Equinox Gold reports adjusted net loss in Q1 2021, maintains its guidance
(Kitco News) - Equinox Gold (TSX: EQX, NYSE American: EQX) announced today that it has produced 129,233 oz of gold in Q1 2021, a 45% increase over Q1 2020 (88,951 oz), mainly due to inclusion of acquired Leagold’s assets from March 10, 2020. Q1 2021 production was 5% lower compared to the previous quarter.
The company’s realized revenue was $229.7 million on sales of 128,555 oz of gold in Q1 2021, compared to revenue of $255.5 million on sales of 136,418 oz of gold in Q4 2020.
The company said that the decrease in ounces sold from Q4 2020 to Q1 2021 is mainly due to lower production at Mesquite as the result of planned limited stacking of ore, as well as heavy rains in Brazil which resulted in some of the mines processing a portion of lower-grade stockpiles instead of run-of-mine ore.
Earnings from mine operations in Q1 2021 of $44.2 million decreased from $97.7 million in Q4 2020, and net income in Q1 2021 was $50.3 million compared to $91.2 million in Q4 2020. The decrease in earnings from mine operations and net income was largely driven by the decrease in revenue and higher operating costs at Los Filos as it recommenced operations after resolution of the community blockade.
Adjusted EBITDA for Q1 2021 of $60.5 million decreased from $82.1 million in Q4 2020 and adjusted net loss of $3.6 million for Q1 2021 decreased from adjusted net income of $35.7 million in Q4 2020. Decreases in adjusted EBITDA and adjusted net income (loss) were largely due to lower realized gold prices and higher operating costs, as described above.
Following the acquisition of Premier and sale of Pilar in April 2021, the company maintains its 2021 production guidance of 600,000 to 665,000 oz of gold and cost guidance for cash costs of $940 to $1,000 per oz of gold sold and AISC of $1,190 to $1,275 per oz of gold sold.
Equinox Gold is a Canadian mining company operating entirely in the Americas, with seven operating gold mines and a plan to achieve more than one million ounces of annual gold production from a pipeline of development and expansion projects.