Equinox Q3-2009 Results show 15% Increase in Lumwana Copper Production and
77% Increase in Operating Profit

ARBN 108 066 986

TORONTO, Nov. 13 /CNW/ - Equinox Minerals Limited (TSX and ASX symbol: "EQN") ("Equinox" or the "Company") today released its results of operations and financial condition for the three and nine months ended September 30, 2009, and its financial position as at September 30, 2009.

All currencies specified in this press release are denominated in U.S. dollars.

    
    HIGHLIGHTS FOR THE QUARTER
    --------------------------

    -   Copper production increased 15% over Q209 and 26% over Q109, with
        28,111 tonnes of copper produced at an average (C1) operating cost of
        $1.46 per pound;

    -   Operating profit increased 77% over Q209 with the achievement of
        $64.1 million operating profit for the three month period ended
        September 30, 2009 (commercial production commenced April 1, 2009);

    -   Operating profit was subsequently offset by non-cash derivative
        instrument losses resulting from the rising copper price leading to a
        net loss position, after tax, of $56.3 million, primarily related to
        the remaining hedge book being marked to market at the current
        strengthening copper price. Revenue was positively impacted by the
        strengthening copper price;

    -   Realized copper price, net of smelter treatment charges, was $2.58
        per pound and 16,632 tonnes of payable copper provisionally priced at
        $2.79 per pound ($6,153 per tonne) remain subject to final pricing
        adjustment during Q409;

    -   Total material movement increased by 44% compared to Q209 and ore
        mined increased by 33% compared to Q209;

    -   Lower metallurgical recoveries continued to impact production due to
        the proportion of transitional ore processed. Orebody studies by
        consultants Golder & Associates show that the Malundwe resource
        reconciliations are consistent with the original mine design. These
        studies also confirm original estimates that the transitional ore
        constitutes about 5% of the orebody;

    -   Mining of the uranium zones at Valeria South and Valeria North within
        the Malundwe pit has produced a stockpile of 1.94mt @ 1,044 ppm
        uranium and 0.81% copper to the end of Q309;

    -   Pit preparation has been substantially enhanced for the forthcoming
        2009/2010 wet season;

    -   Hitachi has agreed to mobilize an additional five x EH4500 dump
        trucks in order to expedite the recovery of lost availability hours
        on the existing fleet. These additional trucks are scheduled to be on
        site by mid 2010;

    -   Equinox took delivery of an additional Caterpillar light mining fleet
        including 16 x 40-tonne dump trucks, 5 x 100-tonne dump trucks, 2 x
        excavators and 3 x bulldozers, which are being used primarily to
        accelerate stripping of weathered material;


                          ---------------------------------------------------
    Performance                 Three months ended         Nine months ended
                                   September 30               September 30
                          ---------------------------------------------------
                                 2009         2008         2009         2008
    -------------------------------------------------------------------------
    Gross sales
     (in thousands)          $170,798          n/a     $298,531          n/a
    Net income/(loss)
     (in thousands)          ($56,266)       ($680)   ($155,598)    ($10,616)
    Earnings/(loss) per
     share                     ($0.08)      ($0.00)      ($0.24)      ($0.09)
    Payable copper in
     tonnes                    26,465          n/a       50,100          n/a
    Payable copper in
     pounds                58,344,166          n/a  110,450,470          n/a
    Average (C1)
     operating cost             $1.46          n/a        $1.46          n/a
    Realized copper price
     per pound (net of
     smelter treatment
     charges)                   $2.58          n/a        $2.38          n/a
    Cash and cash
     equivalents (in
     thousands)              $119,862      $51,327     $119,862      $51,327
    Number of shares
     outstanding          704,618,212  592,959,858  704,618,212  592,959,858
    -------------------------------------------------------------------------

    At the end of Q309, the Company had 16,632 tonnes of payable copper
provisionally priced at $2.79 per pound ($6,153 per tonne) remain subject to
final pricing adjustment during the fourth quarter.

    OVERALL PERFORMANCE
    -------------------

    Operations
    ----------
    

An operating profit was achieved by the Company for the three month period ending September 30, 2009. An operating profit of $64.1 million was generated at the Lumwana Mine during the quarter, a 77% improvement on Q209. The operating profit was subsequently offset by a non-cash hedging instrument loss of $88.4 million related to the remaining hedge position which no longer qualifies for hedge accounting, leading to a net loss position, after tax, for the quarter of $56.3 million or $0.08 per share.

During the quarter, the Lumwana mine continued to ramp up both the mine and process plant operations. Ore processed at the Lumwana Mine for the quarter was 3.82 million dry metric tonnes of ore, producing 59,652 dry metric tonnes of concentrate at an average copper grade of approximately 47.1%. This represents an increase in processed tonnes of 8.0% from the prior quarter due to continued improvement from the mining activities, resulting in copper produced in concentrate of 28,111 tonnes (61.97 million pounds) at an average (C1) operating cost of $1.46 per pound.

Mine productivity continued to improve during the quarter, with ore mined increasing to 4.02 million tonnes, an increase of 33% compared to Q209 and total material movement increasing 44% to 29.3 million tonnes. The Malundwe Orebody at Lumwana is currently operating from four sub-pits which will ultimately merge into one large pit. Ore production to date has primarily been from the 'Starter' and '1E' pits. As additional sub-pits are opened up along the strike of the ore body, further transitional (mixed sulphide-oxide) ore continues to be encountered. However, as further mining in Malundwe exposes more consistent sulphide ore, the negative impact of mixed ores on recoveries will diminish.

While ore production continued to increase from last quarter, actions being taken to further improve mine production include the following:

    
    -   Improving availability of the Hitachi mine truck and shovel mobile
        equipment fleet. Although the general trend is improving over the
        year, the availability needs to further improve and be maintained to
        meet production targets.

