Equinox Gold Reports Operating Cash Flow of $217 Million in 2020
TSX: EQX NYSE-A: EQX
NEWS RELEASE
Equinox Gold Reports Operating Cash Flow of $217 Million in 2020
all financial figures in US dollars, unless otherwise indicated
March 3, 2021 – Vancouver, BC – Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) (“Equinox Gold” or the “Company”) is pleased to report its unaudited financial and operating results for the fourth quarter and fiscal year ended December 31, 2020. These results are preliminary and could change based on final audited results. Equinox Gold’s 2020 audited consolidated financial statements and accompanying management’s discussion and analysis for the three months and year ended December 31, 2020, will be released later this month.
“Equinox Gold’s 2020 results reflect delivery on the Company’s growth and diversification strategy. Our seven operating mines generated 477,200 ounces of gold and operating cash flow of $217 million in the year, compared to our 2019 production of 201,000 ounces of gold and $60 million in operating cash flow,” said Christian Milau, Chief Executive Officer. “Our acquisition of Premier Gold Mines will bring further scale and diversification with the addition of a producing mine in Mexico and a 60% interest in the construction-ready, world-class Hardrock project in Ontario, Canada. With strong cash flow from our operating mines and a healthy balance sheet, Equinox Gold is an excellent position to achieve ambitious goals in 2021 and beyond in terms of gold production and cash flow as we continue to develop our extraordinary pipeline of development and expansion projects.”
HIGHLIGHTS FOR THE FULL YEAR 2020
Operational and financial
- Completed more than 13 million work hours with nine lost-time injuries across all sites
- Implemented proactive COVID-19 testing and safety protocols to keep the mines operating effectively while protecting the health, safety and economic wellbeing of our workforce and local communities
- Exceeded revised production guidance with total production of 477,186 ounces (“oz”) of gold
- Mine cash costs of $849 per oz with mine all-in-sustaining costs (“AISC”) of $1,027 per oz sold1,2
- Sold 471,786 oz of gold at average realized gold price of $1,783 per oz, generating revenue of $842.5 million
- Earnings from mine operations of $287.7 million
- Net income of $22.3 million or $0.10 per share
- Adjusted net income of $82.7 million or $0.39 per share, after adjusting for non-cash expenses1,3
- Cash flow from operations before changes in working capital of $231.7 million ($216.6 million after changes in working capital)
- Adjusted EBITDA of $273.8 million1,3
- Expenditures of $76.3 million in sustaining capital and $92.8 million in non-sustaining capital1
- Refinanced debt with low-cost $500 million corporate credit facility
- Cash and cash equivalents (unrestricted) of $344.9 million at December 31, 2020
- Net debt of $200.3 million at December 31, 2020 (including $278.9 million of in-the-money convertible notes)1
Suite 1501 - 700 West Pender St., Vancouver, BC Canada V6C 1G8 [email protected] +1 604.558.0560 www.equinoxgold.com
Corporate
- Completed at-market merger with Leagold Mining, expanding the Company’s asset portfolio with four new mines in Mexico and Brazil and a development-stage project in Brazil
- Announced acquisition of Premier Gold Mines (TSX: PG), which will further increase diversification and scale with the addition of a producing mine in Mexico and a construction-ready project in Ontario, Canada
- Increased average daily share trading liquidity from C$3 million in 2019 to more than C$40 million in 2020
- Achieved inclusion in global indices including the GDX, GDXJ, FTSE and S&P/TSX Composites
- Invested C$10.4 million in Solaris Resources (TSX: SLS) to maintain an approximate 26% interest on a fully diluted basis; current market value of Equinox Gold’s basic interest is approximately C$195 million
- Commenced online Environmental, Social and Governance (“ESG”) quarterly reporting
- Increased technical expertise, governance oversight and diversity with Board and management appointments
Construction, development and exploration
- Completed construction and commissioning of Castle Mountain Phase 1 Mine with no lost-time incidents and achieved commercial production on November 21, 2020
- Increased Mesquite Mineral Reserves by 28% and Measured & Indicated Mineral Resources by 94%
- Extended mine life at Mesquite, Aurizona and Fazenda with exploration success
- Completed maiden Indicated Resource for Tatajuba deposit at Aurizona
- Completed a positive PEA4 for potential Aurizona underground development showing 740,500 oz of gold production over a 10-year mine life, an after-tax NPV5% of $288 million and an IRR of 38% at $1,620/oz gold
