Executive Summary / Key Takeaways

• Equinox Gold is undergoing a significant transformation, anchored by its recently merged Canadian cornerstone assets, Greenstone and Valentine, which are poised to drive substantial production and cash flow growth.
• The company anticipates a material increase in production and earnings in the coming quarters, with pro forma full-year 2025 gold production guided between 785,000 and 915,000 ounces, and a path to over 1.2 million ounces annually once Canadian mines are fully ramped up.
• A strong focus on deleveraging the balance sheet is underway, targeting significant debt reduction in 2025 and a projected net cash position by the end of 2027, assuming current gold prices and no new major capital projects.
• Strategic portfolio optimization, exemplified by the $115 million sale of non-core Nevada assets, and ongoing high-grade exploration initiatives are enhancing asset quality and future growth prospects.
• Despite operational challenges at Los Filos and Santa Luz, the company's strategic initiatives, operational innovations, and a robust gold price environment present a compelling risk/reward profile for investors.

A New Era for Equinox Gold: Forging a North American Gold Powerhouse

Equinox Gold Corp. (EQX) is an Americas-focused gold producer, strategically positioned within an industry currently benefiting from robust gold prices. The company's journey began in 2007 as Trek Mining Inc., evolving through strategic acquisitions and developments to its current form, culminating in a significant business combination with Calibre Mining Corp. (CXB) on June 17, 2025. This merger has fundamentally reshaped Equinox Gold, creating a diversified gold producer with operations spanning five countries, anchored by two high-quality, long-life Canadian gold mines: Greenstone in Ontario and the Valentine Gold Mine in Newfoundland.

The overarching strategy for Equinox Gold is clear: "quality over quantity," focusing on production that meaningfully impacts free cash flow and valuation. This involves advancing high-return organic growth opportunities, investing capital where it creates the most value, and continuously assessing and streamlining its portfolio. This disciplined approach is critical in a competitive landscape where larger peers like Barrick Gold (GOLD) and Newmont Corporation (NEM) benefit from greater scale and established operational efficiencies. While these industry leaders often boast superior cash flow generation and broader diversification, Equinox Gold aims to differentiate itself through agile project development and a focused approach to maximizing value from its core assets. The current macro environment, characterized by record high gold prices, geopolitical and economic uncertainty, and consistent central bank gold purchases, provides a strong tailwind for the company's growth trajectory.

Cornerstone Assets: The Canadian Growth Engine

The Greenstone Gold Mine in Ontario stands as a primary driver of Equinox Gold's future. Since achieving commercial production in November 2024, Greenstone has demonstrated tangible operational improvements. In Q2 2025, mining rates increased by 23% and processing rates improved by 20% over Q1 2025, indicating a strong ramp-up trajectory. Building on this momentum, Q3 2025 saw quarter-to-date mining rates 10% higher than Q2, with month-to-date August mining rates averaging 200,000 tonnes per day. The processing plant also achieved an average of 24,500 tonnes per day over a 30-day period ending August 10, 2025, with over one-third of those days exceeding its 27,000 tonnes per day nameplate capacity. While Q2 2025 grades were around 0.92 grams per tonne, they improved to approximately 1 gram per tonne month-to-date August, with management anticipating further quarter-on-quarter improvements as mining progresses deeper into the pit.

The Valentine Gold Mine in Newfoundland is set to become Equinox Gold's second Canadian cornerstone, significantly contributing to future cash flow. The project is nearing completion, with the process plant fully energized, key circuits tested, and commissioning crews actively verifying performance. First ore to the plant was scheduled before the end of August 2025, with first gold anticipated approximately a month later, followed by a steady ramp-up to nameplate capacity in Q1 2026. The company has invested over $25 million in critical spares to ensure a smooth ramp-up and minimize operational disruptions. With approximately CAD 54 million remaining on its total capital expenditure, Valentine is fully funded through cash and cash flow, with no lumpy capital injections anticipated for its operational ramp-up.

Operational Innovations and Technological Edge

Equinox Gold's competitive edge in the mining sector is not derived from a single proprietary technology, but rather from a commitment to operational innovation and the strategic application of best practices to enhance efficiency and recovery. At Greenstone, the company has implemented several key improvements under the guidance of its new Chief Operating Officer, David Schummer. These include improving shovel loading cycle times through operator training, adding auxiliary equipment to maintain pit floors and shovel dig faces, and introducing double-sided loading to virtually eliminate haul truck spotting time. Furthermore, technical specialists are optimizing blast designs for improved fragmentation, reduced dilution, and better ore presentation to the mill. Enhanced road designs, tighter dump exchanges, and additional support equipment are also contributing to more efficient material movement and increased average haulage speeds. These operational advancements directly translate into lower unit costs and improved productivity, strengthening Greenstone's competitive position.

Beyond Greenstone, the company employs other operational innovations. At the RDM mine in Brazil, a new dry stack tailings facility is working effectively, and the company is transitioning to an owner fleet for tailings haulage to further reduce costs. While the Santa Luz mine has faced challenges with volatile recovery rates due to ore chemistry and issues with its desliming circuit, management is actively working to refine these processes and stabilize performance, including the construction of a sixth leach tank to increase residence time and benefit recovery. These continuous efforts in process optimization and infrastructure development are crucial for maintaining cost competitiveness and maximizing resource utilization across the portfolio.