    -   Hitachi is responsible for the maintenance and repair contract on the
        Hitachi fleet at Lumwana and is initiating measures to ensure that
        contract availability rates are achieved and to make up hours of
        availability lost to date. Hitachi has agreed to mobilize an
        additional five EH 4500 dump trucks (240t) in order to expedite the
        recovery of lost availability on the existing fleet. These additional
        trucks are scheduled to be on site by mid 2010. Subsequent to the
        making up of lost hours, Equinox will purchase those trucks at their
        depreciated value. This is envisaged to occur in mid 2011. Other
        improvement initiatives include Hitachi Japan taking direct control
        of the management of the maintenance and repair contract,
        implementation of a new operating structure, increasing spare parts
        stock levels for Hitachi equipment and increasing personnel and
        resources.

    -   The purchase of additional mining fleet equipment during the quarter:

        -   Equinox took delivery of an additional Caterpillar light fleet
            comprising 16 x 40-tonne articulated dump trucks, 5 x 100-tonne
            dump trucks; 2 x excavators and 3 x bulldozers. This fleet is
            primarily being utilized to accelerate stripping of weathered
            material. Sub-contractor light fleets are also operating for
            civil works and stripping; and

        -   The Company also purchased an additional 3 x Sandvik D45K
            drilling rigs to accelerate drill and blast operations in the
            pit, which will enhance material movement.

    -   The Equinox team continued to work with mining productivity experts
        Jamieson Group to assist our site management to improve productivity
        performance in the mine. While excellent gains have been made we
        continue to see further room for improvement.

    -   The second stage of the trolley assist infrastructure was
        commissioned during the quarter, providing trolley access from the
        main ramp to the Starter pit. Utilization of the extended trolley
        lines will improve ramp speeds and consequently reduce cycle times,
        as well as reducing the hybrid diesel-electric truck operating costs.

    -   Wet season preparations are well advanced, following the experience
        of mining at Lumwana during the 2008/2009 wet season. Wet season pit
        preparations have been substantially enhanced for the forthcoming
        2009/2010 wet season with:

        -   diversion channels to control surface water ingress into the pit;

        -   substantial sumps excavated for the collection of in-pit water;

        -   pumping capacity doubled since 2008; and

        -   all main ramps and roads have been sheeted and surfaced to
            improve road conditions, particularly during wet periods.
    

Lower metallurgical recoveries continued to impact production during the quarter due to the proportion of transitional ore being processed. For Lumwana ore, recoveries in transition material typically range between 50 - 60% whereas those in sulphide ore typically range between 90 - 95%. Orebody studies by consultants Golder & Associates show that the Malundwe resource reconciliations are consistent with the original estimate. The Malundwe reserve reconciliations are showing good correlation with metal content, although grade dilution is occurring as a consequence of using higher bench heights of 8m as opposed to the 4m used in the original mine plan. Although further transitional ore will be encountered in the weathering zone of each new pit to be developed at Lumwana, the proportion of transition ore to sulphide ore is reducing as the pits deepen along the length of the orebody.

Mining of the uranium zones at Valeria South and Valeria North within the Malundwe pit has produced a stockpile of 1.94mt @ 1,044 ppm uranium and 0.81% copper to the end of Q309. This copper-uranium ore is being diverted away from the copper concentrator, and is being classified as "waste" to the copper project. This uranium-rich copper ore stockpile may be treated at a later date, if and when the Company builds a uranium plant.

The 20 Mtpa processing plant continues to perform to expectation and is capable of producing in excess of its design capacity based on achieved through put rates to date.

    
    Lumwana Mine Production Statistics

    -------------------------------------------------------------------------
                                               Q1       Q2       Q3    Total
    Production Statistic       Measure       2009     2009     2009  to-date
    -------------------------------------------------------------------------
    Total mine material
     movement                  Tonnes (m)    8.88    20.80     29.3    59.57

    Ore mined                  Tonnes (m)    1.84     3.03     4.02     8.89

    Ore processed              Tonnes (m)    2.88     3.03     3.82     9.73

    Head grade                 Copper %      0.93     0.98     0.92     0.94

    Copper recovery            Copper %        83       82       80       82

    Concentrate grade          Copper %        39       39       47       42

    Copper produced in
     concentrate               Tonnes      22,263   24,413   28,111   74,787

    Copper produced in
     concentrate               Pounds (m)   49.08    53.82    61.97   164.87

    Average (C1)
     operating cost            Per Pound        -    $1.46    $1.46    $1.46
    -------------------------------------------------------------------------
    

Production Guidance

Management believes that based on the work underway in preparation for the forthcoming wet season, a continuing focus on mining fleet productivity, the commissioning of further trolley-assist infrastructure to help improve truck cycle times and the increasing exposure of new sulphide ore zones, that the fourth quarter of 2009, subject to wet season conditions, should demonstrate additional improvement on quarterly production to date. As such, management estimates production guidance for the full 2009 calendar year should be between 105,000 and 110,000 tonnes (231 - 242 million pounds) of copper metal in concentrates at an average estimated (C1) operating cost of between $1.35 and $1.50 per pound.

Management believes that it is taking appropriate remediation action to meet the challenges specified in this report.

Expansion and Optimization Plans

Significant opportunities exist at the Lumwana Mine following the completion of ramp up to further expand and optimize the concentrator and mine throughput rate, to assess and evaluate the additional near mine deposits discovered to date and to develop the Lumwana Mine uranium resource. Equinox will continue to assess these opportunities for expansion and organic growth at the Lumwana Mine.

