Equinox Gold Reports Third Quarter 2023 Financial and Operating Results Delivers Strongest Third Quarter on Record for Production, Revenue and EBITDA
Equinox Gold Reports Third Quarter 2023
Financial and Operating Results
Delivers Strongest Third Quarter on Record for Production,
Revenue and EBITDA
All financial figures are in US dollars, unless otherwise indicated.
Vancouver, British Columbia--(Newsfile Corp. - October 31, 2023) - Equinox Gold Corp. (TSX: EQX)
(NYSE American: EQX) ("Equinox Gold" or the "Company") is pleased to announce its third 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 nine months ended September 30, 2023 will be available for download on the Company's profile on
SEDAR+ at
www.sedarplus.ca
, 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 November 1, 2023
commencing at 7:30 am PT (10:30 am ET) to discuss third quarter results and activities underway at the
Company. Further details are provided at the end of this news release.
Greg Smith, President and CEO of Equinox Gold, commented: "Equinox Gold delivered strong results in
Q3, achieving a third-quarter record for production, revenue and EBITDA. We produced 149,089 ounces
of gold during the quarter, generating $285 million in revenue and $65 million in EBITDA, or $81 million
on an adjusted EBITDA basis. We remain focused on delivering our full-year cost and production
guidance.
"Our Greenstone project is progressing well and remains on track to pour gold in the first half of 2024,
with pre-commissioning activities underway. At September 30
th
the project was 93% complete overall,
on budget and on schedule. With more than $350 million in cash and equivalents at quarter end, we
remain fully funded to complete Greenstone construction and our 2023 corporate initiatives.
"In addition, I am pleased to announce that Fraz Siddiqui has joined our Board of Directors, replacing
François Bellemare as the Mubadala Investment Company Board appointee. Mr. Siddiqui is a
Chartered Accountant with extensive capital markets, financing and mining industry experience. I
welcome Fraz to Equinox Gold's Board of Directors and thank François for his contributions as a
director."
HIGHLIGHTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023
Operational
Produced 149,089 ounces of gold
Sold 148,231 ounces of gold at an average realized gold price of $1,917 per oz
Total cash costs of $1,363 per oz and AISC of $1,630 per oz
(1)
Three lost-time injuries, rolling 12-month average total recordable injury frequency rate
(2)
of 1.28
(1.68 for the Quarter)
Total significant environmental incident frequency rate
(2)
rolling 12-month average of 0.34 (0.56 for
the Quarter)
Earnings
Income from mine operations of $25.2 million
Net income of $2.2 million or $0.01 per share (basic)
Adjusted net income of $28.7 million or $0.09 per share
(1)
Financial
Cash flow from operations before changes in non-cash working capital of $82.6 million ($69.3
million after changes in non-cash working capital)
Adjusted EBITDA of $81.2 million
(1)
Sustaining expenditures of $32.0 million and non-sustaining expenditures of $104.1 million
Cash and cash equivalents (unrestricted) of $356.7 million at September 30, 2023
Net debt
(1)
of $729.5 million at September 30, 2023
Corporate
On August 1, 2023, drew $127.0 million on the Company's revolving credit facility (the "Revolving
Facility")
On September 21, 2023, issued $172.5 million of unsecured senior convertible notes (the "2023
Convertible Notes") on a bought deal provide placement basis
-
The 2023 Convertible Notes bear interest at 4.75%, have a fixed conversion rate of
158.7302 common shares per $1,000 principal amount, representing an initial conversion
price of $6.30 per share, subject to certain anti-dilution adjustments, and mature on October
15, 2028
Construction, development and exploration
Advanced Greenstone construction with the following achieved to September 30, 2023:
-
More than 5 million hours worked with one lost-time injury and a 12-month rolling average
TRIFR of 1.92
-
Power plant commissioning has been completed and the plant is now in operation
-
Pre-commissioning activities started as planned in September in the crushing, crushed ore
storage, and reclaim and high-pressure grinding rolls areas
-
Overall project was 93% complete, on budget and on track to pour gold in H1 2024
-
Spent $90 million (Equinox Gold's 60% share) during the Quarter with total spend (100%
basis) of $1,087 million project to date (89% of the approved budget)
Responsible Mining
In July 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
RECENT DEVELOPMENTS
On October 3, 2023, repaid $166.0 million of the Revolving Facility with proceeds from the 2023
Convertible Notes
On October 31, 2023, received $75 million on closing of the gold purchase and sale arrangement
("Sandbox Arrangement")
On October 31, 2023, Fraz Siddiqui joined the Company's Board of Directors, replacing François
Bellemare as Mubadala Investment Company's Board appointee
_______________________
(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.
