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

The miner achieved this milestone one month after fully acquiring the Greenstone project for nearly $1 billion from Orion Mine Finance.

“We look forward to ramping up to commercial production in the third quarter of this year and delivering sustained value from the Greenstone mine for all our stakeholders,” Equinox Gold ( EQX ) CEO Greg Smith said.

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Greenstone is poised to become a game-changer for Equinox, with projections of reaching 90% of its 27,000 tonne-per-day capacity by year’s end.

The mine boasts a robust stockpiled ore reserve of 1.5 million tons, further bolstering its production ramp-up.

BMO Capital Markets, one of the acquisition underwriters, anticipates that Greenstone will produce 199,000 ounces of gold next year, with all-in sustaining costs (AISC) of $879 per ounce in the second half, aligning with the company's guidance of 175,000-210,000 ounces at $840-940 per ounce AISC.

“Greenstone is a transformational asset for Equinox,” noted BMO mining analyst Kevin O'Halloran. “We expect EQX shares to perform well as Greenstone ramps up and delivers the benefits of increased scale and cash flow to the company,” he said in a note.

Despite initial interest from Australia’s Gold Road Resources in acquiring Orion’s stake, Equinox successfully closed the deal, gaining full control over one of the largest Canadian open-pit gold projects. The mine could contribute 360,000 oz of gold annually over its projected 14-year lifespan, solidifying Equinox’s position as a major player in the Canadian gold sector. 

In addition, the company has multiple operating gold mines across the Americas, including Mesquite and Castle Mountain mines in California, Los Filos in Mexico, and Aurizona, Fazenda, Santa Luz and RDM in Brazil.

The company boasts a robust resource base with total proven and probable reserves of 19,138 thousand ounces, measured and indicated resources of 16,627 thousand ounces, and inferred resources of 11,341 thousand ounces.

Equinox’s strategic focus on expanding its production capacity and reducing costs is well-timed as gold prices continue to reach new all-time highs. In line with gold, the underlying commodity, its stock has gained 17% year-to-date.

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