Equinox has also completed the uranium feasibility study ("UFS") investigating the onsite treatment of discrete and high grade uranium mineralization contained within the Lumwana Mine copper pitshells. The UFS has confirmed the potential viability of onsite uranium treatment. Should Equinox be successful in negotiating viable uranium offtake agreements and securing the requisite project capital financing, the Company estimates plant construction to take approximately 18 to 24 months. The decision to proceed with the development of the Lumwana Uranium Project will depend, subject to Board approval, on a number of factors including satisfactory financing and offtake terms being negotiated. The stockpiling of Lumwana Mine uranium ore is ongoing and to the end of Q309 the stockpile totaled 1.94mt @ 1,044 ppm uranium and 0.81% copper.

Equinox will continue to review and assess opportunities for organic growth and expansion, and corporate opportunities to grow the Company.

ZESCO Update

The Company previously announced that it is in dispute with ZESCO Limited ("ZESCO"), Zambia's national power supply utility, over electricity charges believed by ZESCO to be incurred by the Company between 2007 and 2008. ZESCO has claimed invoice values totaling $9.0 million for the period up to December 31, 2008. However, based on legal advice, the Company has determined a value of $2.0 million is payable based on the terms of the contract. The Company disputes ZESCO's claim, and has paid $2.0 million to ZESCO while conducting negotiations in an effort to resolve the matter. The Zambian Government has replaced the board and Chief Executive Officer of ZESCO, the ZESCO Notice of Termination has been withdrawn and discussions continue with the new management of ZESCO. Equinox believes that the matter can be resolved in a reasonable manner.

Zambian Tax Legislation

The Government of the Republic of Zambia ("GRZ") enacted on April 1, 2008, a number of changes to the Zambian tax regime, particularly in relation to mining companies. This includes changes to the tax treatment that would increase corporate tax from 25% to 30%, the mining royalty from 0.6% to 3%, and a number of other proposed additional imposts including a "variable profit tax", a "windfall tax" and treatment of hedging income as separate source income.

On January 30, 2009, the Minister of Finance of the GRZ announced changes to the 2009 Budget which include the abolition of a number of changes enacted in 2008, including the removal of the hedging activity quarantine provisions. The 2009 changes took effect on April 1, 2009. The Company has applied the tax changes from the effective date.

In 2005 the Company entered into a Development Agreement with GRZ for its Lumwana Mine which provides LMC with a 10 year stability period in the regulatory environment, including taxation, and rights of independent arbitration in the event of any dispute. Following local and international legal advice, the Company believes that its Development Agreement overrides the current changes to the Zambian tax regime. Until it has resolved the uncertainty surrounding the application of the Development Agreement, the company has measured in the current year its taxation balances on the basis of the enacted legislation.

If the Company had calculated its taxation related balance based on the terms of the Development Agreement the royalty expense for the nine months ended September 30, 2009 would have reduced by $6.1 million and the income tax benefit for the nine months ended September 30, 2009 would have increased by $11.2 million. The retained earnings loss position at September 30, 2009 would have reduced by $8.0 million.

Offtake Update

During the quarter, concentrate delivery was predominantly directed to Chambishi Copper Smelter Limited ("CCS") and the Konkola Copper Mines Plc ("KCM") smelter at Nchanga on the Zambian Copperbelt.

Town Development

The Lumwana town development continues to advance with 637 houses completed to the end of Q309. The commercial and retail developments, including the recently opened Lumwana supermarket, are advancing and a self-sustaining modern town environment is being developed.

    
    Corporate Activities
    --------------------
    

In September 2009, the Company's subsidiary, Lumwana Mining Company Limited ("LMC") exercised its option to extinguish the right held by Phelps Dodge Mining (Zambia) Limited ("PD Zambia") to receive a 1% Lumwana Mine net smelter return royalty under the purchase and sale agreement (the "Purchase and Sale Agreement") dated December 8, 2004 between PD Zambia and the Company.

Between August 1999 and June 2003, the Company earned a 51% interest in Lumwana as a result of expending $10 million and completing a bankable feasibility study. Under the Purchase and Sale Agreement, the Company acquired the remaining 49% interest in the Lumwana Mine.

The Purchase and Sale Agreement provided that PD Zambia would retain the right to a 1% Lumwana Mine net smelter royalty which could be terminated by the Company at its option under certain conditions. Exercising its options with a payment of $12.8 million to PD Zambia following the achievement of commercial production, LMC met the required conditions and extinguished the 1% Lumwana Mine net smelter royalty thereby terminating all remaining obligations and/or associations between Equinox and the former holders.

Changes to Management and Board

During the quarter, Mr. Harry Michael, Vice President, Operations and Chief Operating Officer advised the Company of his intention to resign effective December 2009. Mr. Michael has been with Equinox for almost five years and has played a key role during the construction of the Lumwana Mine, managing site activities through a very challenging period of growth for the Company with the transition from developer to producer. As a consequence of his intended resignation from management in December, Mr. Michael has also resigned from the Board of Equinox effective July 2009.

On October 29, 2009, Mr. Adam Wright commenced in the position of Managing Director, Lumwana Mine replacing Mr. Michael. Mr. Wright holds a Master's Degree in Mineral Processing Engineering from the University of London. He has a strong track record of mine and processing operations, safety improvement, asset value optimization, community engagement and strategy implementation for both open pit and underground mine operations. Mr. Wright has worked for over 21 years in copper, gold and silver mines in Canada, Venezuela, Australia and most recently, Papua New Guinea in roles including both mine and mill management, maintenance and business development for groups such as Placer Dome Inc., Barrick Gold Corporation and Harmony Gold Mining Co. Ltd.

Two additional officers have joined the Company, Mr. Carl Hallion as Vice President, Business Development and Ms. Sonya Stark, Vice President, Corporate Affairs and Corporate Secretary.

Mr. Carl Hallion has 14 years experience as a chartered accountant and he has worked in the mining industry for over 10 years, having extensive experience in global copper M&A transactions and strategic development. Mr. Hallion has spent a number of years living and working in South and North America for Xstrata Copper following various financial and commercial roles with BHP Billiton.

