Equinox Gold Reports Third Quarter 2024 Financial and Operating Results
Equinox Gold Reports Third Quarter 2024
Financial and Operating Results
All financial figures are in US dollars, unless otherwise
indicated.
Vancouver, British Columbia--(Newsfile Corp. - November 6, 2024) -
Equinox Gold Corp.
(TSX: EQX)
(NYSE American: EQX) ("Equinox Gold" or the "Company") is pleased to announce its third quarter
2024 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, 2024 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 7, 2024
commencing at 7:30 am Pacific Time 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: "This was a record quarter for Equinox
Gold, with our best-ever third-quarter production and all-time highest quarterly revenue and adjusted
EBITDA, reflecting the ongoing ramp-up at our Greenstone Mine and strong gold prices. During Q3, the
Greenstone Mine demonstrated good progress, with both mining and processing rates increasing
substantially. Subsequent to quarter-end, mining and milling rates have continued to increase and we
were pleased to declare commercial production at Greenstone earlier today. The team remains focused
on continuing this momentum through the fourth quarter as the mine progresses toward design capacity.
"In early October we updated our production expectations for Greenstone to reflect ramp-up progress to
date, resulting in 2024 consolidated production guidance of 590,000 to 675,000 ounces of gold. With
our highest quarterly production this year expected in Q4, we look forward to ending the year strongly
and applying our increasing cash flow to pay down debt."
HIGHLIGHTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024
Operational
Produced 173,983 ounces of gold
Sold 173,973 ounces of gold at an average realized gold price of $2,461 per oz
Total cash costs of $1,720 per oz and AISC of $1,994 per oz
(1)
Two lost-time injuries; total recordable injury frequency rate
(2)
of 1.79 per million hours worked for
the 12-month rolling period (1.78 for the Quarter)
Earnings
Income from mine operations of $101.4 million
Net income of $0.3 million or $0.00 per share (basic)
Adjusted net income of $37.4 million or $0.09 per share
(1)
(basic)
Financial
Cash flow provided by operations before changes in non-cash working capital of $130.1 million
(cash flow provided by operations of $139.5 million after changes in non-cash working capital)
Adjusted EBITDA of $141.9 million
(1)
Sustaining expenditures
(1)
of $35.7 million and non-sustaining expenditures of $81.5 million
Cash and cash equivalents (unrestricted) of $167.8 million at September 30, 2024
Net debt
(1)
of $1,314.7 million at September 30, 2024
October 2024, $140 million 2019 convertible notes converted to shares on maturity to reduce
net debt
_____________________________
(1)
Cash costs per oz sold, AISC per oz sold, sustaining expenditures, adjusted net income, adjusted EBITDA, adjusted EPS, and net debt are non-
IFRS measures. See Non-IFRS Measures and Cautionary Notes. Cash costs per oz sold and AISC per oz sold exclude Greenstone since it had not
yet achieved commercial production at September 30, 2024, and exclude Castle Mountain results after August 31, 2024 when residual leaching
commenced.
(2)
Total recordable injury frequency rate is the total number of injuries excluding those requiring simple first aid treatment and is reported per million
hours worked.
