Equinox Gold(EQX) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Equinox Gold Corp. reported record quarterly gold production of approximately 214,000 ounces and sales of approximately 218,000 ounces in Q4 2024, marking the highest quarterly production in the company's history [7] - The cash cost per ounce sold in Q4 was $1,458, the lowest quarterly cash cost of the year, with an all-in sustaining cost of$1,652 [8][23] - For the full year 2024, the company achieved record annual gold production of approximately 622,000 ounces and sales of 623,000 ounces, with cash costs of $1,598 per ounce and all-in sustaining costs of$1,870 per ounce [8][22] Business Line Data and Key Metrics Changes - Greenstone mine produced 53,022 ounces in Q4 with an all-in sustaining cost of $1,141 per ounce, achieving commercial production in November [30] - Los Filos mine had its highest quarterly production of 60,521 ounces in Q4, with an all-in sustaining cost of$2,051 per ounce [39] - Fazenda mine produced 18,522 ounces in Q4 at an all-in sustaining cost of $1,251 per ounce, with plans to develop a larger open pit in 2025 [43] Market Data and Key Metrics Changes - The company realized a price of$2,636 per ounce for the 218,000 ounces of gold sold in Q4, leading to revenues of $575 million [21] - The increase in revenues was driven by higher realized prices and an increase in ounces sold, primarily due to Greenstone coming online [22] Company Strategy and Development Direction - The major focus for 2024 was commissioning the Greenstone mine and ramping up production, with plans to increase production in 2025 to between 635,000 ounces and 750,000 ounces [14] - The company is advancing plans for an underground mine at the Piaba deposit and a planned expansion at Castle Mountain to increase production to 200,000 ounces per year [13][14] - The company aims to deleverage its balance sheet in 2025, targeting to repay about$200 million in debt, depending on gold prices [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the impact of strong gold prices on financial performance, indicating that 2025 will be a great year for the company [51] - The company acknowledged the need for new long-term agreements with local communities at Los Filos to ensure the mine's economic viability [15][16] - Management highlighted the importance of reducing debt while investing in the portfolio of mines for long-term growth [26][51] Other Important Information - The company had a total recordable injury frequency rate of 2.21% in 2024, beating its safety target [9] - The company improved its S&P Global Corporate Sustainability Assessment score by over 13% compared to the prior year [10] - The company ended the quarter with $239 million of unrestricted cash and$105 million available to draw on the revolving credit facility [28] Q&A Session Summary Question: What will the company do with the extra free cash flow if gold prices remain high? - Management indicated that excess cash generated will be used to strengthen the balance sheet and focus on deleveraging [58] Question: What are the expected grades, tons, and recoveries for Greenstone in 2025? - Management expects grades to ramp up from around 1 gram in Q1 to about 1.6% to 1.7% by the end of the year [62] Question: Can you clarify the difference between ASIC and total cash cost guidance? - Management acknowledged the discrepancy and agreed to follow up with more detailed information [66][68] Question: What are the standby costs for Los Filos during suspension? - Management indicated that standby charges during previous care and maintenance were about $3 to$4 million per month, but would be significantly lower during an indefinite suspension [81] Question: What is the status of agreements with local communities at Los Filos? - Management confirmed that agreements have been reached with three communities, but only two have signed, necessitating a final agreement with all three to proceed [134]