Equinox Gold Releases 2Q20 Results, Updates GuidanceBy MBN Staff | Wed, 08/12/2020 - 13:39
Equinox Gold reported its 2Q20 summary financial and operating results. The Vancouver-based company operates mines in Brazil and the US in addition to Los Filos in Guerrero, Mexico. Highlights at Los Filos include the restart of open-pit and underground development activities and an optimization study for a new carbon-in-leach plant.
“Equinox Gold achieved strong operational and financial performance in 2Q20, despite the challenges of the COVID-19 pandemic. The company once again delivered record results with 127,000oz of gold produced, low AISC of US$900/oz, US$85 million in earnings from mine operations and adjusted net income of US$27 million. We look forward to achieving important milestones at a number of projects during 2H20, including first production at Castle Mountain, the start of construction of the Los Filos expansion and Santa Luz restart projects and continued exploration across our portfolio of mines,” said CEO Christian Milau.
Equinox Gold updated production guidance at Los Filos to reflect pandemic-related restrictions. The suspension of mining and development activities at Los Filos for most of 2Q20 in compliance with a Mexico Federal Government order, resulted in both a reduction in Los Filos gold production and a delay in accessing higher-grade ore that was in the mine plan for late 2020. The company stated that the ongoing status of the COVID-19 pandemic implies unpredictable effects on operations, which makes it difficult to estimate potential future effects of COVID-19 on operations. Equinox Gold noted that it will continue to review and revise its health and safety protocols as needed to help protect both its workforce and business continuity and will provide updates regarding its operations and guidance as appropriate.
“Government mandated restrictions as a result of COVID-19 required the temporary suspension of operations and development at Los Filos for most of 2Q20, as well as temporary suspensions at Fazenda and Pilar. We have revised our fiscal 2020 guidance accordingly. All of our mines are now operating normally with enhanced testing and safety protocols and we remain focused on protecting the health and economic well-being of our workforce and local communities while continuing to safely operate our mines,” Milau remarked.
Equinox Gold underscored that it took early precautionary measures at its mine sites and offices to proactively manage issues related to the COVID-19 pandemic. The company reported that its crisis management team rapidly implemented preventive measures to help ensure the health, safety and economic well-being of its workforce and local communities. It also implemented business continuity protocols so the company's mines could continue to operate as effectively as possible. The company also designated site teams to respond to daily changes, circumstances and directives of government and health authorities to maintain open communication with the company's workforce, community leaders and local health providers to develop and share strategies to manage COVID-19, Equinox Gold said. Furthermore, the company highlighted that it has initiated routine COVID-19 testing at all of its sites with the objective of identifying carriers early so that they can self-isolate before inadvertently spreading the virus to others.