Ms. Stark has over 18 years experience directing corporate governance, regulatory compliance, legal affairs, risk management, corporate administration and acting as Corporate Secretary for Canadian and U.S. public companies, with significant experience in the mining industry. Ms. Stark was a Director of the Canadian Society of Corporate Secretaries until 2002 and served on the boards of subsidiaries and affiliated companies of CFM Corporation until 2005. Ms. Stark is a member of the Canadian Society of Corporate Secretaries and of the Canadian Institute of Management.

    
    Exploration Activities
    ----------------------
    

Although Equinox has been focusing on the development of the Lumwana Mine, it has maintained an exploration effort in Zambia, primarily focused on the 1,355 km(2) Large Scale Mining License LML-49 that surrounds the Lumwana Mine. The following exploration work continued its focus on the evaluation and ranking of targets on LML-49:

    
    -   Following from the success of the North Dome soil survey, field crews
        extended their activities to the east of the Mwombezhi Dome, so
        linking the inferred resource of Lubwe with the deposit at
        Chimiwungo, 15km to the south (five target areas tested). On the West
        side of the Mwombezhi Dome, basement targets were also sampled at
        Malundwe West and Kamaranda. Programs were subsequently extended into
        the Katangan sequence ranged around the north and south of the dome.
        Field work generated 10,859 soil samples for the quarter.
        Confirmation of the prospectivity of several targets indicates drill
        testing will be warranted in 2010.

    -   An IP survey of 114 line kms covering an area of 22 km(2) identified
        significant chargeability anomalies over the down dip portion of
        Chimiwungo East. The area has not been drill tested by Equinox in the
        past and only poorly tested by historical drilling in the 1960s. It
        is interpreted to indicate a plunging shoot of sulphidic
        mineralization and represents a highly prospective drill target.

    -   Twenty line kms of IP surveying confirmed the presence of plunging
        shoots of chargeable material, possibly sulphides, at Malundwe West
        and Lubwe West, both of which are yet to be tested by drilling.

    -   Ground spectrometer work to target uranium was completed over
        230 line kms at Lubwe.
    

The Company has been granted the 2200km(2) Mufapanda licence, an Iron Oxide Copper Gold ('IOCG') target some 200km WNW of Lusaka. A reconnaissance field visit has identified an outcrop over 8km strike a zone of hematite-magnetite breccias above a magnetically active granitoid. Assays of 55 breccia samples from this zone exhibit pathfinder geochemistry typical of IOCG systems. The Company is commencing an airborne magnetic and radiometric survey of 10,820 line kilometres to provide a foundation for future geological activities in 2010.

The Company holds additional regional exploration tenements and applications elsewhere in Zambia that have been affected by the introduction of new legislation in 2008 which govern the title and commitments on prospecting licences. The Company is working closely with the Government to resolve the inconsistencies and ambiguities in the legislation before committing expenditure to the regional tenements. No work is being undertaken on these properties currently.

Financial Condition

-------------------

As at September 30, 2009, Equinox had cash resources of $119.9 million, a decrease of $67.4 million in the quarter due to the repayment of $75.2 million from the Lumwana Mine financing facility. In addition, the Company had an undrawn contingent funding facility of $45 million; an undrawn town infrastructure financing facility of $25 million and capital assets of $1,111 million which consist primarily of the Lumwana Mine assets. As at September 30, 2009, outstanding project and fleet debt facilities were $529.7 million.

    
                                                -----------------------------
    Financial Position                                  At at          As at
                                                 September 30,   December 31,
                                                         2009           2008
                                                        $'000          $'000
    -------------------------------------------------------------------------
    Cash and cash equivalents                         119,862         51,327

    Property, plant and equipment                   1,110,662      1,067,290

    Total assets                                    1,409,692      1,471,131

    Long-term debt                                    529,730        613,407

    Total liabilities                                 704,847        760,923

    Shareholders' equity                              704,845        710,208

    Outstanding number of Shares                  704,618,212    596,933,212
    -------------------------------------------------------------------------
    

Cash reduces on debt repayment

Due to the repayment of $77.8 million of Lumwana Mine debt during the quarter cash has reduced by $67.4 million to $119.7 million.

As a consequence of a bank processing error, loan principal repayments of $27.6 million on the Lumwana Mine long-term debt facility originally scheduled for Q309 were not able to be paid on September 30, 2009. The principal repayments were made on October 2, 2009 once the bank error was resolved, resulting in the long-term debt reducing to $502.1 million from $529.7 million. The delay in principal repayment did not have any adverse implications on debt covenants.

During the quarter the copper price increased from $2.32 per pound at June 30, 2009 to close at $2.78 per pound at September 30, 2009. As a result the derivative instrument copper contracts (the "hedge book" or "hedging") has closed the quarter out of the money, their value declining by $84.6 million and changing from an asset of $35.6 million to a liability position of $48.9 million.

Long term debt repayments reduce total liabilities

As mentioned above the Lumwana Mine debt facility repayments reduced the total long term debt balance to $529.7 million at September 30, 2009. Due to the bank processing error, loan principle repayments of $27.6 million were made on October 2, 2009 resulting in the long term debt balance reducing to $502.1 million.

The increasing copper price has resulted in the Company's hedge book closing the quarter out of the money and in a liability position of $48.9 million as discussed above.

Additional Caterpillar mobile mining equipment was mobilized to site during the quarter utilizing a rent with option to purchase contract, which is deemed to be a finance lease for accounting purposes, therefore increasing the total lease liability by $19.4 million to $23.2 million. The equipment is being used to accelerate stripping of weathered material and reduce the reliance on sub-contractors.

