(Kitco News) - On Wednesday, Equinox Gold (TSX, NYSE: EQX) announced that the company produced 143,615 ounces of gold in Q3 2022, up 3% compared to Q3 2021 (139,758 ounces).
In Q3 2022, the company’s earnings from mine operations were $7.4 million (Q3 2021- $45.7 million). Earnings from mine operations were lower in Q3 2022 compared to Q3 2021 due to lower realized gold price per ounce, higher operating costs, supply constraints, and inflationary pressures, particularly from increased prices of oil and other consumables, it said.
The company added it incurred a net loss in Q3 2022 of $30.1 million (Q3 2021 - net loss of $8.1 million), which was impacted by lower earnings from mine operations and loss on the change in fair value of share purchase warrants.
According to a press release, based on production to date at Los Filos and Aurizona, both of which experienced operational challenges that are expected to affect Q4 2022 production, and the ongoing inflationary macro-economic environment, the company expects gold production to be approximately 540,000 ounces for the year with costs to exceed the upper end of AISC guidance of $1,530 per oz by approximately 5%.
President and CEO Greg Smith commented, "As expected, gold production in the third quarter increased meaningfully from production in the second and first quarters. Costs, however, were higher than expected as the result of persistent global inflationary pressures coupled with lower than planned production. We are reviewing mine plans across the portfolio with a focus on improving productivity while managing costs.
"We continue to advance our long-term growth strategy. Our new Santa Luz mine in Brazil achieved commercial production effective October 1st, and our Greenstone project in Ontario was more than 57% complete at the end of October. The Greenstone team continues to perform admirably, keeping the project on budget in an inflationary environment and on schedule to pour first gold in H1 2024."
Equinox Gold is a Canadian mining company with seven operating gold mines, construction underway at a new project, and a plan to achieve more than one million ounces of annual gold production from a pipeline of development and expansion projects.
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