Equinox targets 1moz annual production

The Los Filos gold mine in Guerrero state, 230 km south of Mexico City. Credit: Equinox Gold

Equinox Gold (TSX: EQX) on Wednesday provided a production and cost guidance for 2020 to reflect its expectations following the recent closure of the company’s merger with Leagold Mining.

Production guidance for 2020 is set at 540,000-600,000 oz at an all-in-sustaining cost (AISC) of $1,000-$1,060/oz. This reflects production expectations from all the new additions to the company’s portfolio after March 10, the closing date of the merger.

Total consolidated production in 2020, including gold produced by Leagold prior to the merger completion date, is estimated at 615,000-680,000 oz.

The Los Filos mine in Mexico, the major asset acquired from Leagold, is forecast to produce 170,000-190,000 oz at all-in sustaining costs (AISC) of $1,000-$1,050/oz. Guidance for the Mesquite mine in California is 120,000-130,000 oz at an AISC of $975-$1,025/oz, and for the Aurizona mine in Brazil is 115,000-125,000 oz at an AISC of $1,100-$1,150/oz.

The three operations make up more than half of Equinox’s expected annual output. The balance of the production comprises the newly acquired Fazenda, RDM and Pilar mines, as well as the Castle Mountain property.

Equinox CEO Christian Milau said the company expects to more than triple its annualized gold production in 2020, and is fully funded to increase production over the next two years to more than one million ounces annually.

However, he also acknowledged that the covid-19 pandemic may present challenges for Equinox’s operations and affect its guidance for this year, and the company will adjust expectations when necessary.

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