Equinox Gold halts production at Los Filos mine in Mexico
Equinox Gold (TSX:EQX) has announced the indefinite suspension of operations at its Los Filos mine in Guerrero, Mexico.
The decision follows failed negotiations for a land access agreement with the community of Carrizalillo.
Shares of the miner fell 3.4% on Tuesday morning to C$9.55 ($6.67) following the news, bringing the company’s market capitalization to $3.14 billion.
Discussions with all three local communities began in November 2023, with Carrizalillo being the lone dissenter. Mezcala and Xochipala signed long-term agreements in January 2025.
The agreements, according to Equinox, ensure “the economic and investment conditions necessary for continued operations at the Los Filos mine, including the proposed construction of a new 10,000-ton-per-day carbon-in-leach processing plant to increase gold recoveries from higher-grade ore.”
Los Filos produced 170,369 ounces of gold in 2024 at an all-in sustaining cost of $2,185 per ounce. The property is estimated to house reserves of 5,354 koz at 0.86 grams per ton (g/t) gold and resources of 7,897 koz at 0.75 g/t gold.
Total life-of-mine production is estimated at 3.97 million oz of gold, peaking between 2025 and 2030 at an average production of 360,000 oz per year.
Equinox Gold has not included any production from the Los Filos mine in its 2025 production guidance.