Equinox Gold Reports Second Quarter 2023 Financial and Operating Results: Delivers Record Production and Revenue During the First Half of 2023
Equinox Gold Reports Second Quarter 2023
Financial and Operating Results: Delivers
Record Production and Revenue During the
First Half of 2023
All financial figures are in US dollars, unless otherwise indicated
.
Vancouver, British Columbia--(Newsfile Corp. - August 2, 2023) - Equinox Gold Corp. (TSX: EQX)
(NYSE American: EQX) ("Equinox Gold" or the "Company") is pleased to announce its second quarter
2023 summary financial and operating results. The Company's unaudited condensed consolidated
interim financial statements and related management's discussion and analysis ("MD&A") for the three
and six months ended June 30, 2023 will be available for download on the Company's profile on SEDAR
at
www.sedar.com
, on EDGAR at
www.sec.gov/edgar
and on the Company's website at
www.equinoxgold.com
. The Company will host a conference call and webcast on August 3, 2023
commencing at 4:00 am PT (7:00 am ET) to discuss the Company's second quarter results and
activities underway at the Company's projects. Further details are provided at the end of this news
release.
Greg Smith, President and CEO of Equinox Gold, commented: "Following a solid second quarter,
Equinox Gold delivered its strongest first half of the year on record, producing 260,408 ounces of gold
and generating $506 million of revenue and $128 million of adjusted EBITDA. We remain well
positioned to achieve 2023 production and cost guidance.
"We also made significant progress at Greenstone during the quarter. The project is 85% complete, on
budget and on schedule to pour gold in the first half of 2024, and we look forward to hosting a site tour
for analysts and investors in early September. With the initiatives taken earlier in the year to strengthen
our balance sheet, we remain fully funded to complete Greenstone construction, ending the quarter with
more than $300 million in cash and available credit."
HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2023
Operational
Produced 137,661 ounces of gold
Sold 138,094 ounces of gold at an average realized gold price of $1,962 per oz
Total cash costs of $1,361 per oz and AISC of $1,502 per oz
(
1)
One fatality during the Quarter, as discussed in the
Santa Luz
and
Health, Safety and
Environment
sections of the MD&A
No lost-time injuries, total recordable injury frequency rate
(
2)
of 1.44 for the Quarter (1.15 rolling 12-
month average)
Total significant environmental incident frequency rate
(
2)
of 0.21 for the Quarter (0.35 rolling 12-
month average)
Earnings
Income from mine operations of $30.7 million
Net income of $5.4 million or $0.02 per share (basic)
Adjusted net loss of $6.3 million or $0.02 per share
(
1)
Financial
Cash flow from operations before changes in non-cash working capital of $81.2 million ($19.9
million after changes in non-cash working capital)
Adjusted EBITDA of $70.9 million
(
1)
Sustaining expenditures of $12.7 million and non-sustaining expenditures of $105.9 million
Cash and cash equivalents (unrestricted) of $174.4 million at June 30, 2023
Net debt
(
1)
of $660.6 million at June 30, 2023
________________________
(1)
Cash costs per oz sold, AISC per oz sold, adjusted net income, adjusted EBITDA, adjusted earnings per share ("EPS") and net debt are non-IFRS
measures. See
Non-IFRS Measures
and
Cautionary Notes
.
(2)
Total recordable injury frequency rate and significant environmental incident frequency rate are both reported per million hours worked. Total
recordable injury frequency rate is the total number of injuries excluding those requiring simple first aid treatment.