- Completed 23,916 metres of deep drilling and advanced technical studies to support a prefeasibility study for potential Aurizona underground development
- Completed a positive feasibility study for Santa Luz showing 903,000 oz of gold production over an initial 9.5-year mine life, an after-tax NPV5% of $362 million and an IRR of 67% at $1,600/oz gold
- Commenced construction at Santa Luz in Q4 2020
- Advanced Los Filos optimization study for new carbon-in-leach plant, heap leach expansion, updated mine planning and a Mineral Reserve and Mineral Resource update; targeted for completion in H1 2021
FINANCIAL & OPERATING HIGHLIGHTS FOR Q4 2020
- Completed more than 2.9 million work hours with one lost-time injury across all sites
- Produced 136,352 oz of gold and sold 134,895 oz of gold, generating revenue of $252.6 million
- Mine cash costs of $848 per oz and AISC of $1,093 per oz1,2
- Earnings from mine operations of $95.3 million
- Net income of $89.4 million or $0.37 per share
- Adjusted net income of $33.9 million or $0.14 per share, after adjusting for non-cash expenses1,5
- Cash flow from operations before changes in working capital of $86.7 million ($83.0 million after changes in working capital)
- Adjusted EBITDA of $79.4 million1,5
- Expenditures of $31.5 million in sustaining capital and $17.3 million in non-sustaining capital1
_________________________________________
1. Mine cash cost per oz sold, AISC per oz sold, adjusted EBITDA, adjusted net income, adjusted EPS, sustaining capital, non-sustaining capital and net debt are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.
2. Consolidated AISC/oz excludes corporate general and administration expenses.
3. Primary adjustments for full-year 2020 were $29.9 million loss on the change in fair value of warrants, $14.1 million unrealized loss on the change in fair value of foreign exchange contracts and $12.9 million unrealized loss on the change in fair value of gold collars and forward contracts.
4. The Preliminary Economic Assessment (“PEA”) is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the results contemplated in the PEA will be realized.
5. Primary adjustments during Q4 2020 were $17.4 million unrealized gain on the change in fair value of warrants, $11.1 million unrealized gain on the change in fair value of foreign exchange contracts, $11.2 million unrealized gain on the change in fair value of gold collars and forward contracts and $18.5 million unrealized gain on foreign exchange recognized within deferred tax expense.
- 2 -
RECENT DEVELOPMENTS
- Provided 2021 production and cost guidance of 600,000 to 665,000 oz of gold at mine cash costs of $940 to $1,000 per oz and AISC of $1,190 to $1,275 per oz
- Gold production is expected to increase (and AISC decrease) each quarter during the year, with approximately 30% of production occurring in Q4 2021
- Announced positive drill results from Piaba Underground and Genipapo targets at Aurizona
- Santa Luz construction more than 25% complete and on schedule for first gold pour in Q1 2022
- Announced agreement with Orion Mine Finance Group to acquire an additional 10% of the Hardrock Project in Ontario, Canada, bringing the Company’s total interest to 60% following completion of the Premier acquisition (through which the Company will acquire Premier’s 50% interest in Hardrock)
- Premier acquisition expected to close in March 2021, and the additional 10% of Hardrock shortly thereafter
- Premier securityholders approved the acquisition on February 23, 2021
- Require Mexican Comisión Federal de Comptetencia Económica anti-trust clearance decision and other regulatory approvals
Further to the Company’s news release on December 16, 2020, Equinox Gold plans to complete a non-brokered private placement of subscription receipts at a price of C$10.00 per subscription receipt for gross proceeds of C$75 million. The private placement is fully underwritten by the Company’s Chairman, Ross Beaty, and other insiders of Equinox Gold will also be participating in the financing. Each subscription receipt will entitle the holder to receive one common share of Equinox Gold on satisfaction of certain conditions, including completing the Premier Gold acquisition. The financing is subject to completion of definitive documentation, customary closing conditions and regulatory approvals, including the approval of the Toronto Stock Exchange for the pricing and other terms of the financing.
CONFERENCE CALL AND WEBCAST
Equinox Gold will host a conference call and webcast on Thursday, March 4, 2021, commencing at 7:00 am PT (10:00 am ET) to discuss the Company’s fourth quarter and full-year 2020 results and upcoming milestones. All participants will have the opportunity to ask questions of Equinox Gold’s CEO and executive team. The webcast will be archived on Equinox Gold’s website until September 4, 2021.
