Equinox Gold has made a significant move to solidify its control over the Greenstone gold mine in Ontario, Canada. The company acquired the remaining 40% stake it did not already own from partner Orion Mine Finance for $995 million in a deal announced this week. This acquisition comes as Equinox prepares to pour its first gold at the mine next month, marking a major milestone for the project.
Full Ownership for Full Benefit
Previously, Equinox Gold held a 60% ownership stake in Greenstone, with Orion Mine Finance owning the remaining 40%. This new acquisition gives Equinox complete control over the mine’s operations and future. The $995 million purchase price is divided between $745 million in cash and $250 million worth of Equinox Gold shares. To finance this deal, Equinox is securing a new $500 million loan and conducting a $260 million bought-deal equity offering.
The Greenstone mine is poised to become a game-changer for Equinox Gold. Company officials estimate that the mine will produce a substantial 400,000 ounces of gold annually during its initial five years of operation. Equinox also expects Greenstone to be highly cost-effective, ranking among the world’s lowest-cost open-pit gold mines. This acquisition is anticipated to significantly boost Equinox’s annual gold output by approximately 160,000 ounces. The increased production, coupled with Greenstone’s low operating costs, is expected to translate into a substantial rise in Equinox’s earnings and cash flow.
Equinox Gold: A Growing Power in Gold Production
With the addition of Greenstone, Equinox Gold’s portfolio now boasts eight active mines across North and South America. The company anticipates total gold production for 2024 to fall within a range of 660,000 to 750,000 ounces. Equinox prioritizes efficient operations, with an estimated all-in-sustaining cost of production between $1,630 and $1,740 per ounce of gold in 2024. Also, this focus on cost control positions Equinox to remain competitive in the global gold market.
The acquisition of Greenstone is not the only exciting news for Equinox Gold. Also, the company recently announced that it had begun ore processing at Greenstone and remains on track to achieve its target of pouring its first gold next month. However, this initial gold pour signifies a critical step forward for the Greenstone project and the culmination of significant planning and development efforts.
Equinox Gold’s full acquisition of the Greenstone mine positions the company for significant growth in the coming years. Moreover, the mine’s substantial gold production capacity and low operating costs are expected to make Greenstone a cornerstone asset for Equinox. With the first gold production on the horizon, along with a growing portfolio of mines, Equinox Gold appears well-positioned to solidify its place as a major player in the global gold mining industry.
Source: Mining.com