Corporate
In April 2023, entered into gold collar contracts with an average put strike price of $1,950 per
ounce and an average call strike price of $2,250 per ounce, for 3,050 ounces per month beginning
April 2023 through to March 2024
Further to the gold sale prepay transactions entered into during Q1 2023, entered into an
additional gold sale prepay transaction on June 23, 2023 with an existing lender whereby the
Company received an upfront cash prepayment of $9.9 million in exchange for delivering to the
lender 263.5 ounces of gold per month from October 2024 through July 2026 for a total of 5,797
ounces
-
Concurrent with execution of the gold sale prepay transaction in June 2023, entered into
financial swap agreements that fix the gold price relating to the $9.9 million prepayment at
$2,109 per ounce
Construction, development and exploration
Advanced Greenstone construction with the following achieved to June 30, 2023:
-
More than 4 million hours worked with no lost-time injuries
-
Project was 82% complete, on budget and on track to pour gold in H1 2024
-
Spent $92 million (Equinox Gold's 60% share) during the Quarter with total spend (100%
basis) of $937 million project to date (76% of the approved budget)
Responsible Mining
In May 2023, published the annual Environmental, Social & Governance ("ESG") Report,
summarizing the Company's 2022 ESG performance and 2023 targets
RECENT DEVELOPMENTS
On July 28, 2023, published the Company’s inaugural Water Stewardship Report in alignment with
the water reporting practices recommended by the International Council on Mining and Metals
On August 1, 2023, published an update on Greenstone progress
On August 1, 2023, drew $127.0 million on the Company’s revolving credit facility
CONSOLIDATED OPERATIONAL AND FINANCIAL HIGHLIGHTS
Three months ended
Six months ended
Operating data
Unit
June 30,
2023
March 31,
2023
June 30,
2022
June 30,
2023
June 30,
2022
Gold produced
oz
137,661
122,746
120,813
260,408
238,265
Gold sold
oz
138,094
123,295
120,395
261,389
239,719
Average realized gold price
$/oz
1,962
1,895
1,856
1,931
1,859
Cash costs per oz sold
(
1)(2)
$/oz
1,361
1,346
1,478
1,354
1,345
AISC per oz sold
(
1)(2)(3)
$/oz
1,502
1,658
1,657
1,576
1,616
Financial data
Revenue
M$
271.6
234.1
224.6
505.7
447.8
Income from mine operations
M$
30.7
14.5
17.0
45.2
45.5
Net income (loss)
M$
5.4
17.4
(78.7)
22.8
(98.5)
Earnings (loss) per share (basic)
$/share
0.02
0.06
(0.26)
0.07
(0.33)
Adjusted EBITDA
(
1)
M$
70.9
57.0
24.0
127.9
66.9
Adjusted net loss
(
1)
M$
(6.3)
(3.0)
(47.9)
(9.3)
(72.3)
Adjusted EPS
(
1)
$/share
(0.02)
(0.01)
(0.16)
(0.03)
(0.24)
Balance sheet and cash flow data
Cash and cash equivalents (unrestricted)
M$
174.4
284.9
159.7
174.4
159.7
Net debt
(
1)
M$
660.6
547.8
472.2
660.6
472.2
Operating cash flow before changes in non-cash working capital
M$
81.2
195.4
16.4
276.6
49.9
(1)
Cash costs per oz sold, AISC per oz sold, adjusted EBITDA, adjusted net loss, adjusted EPS and net debt are non-IFRS measures. See
Non-IFRS
Measures
and
Cautionary Notes
.
(2)
Consolidated cash cost per oz sold and AISC per oz sold for the three and six months ended June 30, 2022 excludes Santa Luz results while the
mine was in pre-commercial production up until the achievement of commercial production at the end of Q3 2022.
(3)
Consolidated AISC per oz sold excludes corporate general and administration expenses.
(4)
Numbers in tables throughout this news release may not sum due to rounding.
For the three and six months ended June 30, 2023, the Company sold 15% and 9% more gold ounces
compared to the three and six months ended June 30, 2022. The increase in gold sales was primarily
due to the contribution of production from Santa Luz, which achieved commercial production at the end
of Q3 2022, and higher production at Aurizona, RDM and Los Filos, offset partially by lower production
at Mesquite and the impact of the sale of Mercedes in April 2022. At both Aurizona and RDM, the higher
production was primarily due to higher grades and mill throughput. At Los Filos, the higher gold
production was primarily due to higher ore tonnes mined, offset partially by lower gold recovery as
solution management issues and some ore with a higher copper content impacted production. The lower
production at Mesquite was primarily due to fewer tonnes mined and stacked compared to the
comparative periods of 2022, driven by mine sequencing.
