Canadian operations driving production growth for Equinox Gold
TSX- and NYSE-listed Equinox Gold delivered sequentially higher production at its Canadian operations in the quarter ended June 30, with 97273 oz of combined gold production from the Greenstone and Valentine mines.
The company's consolidated gold production was 176836 oz in the quarter.
Consolidated year-to-date production totalled 374464 oz, putting the company on track to meet its full-year production guidance of between 700000 oz and 800000 oz.
Production from the Canadian operations, with Greenstone based in Ontario and Valentine based in Newfoundland, continues to steadily increase and is expected to strongly contribute to output in the second half of the year.
"At Greenstone, mining rates averaged more than 199000 t/d following the winter months while mill throughput averaged 26856 t/d. Importantly, we see a growing number of days operating above nameplate capacity, with 69% of the days in the quarter having exceeded 27000 t/d run rates, compared with 51% of the days in the first quarter," explains Equinox CEO Darren Hall.
At Valentine, the process plant averaged 7730 t/d, or 113% of nameplate capacity. Equinox also expects production from this plant to increase in the second half of the year, driven by higher mill feed grades and strong plant performance.
Hall confirms that early works at Valentine's Phase 2 mill expansion will begin in the second half of the year.
“The quarter also marked two important strategic milestones. We announced our proposed business combination with Orla Mining, which we believe will create a premier North American gold producer with about 1.1-million ounces of expected yearly gold production in 2026, a funded pathway to about 1.9-million ounces of yearly production over time, and a portfolio of high-quality, long-life assets capable of generating meaningful free cash flow and long-term value for shareholders," Hall states.
Equinox also secured 20-year land access agreements with the three communities that host the multimillion-ounce Los Filos mine, a significant step towards unlocking the value of this high-quality long-term growth asset in the company's portfolio.
"In addition to securing long-term land access, we established a new framework governing labour and supply services that reflects a more disciplined, transparent and sustainable operating model. We have initiated restart planning while advancing technical work to optimise the operation, including evaluating a rightsized carbon-in-leach development scenario.
"We believe Los Filos has the potential to become another high-quality, cornerstone asset within our portfolio and a meaningful contributor to Equinox's long-term growth," Hall notes.
As the company moves into the second half of the year, its priorities remain clear: continue delivering operational improvements at Greenstone and Valentine, advance and close the proposed combination with Orla Mining, progress the restart and long-term development plans for Los Filos, and execute on the organic growth opportunities across the group's portfolio.
"We believe these initiatives position Equinox to continue strengthening its operating performance while creating substantial long-term value for shareholders," Hall concludes.
