Equinox Pours First Gold into Geenstone: Billion-Dollar Acquisition ‘Is Transformational,’ Says Analyst – Equinox Gold (AMEX:EQX)

Gold of the Equinox (AMEX:EQX) successfully poured its first gold on schedule at its Greenstone project in northern Ontario.

The miner reached the milestone a month after fully acquiring the Greenstone project for nearly $1 billion from Orion mine finances.

“We look forward to commencing commercial production in the third quarter of this year and delivering lasting value from the Greenstone mine to all our stakeholders,” Equinox Gold CEO Greg Smith he said.

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Greenstone could be a game-changer for Equinox, with forecasts calling for it to reach 90% of its 27,000-tonne-per-day capacity by the end of the year.

The mine boasts large ore reserves of 1.5 million tons, which further increases its production.

BMO Capital Marketsone of the underwriters of the acquisition, predicts Greenstone will produce 199,000 ounces of gold next year at an all-in sustaining cost (AISC) of $879 per ounce in the second half, which is in line with the company’s guidance of 175,000-210,000 ounces at priced at $840 – $940 per ounce AISC.

“Greenstone is a transformational asset for Equinox,” noted a BMO mining analyst Kevin O’Halloran. “We expect EQX stock to perform well and that Greenstone will grow and provide the company with the benefits of increased scale and cash flow,” he said in a note.

Despite the initial interest of the Australian company Gold Road Resources in acquiring shares in Orion, Equinox successfully completed the transaction, gaining full control over one of Canada’s largest gold mining projects. The mine could produce 360,000 ounces of gold per year over its expected 14-year operating life, solidifying Equinox’s position as a major player in the Canadian gold sector.

Additionally, the company has multiple operating gold mines in the Americas, including Mesquite AND Castle Mountain mines in california, Los Philos in Mexico and Aurizon, Fazenda, Saint Luz AND RDM in Brazil.

The company boasts a solid resource base with total proven and probable resources amounting to PLN 19,138 thousand. ounces, measured and indicated resources amounting to 16,627 thousand ounces and estimated resources of 11,341 thousand. ounces.

Equinox’s strategic focus on increasing production capacity and reducing costs is timely as gold prices continue to reach new record highs. As with gold, a staple commodity, its shares have gained 17% since the beginning of the year.

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