Cash cost per oz sold and AISC per oz sold were 8% and 9% lower in Q2 2023 compared to Q2 2022,
respectively, driven by 15% higher gold sales. Costs were also lower relative to guidance due to certain
factors, including sustaining capital spend that was anticipated in the Quarter but has been deferred into
the second half of 2023, as well as the costs of key consumables having peaked in recent quarters and
are now trending below levels used for guidance.
In Q2 2023, income from mine operations was $30.7 million (Q2 2022 - $17.0 million) and for the six
months ended June 30, 2023 was $45.2 million (six months ended June 30, 2022 - $45.5 million). The
higher income from mine operations in Q2 2023 compared to Q2 2022 was mainly the result of higher
income from mine operations at Los Filos and Aurizona, which was primarily due to higher production
and higher realized gold price per ounce, offset partially by lower income from mine operations at
Mesquite, which was primarily due to lower gold production as the mine was mostly moving waste in Q1
2023 which impacted the ore tonnes under leach in Q2 2023. The lower income from mine operations
for the six months ended June 30, 2023 compared to Q2 2022 was primarily due to lower income from
mine operations at Mesquite, driven by lower production, and the impact of the sale of Mercedes in April
2022, offset partially by higher income from mine operations at Los Filos, Aurizona and Fazenda.
Net income for Q2 2023 was $5.4 million (Q2 2022 - net loss of $78.7 million) and net income for the six
months ended June 30, 2023 was $22.8 million (six months ended June 30, 2022 - net loss of $98.5
million). The higher net income in Q2 2023 compared to Q2 2022 was mainly due to higher income from
mine operations, a tax recovery of $0.8 million (Q2 2022 - tax expense of $29.5 million) and other
income of $2.6 million for Q2 2023 as compared to other expense of $32.7 million for Q2 2022. Other
income for Q2 2023 includes a $22.8 million gain on change in fair value of foreign exchange contracts,
offset partially by $13.4 million in expected credit loss and write-offs. Other expense for Q2 2022
includes a $39.6 million loss on change in fair value of share purchase warrants.
The higher net income for the six months ended June 30, 2023 compared to the same period in 2022
was mainly due to a tax recovery of $10.4 million (six months ended June 30, 2022 - tax expense of
$33.2 million) and other income of $34.4 million compared to other expense of $51.7 million for the six
months ended June 30, 2022. Other income for the six months ended June 30, 2023 includes a $41.3
million gain on change in fair value of foreign exchange contracts and a $34.5 million gain on sale of the
Company's partial interest and reclassification of investment in i-80 Gold, offset partially by $13.3 million
in expected credit loss and write-offs. Other expense for the six months ended June 30, 2022 includes a
$58.2 million loss on change in fair value of share purchase warrants, offset partially by a $12.9 million
gain on change in fair value of foreign exchange contracts.
In Q2 2023, adjusted EBITDA was $70.9 million (Q2 2022 - $24.0 million) and for the six months ended
June 30, 2023 was $127.9 million (six months ended June 30, 2022 - $66.9 million). In Q2 2023,
adjusted net loss was $6.3 million (Q2 2022 - adjusted net loss of $47.9 million) and for the six months
ended June 30, 2023 was $9.3 million (six months ended June 30, 2022 - adjusted net loss of $72.3
million). The increase in adjusted EBITDA and decrease in adjusted net loss in Q2 2023 was primarily
due to higher income from mine operations, in addition to a $12.2 million realized loss on gold contracts
in Q2 2022 compared to nil realized gain on gold contracts in Q2 2023. The increase in adjusted
EBITDA and decrease in adjusted net loss for the six months ended June 30, 2023 was primarily due to
a $14.5 million realized gain on foreign exchange contracts for the six months ended June 30, 2023 and
a $24.4 million realized loss on gold contracts for the six months ended June 30, 2022.
Sustaining and non-sustaining expenditures totaled $12.7 million and $105.9 million, respectively, for the
three months ended June 30, 2023. Sustaining and non-sustaining expenditures are broken down by
mine site in the MD&A.
