Equinox Gold Corp. (AMEX:EQX) Q3 2023 Earnings Call Transcript

Wayne Lam: Well great. Thanks. Thanks for taking my questions and best luck in the months ahead.

Greg Smith: Thanks Wayne.

Operator: The next question comes from Kerry Smith with Haywood Securities. Please go ahead.

Kerry Smith: Well thanks everyone. Greg, does that $80 million to $85 million your share of the remaining CapEx, does that actually include the working capital buildup?

Greg Smith: In terms of – ore like stockpiled ore and first fills and all that?

Kerry Smith: Yes.

Greg Smith: Yes.

Kerry Smith: Okay. Okay. That’s great. And are you having any issues for the operating side because I know you’re adding equipment as we move into every quarter here going forward. Are you having any issues sourcing equipment from the suppliers or maybe any issues sourcing people as you build up your staffing levels or is all that kind of running in line with what you expected?

Greg Smith: Yes. So on the equipment side, no, because everything had been previously acquired. So we haven’t had any issues around that or certainly not at this stage in the game. In terms of hiring, things have accelerated quite significantly. We’re working towards having, I think, around 360 people on site by year-end. We’re at about 300 now, and that will continue to increase. And I’m talking about the operating team, which will get us to sort of 550 at some point next year. The number of people on site in terms of construction is coming off, as I said, quite rapidly. We went from over 800 people just a few weeks ago. That’s now dropped to sort of 500 and continuing to drop.

Kerry Smith: Okay. And can you remind me what the peak employee levels are once the operation is running if you’re [indiscernible]

Greg Smith: About 550.

Kerry Smith: Okay. Okay. And just for Miski with this buildup of inventory, do you have even a directional comment on the production in Q4 from Mesquite that you would expect? I mean, do you think it’s going to be 10% better than Q3? I’m just thinking about how we kind of model this?

Greg Smith: Yes. No, I hear you Kerry. And it’s — we’ve actually stacked a lot more ounces and recoverable ounces in the year than we budgeted. But we did it a bit later, as Doug mentioned, because we extended the stripping program. And we’ve seen this in the past with Mesquite where the recovery starts to incrementally increase and all of a sudden, it starts to really increase and sort of reach the levels that we anticipate. And so it’s one of these situations where we’re totally comfortable reiterating our guidance. We’re going to be within our guidance for the year. Whether we’re in the back end of that guidance or closer to the midpoint of that guidance, that could be a matter of a couple of weeks at Mesquite just based on the every of those ounces.

So we’re sort of in the same position as you. We anticipate those ounces starting to accelerate significantly over the course of the quarter, which we’ve seen every year that we’re mining Mesquite, but the exact timing right around that year-end time will — could have some effect on the overall production for the year. It obviously will.

Kerry Smith: Okay.

Doug Reddy: Remember, a large number of tonnes [ Dell ] doesn’t come under leach at the same time. We had to finish lead cycles on other areas as it was coming on. And then you’ve got your normal lease cycle, plus it’s a very high pad, the pad height means that the percolation takes quite a while to work its way through. So all that combined, and we’ve done lots of discussions and analysis on that. It means that any day now. That’s it through Q4.

Greg Smith: Kerry, the Mesquite — like it’s a good story at Mesquite. We had very positive reconciliation in the pit this year. And so we’ve had a lot more recoverable ounces available to mine put on the pad. We also are, as Doug mentioned, integrating this new Ginger deposit, working on mine plans that are going to extend mining at Mesquite into 2026. So we’re very happy with what’s happening in Mesquite. The timing of recovery of these ounces. Again, it’s — we’re talking about a difference of a couple of weeks right around that year-end that could affect 2023 production, but still we’ll be well within our guidance.