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  • Pages
  • Editions
01 Cover
02 Welcome Letter / Sections
03 Article & Interview Directory
04 Section 1: Introduction
05 Introduction to Mining in Ontario
06 Government of Ontario Interview
07 Ontario Mining Association (OMA) Interview
08 Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Interview
09 Navigating Uncertainty
10 Ormston List Frawley LLP Interview
11 PDAC Interview
12 Section 2: Production and Development in Ontario
13 Production in Ontario
14 Map of Ontario Mines
15 Newmont Interview
16 Barrick Gold Interview
17 Wesdome Gold Mines Interview
18 Alamos Gold Interview
19 Evolution Mining Interview
20 A New Wave of Ontario Gold Mines
21 Argonaut Gold Interview
22 Equinox Gold Interview
23 Industry Thoughts: Production and Development in Ontario
24 Section 3: Mining Finance
25 Mining Finance and Investment
26 Insights from the Toronto Stock Exchange
27 PearTree Securities Interview
28 Triple Flag Interview
29 Red Cloud Securities Interview
30 IBK Capital Interview
31 Stifel Interview
32 Roth Canada Interview
33 Industry Thoughts: Mining Finance Trends
34 Section 4: Toronto's Global Reach
35 Toronto’s Global Reach
36 Toronto's Global Reach Map
37 Rupert Resources Interview
38 Eloro Resources Interview
39 Industry Thoughts: Global Operations Based in Ontario
40 Eyes on Latin America
41 Torex Gold Resources Interview
42 Minera Alamos Interview
43 Sable Resources Interview
44 Section 5: Junior Exploration
45 Junior Exploration
46 Great Bear Resources Interview
47 Exploring Across Canada
48 O3 Mining Interview
49 Purepoint Uranium Group Interview
50 ALX Resources Interview
51 Industry Thoughts: Gold Juniors Have Their Say
52 Gold Juniors Replacing Depleting Resources
53 Moneta Gold Interview
54 Goldshore Resources Interview
55 Galleon Gold Interview
56 Element79 Gold Interview
57 Signature Resources Interview
58 Section 6: ESG and the Battery Materials Supply Chain
59 Transition Metals on the Rise
60 Conquest Resources Interview
61 Generation Mining Interview
62 Inventus Mining Interview
63 Noble Mineral Exploration Interview
64 The Move to Combat Climate Change Gathers Pace
65 Insights from Onyen Corporation
66 Thorn Associates Interview
67 Leading the Charge
68 Electra Battery Materials Interview
69 Frontier Lithium Interview
70 Industry Thoughts: Entering The Transition Economy
71 The Battery Material Supply Chain
72 ION Energy Interview
73 Clean Air Metals Interview
74 Section 7: Services, Technology and Innovation
75 Engineering, Construction & Consultancies
76 Ausenco Interview
77 Cementation Americas Interview
78 PCL Construction Interview
79 Redpath Mining Interview
80 Technological Advancements & Innovation
81 Industry Thoughts: Canadian Associations
82 EY Interview
83 Maestro Digital Mine Interview
84 Centric Mining Systems Interview
85 Industry Thoughts: OEMs Have Their Say
86 Drone Delivery Canada Interview
87 Sofvie Interview
88 Novamera Interview
89 Industry Thoughts: Paving the Way for ESG Reporting
90 Section 8: Company Profiles
91 Wesdome Company Profile
92 ION Energy Company Profile
93 PearTree Securities Company Profile
94 Ormston List Frawley Company Profile
95 Maestro Digital Mine Company Profile
96 Sofvie Company Profile
97 Credits

Christian Milau, CEO,

EQUINOX GOLD

"Having an Ontario project in our portfolio helps to diversify our business and reduce geopolitical risk."

Can you tell us more about the location of the Greenstone project and its history?

We acquired Greenstone in 2021 through our acquisition of Premier Gold. More than 4 million oz Au had been produced in the region between 1940 and 1970 from a number of underground mines, but Premier was the first to look at developing an open-pit mine. They had done a bunch of exploration and engineering work and published a study that showed a 5.5 million oz deposit with the potential of producing 400,000 oz/y for 14 years. That certainly caught our interest, as well as its unique location in Ontario, Canada, which is one of the world’s best mining jurisdictions. There’s lots of skilled labour in the region and the project is right on the rans-Canada Highway with excellent access to roads, power, support services and other infrastructure. Construction is underway now and Greenstone will be the third or fourth largest mine in Canada when it’s operating.

How has inflation impacted your plans for the project and how are your navigating these challenges?

Mines worldwide are feeling heightened inflationary pressures on input costs. As logistics costs and fuel prices increase around the world, we are seeing many mining companies' budgets increase by 20 - 30%. We adjusted our original capital estimate for Greenstone from US$1 billion to US$1.2 billion to account for these changes. We also included a contingency of 14% to account for external pressures and the potential for further inflation. Fortunately, we witnessed heightened inflation before we started construction so we were able to anticipate and factor those costs into our construction budget.

How would you rate the jurisdictions you operate in terms of ease of doing business?

No jurisdiction is void of political risks, but we’re very comfortable working in the Americas and in all four countries where our mines are located. We started operating in Brazil five years ago when the government was undergoing transition and our experience has been very positive. Regulations have been streamlined and more efficient under the new government. Eastern California, where our mines are located, has a long history of mining and we are the primary employer in the region, so local communities are generally excited about the prospect of more jobs and business opportunities. As the Biden administration increases taxes our margins in California will decrease a bit, but it’s still a great jurisdiction for mining.

We’ve certainly faced some challenges in Mexico, but we knew when we acquired the Mexico mines that it was a challenging jurisdiction and that’s one of the reasons we chose to acquire the Greenstone project in Ontario. Ontario is renowned for its support of mining investment and it’s a great place to do business. Having an Ontario project in our portfolio helps to diversify our business and reduce geopolitical risk.

What is your outlook for gold?

Last year was extraordinary, with gold rising so quickly from US$1,500 to its all-time high in August of US$2,067. If gold increases too rapidly, however, it creates fear factors and inflationary trends, so I prefer a slow gradual increase. The current price is reasonable and we can all make money at US$1,700-US$1,800 gold, but gold equity valuations in the market are quite depressed. The spotlight is on cryptocurrencies, cannabis and electric vehicles, while gold is being somewhat forgotten. This presents amazing investment opportunities, particularly with rising inflation which is reviving interest in gold to some extent.

As governments continue to print money, uncertainty is peaking and interest rates are negligible. This dynamic is not sustainable in the long term, which will push the gold price up further due to depreciation of currencies, while gold holds its value. Gold’s role as a store of value is only becoming more prominent. The new generation is not as excited about gold because it can’t make 200% returns in a month like bitcoin. In my opinion, however, gold is an exciting investment because it is safe and holds its value in the long-term. For our sector the key is to protect your margins and keep costs under control to benefit from the eventual gold price increase.

Next:

Industry Thoughts: Production and Development in Ontario