Equinox Gold Targets Low End of 2026 Production, High End of AISC Range
Key Facts
Equinox Gold said it expects to achieve the low end of its updated 2026 gold production range of 870,000 to 920,000 ounces and the high end of its all-in sustaining cost range of $1,900 to $2,000 per ounce sold. The company announced the guidance with its third-quarter results, placing production and costs at the less favorable ends of their respective ranges for its annual targets. This follows third-quarter production of 237,019 ounces and sales of 248,484 ounces at an average realized price of $4,157 per ounce. On the Toronto Stock Exchange, the shares fell 5.11% on November 10 to C$16.15, compared with a close of C$17.02 in the previous session. EL7 data showed the shares closed at $11.23 in the U.S. market the same day, after $12.09 on November 9.
All-in sustaining costs in the third quarter were $2,091 per ounce sold, while cash costs reached $1,654. The company said both figures were down from the second quarter, with all-in sustaining costs falling 4% and cash costs 9%. Even so, the third-quarter cost was above the announced annual guidance range of $1,900 to $2,000 per ounce sold. The company says it expects to finish the year at the high end of that range. Annual production, meanwhile, is expected to come in at the low end of the updated range of 870,000 to 920,000 ounces.
The company's revenue rose to $1,047.0 million in the third quarter of 2026, from $584.3 million in the same period of 2025. Net income, by contrast, fell to $62.5 million from $75.6 million year over year. Adjusted earnings before interest, taxes, depreciation and amortization were $533.0 million, up 49% from the second quarter of 2026. The company recorded production of 237,019 ounces and sales of 248,484 ounces during the quarter. The average realized gold price was $4,157 per ounce, according to the company's results.
Greenstone produced about 60,596 ounces in the third quarter, while the average mining rate was about 194,000 tonnes per day. The company said replacing the high-pressure grinding rolls in August reduced plant throughput during the quarter to an average of 23,682 tonnes per day. It said the scheduled roll replacement affected ore flow through the plant during the period. It plans to commission the tailings thickener in early 2027 to improve mill availability. These operational works put Greenstone's performance among the factors to track as production and costs are monitored in coming periods.
At the South Railroad project, Equinox Gold is targeting first gold production in the first half of 2028. The company estimates average annual production of about 130,000 ounces during the first five years. The estimate is based on an initial mine life of 10 years. In management changes, Jason Simpson became chief executive officer on November 1, 2026. Simpson succeeded Darren Hall, whose term ended on October 31.
The company declared a quarterly dividend of $0.0225 per share for the third quarter of 2026. The dividend will be paid on December 10, 2026, to shareholders of record on November 25. The move follows quarterly results that combined higher revenue than in the same period a year earlier with lower net income. The company also reported that adjusted earnings before interest, taxes, depreciation and amortization rose from the second quarter. The announced 2026 guidance remains the key focus as year-end approaches, with the company targeting the low end of production and the high end of all-in sustaining costs.