Equinox Gold (TSX:EQX) plans to rapidly deleverage as it turns a performance corner and ramps up its Greenstone gold mine in Ontario, Canada, president and CEO Greg Smith told Kitco Mining.
Greenstone, the company’s biggest mine, will drive down all-in sustaining costs from US$1994/oz in the quarter to September, with the cash flow used to pay down the company’s debt.
“Greenstone is huge for us. It's going to be our largest, longest life and lowest cost asset. There's lots of potential at Greenstone, so this is a real game changer for the company and you can see it already in our Q3 results. It already produced $65 million in operating cash flow and was our lowest cost producer in the third quarter [helping us to] the most operating cashflow we've had in a quarter and our highest EBITDA in a quarter to date. “It is our lowest cost producer, so it's going to drag down our average cash cost per ounce and AISC per ounce,” said Smith.
Equinox’s debt peaked in the June quarter at $1.34 billion, much of it related to financing it obtained to build the mine and fund the April 2024 purchase of the 40% of Greenstone it did not already own.
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