SELECTED FINANCIAL RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023
AND 2022
$ amounts in millions, except per share amounts
Three months ended
Six months ended
June 30,
2023
June 30,
2022
June 30,
2023
June 30,
2022
Revenue
$
271.6
$
224.6
$
505.7
$
447.8
Cost of sales
Operating expense
(192.7)
(170.7)
(364.9)
(323.0)
Depreciation and depletion
(48.2)
(37.0)
(95.6)
(79.3)
Income from mine operations
30.7
17.0
45.2
45.5
Care and maintenance expense
(0.3)
(4.7)
(1.4)
(5.1)
Exploration and evaluation expense
(4.0)
(4.5)
(5.8)
(7.7)
General and administration expense
(12.3)
(11.1)
(22.2)
(22.9)
Income from operations
14.1
(3.3)
15.7
9.7
Finance expense
(14.3)
(8.2)
(27.0)
(17.6)
Finance income
3.3
0.9
6.3
1.7
Share of net loss in associate
(1.1)
(5.9)
(17.1)
(7.5)
Other income (expense)
2.6
(32.7)
34.4
(51.7)
Net income (loss) before taxes
4.5
(49.2)
12.3
(65.3)
Income tax recovery (expense)
0.8
(29.5)
10.4
(33.2)
Net income (loss)
$
5.4
$
(78.7)
$
22.8
$
(98.5)
Net income (loss) per share attributable to Equinox Gold shareholders
Basic
$
0.02
$
(0.26)
$
0.07
$
(0.33)
Diluted
$
0.02
$
(0.26)
$
0.07
$
(0.33)
Additional information regarding the Company's financial and operating results is available in the
Company's Q2 2023 Financial Statements and accompanying MD&A for the three and six months
ended June 30, 2023, which will be available for download on the Company's website at
www.equinoxgold.com
, on SEDAR at
www.sedar.com
and on EDGAR at
www.sec.gov/edgar
.
CONFERENCE CALL AND WEBCAST
Equinox Gold will host a conference call and webcast on Wednesday, August 3, 2023 commencing at
4:00 am PT (7:00 am ET) to discuss the second quarter results and activities underway at the Company.
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 February 3, 2024.
Conference call
Toll-free in U.S. and Canada: 1-800-319-4610
International callers: +1 604-638-5340
Webcast
www.equinoxgold.com
ABOUT EQUINOX GOLD
Equinox Gold is a growth-focused Canadian mining company with seven operating gold mines,
construction underway at a new project, and a path to achieve more than one million ounces of annual
gold production from a pipeline of development and expansion projects. Equinox Gold's common shares
are listed on the TSX and the NYSE American under the trading symbol EQX. Further information about
Equinox Gold's portfolio of assets and long-term growth strategy is available at
www.equinoxgold.com
or
by email at
.
EQUINOX GOLD CONTACTS
Greg Smith, President & Chief Executive Officer
Rhylin Bailie, Vice President, Investor Relations
Tel: +1 604-558-0560
Email:
NON-IFRS MEASURES
This news release refers to refers to cash costs, cash costs per oz sold, AISC, AISC per oz sold, AISC
contribution margin, adjusted net income, adjusted EPS, mine-site free cash flow, adjusted EBITDA, net
debt, and sustaining capital expenditures that are measures with no standardized meaning under IFRS,
i.e. they are non-IFRS measures, and may not be comparable to similar measures presented by other
companies. Their measurement and presentation is consistently prepared and is intended to provide
additional information and should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Numbers presented in the tables below may not sum
due to rounding.
Cash costs and cash costs per oz sold
Cash costs is a common financial performance measure in the gold mining industry; however, it has no
standard meaning under IFRS. The Company reports total cash costs on a per oz sold basis. The
Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate the Company's performance and ability to generate operating
income and cash flow from mining operations. Cash costs are calculated as mine site operating costs
and are net of silver by-product credits. Cash costs are divided by ounces sold to arrive at cash costs
per oz sold. In calculating cash costs, the Company includes silver by-product credits as it considers the
cost to produce the gold is reduced as a result of the by-product sales incidental to the gold production
process, thereby allowing management and other stakeholders to assess the net costs of gold
production. The measure is not necessarily indicative of cash flow from operations under IFRS or
operating costs presented under IFRS.