Shareholders' equity decreases due to non-cash hedging losses

Despite recording an operating profit of $64.1 million for the quarter, the Company has posted a loss for the period of $56.3 million primarily due to non-cash hedging losses of $88.4 million related to the remaining hedge book being marked to market at the current strengthening copper price. Revenue has been positively impacted by the strengthening copper price.

Employee share options exercised during the quarter have increased share capital by $10.8 million to $733.6 million.

For further, detailed financial and other results of operations, readers are directed to such information contained in the accompanying Q3-2009 financials posted on Equinox's website (www.equinoxminerals.com) and filed on SEDAR (www.sedar.com). Readers are also directed to the cautionary notices and disclaimers contained herein and therein.

OUTLOOK

The Lumwana Mine is still in the ramp up phase for both the mine and process plant operations and management estimates production guidance for the full 2009 calendar year should be between 105,000 and 110,000 tonnes (231 - 242 million pounds) of copper metal in concentrates at an average estimated (C1) operating cost of between $1.35 and $1.50 per pound.

    
    Q3-2009 CONFERENCE CALL AND WEBCAST
    -----------------------------------

    The Company will host a conference call to discuss the Q3-2009 results.
The call will be hosted by Equinox President & CEO, Craig R. Williams with
participation from Michael Klessens, VP Finance and CFO:

    Date:                    Monday, November 16, 2009
    -----

    Time:                    18:00 HRS (Toronto time)
    -----                    18:00 HRS (New York time)
                             23:00 HRS (London time)
                             01:00 HRS (Lusaka time - Tuesday, 17 November,
                                        2009)
                             07:00 HRS (Perth time - Tuesday, 17 November,
                                        2009)
                             10:00 HRS (Sydney/Melbourne time - Tuesday,
                                        17 November, 2009)

    Webcast:                 The Company's website at www.equinoxminerals.com
    --------

    Dial-in International:   +1 201 689 8035
    ----------------------

    Dial-in Australia:       0011-800-4626-6666 (Toll-free)
    ------------------

    Dial-in North America:   +1 877 407 8035 (Toll-free)
    ----------------------

    Dial-in UK & EU:         00 800 4626 6666 (Toll-free)
    ----------------

    Conference ID:           335900
    --------------
                             Please call in 10 minutes prior to the call and
                             stay on the line (an operator will be available
                             to assist you)

    Replay:                  A replay of the telephone conference will be
    -------                  available approximately one hour after the
                             completion of the conference and until 11:59 HRS
                             (Eastern Time) on December 16, 2009.

    Replay International:    +1-201-612-7415
    ---------------------

    Replay North America:    +1-877-660-6853
    ---------------------
                             To access the recording, please enter Conference
                             ID: 329442 followed by the Replay pass code:
                             286. An archived transcript of the call will
                             also be available on the Company's website.



                         CONSOLIDATED BALANCE SHEETS
               As at September 30, 2009 and December 31, 2008
                                 (unaudited)

                                                   September 30  December 31
                                                           2009         2008
                                                  ---------------------------
    ASSETS                                                $'000        $'000
    Current assets
      Cash and cash equivalents                         119,862       51,327
      Accounts receivable                                79,227       35,409
      Inventories                                        57,347       27,473
      Current portion of derivative instruments               -      127,570
      Prepayments                                         6,955        6,471
                                                  ---------------------------
                                                        263,391      248,250
                                                  ---------------------------

    Restricted cash                                      26,107       26,076
    Property, plant and equipment                     1,110,662    1,067,290
    Derivative instruments                                    -      129,109
    Future tax asset                                      7,170            -
    Other financial assets                                2,362          406
                                                  ---------------------------
                                                      1,409,692    1,471,131
                                                  ---------------------------
    LIABILITIES
    Current liabilities
      Accounts payable and accrued liabilities           49,186       65,816
      Current portion of future income tax
       liability                                              -       13,875
      Current portion of long term debt                 164,691      138,367
      Current portion of derivative instruments          31,372            -
      Current portion of finance leases                   6,432          923
                                                  ---------------------------
                                                        251,681      218,981

    Long term debt                                      365,039      475,040
    Finance lease                                        16,725        3,418
    Future income tax liabilities                             -       48,963
    Income tax liability                                 18,709        6,727
    Asset retirement obligation                           5,666        5,358
    Derivative instruments                               17,574            -
    Long term compensation                                1,818          269
    Other payables                                       27,635        2,167
                                                  ---------------------------
                                                        704,847      760,923
                                                  ---------------------------
    SHAREHOLDERS' EQUITY
    Share capital                                       733,575      581,477
    Retained (deficit)/earnings                         (47,255)     108,343
    Contributed surplus                                  16,967       20,400
    Accumulated other comprehensive
     income/(loss) (net of tax)                           1,558          (12)
                                                  ---------------------------
                                                        704,845      710,208
                                                  ---------------------------
                                                      1,409,692    1,471,131
                                                  ---------------------------



                      CONSOLIDATED STATEMENTS OF INCOME
       For the three and nine months ended September 30, 2009 and 2008
                                 (unaudited)

                                     Three months ended    Nine months ended
                                        September 30          September 30
                                       2009       2008       2009       2008
                                   ------------------------------------------
                                      $'000      $'000      $'000      $'000

    Copper sales revenue            170,798          -    298,531          -
    Smelter treatment charges       (20,517)         -    (35,887)         -

                                   ------------------------------------------
    Net sales revenue               150,281          -    262,644          -

    Direct and indirect mining
     costs                           64,864          -    125,807          -
    Amortization & depletion         17,191          -     28,938          -
    Royalties                         4,118          -      7,630          -
                                   ------------------------------------------
    Cost of sales                    86,173          -    162,375          -

