Equinox Gold Corp (TSE: EQX) (NYSEAMERICAN: EQX) (FRA: 1LRC) has achieved commercial production at Newfoundland’s Valentine operation after acquiring the site through its takeover of Calibre Mining in June.
The milestone, announced on Nov. 18, follows the gold mine achieving 91 per cent of its nameplate capacity throughout October. Equinox expects to deliver up to 30,000 ounces from the project by the end of Q4.
“With the ramp-up firmly on track, I anticipate Valentine will reach nameplate capacity by Q2 2026,” said CEO Darren Hall in a news release, “resulting in 150,000 to 200,000 ounces of gold produced in 2026.”
The mine site is expected to have a lifespan exceeding 14 years and is estimated to contain 2.7 million proven and probable ounces of gold. It will become the largest gold production project in the Atlantic provinces once operating at full capacity.
Furthermore, Valentine is now the only Newfoundland gold mine producing the precious metal at a commercial scale.
“The operation is performing well, with plant availability, throughput, and recoveries exceeding commissioning period expectations,” Hall added.
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Equinox reports record Q3 production
The mid-tier managed to produce over 236,000 ounces during the quarter from its operations in Canada, the United States, Nicaragua and Brazil. Equinox also reported financial successes during the three-month period.
“During the quarter, we strengthened our balance sheet by reducing debt by US$139 million and, subsequent to quarter-end, added US$88 million in cash from the sale of our Nevada assets,” Hall explained.
On Oct. 1, Equinox divested its Nevada mining projects in a US$115-million-dollar deal with Minera Alamos Inc (CVE: MAI) (OTCMKTS: MAIFF) (FRA: PYCP). The gold producer decided to part ways with its Pan Mine, Gold Rock project and the Illipah exploration asset.
Equinox reported bringing in US$819 million in revenue, an adjusted EBITDA of US$420 million and a cash and cash equivalents balance of US$348.5 million at the end of the quarter. Funds from the Nevada deal were not factored in because it closed after Sept. 30.
As of the end of Q3, the precious metal producer’s net debt was sitting at approximately US$1.28 billion.
Current precious metal pricing and strategic operational execution have put Equinox is in a favourable position overall. Solid liquidity has been supporting the company’s expansion initiatives. Additionally, Equinox’s recent decision to merge with Calibre Mining has potentially unlocked over US$200 million in annual synergies.
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