Corporate
Greenstone ceremonial mine opening in late August
"Ride to Greenstone" fundraiser, an Equinox Gold employee cycling relay from Vancouver, BC to
Geraldton, ON, raised C$1.3 million for the Geraldton District Hospital
Exploration
Released an updated Mineral Resource Estimate for the exploration-stage Hasaga Property in
Red Lake, ON
RECENT DEVELOPMENTS
During October 2024, Equinox Gold:
Issued an updated technical report for Greenstone, which is available for download on the
Company's website, on SEDAR+ and on EDGAR
Filed a short form base shelf prospectus, replacing the expiring one, that permits the
issuance of the Company's securities over a period of 25 months in Canada and the United
States
Issued 26.6 million common shares on conversion by noteholders of the $140 million 2019
convertible notes
Provided an update on Greenstone ramp-up progress and adjusted Greenstone 2024
production and cost guidance to 110,000-130,000 ounces of gold with cash costs of $850-
$950/oz and AISC of $1,050-$1,150/oz
Amended certain gold prepay agreements to defer deliveries of 3,900 ounces per month
originally scheduled for October 2024-February 2025 to May-September 2026
Announced on November 6, 2024, that Greenstone has reached commercial production based on
the operating progress achieved through October
CONSOLIDATED OPERATIONAL AND FINANCIAL HIGHLIGHTS
Three months ended
Nine months ended
Operating data
Unit
September 30,
2024
June 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Gold produced
oz
173,983
122,221
149,089
407,929
409,497
Gold sold
oz
173,973
115,423
148,231
405,901
409,620
Average realized gold price
$/oz
2,461
2,328
1,917
2,310
1,926
Cash costs per oz sold
(1)(2)
$/oz
1,720
1,747
1,363
1,678
1,357
AISC per oz sold
(1)(2)
$/oz
1,994
2,041
1,630
1,994
1,595
Financial data
Revenue
M$
428.4
269.4
284.7
939.1
790.4
Income from mine operations
M$
101.4
26.6
25.2
139.4
70.4
Net income (loss)
M$
0.3
283.8
2.2
241.3
25.0
Net income (loss) per share (basic)
$/share
0.00
0.72
0.01
0.63
0.08
Adjusted EBITDA
(1)
M$
141.9
51.3
81.2
245.3
209.1
Adjusted net income (loss)
(1)
M$
37.4
(5.8)
28.7
17.2
19.3
Adjusted EPS
(1)
$/share
0.09
(0.01)
0.09
0.04
0.06
Balance sheet and cash flow data
Cash and cash equivalents (unrestricted)
M$
167.8
167.5
356.7
167.8
356.7
Net debt
(1)
M$
1,314.7
1,308.9
729.5
1,314.7
729.5
Operating cash flow before changes in non-
cash working capital
M$
130.1
45.1
82.6
223.0
359.2
(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, 2024 excludes Greenstone's
results as the mine has not yet achieved commercial production and excludes Castle Mountain results after August 31, 2024 when residual leaching
commenced (see Development Projects). Consolidated AISC per oz sold excludes corporate general and administration expenses.
(3)
Numbers in tables throughout this news release may not sum due to rounding.
2024 GUIDANCE
On August 6, 2024, the Company updated its 2024 production and cost guidance to reflect the
consolidation of its ownership of Greenstone, the suspension of mining at Castle Mountain Phase 1 until
Phase 2 permitting is complete, slower-than-expected recoveries at Mesquite, and the geotechnical
event at Aurizona.
On October 16, 2024, the Company updated its 2024 production guidance for Greenstone to reflect
ramp-up progress and adjusted Greenstone production guidance to 110,000-130,000 ounces of gold
(from 175,000-205,000 ounces) with cash costs of $850-$950 per ounce (from $690-$790 per ounce)
and all-in sustaining costs of $1,050-$1,150 per ounce (from $840-$940 per ounce). Sustaining
expenditure at Greenstone is updated to $9 million (from $32 million) and non-sustaining expenditure to
$199 million (from $159 million). As a result, consolidated production guidance has been updated to
590,000-675,000 ounces of gold (from 655,000-750,000) with cash costs of $1,450-$1,550 per ounce
(from $1,305-$1,405 per ounce) and all-in sustaining costs of $1,820-$1,920 per ounce (from $1,635-
$1,735 per ounce).
