Equinox Gold (TSX: EQX) has poured first gold on schedule at its now 100%-owned Greenstone gold project in northern Ontario, the company’s flagship asset.
In April, the miner bought out its former joint-venture partner, Orion Mine Finance, at Greenstone. The mine is expected to produce 400,000 oz. gold annually over its first five years.
“We look forward to ramping up to commercial production in the third quarter of this year and delivering sustained value from the Greenstone mine for all our stakeholders,” president and CEO Greg Smith said in a release.
Equinox is targeting 90% of the 27,000 tonne-per-day plant by the end of 2024. It also increased mining rates ahead of its first gold pour, and had stockpiled 1.5 million tonnes of stockpiled ore at the end of the first quarter.
BMO Capital Markets expects production to total 199,000 oz. gold next year, with all-in sustaining costs (AISC) of US$879 per oz. in the second half. That matches guidance of roughly 175,000-210,000 oz. at US$840-940 per oz. AISC, BMO mining analyst Kevin O’Halloran wrote in a note to clients.
The mine is expected to be one of Equinox’s lowest-cost operations.
“Greenstone is a transformational asset for Equinox,” O’Halloran wrote. “We expect EQX shares to perform well as Greenstone ramps up and delivers the benefits of increased scale and cash flow to the company.”
Equinox shares traded at $7.61 apiece on Thursday afternoon, valuing the company at $3.2 billion.
Greenstone is expected to produce 360,000 oz. per year over its 14-year mine life.
Equinox paid US$995 million in cash and shares in April for Orion’s 40% stake in the mine.
Australia’s Gold Road Resources (ASX: GOR) had expressed interest in acquiring Orion’s stake in the project, but ended talks last month. Equinox owns eight gold mines throughout the Americas.
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