Conference call Toll-free in U.S. and Canada: 1-800-319-4610 International callers: +1 604-638-5340
Webcast Login at www.equinoxgold.com
- 3 -
CONSOLIDATED RESULTS
December 31, December 31, 2020 2019 Basic weighted average shares during period 212,487,729 112,001,484 Shares outstanding end of period 242,354,406 113,452,363
| Three months ended | Year ended | ||||||
|---|---|---|---|---|---|---|---|
| Unit | Dec 31, | Dec 31, 2019 | Dec 31, | Dec 31, 2019 | |||
| 2020(1) | 2020(1) | ||||||
| Operating Data | |||||||
| Gold produced(2) Gold sold Average realized gold price Mine cash cost per oz sold Mine AISC per oz sold(3,4) | oz oz $/oz $/oz oz | 136,352 | 80,176 80,330 1,482 768 856 | 477,186 | 201,017 196,803 1,431 807 929 | ||
| 134,895 | 471,786 | ||||||
| 1,871 | 1,783 | ||||||
| 848 | 849 | ||||||
| 1,093 | 1,027 | ||||||
| Financial Data | |||||||
| Revenue Earnings from mine operations Net income (loss) Earnings (loss) per share Adjusted EBITDA(4) Adjusted net income(4) Adjusted EPS(4) | M$ M$ M$ $/share M$ M$ $/share | 252.6 | 119.0 38.5 (8.5) (0.08) 44.6 20.5 0.18 | 842.5 | 281.7 83.9 (20.3) (0.16) 96.5 37.5 0.34 | ||
| 95.3 | 287.7 | ||||||
| 89.4 | 22.3 | ||||||
| 0.37 | 0.10 | ||||||
| 79.4 | 273.8 | ||||||
| 33.9 | 82.7 | ||||||
| 0.14 | 0.39 | ||||||
| Balance Sheet and Cash Flow Data | |||||||
| Cash and cash equivalents (unrestricted) Net debt(4) Operating cash flow before changes in working capital | M$ M$ M$ | 344.9 | 67.7 196.3 36.2 | 344.9 | 67.7 196.3 76.1 | ||
| 200.3 | 200.3 | ||||||
| 86.7 | 231.7 |
1. At December 31, 2020, the Company adjusted the fair value of heap leach inventory to reflect an updated estimate of conversion costs for heap leach inventory and forward gold prices as of the acquisition date, resulting in a net increase to heap leach inventories, including reprocess material of approximately $10.7 million. The Company has updated financial results for the periods impacted.
2. For the year ended December 31, 2020, includes 1,523 oz of gold produced at Castle Mountain during ramp-up and commissioning. For the year ended December 31, 2019, includes 6,076 oz of gold produced at Aurizona during ramp-up and commissioning.
3. Consolidated mine AISC per oz sold excludes corporate general and administration expenses.
4. AISC per oz sold, adjusted EBITDA, adjusted net income, adjusted EPS and net debt are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.
- 4 -
CONSOLIDATED 2020 RESULTS COMPARED TO 2020 FORECAST
| 2020 Actuals | Guidance Range | |
| Gold production (oz)1 AISC ($/oz)2,3 Sustaining capital (M$)3 Non-sustaining capital (M$)3 | 477,186 $1,027 $77 $93 | 425,000 - 465,000 $975 - $1,025 $90 $144 |
1. Production and costs attributable to Equinox Gold post completion of the Leagold merger on March 10, 2020. Includes 1,523 oz of gold produced at Castle Mountain during ramp-up and commissioning.
2. AISC per oz sold excludes corporate general and administration expenses.
3. AISC per oz sold, sustaining capital and non-sustaining capital are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.
Guidance was updated on August 10 primarily to reflect the effect of government-mandated temporary suspensions related to COVID-19 and revised on November 9 to reflect the effect of the Los Filos blockade, which was removed in December.
Capital expenditures were lower than planned for the year, primarily due to the suspension of mining and development activities at Los Filos as the result of a community blockade and the deferral of certain expenditures as the result of COVID-19 restrictions.
2021 OUTLOOK
On February 9, 2021, the Company announced 2021 production guidance of 600,000 to 665,000 oz of gold, an approximate 33% increase over the Company’s 2020 full-year production. Cost guidance includes cash costs of $940 to $1,000 per oz of gold sold and AISC of $1,190 to $1,275 per oz of gold sold. The Company may revise guidance during the year to reflect changes to expected results.
Consolidated gold production is expected to increase quarter-over-quarter during the year, with the fourth quarter benefiting from higher-grade ore at both Los Filos and Mesquite. Cash costs for 2021 reflect the lower grades mined at Los Filos for the first half of the year until the Guadalupe stripping program and Bermejal underground development are complete, providing access to higher-grade ore. Bermejal underground development will not commence, however, until successful resolution of an amended community support agreement with the Carizalillo community. AISC in 2021 reflect significant development and stripping campaigns at Los Filos, Mesquite and Aurizona to access higher-grade ore, which will boost production and reduce costs in the second half of the year.
