The Canadian company Equinox Gold Corp. plans to invest 427 million dollars in its mining projects in 2021.
For this company its main product is doré gold.
The largest buyers of doré gold produced in Equinox Gold’s mines, once refined, are the international bullion banks themselves, traders and refiners.
However, there is a global gold market in which Equinox Gold could sell its gold and, as a result, Equinox Gold is not dependent on a particular buyer for the sale of gold, silver or other metals it produces.
The company is investing significantly in its projects in 2021, laying the foundation for lower-cost, longer-life mines and substantial production growth going forward.
On the one hand, Equinox Gold budgeted $ 178 million in maintenance capital for 2021 (including part of the 2020 transferred capital), compared to total spending in 2020 of approximately $ 77 million.
On the other hand, the company scheduled $ 249 million in unsustainable growth capital for 2021, compared to around $ 94 million in 2020.
Equinox Gold is also undertaking significant growth projects this year, including the construction of the Santa Luz mine, advancing expansion projects at the Los Filos mine, completing a pit expansion at the RDM mine, and major exploration programs focused on the extension of the useful life of the mine.
The company’s 2021 production guidance of 600,000 to 665,000 oz of gold represents an approximate 30% increase over the company’s production for the full year 2020.
In US dollar terms, the cost guide includes cash costs of $ 940 to $ 1,000 per oz of gold sold and AISC of $ 1,190 to $ 1,275 per oz of gold sold.
According to the company, consolidated gold production is expected to increase quarter-over-quarter during the year, with the fourth quarter benefiting from higher-grade ore at both Los Filos and Mesquite.
2021 GUIDANCE AND OUTLOOK
Cash costs for 2021 reflect lower grades mined at Los Filos during the first half of the year until the Guadalupe stripping program and Bermejal underground development are completed, providing access to higher grade ore.
However, the Bermejal underground development will not begin until a modified community support agreement is successfully resolved with the Carizalillo community.
Equinox Gold operates entirely in America, with two properties in the United States, one in Mexico and five in Brazil.