SELECTED FINANCIAL RESULTS FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2024 AND 2023
$ amounts in millions, except per share amounts
Three months ended
Nine months ended
September 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Revenue
$ 428.4
$ 284.7
$ 939.1
$ 790.4
Cost of sales
Operating expense
(268.3)
(201.1)
(650.7)
(566.0)
Depreciation and depletion
(58.7)
(58.4)
(149.0)
(154.0)
Income from mine operations
101.4
25.2
139.4
70.4
Care and maintenance expense
-
-
-
(1.4)
Exploration and evaluation expense
(3.8)
(2.6)
(8.9)
(8.4)
General and administration expense
(13.4)
(14.0)
(40.2)
(36.2)
Income from operations
84.2
8.6
90.3
24.3
Finance expense
(19.7)
(15.3)
(57.8)
(42.3)
Finance income
2.0
3.0
6.3
9.3
Share of net income (loss) in associate
-
-
0.7
(17.1)
Other income (expense)
(29.6)
(2.3)
410.4
32.1
Net income (loss) before taxes
36.8
(5.9)
449.8
6.4
Income tax recovery (expense)
(36.5)
8.1
(208.5)
18.6
Net income
$ 0.3
$ 2.2
$ 241.3
$ 25.0
Net income per share attributable to Equinox Gold shareholders
Basic
$ 0.00
$ 0.01
$ 0.63
$ 0.08
Diluted
$ 0.00
$ 0.01
$ 0.54
$ 0.08
Additional information regarding the Company's financial and operating results is available in the
Company's Q3 2024 Financial Statements and accompanying MD&A for the three and nine months
ended September 30, 2024, 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
.
CONFERENCE CALL AND WEBCAST
The Company will host a conference call and webcast on Thursday, November 7, 2024, commencing at
7:30 am PT (10:30 am ET) to discuss second quarter results.
Conference Call
Toll-free in U.S. and Canada: 1-844-763-8274
International callers: +1 647-484-8814
Webcast
www.equinoxgold.com/financials
ABOUT EQUINOX GOLD
Equinox Gold is a growth-focused Canadian mining company with seven operating gold mines and a
path to achieve more than one million ounces of annual gold production from a pipeline of 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 revenue. Cash costs are divided by ounces sold to arrive at cash costs per oz sold.
In calculating cash costs, the Company deducts silver revenue 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 (described in following section), 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
Nine months ended
September 30,
2024
June 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Operating expenses
$
268.3
$
198.6
$
201.1
$
650.7
$
566.0
Silver revenue
(0.4
)
(0.7
)
(0.6
)
(1.7
)
(1.6
)
Fair value adjustment on acquired inventories
(3.1
)
(6.6
)
1.6
(10.3
)
(8.5
)
Pre-commercial production and development
stage operating expenses
(1)
(43.0
)
(7.8
)
-
(50.5
)
-
Total cash costs
$
221.8
$
183.5
$
202.1
$
588.2
$
555.9
Sustaining capital
30.9
26.0
32.0
95.9
77.2
Sustaining lease payments
1.6
2.1
4.7
6.3
13.0
Reclamation expense
3.0
2.6
2.9
8.5
7.4
Sustaining exploration expense
0.2
0.2
-
0.7
-
Greenstone reclamation expense
(1)
(0.4
)
(0.1
)
-
(0.5
)
-
Total AISC
$
257.2
$
214.5
$
241.7
$
699.1
$
653.5
Gold oz sold
173,973
$
115,423
$
148,231
405,901
$
409,620
Gold oz sold from entities during pre-
commercial production or development
stages
(1)
(45,028
)
(10,358
)
-
(55,386
)
-
Adjusted gold oz sold
128,945
$
105,065
$
148,231
350,515
$
409,620
Cash costs per gold oz sold
$
1,720
$
1,747
$
1,363
$
1,678
$
1,357
AISC per oz sold
$
1,994
$
2,041
$
1,630
$
1,994
$
1,595
(1)
Consolidated cash cost per oz sold and AISC per oz sold for the three and nine months ended September 30, 2024 excludes Greenstone results
as the mine has not yet achieved commercial production and excludes Castle Mountain results after August 31, 2024 when residual leaching
commenced.
Sustaining Capital and Sustaining Expenditures
Sustaining 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 can
include, but are not limited to, capitalized stripping costs at open pit mines, underground mine
development, mining and milling equipment, and TSF raises. Sustaining expenditures includes
sustaining capital, sustaining lease payments, reclamation expense and sustaining exploration expense.