The Company is investing significantly in its projects in 2021, setting the foundation for lower-cost, longer-life mines and substantial production growth going forward. The Company has budgeted $178 million in sustaining capital for 2021 (including some capital carried over from 2020), compared to the total spend in 2020 of $76.3 million. The Company is also undertaking meaningful growth projects in 2021, including construction of the Santa Luz mine, advancing expansion projects at the Los Filos mine, completing a pit expansion at the RDM mine and significant exploration programs focused on mine life extension. The Company has budgeted $249 million in non-sustaining growth capital for 2021, compared to $92.8 million in 2020.
The Company expects to complete the Premier Gold acquisition in March 2021. Guidance will be updated following completion of the acquisition to include the producing Mercedes Mine in Mexico and to reflect expenditures associated with construction of the Hardrock Mine in Ontario, Canada, which is expected to commence in Q4 2021 as Santa Luz construction is nearing completion.
- 5 -
OPERATING & FINANCIAL RESULTS BY MINE
Mesquite Gold Mine, California, USA
Three months ended Year ended
| Operating Data Unit | Dec 31, | Sep 30, Dec 31, 2020 2019 | Dec 31, | Dec 31, 2019 |
|---|---|---|---|---|
| 2020 | 2020 | |||
| Ore mined and stacked on leach pad kt Waste mined kt Open pit strip ratio w:o Average gold grade stacked to leach pad g/t Gold produced oz Gold sold oz | 3,498 | 4,350 5,547 8,163 8,403 1.88 1.52 0.57 0.31 31,024 40,321 31,419 41,316 | 17,351 | 25,221 32,925 1.31 0.32 125,736 126,724 |
| 8,487 | 30,782 | |||
| 2.43 | 1.77 | |||
| 0.72 | 0.48 | |||
| 33,717 | 141,270 | |||
| 33,032 | 139,872 | |||
| Financial Data | ||||
| Revenue M$ Cash costs(1) M$ Sustaining capital(1) M$ Reclamation expenses M$ | 61.5 | 59.6 61.2 28.8 35.4 7.4 0.8 0.6 0.8 | 245.9 | 178.2 108.3 7.0 2.6 |
| 29.5 | 125.8 | |||
| 10.5 | 24.1 | |||
| 0.4 | 2.8 | |||
| Total AISC(1) M$ AISC contribution margin(1) M$ Non-sustaining capital(1) M$ | 40.5 | 36.8 37.0 22.8 24.1 (1.8) (2.0) | 152.6 | 117.9 60.3 (8.6) |
| 21.0 | 93.3 | |||
| (0.6) | (9.2) | |||
| Mine free cash flow(1) M$ | 20.4 | 21.0 22.1 | 84.1 | 51.7 |
| Unit Analysis | ||||
| Realized gold price per ounce sold $/oz Cash cost per ounce sold(1) $/oz AISC per ounce sold(1) $/oz Mining cost per tonne mined $/t Processing cost per tonne processed $/t G&A cost per tonne processed $/t | 1,861 | 1,898 1,481 917 858 1,172 897 1.36 1.53 2.77 2.21 0.90 0.69 | 1,758 | 1,406 855 930 1.48 1.78 0.56 |
| 894 | 899 | |||
| 1,225 | 1,091 | |||
| 1.57 | 1.42 | |||
| 3.36 | 2.81 | |||
| 1.19 | 0.85 |
1. Cash costs, sustaining capital, non-sustaining capital, AISC, AISC contribution margin, mine free cash flow, cash cost per oz sold, and AISC per oz sold are non-IFRS measures.
