,186 ounces of gold in 2020, a 137% increase over 2019 (201,017 ounces).
The company’s earnings from mine operations were $287.7 million and net income was $22.3 million or $0.10 per share. Adjusted net income was $82.7 million or $0.39 per share, cash flow from operations before changes in working capital was $231.7 million and adjusted EBITDA was $273.8 million.
“Equinox Gold’s 2020 results reflect delivery on the company’s growth and diversification strategy. Our seven operating mines generated 477,200 ounces of gold and operating cash flow of $217 million in the year, compared to our 2019 production of 201,000 ounces of gold and $60 million in operating cash flow,” said CEO Christian Milau.
“Our acquisition of Premier Gold Mines will bring further scale and diversification with the addition of a producing mine in Mexico and a 60% interest in the construction-ready, world-class Hardrock project in Ontario, Canada. With strong cash flow from our operating mines and a healthy balance sheet, Equinox Gold is an excellent position to achieve ambitious goals in 2021 and beyond in terms of gold production and cash flow as we continue to develop our extraordinary pipeline of development and expansion projects,” added Milau.
Equinox expects to produce 600,000 to 665,000 oz of gold in 2021, an approximate 33% increase over the company’s 2020 full-year production.
Equinox Gold operates entirely in the Americas, with two properties in the United States, one in Mexico and five in Brazil. On December 16, 2020, Equinox Gold announced its friendly acquisition of Premier Gold Mines, which will bring further diversification and scale with the addition of a producing mine in Mexico and a construction-ready project in Ontario, Canada.