AISC per oz sold
The Company uses AISC per oz of gold sold to measure performance. The methodology for calculating
AISC was developed internally and is calculated below. Current IFRS measures used in the gold
industry, such as operating expenses, do not capture all of the expenditures incurred to discover,
develop and sustain gold production. The Company believes the AISC measure provides further
transparency into costs associated with producing gold and will assist analysts, investors and other
stakeholders of the Company in assessing its operating performance, its ability to generate free cash
flow from current operations and its overall value. AISC includes cash costs (described above) and also
includes sustaining capital expenditures, sustaining lease payments, reclamation cost accretion and
amortization and exploration and evaluation costs. This measure seeks to reflect the full cost of gold
production from current operations, therefore, expansionary capital and non-sustaining expenditures are
excluded.
Prior to Q2 2023, the Company's calculation of cash costs included the principal portion of sustaining
lease payments. Commencing in Q2 2023, to improve the comparability of the Company's financial
performance measures with its peers and align to the standards outlined by the World Gold Council, the
Company has excluded sustaining lease payments from its calculation of cash costs and has included
them as a component of AISC. The calculations of cash costs and AISC for comparative periods have
been adjusted to conform with the current methodology and are different from the measures previously
reported.
The following table provides a reconciliation of cash costs per oz of gold sold and AISC per oz of gold
sold to the most directly comparable IFRS measure on an aggregate basis:
$'s in millions, except ounce and per oz figures
Three months ended
Six months ended
June 30,
2023
March 31,
2023
June 30,
2022
June 30,
2023
June 30,
2022
Gold ounces sold
138,094
123,295
120,395
261,389
239,719
Santa Luz gold ounces sold
(
1)
-
-
(4,978)
-
(5,188)
Adjusted gold ounces sold
138,094
123,295
115,417
261,389
234,531
Operating expense
$
192.7
$
172.2
$
170.7
$
364.9
$
323.0
Silver by-product credits
(0.7)
(0.3)
(1.1)
(1.0)
(2.1)
Fair value adjustment on acquired inventories
(4.1)
(5.9)
7.6
(10.0)
1.7
Santa Luz operating expense
(
1)
-
-
(6.6)
-
(7.0)
Total cash costs
$
187.9
$
165.9
$
170.6
$
353.8
$
315.6
Cash costs per gold oz sold
$
1,361
$
1,346
$
1,478
$
1,354
$
1,346
Total cash costs
$
187.9
$
165.9
$
170.6
$
353.8
$
315.6
Sustaining capital
12.7
32.5
18.0
45.2
55.0
Sustaining lease payments
4.5
3.8
0.5
8.3
2.9
Reclamation expense
2.2
2.2
2.3
4.5
4.7
Sustaining exploration expense
-
-
0.1
-
1.1
Santa Luz reclamation expense
(
1)
-
-
(0.2)
-
(0.2)
Total AISC
$
207.4
$
204.4
$
191.2
$
411.8
$
379.1
AISC per oz sold
$
1,502
$
1,658
$
1,657
$
1,576
$
1,616
(1)
Consolidated cash cost per oz sold and AISC per oz sold for the three and six months ended June 30, 2022 excludes Santa Luz results while the
mine was in pre-commercial production up until the achievement of commercial production at the end of Q3 2022.
Sustaining capital expenditures
Sustaining capital expenditures are defined as those expenditures which do not increase annual gold
ounce production at a mine site and excludes all expenditures at the Company's projects and certain
expenditures at the Company's operating sites which are deemed expansionary. Sustaining capital
expenditures can include, but are not limited to, capitalized stripping costs at open pit mines,
underground mine development, mining and milling equipment and TSF raises.