- 2021 reflects a year of significant investment at Mesquite with a focus on mine life extension
- This will result in higher per ounce costs in the earlier part of the year as compared to H2 2021
- 2021 production estimated at 130,000 to 140,000 oz of gold
- 2021 cash costs of $925 to $975 per oz and AISC of $1,275 to $1,325 per oz
- AISC includes sustaining capital of $48 million, of which $30 million relates to a stripping program to access the higher-grade oxide Brownie deposit, which will contribute significantly to production beginning in H2 2021
- Ore stacking activity in H1 2021 will be significantly lower than in H2 2021 due to Brownie stripping
- Sustaining capital includes $10 million for leach pad expansion and $6 million for equipment
- Non-sustaining capital of $9 million is allocated entirely to exploration with a focus on resource growth and reserve replacement in the Brownie, Vista East and Rainbow deposits
- 6 -
Aurizona Gold Mine, Maranhão, Brazil
| Operating Data Unit | Dec 31, | Sep 30, Dec 31, 2020 2019 | Dec 31, | Dec 31, 2019 |
|---|---|---|---|---|
| 2020 | 2020 | |||
| Ore mined kt Waste mined kt Open pit strip ratio w:o Tonnes processed kt Average gold grade processed g/t Recovery % Gold produced(1) oz Gold sold oz | 1,231 | 955 1,271 7,493 7,239 7.85 5.69 832 800 1.38 1.62 89.9 90.1 33,248 39,855 33,238 39,014 | 3,267 | 1,845 12,082 6.55 1,571 1.46 91.0 75,282 70,080 |
| 7,301 | 19,901 | |||
| 5.93 | 6.09 | |||
| 846 | 3,227 | |||
| 1.59 | 1.41 | |||
| 90.6 | 89.8 | |||
| 37,438 | 130,237 | |||
| 38,213 | 129,004 | |||
| Financial Data | ||||
| Revenue M$ Cash costs(2) M$ Sustaining capital(2) M$ Reclamation and exploration expenses M$ | 71.6 | 63.5 57.8 22.5 26.2 8.7 5.2 1.0 0.3 | 229.6 | 103.5 50.6 13.7 0.7 |
| 23.3 | 92.4 | |||
| 10.6 | 24.4 | |||
| 0.5 | 2.7 | |||
| Total AISC(2) M$ AISC contribution margin(2) M$ Non-sustaining capital(2) M$ | 34.4 | 32.2 31.8 31.3 26.1 (1.3) (6.8) | 119.5 | 65.0 38.5 0.6 |
| 37.2 | 110.1 | |||
| (1.1) | (4.6) | |||
| Mine free cash flow(2) M$ | 36.1 | 30.0 19.3 | 105.5 | 39.1 |
| Unit Analysis | ||||
| Realized gold price per ounce sold $/oz Cash cost per ounce sold(2) $/oz AISC per ounce sold(2) $/oz Mining cost per tonne mined $/t Processing cost per tonne processed $/t G&A cost per tonne processed $/t | 1,874 | 1,909 1,482 675 672 968 814 1.42 1.89 7.36 8.79 4.10 5.94 | 1,780 | 1,477 722 928 2.01 8.62 4.91 |
| 610 | 716 | |||
| 901 | 926 | |||
| 1.78 | 1.87 | |||
| 8.18 | 8.44 | |||
| 4.14 | 4.10 |
1. Aurizona achieved commercial production on July 1, 2019. For the year ended December 31, 2019, gold produced includes 6,076 oz from the pre-commercial production phase.
2. Cash costs, sustaining capital, non-sustaining capital, AISC, AISC contribution margin, mine free cash flow, cash cost per oz sold, and AISC per oz sold are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.
Outlook
- 2021 production estimated at 120,000 to 130,000 oz of gold
- 2021 cash costs of $720 to $770 per oz and AISC of $1,075 to $1,125 per oz
- AISC includes $46 million budgeted for sustaining capital, allocated primarily to $27 million in capitalized waste stripping and $15 million for the next planned tailings storage facility (“TSF”) raise
- Non-sustaining capital of $4 million is directed to exploration and completion of the Piaba underground prefeasibility study
- 7 -
Fazenda Gold Mine, Bahia, Brazil
| Operating Data Unit | Dec 31, | Sep 30, Jun 30, 2020 2020 | Dec 31, |
|---|---|---|---|
| 2020 | 2020(1) | ||
| Ore mined – underground kt Tonnes processed kt Average gold grade processed g/t Recovery % Gold produced oz Gold sold oz | 302 | 318 317 340 333 1.51 1.44 91.4 90.3 15,118 13,954 15,346 14,151 | 1,014 |
| 332 | 1,087 | ||
| 1.91 | 1.63 | ||
| 89.9 | 90.6 | ||
| 18,196 | 51,611 | ||
| 18,237 | 51,056 | ||
| Financial Data | |||
| Revenue M$ Cash costs(2) M$ Sustaining capital(2) M$ Reclamation expenses M$ | 34.0 | 29.2 24.1 11.8 10.9 0.6 1.3 0.1 0.4 | 92.4 |
| 13.3 | 37.6 | ||
| 2.7 | 4.8 | ||
| 0.1 | 0.7 | ||
| Total AISC(2) M$ AISC contribution margin(2) M$ Non-sustaining capital(2) M$ | 16.1 | 12.5 12.6 16.7 11.5 (1.5) (0.8) | 43.1 |
| 17.9 | 49.3 | ||
| (2.1) | (4.6) | ||
| Mine free cash flow(2) M$ | 15.8 | 15.2 10.7 | 44.7 |
| Unit Analysis | |||
| Realized gold price per ounce sold $/oz Cash cost per ounce sold(2) $/oz AISC per ounce sold(2) $/oz Mining cost per tonne mined $/t Processing cost per tonne processed $/t G&A cost per tonne processed $/t | 1,859 | 1,902 1,701 767 773 816 891 15.33 17.41 10.72 9.94 4.00 4.35 | 1,807 |
| 728 | 737 | ||
| 881 | 844 | ||
| 20.84 | 17.60 | ||
| 12.66 | 10.86 | ||
| 5.59 | 4.57 |
1. Fazenda was acquired as part of the Leagold Merger. As such, comparative figures from previous quarters are not presented. Operating and financial results for the three months ended March 31, 2020 (“Q1 2020”) are for the period from March 10 to March 31, 2020.