                                   ------------------------------------------
                                     64,108          -    100,269          -
                                   ------------------------------------------
    Expenses
    Derivative loss/(gain)           88,431    (13,736)   260,846     (8,975)
    Other expense/(income)            1,142      3,987      5,512     (4,014)
    Exploration                       1,303      2,475      3,413      7,285
    Other operating costs             2,916          -      3,861          -
    General and administration        2,521      2,134      6,789      5,995
    Financing costs                  16,481      1,824     32,406      2,975
    Incentive stock options
     expensed                           562        902      1,410      4,045
                                   ------------------------------------------
                                    113,356     (2,414)   314,237      7,311

                                   ------------------------------------------
    (Loss)/Profit before
     income tax                     (49,248)     2,414   (213,968)    (7,311)

    Future income tax
     benefit/(expense)               (7,018)    (3,094)    58,370     (3,305)

                                   ------------------------------------------
    Loss for the period             (56,266)      (680)  (155,598)   (10,616)
                                   ------------------------------------------

    Basic and diluted loss
     per share                        $0.08     $0.001      $0.24      $0.02

    Weighted basic average
     number of shares
     outstanding (000's)            701,169    592,960    658,312    580,492
    Weighted diluted average
     number of shares
     outstanding (000's)            715,934    613,785    673,077    601,317



               CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
       For the three and nine months ended September 30, 2009 and 2008
                                 (unaudited)

                                     Three months ended    Nine months ended
                                        September 30          September 30
                                       2009       2008       2009       2008
                                   ------------------------------------------
                                      $'000      $'000      $'000      $'000

    Loss for the period             (56,266)      (680)  (155,598)   (10,616)
    Other comprehensive
     income/(losses)
      Net unrealized gains/
       (losses) on available-for-
       sale securities (net of tax)     431     (1,525)     1,570       (522)
      Net unrealized derivative
       instrument gains/(losses)
       (net of tax)                       -    125,999          -    (21,681)
                                   ------------------------------------------
    Total comprehensive
     (loss)/gain                    (55,835)   123,794   (154,028)   (32,819)
                                   ------------------------------------------



         CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
       For the three and nine months ended September 30, 2009 and 2008
                                 (unaudited)

                                     Three months ended    Nine months ended
                                        September 30          September 30
                                       2009       2008       2009       2008
                                   ------------------------------------------
                                      $'000      $'000      $'000      $'000
    Share capital
      Balance at start of period    722,753    577,163    581,477    499,715
      Issue of shares                     -          -    148,325      4,314
      Share issue costs                   -          -     (7,356)         -
      Conversion of stock options    10,822          -     11,129      1,400
      Conversion of warrants              -          -          -     71,734
    -------------------------------------------------------------------------
      Balance at end of period      733,575    577,163    733,575    577,163
    -------------------------------------------------------------------------

      Retained earnings/(deficit)
      Balance at start of period      9,011    (74,274)   108,343    (64,338)
      Loss for the period           (56,266)      (680)  (155,598)   (10,616)
    -------------------------------------------------------------------------
      Balance at end of period      (47,255)   (74,954)   (47,255)   (74,954)
    -------------------------------------------------------------------------

      Balance at start of period     21,125     18,590     20,400     15,941
      Stock based compensation          562        902      1,936      4,132
      Transferred to share
       capital on exercise of
       stock options                 (4,720)         -     (4,843)      (494)
      Forfeited stock options             -          -       (526)       (87)
    -------------------------------------------------------------------------
      Balance at end of period       16,967     19,492     16,967     19,492
    -------------------------------------------------------------------------

      Balance at start of period          -          -          -     12,122
      Transferred to share capital
       on conversion of warrants          -          -          -    (12,121)
      Forfeited warrants                  -          -          -         (1)
    -------------------------------------------------------------------------
      Balance at end of period            -          -          -          -
    -------------------------------------------------------------------------

    Accumulated other
     comprehensive income/(loss)
      Balance at start of period      1,127    191,779        (12)   (45,102)
      Net unrealized gain/(losses)
       on available-for-sale
       securities (net of tax)          431      1,525      1,570       (522)
      Net unrealized derivative
       instrument losses/gains
       (net of tax)                       -   (125,999)         -    (21,681)
    -------------------------------------------------------------------------
    Balance at end of period          1,558    (67,305)     1,558    (67,305)
    -------------------------------------------------------------------------



                    CONSOLIDATED STATEMENTS OF CASH FLOWS
       For the three and nine months ended September 30, 2009 and 2008
                                 (unaudited)

                                     Three months ended    Nine months ended
                                        September 30          September 30
                                       2009       2008       2009       2008
                                   ------------------------------------------
                                      $'000      $'000      $'000      $'000
    Cash flows (used in)/provided
     by operating activities
      Loss for the period           (56,266)      (680)  (155,598)   (10,616)
      Items not affecting cash:
        Depletion and Amortization   17,079         81     28,938        207
        Unrealized foreign
         exchange (gain)/loss        (1,168)       618      3,411     (2,240)
        Incentive stock option
         expense                        562        902      1,410      4,045
        Future income tax
         expense/(benefit)            7,018      3,094    (58,370)     3,305
        Financing costs                   -     (8,989)   (13,339)   (25,851)
        Long term compensation
         expense                        667       (161)     1,549          2
        Gain on sale of property,
         plant and equipment              -          -          -          2
        Ineffective portion of
         changes in fair value
         of cash flow hedges              -    (32,252)         -    (27,491)
        Net loss from discontinued
         cash flow hedges                 -     18,516          -     18,516
        Impairment loss/(gain) on
         available-for-sale
         securities                       -        812          -        812
        Mark to market changes in
         derivative instruments      88,431          -    260,846          -
        (Payments) for/proceeds
         from settlement of
         derivative instruments      (3,876)         -     44,778          -
        Deferred royalty payments     4,118          -      7,630          -
        Accretion Expense               125          -        308          -
        Amortization of
         Finance fees                 2,389          -      4,818          -
        Deferred payments             3,896          -      3,896          -

