All dollar amounts are expressed in US$
Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) (“Equinox Gold” or the “Company”) today provides an update related to the COVID-19 pandemic.
Operations
Equinox Gold will temporarily suspend mining activities at its Los Filos Mine in Guerrero State, Mexico in compliance with a recent order by the Federal Government of Mexico requiring the temporary suspension of all non-essential businesses until April 30, 2020. The Company will continue processing solution from the heap leach pads and expects that gold production will continue at a reduced level through the temporary suspension.
The Company has also temporarily suspended operations at its Pilar Mine in Goiás State, Brazil in compliance with State Government restrictions. To maintain appropriate safety, security and environmental systems, the mine will continue to be staffed by a reduced workforce.
The Company’s RDM Mine in Minas Gerais State, Brazil is recommencing full operations after a previously announced short-term suspension of mining activities in compliance with a municipal restriction.
The Company’s other producing mines continue to operate normally with COVID-19 safety and preventive measures in place. The Company is currently unable to determine the potential effects of the COVID-19 pandemic on fiscal 2020 guidance and will provide updates as practical.
Equinox Gold continues to enforce stringent operational and safety procedures across the Company to help protect the safety of its workforce and communities in accordance with guidelines outlined by the World Health Organization and the local, state and federal governments at each of its operations. Equinox Gold has developed contingency plans to support business continuity and help protect the economic wellbeing of its workforce, suppliers and local communities. The Company is monitoring the rapidly changing COVID-19 situation and will adjust its response as necessary.
Financial
The Company drew down the remaining $180 million from its $400 million revolving credit facility in March as a proactive measure given the uncertainty of the potential effects of the COVID-19 pandemic on the Company’s operations. There are no current plans to deploy these funds and Equinox Gold remains in a strong financial position with approximately $300 million in cash and cash equivalents (unrestricted) at March 31, 2020.
About Equinox Gold
Equinox Gold is a Canadian mining company with six producing gold mines, a multi-million-ounce gold reserve base and a strong growth profile from two development projects and two expansion projects. Equinox Gold operates entirely in the Americas, with two properties in the United States, one in Mexico and five in Brazil. Equinox Gold’s common shares are listed on the TSX and the NYSE American under the trading symbol EQX. Further information about Equinox Gold’s portfolio of assets and long-term growth strategy is available at www.equinoxgold.com or by email at ir@equinoxgold.com.
CAUTIONARY NOTES AND FORWARD-LOOKING STATEMENTS
This news release includes certain statements that constitute “forward-looking statements”, and “forward-looking information” within the meaning of applicable securities laws collectively “forward-looking statements”. These include statements regarding the growth potential of the Company. When used in this news release, words such as “will”, “monitoring”, “review”, “adjust”, “continue”, “contingency plan”, “expect”, “growth”, and similar expressions are intended to identify these forward-looking statements as well as phrases or statements that certain actions, events or results “may”, “could”, “would”, “should”, “occur” or “be achieved” or the negative connotation of such terms. As well, forward-looking statements may relate to future outlook and anticipated events, such as the Company’s ability to achieve the 2020 production and cost estimates at its properties, the funding available to the Company, the timing and likelihood of project development, construction and expansion, the timing and amount of expected future production, the costs of future production, construction and expenditures, the Company’s plans and protocols with regard to managing potential impacts related to the COVID-19 pandemic, the Company’s strategy to help keep its workforce and local communities safe, the Company’s contingency plans, business continuity protocols and the potential impact on operations related to COVID-19, the Company’s ability to maintain activities and productivity at its operating mines, the Company’s ability to successfully resume operations at mines at which operations have been restricted or temporarily suspended, and the Company’s ability to advance its development and expansion projects and achieve its growth objectives.
These forward-looking statements involve assumptions, numerous risks and uncertainties, certain of which are beyond the Company’s control including risks associated with or related to the volatility of metal prices and the Company’s shares, there being no significant disruptions affecting the Company’s operations or projects, risks related to the COVID-19 pandemic including government and health authority responses and increased regulations and restrictions regarding the flow of labour, materials and impact on the Company’s business, projects and operations, as well as the risk factors identified in Equinox Gold’s year-end MD&A dated February 28, 2020, which is available on SEDAR at www.sedar.com and EDGAR at www.sec.gov. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Forward-looking statements speak only as of the date those statements are made. The COVID-19 situation is changing rapidly and Equinox Gold will continue to review and adapt its response protocols as the situation unfolds, applying guidelines outlined by the World Health Organization and governments of countries within which the Company operates. The extent to which COVID-19 (or any other disease, epidemic or pandemic) impacts business activity, operations or financial results, and the duration of any such impact, will depend on future developments that are highly uncertain and cannot be predicted, including new information that may emerge concerning COVID-19 and the actions required to contain or treat its impact, among others. Except as required by applicable law, Equinox Gold assumes no obligation to update or to publicly announce the results of any change to any forward-looking statement contained or incorporated by reference herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements. If Equinox Gold updates any one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements. All forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.