2. Cash costs, sustaining capital, non-sustaining capital, AISC, AISC contribution margin, mine free cash flow, cash cost per oz sold, and AISC per oz sold are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.
Outlook
- 2021 production estimated at 60,000 to 65,000 oz of gold
- 2021 cash costs of $820 to $870 per oz and AISC of $1,075 to $1,125 per oz
- AISC includes $15 million of sustaining capital allocated primarily to $8 million for underground development and equipment and $4 million in open-pit waste stripping
- Non-sustaining capital of $2 million relates entirely to exploration
- 8 -
RDM Gold Mine, Minas Gerais, Brazil
| Operating Data Unit | Dec 31, | Sep 30, Jun 30, 2020 2020 | Dec 31, |
|---|---|---|---|
| 2020 | 2020(1) | ||
| Ore mined kt Waste mined kt Open pit strip ratio w:o Tonnes processed kt Average gold grade processed g/t Recovery % Gold produced oz Gold sold oz | 680 | 686 569 5,947 5,345 8.67 9.39 662 688 0.97 1.09 86.7 84.0 18,008 19,578 18,675 19,018 | 1,981 |
| 6,310 | 18,218 | ||
| 9.28 | 9.19 | ||
| 714 | 2,218 | ||
| 0.92 | 0.97 | ||
| 86.4 | 85.6 | ||
| 18,068 | 59,354 | ||
| 18,263 | 58,723 | ||
| Financial Data | |||
| Revenue M$ Cash costs(2) M$ Sustaining capital(2) M$ Reclamation expenses M$ | 34.1 | 35.7 32.5 16.7 14.1 1.6 3.2 0.2 0.2 | 106.6 |
| 19.2 | 51.8 | ||
| 3.7 | 8.8 | ||
| 0.1 | 0.5 | ||
| Total AISC(2) M$ AISC contribution margin(2) M$ Care and maintenance M$ Non-sustaining capital(2) M$ | 23.0 | 18.5 17.5 17.2 15.0 - - - - | 61.1 |
| 11.1 | 45.5 | ||
| - | (0.5) | ||
| - | (0.6) | ||
| Mine free cash flow(2) M$ | 11.1 | 17.2 15.0 | 44.4 |
| Unit Analysis | |||
| Realized gold price per ounce sold $/oz Cash cost per ounce sold(2) $/oz AISC per ounce sold(2) $/oz Mining cost per tonne mined $/t Processing cost per tonne processed $/t G&A cost per tonne processed $/t | 1,857 | 1,901 1,698 894 740 992 917 1.62 1.68 8.59 7.66 2.08 1.28 | 1,805 |
| 1,050 | 882 | ||
| 1,261 | 1,041 | ||
| 1.58 | 1.64 | ||
| 9.03 | 8.52 | ||
| 2.37 | 1.98 |
1. RDM was acquired as part of the Leagold Merger. As such, comparative figures from previous quarters are not presented. Operating and financial results for Q1 2020 are for the period from March 10 to March 31, 2020.
2. Cash costs, sustaining capital, non-sustaining capital, AISC, AISC contribution margin, mine free cash flow, cash cost per oz sold, and AISC per oz sold are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.