      Changes in non-cash
       working capital
        (Increase) in inventories   (16,377)    (7,896)   (29,874)   (14,657)
        Increase/(decrease) in
         accounts payable,
         accrued liabilities and
         employee future benefits   (11,176)     1,853      2,171      1,307
        (Increase)/decrease in
         accounts receivable and
         prepayments                  6,318     (5,439)   (44,303)    (8,603)
                                   ------------------------------------------
                                     41,740    (29,541)    58,271    (61,262)
                                   ------------------------------------------
    Cash flows (used in)/provided
     by financing activities
      Issue of share capital          6,285          -    154,795     60,518
      Share issue costs                   -          -     (7,356)         -
      Proceeds from borrowings            -     47,626      4,044    250,105
      Repayment of borrowings       (78,119)    (1,264)   (95,418)    (9,492)
      Finance lease principal
       repayments                    (1,837)         -     (2,380)         -
                                   ------------------------------------------
                                    (73,671)    46,362     53,685    301,131
                                   ------------------------------------------
    Cash flows (used in)/provided
     by investing activities
      Decrease/(increase) in
       restricted cash                  (50)         9        (31)      (268)
      Additions for property,
       plant and equipment          (35,302)   (67,921)   (43,430)  (263,270)
                                   ------------------------------------------
                                    (35,352)   (67,912)   (43,461)  (263,538)
                                   ------------------------------------------

    Net increase/(decrease) in
     cash and cash equivalents      (67,283)   (51,091)    68,495    (23,669)
      Cash and cash equivalents
       - start of period            187,249    104,174     51,327     73,367
      Exchange rate changes on
       cash held in foreign
       currencies                      (104)    (1,308)        40      2,077
                                   ------------------------------------------
    Cash and cash equivalents
     - end of period                119,862     51,775    119,862     51,775
                                   ------------------------------------------


    Craig R. Williams - President & Chief Executive Officer


    -------------------------------------------------------------------------

    Cautionary Language and Forward Looking Statements
    --------------------------------------------------
    Certain information contained or incorporated by reference in this press
    release, including any information as to the Company's strategy,
    projects, plans, prospects, future outlook, anticipated events or results
    or future financial or operating performance, constitutes "forward-
    looking statements" within the meaning of Canadian securities laws. All
    statements, other than statements of historical fact, are forward-looking
    statements. Forward-looking statements can often, but not always, be
    identified by the use of words such as "plans", "expects", "is expected",
    "is expecting", "budget", "scheduled", "estimates", "forecasts",
    "intends", "anticipates", "predicts", "potential", "continue" or
    "believes", or variation (including negative variations) of such words
    and phrases, or statements that certain actions, events or results "may",
    "could", "would", "should", "might", "potential to", or "will" be taken,
    occur or be achieved or other similar expressions concerning matters that
    are not historical facts.

    Without limitation, statements that management guidance that 2009
    production should be between 105,000 and 110,000 tonnes of copper metal
    in concentrates at the average operating cost of U.S.$1.35 to U.S.$1.50
    per pound; the uranium stockpile may be treated at a later date if the
    Company builds a uranium plant; the Company estimates uranium plant
    construction to take 18 to 24 months; and the Company believes that its
    Development Agreement with the Government of the Republic of Zambia
    overrides the current changes to the Zambian tax regime, including the
    timing and other related matters of such statements, are forward-looking
    statements. The purpose of forward-looking statements is to provide the
    reader with information about management's expectations and plans for
    2009 and subsequent years. Actual results may vary. See "Risks and
    Uncertainties".

    Forward-looking statements are necessarily based on a number of factors,
    estimates and assumptions that, while considered reasonable by the
    Company, are inherently subject to significant business, economic and
    competitive uncertainties and contingencies. Such factors, estimates and
    assumptions include, but are not limited to, anticipated financial or
    operating performances of Equinox, it subsidiaries and their respective
    projects; future prices of copper and uranium; the estimation of mineral
    reserves and resources; the realization of mineral reserve estimates; the
    timing and amount of estimated future production; estimated costs of
    future production; the grade, quality and content of the concentrate
    produced; the sale of production and the performance of offtakers;
    capital, operating and exploration expenditures; costs and timing of the
    development of the Lumwana Mine, the costs of Equinox's hedging policy;
    costs and timing of future exploration; requirements for additional
    capital; government regulation of exploration, development and mining
    operations; environmental risks; reclamation and rehabilitation expenses;
    title disputes or claims; and limitations of insurance coverage. While
    the Company considers these assumptions to be reasonable based on
    information currently available to it, they may prove to be incorrect.

    Without limitation, in stating that the uranium stockpile may be treated
    at a later date if the Company builds a uranium plant and that the
    Company estimates uranium plant construction to take 18 to 24 months, the
    Company has assumed that the costs of building such a plant will be
    feasible, that the materials, labour, regulatory approvals and other
    requirements will be available and that the price and demand for uranium
    will be profitable and that the underlying assumptions and information in
    the uranium feasibility study are correct. Further in relation to the
    mining of the orebody, it assumes that it will successfully segregate the
    uranium mineralization within the copper orebody at the lower 200 ppm U
    cutoff grade and produce concentrates that meet smelter specifications.
    In stating that management guidance for 2009 production should be between
    105,000 - 110,000 tonnes of copper metal in concentrates at the average
    operating cost of U.S.$1.35 to U.S.$1.50 per pound, the Company has
    assumed improvements in mine productivity and that the onset of the wet
    season will not impact operations more than expected. While the Company
    continues to evaluate and address the issues that impacted production
    during the first half of 2009, the full impact of them on the Company's
    revised annual production forecast, earnings and ability to meet its
    obligations cannot be ascertained at this time. Similarly, there can be
    no assurance on the affect of these issues on the Company's debt service
    obligations or loan covenants under its banking facilities and its
    offtake obligations. The Company is actively evaluating and addressing
    these issues with the expectation of mitigating them in the near future.
    In stating that the Company believes that its Development Agreement
    overrides the current changes to the Zambian tax regime the Company has
    assumed that the legal advice received from its local and international
    legal advisors is correct.

