Equinox Gold (EQX) 7 Nov 24 2024 Q3 Earnings call transcript

Equinox Gold Corporation held its third quarter 2024 earnings call, highlighting a record quarter marked by safety accomplishments, significant ramp-up progress at the Greenstone project, and a successful fundraising initiative. CEO Greg Smith led the call, discussing the company's operational and financial performance in detail, along with COO Doug Reddy and CFO Peter Hardie.

Safety Performance and Greenstone's Ramp-Up

Smith began by acknowledging the company's strong safety performance, with six of its sites recording zero lost-time incidents and an overall rate of 1.79 per million hours worked. Environmental incidents were also absent during the quarter. The operational focus was on the Greenstone project, which saw significant progress in mining and milling, despite slight delays due to process issues. The project produced approximately 59,000 ounces of gold since the first pour in May, with an updated production guidance of 110,000 to 130,000 ounces for 2024.

Financial Results and Sustainability Efforts

Peter Hardie then delved into the financial details, noting a strong revenue of $428 million for the quarter, driven by higher production and gold prices, as well as the contribution of 44,000 ounces sold by Greenstone. Operating expenses were higher due to the Greenstone ramp-up, but overall, the company's adjusted EBITDA increased significantly compared to both the previous quarter and the same period last year. The company also reported a net income of $37 million for the quarter, demonstrating solid financial health.

Successful Fundraising Initiative for Geraldton District Hospital

A notable highlight was the completion of the Greenstone Mine's fundraising initiative, which raised over CAD 1.3 million for the Geraldton District Hospital and $200,000 for local charities. This endeavor showcased Equinox Gold's commitment to supporting local communities and its employees.

Strategic Changes and Moving Forward

The call also addressed strategic changes, such as the departure of a Board member and the shift in production methods at Castle Mountain. These changes underscore the company's adaptability and its focus on optimizing operations.

As Equinox Gold continues its growth trajectory, the successful ramp-up of the Greenstone project and strong financial performance bode well for the company's future. The strategic initiatives, including the fundraising efforts and operational adjustments, highlight Equinox Gold's commitment to sustainable practices and community engagement. Investors and stakeholders can look forward to updates on the company's progress towards its production goals and ongoing commitment to safety and sustainability.