Outlook
- 2021 production estimated at 55,000 to 60,000 ounces of gold
- 2021 cash costs of $1,000 to $1,050 per oz and AISC of $1,175 to $1,225 per oz
- AISC includes sustaining capital of $10 million to increase capacity of the TSF
- Non-sustaining capital of $35 million relates entirely to capitalized stripping for a major expansion pushback of the main open pit, providing improved access to the ore body in future years
- 9 -
Pilar Gold Mine, Goiás, Brazil
| Operating Data Unit | Dec 31, | Sep 30, Jun 30, 2020 2020 | Dec 31, |
|---|---|---|---|
| 2020 | 2020(1) | ||
| Ore mined kt Tonnes processed kt Average gold grade processed g/t Recovery % Gold produced oz Gold sold oz | 216 | 191 158 375 355 0.90 0.85 91.8 91.0 9,940 8,646 10,003 8,750 | 597 |
| 390 | 1,205 | ||
| 0.88 | 0.88 | ||
| 90.7 | 91.0 | ||
| 9,980 | 30,923 | ||
| 10,071 | 30,656 | ||
| Financial Data | |||
| Revenue M$ Cash costs(2) M$ Sustaining capital(2) M$ Reclamation expenses M$ | 18.8 | 19.1 15.0 10.3 7.9 0.7 1.3 0.2 0.3 | 55.8 |
| 11.2 | 31.1 | ||
| 0.7 | 3.0 | ||
| 0.2 | 0.8 | ||
| Total AISC(2) M$ AISC contribution margin(2) M$ Care and maintenance M$ Non-sustaining capital(2) M$ | 12.1 | 11.2 9.4 7.9 5.6 - (0.6) (0.2) (0.1) | 34.9 |
| 6.7 | 20.9 | ||
| - | (0.7) | ||
| (0.4) | (0.6) | ||
| Mine free cash flow(2) M$ | 6.3 | 7.6 4.9 | 19.5 |
| Unit Analysis | |||
| Realized gold price per ounce sold $/oz Cash cost per ounce sold(2) $/oz AISC per ounce sold(2) $/oz Mining cost per tonne mined $/t Processing cost per tonne processed $/t G&A cost per tonne processed $/t | 1,855 | 1,901 1,707 1,029 901 1,121 1,077 29.53 22.70 7.53 7.48 3.43 3.63 | 1,810 |
| 1,109 | 1,016 | ||
| 1,202 | 1,139 | ||
| 24.93 | 26.22 | ||
| 8.51 | 7.90 | ||
| 4.06 | 3.62 |
1. Pilar was acquired as part of the Leagold Merger. As such, comparative figures from previous quarters are not presented. Operating and financial results for Q1 2020 are for the period from March 10 to March 31, 2020.
2. Cash costs, sustaining capital, non-sustaining capital, AISC, AISC contribution margin, mine free cash flow, cash cost per oz sold, and AISC per oz sold are non-IFRS measures.
- 2021 production estimated at 35,000 to 40,000 oz of gold
- 2021 cash costs of $1,200 to $1,300 per oz and AISC of $1,400 to $1,500 per oz
- AISC includes sustaining capital of $7 million for underground development
- No non-sustaining capital budgeted for 2021
- 10 -
Castle Mountain Gold Mine, California, USA
| Operating Data Unit | Nov 21 to |
|---|---|
| Dec 31, | |
| 2020(1) | |
| Ore mined and stacked to leach pad kt Waste mined kt Open pit strip ratio w:o Average gold grade stacked to leach pad g/t Gold produced oz Gold sold oz | 1,197 |
| 130 | |
| 0.11 | |
| 0.33 | |
| 5,338 | |
| 3,339 | |
| Financial Data | |
| Revenue M$ Cash costs M$ | 6.2 |
| 2.9 | |
| Total AISC(2) M$ AISC contribution margin(2) M$ Non-sustaining capital(2) M$ | 2.9 |
| 3.3 | |
| - | |
| Mine free cash flow(2) M$ | 3.3 |
| Unit Analysis | |
| Realized gold price per oz sold $/oz Cash cost per oz sold(2) $/oz AISC per oz sold(2) $/oz Mining cost per tonne mined $/t Processing cost per tonne processed $/t G&A cost per tonne processed $/t | 1,867 |
| 873 | |
| 873 | |
| 2.01 | |
| 0.97 | |
| 1.50 |
1. Castle Mountain commenced commercial production on November 21, 2020. Gold produced includes 1,523 oz poured and sold prior to commencement of commercial production. Expenditures incurred at Castle Mountain prior to achievement of commercial production are included in development projects and classified as non-sustaining.