    Readers are cautioned that forward-looking statements involve known and
    unknown risks, uncertainties and other factors which may cause the actual
    results, performance or achievements of Equinox and/or its subsidiaries,
    including costs, production and returns, to be materially different from
    any future results, performance or achievements expressed or implied by
    the forward-looking statements. These factors include, but are not
    limited to, risks inherent in the exploration and development of mineral
    deposits; operational risks inherent in the conduct of mining activities;
    risks relating to changes in copper and uranium prices; changes in demand
    and supply of copper and uranium; uncertainties inherent in the
    estimation of mineral reserves and resources; risks inherent in the
    estimation of future production and future production costs; the
    estimation of cash costs of copper production; risks related to the
    Company's indebtedness including risks related to meeting its financial
    covenants; financing risks; risks related to interest rates; exchange
    rates; inflation or deflation; changes in the value of the U.S. dollar to
    foreign currencies; political and economic conditions of major copper
    producing countries; risks inherent in securing offtake arrangements and
    terms and/or enforcing such terms; insurance and uninsured risks;
    government regulation; titles, licences and permits; environmental risks;
    risks inherent in the estimation of reclamation costs; risks related to
    the Company's hedging activities; estimation of asset carrying values;
    litigation; competition; reliance on key personnel; global financial
    conditions. These risks are discussed in this MD&A under the section
    entitled "Risks and Uncertainties". Readers are cautioned that forward-
    looking statements are not guarantees of future performance. All of the
    forward-looking statements made or incorporated in this MD&A are
    qualified by these cautionary statements.

    Although Equinox has attempted to identify statements containing
    important factors that could cause actual actions, event or results to
    differ materially from those described in forward-looking information,
    there may be other factors that cause actions, events or results to
    differ from those anticipated, estimated or intended. Forward-looking
    information contained herein are made as of the date of this document
    based on the opinions and estimates of management on the date statements
    containing such forward looking information are made, and Equinox
    disclaims any obligation to update any forward-looking information,
    whether as a result of new information, estimates or opinions, future
    events or results or otherwise. There can be no assurance that forward-
    looking information will prove to be accurate, as actual results and
    future events could differ materially from those anticipated in such
    information. Accordingly, readers should not place undue reliance on
    forward looking information.

    Non-GAAP Information

    The Company has included a non-GAAP performance measure in this news
    release: "cash (C1) operating cost". The Company believes that, in
    addition to conventional measures prepared in accordance with GAAP,
    certain investors use this information to evaluate the Company. It is
    intended to provide additional information and should not be considered
    in isolation or as a substitute for measures of performance prepared in
    accordance with GAAP. Cash (C1) operating cost is a common performance
    measure in the copper industry and is prepared and presented herein on a
    basis consistent with the industry standard Brook Hunt definitions. Cash
    (C1) operating costs includes direct cash costs, mine site and
    realization costs through to refined metal.

    The term "operating profit" is a non-GAAP performance measure reported in
    this MD&A and represents net sales revenue less cost of sales as reported
    on the GAAP income statement presented in the financial statements.

    Technical Information

    Certain technical information in this press release is summarized or
    extracted from the "Technical Report on the Lumwana Project, North
    Western Province, Republic of Zambia" dated June 2008 as re-filed in
    April 2009 (the "Technical Report"), prepared by Ross Bertinshaw,
    Principal, Golder Associates Pty Ltd Daniel Guibal, Corporate Consultant,
    SRK Consulting (Australasia) Pty Ltd, Andrew Daley, Director, Investor
    Resources Finance Pty Ltd, and Robert Rigo, Vice-President - Project
    Development, Equinox, each of whom is a "Qualified Person" in accordance
    with National Instrument 43-101 - Standards of Disclosure for Mineral
    Projects ("NI 43-101"). Information of a scientific or technical nature
    contained in this press release arising since the date of the Technical
    Report is provided by Equinox management and was prepared under the
    supervision of Robert Rigo, Vice-President - Project Development or John
    Cooke, Exploration Manager, each of whom is a "Qualified Person" in
    accordance with NI 43-101. Readers are cautioned not to rely solely on
    the summary of such information contained in this release, but should
    read the Technical Report which is posted on Equinox's website
    (www.equinoxminerals.com) and filed on SEDAR (www.sedar.com) and any
    future amendments to such report. Readers are also directed to the
    cautionary notices and disclaimers contained herein and therein.

    Readers are cautioned not to rely solely on the summary of such
    information contained in this release, but should also read the final
    prospectus dated April 16, 2009 and the documents incorporated by
    reference therein, particularly, the Annual Information Form dated
    March 27, 2009, all of which are filed on SEDAR (www.sedar.com). Readers
    are also directed to the cautionary notices and disclaimers contained
    herein.
    -------------------------------------------------------------------------
    

SOURCE Equinox Minerals Limited

For further information: For further information: Craig R. Williams (President and Chief Executive Officer), Michael Klessens (V.P. Finance and CFO), Phone: +61 (0) 8 9322 3318, Email: equinox@equinoxminerals.com; Or Kevin van Niekerk (V.P. Investor Relations), Phone: (416) 865-3393, Email: kevin.van.niekerk@equinoxminerals.com; For information on Equinox and technical details on the Lumwana Project please refer to the company website at www.equinoxminerals.com

Organization Profile

Equinox Minerals Limited

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890