The following table provides a reconciliation of sustaining expenditures to the Company's total
expenditures for continuing operations:
Three months ended
Nine months ended
$'s in millions
September 30,
2024
June 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Capital additions to mineral properties, plant
and equipment
(1)
$
146.9
$
139.1
$
153.5
$
420.4
$
439.4
Less: Non-sustaining capital at operating sites
(14.8
)
(4.8
)
(8.4
)
(29.5
)
(17.2
)
Less: Non-sustaining capital for projects at pre-
commercial production and development
stages
(92.1
)
(92.7
)
(101.4
)
(248.9
)
(295.8
)
Less: Capital expenditures - corporate
-
-
(0.2
)
-
(0.3
)
Less: Other non-cash additions
(2)
(9.1
)
(15.6
)
(11.5
)
(46.1
)
(48.8
)
Sustaining capital
$
30.9
$
26.0
$
32.0
$
95.9
$
77.2
Add: sustaining lease payments
1.6
2.1
4.7
6.3
13.0
Add: reclamation expense
3.0
2.6
2.9
8.5
7.4
Add: sustaining exploration expense
0.2
0.2
-
0.7
-
Sustaining expenditures
$
35.7
$
31.0
$
39.6
$
111.3
$
97.6
(1)
Per mineral properties, plant and equipment note in the Company's 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.
In Q4 2023, the Company revised the calculation to include changes in non-cash working capital and
present mine-site free cash flow after changes in non-cash working capital. The Company believes it is
useful to provide mine-site free cash flow before and after changes in non-cash working capital as
working capital can fluctuate significantly between periods due to numerous factors.
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,
2024
June 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Operating cash flow before non-cash changes in
working capital
$
130.1
$
45.1
$
82.6
$
223.0
$
359.2
Less: Fair value adjustments on acquired
inventories
3.1
2.2
(1.6
)
5.9
8.5
Less: Operating cash flow (generated) used by
non-mine site activity
(1)
(38.5
)
12.0
(4.6
)
(19.1
)
(150.6
)
Cash flow from operating mine sites
$
94.7
$
59.4
$
76.5
$
209.8
$
217.1
Mineral property, plant and equipment
additions
$
146.9
139.1
153.5
$
420.4
439.4
Less: Capital expenditures relating to
development projects and corporate and other
non-cash additions
(101.2
)
(108.3
)
(113.1
)
(295.0
)
(344.9
)
Capital expenditure from operating mine sites
45.7
30.8
40.4
125.4
94.5
Lease payments related to non-sustaining
capital items
3.0
5.9
4.4
16.3
13.5
Non-sustaining exploration expense
2.1
1.0
2.6
5.4
8.4
Total mine-site free cash flow before changes in
non-cash working capital
$
43.9
$
21.7
$
29.0
$
62.7
$
100.7
(Increase) decrease in non-cash working capital
9.4
(78.2
)
(13.4
)
(98.6
)
(126.7
)
Total mine site free cash flow after changes in
non-cash working capital
$
53.3
$
(56.5
)
$
15.7
$
(35.9
)
$
(26.0
)
(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. Also includes operating cash flow for projects in the pre-
commercial production and development stages, including Greenstone before achieving commercial production and Castle Mountain after August 31,
2024 when residual leaching commenced.
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, EBITDA 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,
2024
June 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Revenue
$
428.4
$
269.4
$
284.7
$
939.1
$
790.4
Less: silver revenue
(0.4
)
(0.7
)
(0.6
)
(1.7
)
(1.6
)
Less: AISC
(257.2
)
(214.5
)
(241.7
)
(699.1
)
(653.5
)
Less: revenue from entities during pre-
commercial production or development
stages
(1)
$
(109.5
)
$
(24.0
)
$
-
$
(133.5
)
$
-
AISC contribution margin
$
61.3
$
30.3
$
42.5
$
104.8
$
135.3
Gold oz sold
173,973
115,423
148,231
405,901
409,620
Less: Gold oz sold from entities during pre-
commercial production or development
stages
(1)
(45,028
)
(10,358
)
-
(55,386
)
-
Adjusted gold oz sold
128,945
$
105,065
$
148,231
350,515
$
409,620
AISC contribution margin per oz sold
$
475
$
288
$
286
$
299
$
330
(1)
AISC contribution margin excludes Greenstone results as the mine had not achieved commercial production by September 30, 2024, and excludes
Castle Mountain results after August 31, 2024 when residual leaching commenced.