CONSOLIDATED OPERATIONAL AND FINANCIAL HIGHLIGHTS
Three months ended
Nine months ended
Operating data
Unit
September 30,
2023
June 30,
2023
September 30,
2022
September 30,
2023
September 30,
2022
Gold produced
oz
149,089
137,661
143,615
409,497
381,880
Gold sold
oz
148,231
138,094
143,032
409,620
382,751
Average realized gold price
$/oz
1,917
1,962
1,711
1,926
1,804
Cash costs per oz sold
(1)(2)
$/oz
1,363
1,361
1,391
1,357
1,361
AISC per oz sold
(1)(2)(3)
$/oz
1,630
1,502
1,751
1,595
1,663
Financial data
Revenue
M$
284.7
271.6
245.1
790.4
692.9
Income from mine operations
M$
25.2
30.7
7.4
70.4
52.9
Net income (loss)
M$
2.2
5.4
(30.1)
25.0
(128.6)
Earnings (loss) per share (basic)
$/share
0.01
0.02
(0.10)
0.08
(0.42)
Adjusted EBITDA
(1)
M$
81.2
70.9
25.6
209.1
93.7
Adjusted net income (loss)
(1)
M$
28.7
(6.3)
(27.7)
19.3
(98.8)
Adjusted EPS
(1)
$/share
0.09
(0.02)
(0.09)
0.06
(0.33)
Balance sheet and cash flow data
Cash and cash equivalents (unrestricted)
M$
356.7
174.4
141.9
356.7
141.9
Net debt
(1)
M$
729.5
660.6
583.8
729.5
583.8
Operating cash flow before changes in non-cash
working capital
M$
82.6
81.2
14.5
359.2
64.3
(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 nine months ended September 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 nine months ended September 30, 2023, the Company sold 4% and 7% more gold
ounces compared to the same periods in 2022. The increase in gold sales was primarily due to higher
production at Los Filos, Aurizona, and RDM offset partially by lower production at Mesquite. At Los
Filos, the higher production was primarily due to higher ore tonnes mined despite the impact to
recoveries and production in the Quarter related to solution management issues and some ore with a
higher copper content, which has a longer recovery period. At Aurizona and RDM, the higher production
was primarily due to higher grades and mill throughput. At Mesquite, the lower production was primarily
due to mine sequencing and temporary issues with leach pad chemistry. Gold sales for the nine months
ended September 30, 2023 were also impacted by higher production at Santa Luz, which achieved
commercial production at the end of Q3 2022.
Cash cost per oz sold and AISC per oz sold were 2% and 7% lower in Q3 2023 compared to Q3 2022,
respectively, primarily driven by 4% higher gold sales. Costs during the Quarter continued to track
towards the lower end of 2023 guidance due to a number of factors, including sustaining capital spend
that was anticipated in the Quarter but has been deferred into Q4 2023, as well as decreases in the
costs of key consumables, which had peaked in recent quarters, compared to those used to calculate
guidance.
In Q3 2023, income from mine operations was $25.2 million (Q3 2022 - $7.4 million) and for the nine
months ended September 30, 2023 was $70.4 million (nine months ended September 30, 2022 - $52.9
million). The higher income from mine operations was mainly the result of higher income from mine
operations at Los Filos and Aurizona, which was primarily due to higher production and higher average
realized gold price per ounce, offset partially by lower income from mine operations at Mesquite, which
was primarily due to lower gold production, and at Santa Luz, which was primarily due to higher mining
costs, driven by longer hauls from the bottom of the pit as well as stockpile and blend management.
Income from mine operations for the nine months ended September 30, 2023 was also impacted by the
sale of Mercedes in April 2022.
Net income for Q3 2023 was $2.2 million (Q3 2022 - net loss of $30.1 million) and net income for the
nine months ended September 30, 2023 was $25.0 million (nine months ended September 30, 2022 -
net loss of $128.6 million). The higher net income in Q3 2023 compared to Q3 2022 was mainly due to
higher income from mine operations, as well as other expense of $2.3 million for Q3 2023 compared to
other expense of $11.3 million for Q3 2022, primarily due to a $1.6 million gain on change in fair value of
warrants in Q3 2023 compared to a $13.4 million loss on change in fair value of share purchase
warrants in Q3 2022. Equinox Gold held warrants to acquire shares of Solaris, all of which were
exercised in March 2023.
