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Saturday, May 10, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Equinox Gold has best ever Q1 and prepares for more with Calibre merger
Equinox Gold has best ever Q1 and prepares for more with Calibre merger
RDM Gold mine. Image via Equinox Gold.

Gold

Equinox Gold has best ever Q1 and prepares for more with Calibre merger

The company also reported income from mine operations of USD$33.7 million for the quarter.

Equinox Gold Corp (TSE: EQX) (NYSEAMERICAN: EQX) (FRA: 1LRC) reported the highest first quarter production in the company’s history, producing over 145,000 ounces.

The company dropped its first quarter 2025 summary financial results on Thursday.

The company provided 2025 production guidance of 635,000 to 750,000 ounces of gold. It forecast cash costs between $1,075 and $1,175 per ounce and AISC between $1,455 and $1,550 per ounce. This guidance excludes production from both Los Filos and Castle Mountain.

In addition, Equinox outlined capital expenditure guidance of USD$412 million for the year. This includes USD$310 million in sustaining expenditures and USD$102 million in non-sustaining expenditures.

The company also reported income from mine operations of USD$33.7 million for the quarter. However, it recorded a net loss of USD$75.5 million. On an adjusted basis, the net loss totalled USD$36.6 million, or $0.08 per share.

In January 2025, Equinox concluded negotiations with the three communities that host Los Filos. Two communities signed long-term agreements. However, one community declined and asked to resume talks independently.

Equinox has also insisted that long-term agreements with all three communities are essential for continued operations. The agreement with the remaining community expired on March 31, 2025 leading to layoffs the following month.

For the three months ended March 31, 2025, the company produced 145,290 ounces of gold and sold 147,920 ounces at an average realized price of USD$2,858 per ounce.

Furthermore, total cash costs reached USD$1,769 per ounce, while all-in sustaining costs (AISC) averaged USD$2,065 per ounce. When excluding Los Filos, which was not part of the 2025 guidance, total cash costs dropped to USD$1,637 per ounce and AISC fell to USD$1,979 per ounce.

Read more: Calibre Mining reports solid Q1 results; receives court approval for Equinox Gold merger

Read more: Calibre securityholders give assent for Equinox Gold merger

Merger positions Equinox as second biggest gold producer in Canada

Greg Smith, the president and CEO of Equinox, indicated that he anticipated production to increase each quarter throughout the year. He also said he looks forward to closing its merger with Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) (FRA: WCLA) in Q2.

“This combination will create a diversified, Americas-focused gold producer anchored by Greenstone and Valentine — two long-life Canadian gold mines — and supported by a robust pipeline of development and expansion projects,” Smith said.

In early 2025, Equinox Gold announced a transformative all-share merger with Calibre Mining for CAD$2.6 billion. Under the agreement, Calibre shareholders will receive 0.31 Equinox shares for each Calibre share held, resulting in a combined company with an estimated market capitalization of CAD$7.7 billion.

Additionally, this merger positions Equinox as Canada’s second-largest gold producer, trailing only Agnico Eagle Mines Ltd (NYSE: AEM) (TSE: AEM).

The combined entity, operating under the Equinox Gold name, will own nine producing mines. One is presently under under construction, and five more development projects across five countries. Notably, it gains full ownership of two cornerstone Canadian assets: the Greenstone Mine in Ontario, which achieved commercial production in November 2024, and the Valentine Gold Mine in Newfoundland and Labrador, expected to commence production in mid-2025. Together, these mines are projected to produce an average of 590,000 ounces of gold annually at full capacity.

Furthermore, the merger enhances Equinox’s production profile, with an anticipated output of approximately 950,000 ounces in 2025. This excludes contributions from Valentine and Los Filos. With Greenstone and Valentine operating at full capacity, the company has the potential to exceed 1.2 million ounces per year.

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Calibre Mining is a sponsor of Mugglehead news coverage

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