- Equinox Gold Corp (TSX:EQX) has reported strong full-year results from last year
- During 2019 the company produced 195,000 ounces of gold
- Equinox reported an adjusted net profit of C$38.3 million, up from $20 million the year previous.
- This figure excludes a number of non-cash losses the company incurred throughout the year
- Without these adjustments, the company made a net loss of $160,000
- The company’s merger with Leagold Mining is set to finalise next week
- Equinox Gold Corp (EQX) was up 8.43 per cent, with shares trading for $10.59 and a market cap of $1.2 billion
Equinox Gold’s (TSX:EQX) share price jumped today, after the company released strong full-year results.
The company produced 195,000 ounces of gold in 2019, a significant bump from the 25,000 produced the year before.
Moreover, adjusted net income was up to C$38.3 million, a promising development considering the $20 million adjusted net loss from 2018.
The company’s share price has reflected the strong performance, more than doubling between January and December last year.
However, this adjusted net profit ignores a significant non-cash loss related to outstanding warrant re-valuation. The company’s increasing share price throughout the year sparked a change in fair value for certain warrants.
As a result, the company wrote down a $38.2 million non-cash loss from the re-valuation. This coupled with a $14 million debt settlement, leaves the company with an unadjusted net loss of $160,000 in 2019.
Looking forward, 2020 is set to be a big year for the company. An Equinox-Leagold merger was recently approved by The Supreme Court of British Columbia and is set to finalise next week.
The merger with Leagold Mining will significantly increase the company’s portfolio. Equinox will take on four more operating gold mines and in Brazil and California, bring the total number to six.
Christian Milau, CEO of Equinox Gold, is optimistic about merger and the coming year.
“The proposed merger has received excellent support from both shareholders and the market.
“We look forward to closing the merger and communicating our 2020 strategy to deliver value from the expanded portfolio of assets.” he said
Furthermore, construction at the company’s Castle Mountain site is nearing completion and facility expects to pour tis first gold in Q3 of this year. Another feasibility study, resulting from further exploration, is ongoing a Castle Mountain.
Equinox Gold Corp (EQX) was up 8.43 per cent, with shares trading for $10.59 at 11.02am EST.