The higher net income for the nine months ended September 30, 2023 compared to the same period in
2022 was mainly due to higher income from mine operations, in addition to a tax recovery of $18.6
million (nine months ended September 30, 2022 - tax expense of $35.3 million) and other income of
$32.1 million (nine months ended September 30, 2022 - other expense of $62.9 million). Other income
for the nine months ended September 30, 2023 includes a $35.0 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 nine months ended September 30, 2022 includes a $72.8 million loss
on change in fair value of share purchase warrants.
In Q3 2023, adjusted EBITDA was $81.2 million (Q3 2022 - $25.6 million) and for the nine months ended
September 30, 2023 was $209.1 million (nine months ended September 30, 2022 - $93.7 million). In Q3
2023, adjusted net income was $28.7 million (Q3 2022 - adjusted net loss of $27.7 million) and for the
nine months ended September 30, 2023 was $19.3 million (nine months ended September 30, 2022 -
adjusted net loss of $98.8 million). The increase in adjusted EBITDA and adjusted net income in Q3
2023 was primarily due to higher income from mine operations, in addition to a $11.4 million realized
gain on foreign exchange contracts in Q3 2023 (Q3 2022 - realized loss of $1.1 million). The increase in
adjusted EBITDA and adjusted net income for the nine months ended September 30, 2023 was
primarily due to higher income from mine operations, in addition to a $25.9 million realized gain on
foreign exchange contracts (nine months ended September 30, 2022 - realized loss of $0.1 million).
Sustaining and non-sustaining expenditures totaled $32.0 million and $104.1 million, respectively, for the
three months ended September 30, 2023. Sustaining and non-sustaining expenditures are broken down
by mine site in the MD&A.
SELECTED FINANCIAL RESULTS FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2023 AND 2022
$ amounts in millions, except per share amounts
Three months ended
Nine months ended
September 30,
2023
September 30,
2022
September 30,
2023
September 30,
2022
Revenue
$
284.7
$
245.1
$
790.4
$
692.9
Cost of sales
Operating expense
(201.1
)
(188.8
)
(566.0
)
(511.8
)
Depreciation and depletion
(58.4
)
(48.9
)
(154.0
)
(128.2
)
Income from mine operations
25.2
7.4
70.4
52.9
Care and maintenance expense
-
(2.9
)
(1.4
)
(8.1
)
Exploration and evaluation expense
(2.6
)
(6.2
)
(8.4
)
(13.9
)
General and administration expense
(14.0
)
(10.9
)
(36.2
)
(33.8
)
Income (loss) from operations
8.6
(12.6
)
24.3
(2.9
)
Finance expense
(15.3
)
(10.3
)
(42.3
)
(27.9
)
Finance income
3.0
1.3
9.3
3.0
Share of net income (loss) in associate
-
4.9
(17.1
)
(2.6
)
Other income (expense)
(2.3
)
(11.3
)
32.1
(62.9
)
Net income (loss) before taxes
(5.9
)
(28.0
)
6.4
(93.4
)
Income tax recovery (expense)
8.1
(2.1
)
18.6
(35.3
)
Net income (loss)
$
2.2
$
(30.1
)
$
25.0
$
(128.6
)
Net income (loss) per share attributable to Equinox Gold
shareholders
Basic
$
0.01
$
(0.10
)
$
0.08
$
(0.42
)
Diluted
$
0.01
$
(0.10
)
$
0.08
$
(0.42
)
Additional information regarding the Company's financial and operating results is available in the
Company's Q3 2023 Financial Statements and accompanying MD&A for the three and nine months
ended September 30, 2023, which will be available for download on the Company's website at
www.equinoxgold.com
, on SEDAR+ at
www.sedarplus.ca
and on EDGAR at
www.sec.gov/edgar
.
SANDBOX ARRANGEMENT
On October 31, 2023, the Company closed the Sandbox Arrangement with Sandbox Royalties Corp.
("Sandbox") and Regal Partners Royalties A PTY Limited ("Regal" and together with Sandbox, the
"Purchasers"). Under the Sandbox Arrangement, the Company received a payment of $75 million in
exchange for monthly deliveries to the Purchasers equal to the greater of a): 500 gold ounces and b)
gold ounces equal to 1.8% of the monthly gold production from Greenstone (100% basis). Gold
deliveries will start in November 2023 and will continue until a total of 90,000 ounces have been
delivered. The Purchasers will make ongoing cash payments equal to 20% of the spot gold price for
each gold ounce delivered. Gold deliveries can be from production from any of the Company's operating
mines. The Company may buy down up to 75% of the delivery obligation at the then current spot gold
price, subject to adjustment for the ongoing payment and a minimum price per ounce of $2,000.
