Equinox Gold (EQX*) Ready to expand production by 400,000 Oz Gold Annually
Important events happening at Equinox:
I: First gold pour on track for Q2 2024 at its Eighth Gold Mine – Greenway
II: EQX consolidates ownership of Greenway from 60/40 split to 100%
Production has begun at Greenway, EQX’s eighth gold mine. EQX also announced they have consolidated its ownership of Greenway to 100%. Annual production at Greenway is projected at 400,000 ounces of gold annually.
Greenway will be the largest producing mine in EQX’s portfolio of mines. It is also EQX’s lowest cost of production mine, and one of the largest gold mines in Canada.
The share price is down today due to the news of the financing to consolidate Greenway to 100% ownership for EQX. We believe this is a excellent opportunity to buy or add to your position in EQX!
The price has dropped into support just above $5.00 and is still above its 150-day moving average. Our time line for ownership is eighteen months, plus or minus, with a double in the share price as a price goal.
Equinox Gold commences processing ore at Greenstone Project: first gold pour on track for Q2 2024 4/9/24 | Briefing.com
The Greenstone Project is being developed as a 60/40 partnership, respectively, by Equinox Gold and Orion Mine Finance Group and will be one of the largest gold mines in Canada, producing approximately 400,000 ounces of gold annually for the first five years and more than five million ounces of gold over its initial 14-year mine life. Ore was introduced into the grinding circuit on April 6, with first gold pour expected in May. More than 1.5 million tonnes of ore have been stockpiled and 70,000 tonnes of low-grade ore has been pre-crushed to use for early commissioning feed. Progressively higher-grade ore will be fed into the mill as production ramps up toward planned throughput of 27,000 tonnes per day, with commercial production targeted for Q3 2024.
Equinox Gold Consolidates Ownership of the Greenstone Gold Mine, Arranges Term Loan and Bought Deal Equity Financing – April 24, 2024. Full Story linked in headline.
Anticipated Benefits to Equinox Gold Shareholders
— Rare opportunity to consolidate a world-class gold mine — Consolidates
100% ownership of Greenstone, one of the largest and highest-grade open
pit gold mines in Canada, a top mining jurisdiction, at the beginning of
its expected 14+ year mine life and into a historically strong gold price
environment.
— Increases production and is significantly accretive to near-term EBITDA
and cash flow — Increases the Company’s annual gold production by an
expected 160,000 low-cost ounces per year with significant near-term
EBITDA and cash flow per share accretion. Consolidated Greenstone will be
Equinox Gold’s largest mine, producing an expected average of 400,000
ounces of gold per year over the first five years, and is expected to be
one of the world’s lowest-cost open-pit gold mines, with cash costs in
the industry’s lower quartile.
— Delivers substantial growth and exploration potential — Consolidates the
Greenstone underground deposit, a key expansion opportunity at Greenstone,
as well as multiple gold deposits in a highly prospective land package
over a 100-km trend to the west of Greenstone, enhancing the Company’s
long-term growth profile with both expansion and exploration potential.
Ross Beaty, Chairman of Equinox Gold, stated: “When we acquired our 60% interest in Greenstone in 2021, our goal was to ultimately own the whole mine. Consolidating 100% of Greenstone into Equinox Gold delivers our shareholders full exposure to a mine of outstanding scale and quality, in one of the best mining jurisdictions in the world, while meaningfully growing our expected production, cash flow and reserves.”
Greg Smith, President and CEO of Equinox Gold, commented: “Opportunities to own gold mines like Greenstone are incredibly rare in our industry, and the Greenstone Mine will now be the foundation for long-term value creation in our company. I also welcome Orion as a shareholder of Equinox Gold and thank them for being a great partner over the last few years, as together with the Greenstone team we have executed a very successful mine build. Greenstone is well into hot commissioning, with first gold in sight. Now, as full owners, we remain focused on advancing Greenstone to commercial production and look forward to surfacing its full potential.”
Istvan Zollei, Managing Partner of Orion, stated: “Orion has been an investor in the Greenstone gold project since 2016, and collaborative joint venture partners with Equinox Gold since 2021. We’ve been very pleased to see the crucial construction and operational milestones being delivered by the team and look forward to seeing the mine achieve its full potential. Our partnership with Equinox Gold has been outstanding and synergistic, and we look forward to our ongoing cooperation with the Equinox Gold team as a supportive shareholder.”
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
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