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(Kitco News) - Equinox Gold (TSX: EQX) (NYSE: EQX) announced yesterday that the company produced 122,746 ounces of gold in Q1 2023, up 5% compared to Q1 2022 (117,452 ounces). All-in sustaining costs (AISC) were $1,658 per ounce (Q1 2022: $1,577 per ounce).
In Q1 2023, the company sold 123,295 ounces of gold, 3% more compared to Q1 2022 primarily due to the contribution of production from Santa Luz, which achieved commercial production at the end of Q3 2022, and higher production at Aurizona.
Earnings from mine operations were $14.5 million in Q1 2023 compared to $28.5 million in Q1 2022.
The company explained that the decrease in earnings from mine operations compared to Q1 2022 was primarily due to no earnings from mine operations at Mercedes, as well as lower earnings from mine operations at Mesquite and Castle Mountain, driven by lower production, and at Aurizona, driven by higher operating costs related to the impact of a contract renewal with the current mining contractor, which reflects the increasing cost of operations.
The company’s net income in Q1 2023 increased to $17.4 million compared to a net loss of $19.8 million in Q1 2022.
Equinox said that the higher net income was mainly due to other income of $31.9 million in Q1 2023 compared to other expense of $19.0 million in Q1 2022, offset partially by lower earnings from mine operations. Other income for Q1 2023 includes a $34.5 million gain on the sale of the company's partial interest and reclassification of investment in i-80 Gold.
In Q1 2023, adjusted EBITDA was $57.0 million compared to $43.1 million in Q1 2022, and adjusted net loss was $8.2 million compared to adjusted net loss of $24.2 million in Q1 2022.
The company noted that adjusted EBITDA increased and adjusted net loss decreased in Q1 2023 compared to Q1 2022 primarily due to a realized loss on gold contracts in Q1 2022 compared to a realized gain on gold contracts in Q1 2023, offset partially by lower earnings from mine operations compared to Q1 2022.
Equinox also reiterated its 2023 production and cost guidance of 555,000 to 625,000 ounces of gold at cash costs of $1,355 to $1,460 per ounce and AISC of $1,575 to $1,695 per ounce.
President and CEO Greg Smith commented, "Equinox Gold had a good start to the year, in terms of both development and operations. Greenstone construction continues to progress on time and on budget for first gold pour in the first half of 2024. We successfully strengthened our balance sheet, substantially increasing our cash position and ending Q1 2023 with over $410 million in available cash and credit. Permitting for the expansion of our Castle Mountain mine is progressing well and the feasibility study for the addition of an underground mine at Aurizona is nearing completion for release mid-year.
“Further, we have continued to achieve strong performance on our safety and environmental targets, and gold production and costs during the quarter have us well positioned to achieve our 2023 guidance."
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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