2. Cash costs, sustaining capital, non-sustaining capital, AISC, AISC contribution margin, mine free cash flow, cash cost per oz sold, and AISC per oz sold are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.
Outlook
- 2021 production estimated at 30,000 to 40,000 ounces of gold
- 2021 cash costs of $725 to $775 per ounce and AISC of $1,100 to $1,150 per ounce
- AISC includes sustaining capital of $14 million allocated primarily to $9 million for a leach pad expansion that will accommodate the entirety of Phase 1 operations and $3 million for plant optimization
- Non-sustaining capital of $10 million includes $7 million to complete the feasibility study in Q1 2021 and commence permitting for the Phase 2 expansion, and $2 million to construct an assay lab on site
- 11 -
Los Filos Gold Mine, Guerrero, Mexico
| Operating Data Unit | Dec 31, | Sep 30, Jun 30, 2020 2020 | Dec 31, |
|---|---|---|---|
| 2020 | 2020(1) | ||
| Ore mined – open pit kt Waste mine – open pit kt Open pit strip ratio w:o Average open pit gold grade g/t Ore mined – underground kt Average underground gold grade g/t Ore re-handled for secondary leaching kt Gold produced oz Gold sold oz | - | 418 36 3,896 623 9.33 17.43 0.36 0.23 115 29 4.09 3.54 2,477 812 17,530 17,691 19,757 18,170 | 496 |
| 399 | 7,065 | ||
| - | 14.25 | ||
| - | 0.34 | ||
| - | 191 | ||
| 1.83 | 4.00 | ||
| 403 | 4,547 | ||
| 13,615 | 58,453 | ||
| 13,740 | 59,135 | ||
| Financial Data | |||
| Revenue M$ Cash costs(2) M$ Sustaining capital(2) M$ Reclamation expenses M$ | 26.4 | 37.2 30.6 22.5 14.4 4.3 3.0 0.2 0.1 | 105.9 |
| 15.1 | 58.7 | ||
| 3.2 | 11.2 | ||
| 0.1 | 0.4 | ||
| Total AISC(2) M$ AISC contribution margin(2) M$ Care and maintenance M$ Non-sustaining capital(2) M$ | 18.4 | 27.0 17.5 10.2 13.1 (6.4) (19.0) (7.0) (2.6) | 70.3 |
| 8.0 | 35.6 | ||
| (16.7) | (42.1) | ||
| (3.0) | (16.7) | ||
| Mine free cash flow(2) M$ | (11.6) | (3.2) (8.5) | (23.1) |
| Unit Analysis | |||
| Realized gold price per oz sold $/oz Cash cost per oz sold(2) $/oz AISC per oz sold(2) $/oz Mining cost per tonne mined – open pit $/t Mining cost per tonne mined – underground $/t Processing cost per tonne processed $/t G&A cost per tonne processed $/t | 1,932 | 1,878 1,675 1,139 795 1,368 962 1.79 1.79 72.26 67.42 5.06 8.04 1.21 0.99 | 1,786 |
| 1,095 | 992 | ||
| 1,337 | 1,189 | ||
| 1.85 | 1.65 | ||
| 167.38 | 68.36 | ||
| n/a | 5.90 | ||
| n/a | 1.00 |
1. Los Filos was acquired as part of the Leagold Merger. As such, comparative figures to previous quarters are not presented. Operating and financial results for Q1 2020 are for the period from March 10 to March 31, 2020.
2. Cash costs, sustaining capital, non-sustaining capital, AISC, AISC contribution margin, mine free cash flow, cash cost per oz sold, and AISC per oz sold are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.
Outlook
Representatives from Los Filos continue to meet regularly with community leaders to reach consensus on the remaining items related to benefits provided under the community’s social collaboration agreement.
- 2021 production weighted into H2 2021 and estimated at 170,000 to 190,000 oz of gold
- 2021 cash costs of $1,125 to $1,200 per oz sold and AISC of $1,330 to $1,390 per oz sold
- Cash costs and AISC are expected to be higher at the start of the year and lower in H2 2021 as grade and production increases
- Production to gradually increase during Q1 2021 as mining activities and leaching ramp up following the December restart
- Production to also increase quarter-over-quarter as development activities provide access to higher-grade ore from the Guadalupe open pit
- Additional ore will be sourced from the Bermejal underground deposit upon commencement of development, which is on hold pending finalization of the community social collaboration agreement
- 12 -
- Additional ore will be sourced from the Bermejal underground deposit upon commencement of development, which is on hold pending finalization of the community social collaboration agreement