The following table provides a reconciliation of sustaining capital expenditures to the Company's total
capital expenditures for continuing operations:
Three months ended
Six months ended
$'s in millions
June 30,
2023
March 31,
2023
June 30,
2022
June 30,
2023
June 30,
2022
Capital additions to mineral properties, plant and equipment
(
1)
$
131.4
$
154.5
$
167.4
$
285.9
$
296.5
Less: Non-sustaining capital at operating sites
(4.2)
(4.6)
(27.7)
(8.8)
(58.0)
Less: Non-sustaining capital at development projects
(103.3)
(91.1)
(106.4)
(194.5)
(166.8)
Less: Capital expenditures - corporate
(0.1)
(0.1)
(10.1)
(0.1)
(10.2)
Less: Other non-cash additions
(
2)
(11.2)
(26.1)
(5.2)
(37.3)
(6.4)
Sustaining capital expenditures
$
12.7
$
32.5
$
18.0
$
45.2
$
55.0
(1)
Per note 5 of the condensed consolidated interim financial statements. Capital additions exclude non-cash changes to reclamation assets arising
from changes in discount rate and inflation rate assumptions in the reclamation provision.
(2)
Non-cash additions include right-of-use assets associated with leases recognized in the period, capitalized depreciation for deferred stripping
activities, and capitalized non-cash share-based compensation.
Total mine-site free cash flow
Mine-site free cash flow is a non-IFRS financial performance measure. The Company believes this
measure is a useful indicator of its ability to operate without reliance on additional borrowing or usage of
existing cash. In calculating total mine-site free cash flow, the Company excludes the impact of fair value
adjustments on acquired inventories as these adjustments do not impact cash flow from operating mine
sites. Mine-site free cash flow is intended to provide additional information only and does not have any
standardized meaning under IFRS and may not be comparable to similar measures of performance
presented by other mining companies. Mine-site free cash flow should not be considered in isolation or
as a substitute for measures of performance prepared in accordance with IFRS.
Prior to Q1 2023, mine-site free cash flow was calculated inclusive of fair value adjustments on acquired
inventories. The calculation of mine-site free cash flow for comparative periods has been adjusted to
conform with the current methodology and is different from the measure previously reported.
The following table provides a reconciliation of mine-site free cash flow to the most directly comparable
IFRS measure on an aggregate basis:
Three months ended
Six months ended
$'s in millions
June 30,
2023
March 31,
2023
June 30,
2022
June 30,
2023
June 30,
2022
Operating cash flow before non-cash changes in working capital
$
81.2
$
195.4
$
16.4
$
276.6
$
49.9
Fair value adjustments on acquired inventories
4.1
5.9
(7.6)
10.0
(1.7)
Operating cash flow (generated) used by non-mine site activity
(
1)
(7.6)
(138.3)
31.9
(146.0)
65.2
Cash flow from operating mine sites
$
77.7
$
63.0
$
40.8
$
140.6
$
113.4
Mineral property, plant and equipment additions
$
131.4
154.5
167.4
$
285.9
296.5
Less: Capital expenditures relating to development projects and
corporate and other non-cash additions
(114.5)
(117.3)
(121.7)
(231.9)
(183.4)
Capital expenditure from operating mine sites
16.9
37.1
45.7
54.0
113.1
Lease payments related to non-sustaining capital items
4.3
4.8
3.7
9.1
7.1
Non-sustaining exploration expense
4.0
1.8
4.4
5.8
6.6
Total mine-site free cash flow
$
52.4
$
19.3
$
(13.1)
$
71.7
$
(13.4)
(1)
Includes taxes paid and proceeds from gold prepayments that are not factored into mine-site free cash flow and are included in operating cash
flow before non-cash changes in working capital in the statement of cash flows.
AISC contribution margin, EBITDA and adjusted EBITDA
The Company believes that, in addition to conventional measures prepared in accordance with IFRS,
certain investors, and other stakeholders use AISC contribution margin, AISC contribution margin per
gold ounce sold and adjusted EBITDA to evaluate the Company's performance and ability to generate
cash flows and service debt. AISC contribution margin is defined as revenue less AISC. EBITDA is
defined as earnings before interest, tax, depreciation and amortization. Adjusted EBITDA is defined as
earnings before interest, tax, depreciation, and amortization, adjusted to exclude specific items that are
significant but not reflective of the underlying operating performance of the Company, such as the impact
of fair value changes of warrants, foreign exchange contracts and gold contracts; unrealized foreign
exchange gains and losses, transaction costs, and non-cash share-based compensation expense. It is
also adjusted to exclude items whose timing or amount cannot be reasonably estimated in advance or
that are not considered representative of core operating performance, such as impairments and gains
and losses on disposals of assets.
