Gold gains for third day before US data that may shape rate path
Bullion traded near $2,670 an ounce — touching the highest since mid-December.
Equinox Gold (TSX: EQX) (NYSE: EQX) shares rose on Thursday after the company reported its highest quarterly and yearly production.
The company said it produced 213,906 oz. of gold in the fourth quarter of 2024 and 621,870 oz. for the full year, both a record. The 2024 production was near the midpoint of its annual guidance of 590,000–675,000 oz. from seven operating mines in Canada, US, Mexico and Brazil.
Shares of Equinox were up 6.5% at 11 a.m. EDT, giving the Canadian gold miner a market capitalization of about C$4 billion ($2.8 billion).
The company ended the year with $240 million in cash and cash equivalents. During the fourth quarter, Equinox reduced its debt by $180 million.
Equinox Gold CEO Greg Smith attributed the company’s growth primarily to the Greenstone mine in Ontario.
“2024 was a pivotal year for Equinox Gold, defined by our success at Greenstone,” Smith said in a news release. “We consolidated 100% ownership of the mine, achieved commercial production, and produced more than 111,700 oz. of gold in the first, partial year of operations at Greenstone.”
Greenstone will be one of Canada’s largest and highest-grade open-pit gold mines at full production, producing 390,000 oz. per year on average for the first five years and 330,000 oz. annually over an initial 15-year mine life.
The Mesquite mine in California exceeded its yearly guidance of between 55,000–65,000 oz., producing 71,980 oz., while the Castle Mountain operation produced 20,510 oz. during the year, exceeding its guidance of 15,000 oz.
Equinox’s Q4 production exceeded BMO’s consensus estimates of 205,000 oz.
“Production at Santa Luz and, to a lesser extent, Greenstone, was below our forecast but was more than offset by a strong quarter at other operations,” the bank stated in a note.
“2024 production of 622,000 oz. was in line with revised guidance of 590,000–675,000 oz., which was lowered in October from 655,000–750,000 oz. due to modest ramp-up delays at Greenstone.”
Earlier this week, Equinox announced the extension of its Fazenda mine in Brazil by another seven years, following successful exploration that more than doubled its reserve base.
Located within the Maria Preta district, in Bahia state, Fazenda has been operating since 1984 as a combined underground and open-pit mine, producing over 3.3 million oz. of gold to date. Equinox assumed ownership in 2020 with its acquisition of Leagold Mining.
A new reserve estimate issued by Equinox late Tuesday showed a 142% increase in Fazenda’s contained gold to 763,000 oz., enough to support mining until 2033. This increase accounts for 242,000 oz. of mining depletion since the previous reserve update in 2021, the Vancouver-based miner noted.
Measured and indicated resources at Fazenda have also surged 418%, reaching 1.524 million oz. of contained gold. The average grade of reserves and resources increased by 22% and 25%, respectively.
The updated reserves and resources reflect more than 197,000 metres (1,599 holes) of drilling completed between 2021 and 2023, along with additional geotechnical data, updated mining costs, and revised gold price forecasts used in the mine design.
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