EBITDA and Adjusted EBITDA
Three months ended
Nine months ended
$'s in millions
September 30,
2024
June 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Net income (loss)
$
0.3
283.8
2.2
$
241.3
25.0
Income tax expense (recovery)
36.5
163.5
(8.1
)
208.5
(18.6
)
Depreciation and depletion
59.3
44.4
58.9
150.0
154.8
Finance expense
19.7
20.7
15.3
57.8
42.3
Finance income
(2.0
)
(2.4
)
(3.0
)
(6.3
)
(9.3
)
EBITDA
$
113.8
$
509.9
$
65.2
$
651.4
$
194.2
Non-cash share-based compensation expense
2.4
2.8
2.5
7.6
5.9
Unrealized (gain) loss on gold contracts
18.0
(0.2
)
(6.2
)
28.4
(8.7
)
Unrealized (gain) loss on foreign exchange
contracts
(4.4
)
19.3
17.8
33.2
(9.0
)
Unrealized (gain) loss on power purchase
agreement
(1.4
)
(2.5
)
0.6
(5.8
)
7.8
Unrealized foreign exchange (gain) loss
4.9
(7.3
)
(2.2
)
(8.1
)
3.8
Share of net (income) loss of investment in
associate
-
(0.3
)
-
(0.7
)
17.1
Gain on remeasurement of previously held
interest in Greenstone
-
(470.4
)
-
(470.4
)
-
Transaction costs
-
0.8
-
0.8
-
Other (income) expense
8.5
(0.8
)
3.5
8.8
(1.8
)
Adjusted EBITDA
$
141.9
$
51.3
$
81.2
$
245.3
$
209.1
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
performance, such as impairments and gains and losses on disposals of assets. Adjusted net income
per share amounts are calculated using the weighted average number of shares outstanding on a basic
and diluted basis as determined by IFRS.
The following table provides the calculation of adjusted net income and adjusted EPS, as adjusted and
calculated by the Company:
Three months ended
Nine months ended
$'s and shares in millions
September 30,
2024
June 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Net income (loss) attributable to Equinox Gold
shareholders
$
0.3
$
283.8
$
2.2
$
241.3
$
25.0
Add (deduct):
Non-cash share-based compensation expense
2.4
2.8
2.5
7.6
5.9
Unrealized (gain) loss on gold contracts
18.0
(0.2
)
(6.2
)
28.4
(8.7
)
Unrealized (gain) loss on foreign exchange
contracts
(4.4
)
19.3
17.8
33.2
(9.0
)
Unrealized (gain) loss on power purchase
agreement
(1.4
)
(2.5
)
0.6
(5.8
)
7.8
Unrealized foreign exchange (gain) loss
4.9
(7.3
)
(2.2
)
(8.1
)
3.8
Gain on remeasurement of previously held
interest in Greenstone
-
(470.4
)
-
(470.4
)
-
Share of net (income) loss of investment in
associate
-
(0.3
)
-
(0.7
)
17.1
Transaction costs
-
0.8
-
0.8
-
Other (income) expense
8.5
(0.8
)
3.5
8.8
(1.8
)
Income tax impact related to above
adjustments
(0.6
)
146.6
(0.3
)
147.1
(1.5
)
Unrealized foreign exchange (gain) loss
recognized in deferred tax expense
9.6
22.5
10.7
34.8
(19.1
)
Adjusted net income (loss)
$
37.4
$
(5.8
)
$
28.7
$
17.2
$
19.3
Basic weighted average shares outstanding
428.5
392.5
313.0
381.8
312.4
Diluted weighted average shares outstanding
434.5
471.5
316.5
461.7
316.0
Adjusted income (loss) per share - basic
($/share)
$
0.09
$
(0.01
)
$
0.09
$
0.04
$
0.06
Adjusted income (loss) per share - diluted
($/share)
$
0.09
$
(0.01
)
$
0.09
$
0.04
$
0.06
Net Debt
The Company believes that in addition to conventional measures prepared in accordance with IFRS, the
Company and certain investors and analysts use net debt to evaluate the Company's performance. Net