The following tables provide the calculation of AISC contribution margin, EBITDA and adjusted EBITDA,
as calculated by the Company:
AISC Contribution Margin
Three months ended
Six months ended
$'s in millions
June 30,
2023
March 31,
2023
June 30,
2022
June 30,
2023
June 30,
2022
Revenue
$
271.6
$
234.1
$
224.6
$
505.7
$
447.8
Less: AISC
(207.4)
(204.4)
(191.2)
(411.8)
(379.1)
AISC contribution margin
$
64.2
$
29.7
$
24.3
$
93.9
$
59.2
Gold ounces sold
138,094
123,295
120,395
261,389
239,719
Less: Santa Luz gold ounces sold
(
1)
-
-
(4,978)
-
(5,188)
Adjusted gold ounces sold
138,094
123,295
115,417
261,389
234,531
AISC contribution margin per oz sold
$
465
$
241
$
210
$
359
$
252
(1)
AISC contribution margin for three and six months ended June 30, 2022 excludes Santa Luz results while the mine was in pre-commercial
production up until the achievement of commercial production at the end of Q3 2022.
EBITDA and Adjusted EBITDA
Three months ended
Six months ended
$'s in millions
June 30,
2023
March 31,
2023
June 30,
2022
June 30,
2023
June 30,
2022
Net income (loss)
$
5.4
17.4
(78.7)
$
22.8
(98.5)
Income tax (recovery) expense
$
(0.8)
(9.6)
29.5
$
(10.4)
33.2
Depreciation and depletion
48.4
47.5
37.3
95.9
79.9
Finance expense
14.3
12.7
8.2
27.0
17.6
Finance income
(3.3)
(3.0)
(0.9)
(6.3)
(1.7)
EBITDA
$
64.0
$
65.0
$
(4.7)
$
129.0
$
30.4
Non-cash share-based compensation expense
1.8
1.5
1.3
3.4
2.2
Unrealized loss on warrants
(0.3)
3.7
39.6
3.4
58.2
Unrealized (gain) loss on gold contracts
(7.9)
5.4
-
(2.5)
-
Gain on gold contracts acquired in a business combination
-
-
(17.3)
-
(22.7)
Unrealized (gain) loss on foreign exchange contracts
(13.8)
(13.1)
6.2
(26.8)
(11.9)
Unrealized loss on power purchase agreement
7.2
-
-
7.2
-
Unrealized foreign exchange loss (gain)
3.6
2.3
(7.9)
6.0
2.7
Share of net loss of investment in associate
1.1
16.0
5.9
17.1
7.5
Other expense (income)
(
1)
15.2
(24.0)
0.9
(8.8)
0.6
Adjusted EBITDA
$
70.9
$
57.0
$
24.0
$
127.9
$
66.9
(1)
Other expense (income) for the three and six months ended June 30, 2023 includes a $13.4 million expected credit loss and write-offs primarily
related to the impairment and write-off of a $9.9 million receivable owing from PGI for partial consideration for the sale of Pilar. Other income for the
six months ended June 30, 2023 also includes a gain on sale of partial interest and reclassification of investment in i-80 Gold of $34.5 million.
Adjusted net income and adjusted EPS
Adjusted net income and adjusted EPS are used by management and investors to measure the
underlying operating performance of the Company. Adjusted net income is defined as net income
adjusted to exclude specific items that are significant but not reflective of the underlying operating
performance of the Company, such as the impact of fair value changes in the value of warrants, foreign
exchange contracts and gold contracts, unrealized foreign exchange gains and losses, and non-cash
share-based compensation expense. It is also adjusted to exclude items whose timing or amount cannot
be reasonably estimated in advance or that are not considered representative of core operating