CONFERENCE CALL AND WEBCAST
Equinox Gold will host a conference call and webcast on Wednesday, November 1, 2023 commencing
at 7:30 am PT (10:30 am ET) to discuss the third 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 May 1, 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 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:
Three months ended
Nine months ended
$'s in millions, except ounce and per
oz figures
September 30,
2023
June 30,
2023
September 30,
2022
September 30,
2023
September 30,
2022
Gold ounces sold
148,231
138,094
143,032
409,620
382,751
Santa Luz gold ounces sold
(1)
-
-
(17,756)
-
(22,945
)
Adjusted gold ounces sold
148,231
138,094
125,276
409,620
359,806
Operating expense
$
201.1
$
192.7
$
188.8
$
566.0
$
511.8
Silver by-product credits
(0.6
)
(0.7
)
(0.4
)
(1.6
)
(2.5
)
Fair value adjustment on acquired
inventories
1.6
(4.1
)
8.1
(8.5
)
9.7
Santa Luz operating expense
(1)
-
-
(22.3
)
-
(29.3
)
Total cash costs
$
202.1
$
187.9
$
174.2
$
555.9
$
489.7
Cash costs per gold oz sold
$
1,363
$
1,361
$
1,391
$
1,357
$
1,361
Total cash costs
$
202.1
$
187.9
$
174.2
$
555.9
$
489.7
Sustaining capital
32.0
12.7
41.1
77.2
96.1
Sustaining lease payments
4.7
4.5
1.4
13.0
4.3
Reclamation expense
2.9
2.2
2.7
7.4
7.4
Sustaining exploration expense
-
-
-
-
1.1
Santa Luz reclamation expense
(1)
-
-
(0.1
)
-
(0.2
)
Total AISC
$
241.7
$
207.4
$
219.3
$
653.5
$
598.3
AISC per oz sold
$
1,630
$
1,502
$
1,751
$
1,595
$
1,663
(1)
Consolidated cash cost per oz sold and AISC per oz sold for the three and nine months ended September 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
Nine months ended
$'s in millions
September 30,
2023
June 30,
2023
September 30,
2022
September 30,
2023
September 30,
2022
Capital additions to mineral
properties, plant and equipment
(1)
$
153.5
$
131.4
$
182.6
$
439.4
$
479.0
Less: Non-sustaining capital at
operating sites
(8.4
)
(4.2
)
(12.4
)
(17.2
)
(70.4
)
Less: Non-sustaining capital at
development projects
(101.4
)
(103.3
)
(119.2
)
(295.8
)
(286.0
)
Less: Capital expenditures -
corporate
(0.2
)
(0.1
)
-
(0.3
)
(10.2
)
Less: Other non-cash additions
(2)
(11.5
)
(11.2
)
(9.9
)
(48.8
)
(16.3
)
Sustaining capital expenditures
$
32.0
$
12.7
$
41.1
$
77.2
$
96.1
(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
Nine months ended
$'s in millions
September 30,
2023
June 30,
2023
September 30,
2022
September 30,
2023
September 30,
2022
Operating cash flow before non-cash
changes in working capital
$
82.6
$
81.2
$
14.5
$
359.2
$
64.3
Fair value adjustments on acquired
inventories
(1.6
)
4.1
(8.1
)
8.5
(9.7
)
Operating cash flow (generated) used
by non-mine site activity
(1)
(4.6
)
(7.6
)
33.4
(150.6
)
98.6
Cash flow from operating mine sites
$
76.5
$
77.7
$
39.8
$
217.1
$
153.2
Mineral property, plant and
equipment additions
$
153.5
131.4
182.6
$
439.4
479.0
Less: Capital expenditures relating to
development projects and corporate
and other non-cash additions
(113.1
)
(114.5
)
(129.1
)
(344.9
)
(312.5
)
Capital expenditure from operating
mine sites
40.4
16.9
53.5
94.5
166.5
Lease payments related to non-
sustaining capital items
4.4
4.3
5.8
13.5
13.0
Non-sustaining exploration expense
2.6
4.0
5.9
8.4
12.5
Total mine-site free cash flow
$
29.0
$
52.4
$
(25.4
)
$
100.7
$
(38.8
)
(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
Nine months ended
$'s in millions
September 30,
2023
June 30,
2023
September 30,
2022
September 30,
2023
September 30,
2022
Revenue
$
284.7
$
271.6
$
245.1
$
790.4
$
692.9