Canadian miner Equinox Gold said on Wednesday that its full-year production would fall short of its guidance and that its costs would exceed the upper-end of its target range, citing persistent global inflationary pressures.

The TSX-listed miner, which operates entirely in the Americas, stated that its production would be about 540 000 oz of gold, with its updated all-in sustaining cost (AISC) guidance of $1 530/oz being exceeded by about 5%.

Equinox earlier this year already lowered its 2022 guidance to between 550 000 oz and 615 000 oz, from its original guidance of 625 000 oz to 710 000 oz of gold, owing to disruption to mining at RDM and a longer-than-expected ramp-up at Santa Luz.

Santa Luz achieved commercial production on October 1.

Equinox produced 381 880 oz of gold in the first nine months of the year, compared with 391 678 oz in the corresponding period. Third-quarter gold output was 143 615 oz, which was materially higher than the 120 813 oz produced in the second quarter. Third-quarter AISC rose to $1 657/oz, from $1 327/oz in the previous quarter.

The company sold 4% more gold ounces in the September 2022, compared with the same quarter in 2021. The increase was mainly driven by increased production at Mesquite and the contribution of pre-commercial production ounces at Santa Luz, offset by decreased production at Los Filos, Aurizona, and RDM, and by no gold sales at Mercedes as the operation was sold on April 2022.

Higher gold production at Mesquite was mainly owing to accessing the majority of ore from the Brownie openpit late in the second quarter 2022, allowing for full leaching during the third quarter.

Lower gold production at Los Filos was mainly owing to 33% lower gold grades, primarily owing to lower-grade mined from the Guadalupe openpit and slow development into higher-grade areas in the Bermejal underground.

Lower gold production at Aurizona was owing in part to processing stockpile ore with lower grades as high rainfall continued into July 2022 and impeded access to higher-grade ore from the Piaba openpit, while lower gold production at RDM was owing to the decision to process low-grade stockpile material while the openpit was being dewatered.

Equinox widened its net loss in the third quarter to $30.1-million, from $8.1-million, owing to the lower earnings from mine operations.