Americas-focused Equinox Gold has had a strong first quarter, bolstered by production from its newly acquired assets, reporting record gold production and record earnings, despite navigating challenges related to the Covid-19 pandemic.
The miner, which added four mines to its two when the merger with Leagold closed on March 10, produced 88 951 oz of gold and sold 82 629 oz in the first quarter. In the fourth quarter of 2019, Equinox produced 80 176 oz.
The company achieved an average gold price of $1 574/oz and produced at an all-in sustaining cost of $968/oz.
Revenue for the quarter improved to $130-million and the miner reported a net income of $10.9-million, from a net loss of $8.5-million in the fourth quarter.
The company's operations have experienced "limited disruption" to date, with the exception of the Los Filos mine at which mining and development activities were suspended at the beginning of April in compliance with a Mexico federal government order requiring the temporary suspension of all non-essential businesses.
On May 14, the Mexico government declared mining an essential activity and allowed for the restart of operations on June 1.
CEO Christian Milau commented on Friday that the temporary suspension of its Los Filos mine, in Mexico, would affect second-quarter production.
Meanwhile, with more than $350-million of cash on hand, Equinox Gold is in a strong financial position and fully funded for its organic growth plans, he added.
Castle Mountain Phase 1 construction is 75% complete, the Los Filos expansion and Santa Luz restart projects are expected to significantly increase production over the course of 2021 and 2022 and the company recently completed a positive preliminary economic assessment for development of an underground mine at Aurizona.