Financial Transformation and Deleveraging Pathway

Equinox Gold is entering a period of significant financial transformation, driven by its expanding production profile and a strategic focus on deleveraging. In Q2 2025, the company sold over 148,000 ounces at an average realized price of $3,200 per ounce. Had the Calibre transaction been effective from January 1, 2025, pro forma consolidated revenue for H1 2025 would have been approximately $1.33 billion from 401,000 ounces, underscoring the enhanced scale and earnings power of the combined entity.

For the full year 2024, Equinox Gold achieved record annual gold production of approximately 622,000 ounces and sales of 623,000 ounces, with a cash cost of $1,598 per ounce and an all-in sustaining cost of $1,870 per ounce. The fourth quarter of 2024 was particularly strong, with record production of approximately 214,000 ounces and sales of 218,000 ounces, generating $575 million in revenue and $218 million in adjusted EBITDA.

The company's liquidity and capital management are centered on debt reduction. Equinox Gold ended Q1 2025 with $173 million in unrestricted cash and expects the Q1 draw on its revolving credit facility to be its last, shifting focus to paying down debt. The company intends to retire a $140 million convertible note maturing in September 2025, and if it converts to shares, the funds will be used to reduce the revolving credit facility or term loan. Overall, Equinox Gold targets repaying approximately $200 million in debt during 2025 at mid-$2,000s gold prices, with potential to exceed this if gold prices remain strong. Management projects the company could reach a net cash position by the end of 2027, assuming current gold prices and no new major capital expenditures for projects like Los Filos or Castle Mountain. This deleveraging strategy is a critical step towards positioning the company to return capital to shareholders through dividends or share buybacks.

Strategic Portfolio Optimization and Growth Pipeline

Equinox Gold's strategy extends to continuous portfolio optimization and advancing high-return organic growth. A recent example of this disciplined capital allocation is the sale of its non-core Nevada assets (Pan Mine, Gold Rock Project, and Illipah Project) for US$115 million in August 2025. This move reflects the company's commitment to focusing human and financial capital on its best opportunities.

The Los Filos mine in Mexico, while currently suspended due to the expiry of a land access agreement with the Carrizalillo community and the inability to secure new long-term agreements with all three local communities, remains a long-term opportunity. Equinox Gold is pursuing a "2-community plan" to recommence exploration activities and is considering the construction of a new carbon-in-leach (CIL) plant, which management views as the "path to prosperity" for the asset.

Elsewhere, exploration continues to be a key focus. Encouraging high-grade drill results have been reported from the El Limon Mine Complex in Nicaragua, demonstrating significant potential to extend the mineralized corridor. An update on exploration results from Valentine is anticipated later this quarter, and programs are set to recommence at Mesquite within months. The Castle Mountain project in California is also advancing, having been accepted into the FAST-41 permitting program, which aims to streamline environmental reviews. Permitting for a planned expansion to increase production to 200,000 ounces per year is expected to conclude in late 2026 or early 2027. In Brazil, the Fazenda and Santa Luz mines are being formally combined into the Bahia Complex to leverage proximity for operational efficiencies, with plans for underground development at Aurizona to access a robust ore body.

Outlook and Key Risks

Equinox Gold's outlook is characterized by significant growth. The company's pro forma full-year 2025 guidance, including Calibre Mining assets, projects gold production between 785,000 and 915,000 ounces, with total cash costs of $1,400 to $1,500 per ounce and all-in sustaining costs of $1,800 to $1,900 per ounce. Management anticipates that once Greenstone and Valentine are fully ramped up, the company will be on a path to produce over 1.2 million ounces per year. The strong gold price environment is expected to generate substantial margins, estimated between $1,000 and $1,500 per ounce, providing significant cash flow for deleveraging and future investments.

However, investors should be mindful of several risks. The ongoing impasse at Los Filos regarding community agreements poses a significant challenge, with no near-term resolution expected and operations remaining suspended. While Greenstone's ramp-up is progressing, the company continues to focus on minimizing dilution and mining losses, and improving fleet productivity. The Santa Luz mine has experienced volatility in recovery rates due to ore chemistry and desliming circuit issues, which the company is actively addressing. Furthermore, operations in various jurisdictions expose Equinox Gold to geopolitical risks and potential regulatory changes, such as the ongoing tax dispute in Nicaragua, although management is confident in a beneficial resolution. Commodity price sensitivity also remains a fundamental risk for all gold producers.

Conclusion

Equinox Gold is at a pivotal juncture, transforming into a formidable Americas-focused gold producer. The strategic merger with Calibre Mining and the successful ramp-up of the Greenstone and imminent production from the Valentine Gold Mines are fundamentally reshaping its production profile and financial outlook. These cornerstone Canadian assets, coupled with disciplined portfolio management and a robust exploration pipeline, position Equinox Gold for substantial growth in production and free cash flow.

While challenges persist, particularly with the Los Filos mine and operational optimization at Santa Luz, the company's proactive management, focus on operational innovations, and commitment to deleveraging underscore a compelling investment thesis. Amidst a supportive gold price environment, Equinox Gold is poised to significantly enhance shareholder value through increased margins, debt reduction, and a clear pathway to returning capital. The company's strategic vision and operational execution are setting the stage for it to emerge as a top-quartile valued gold producer, offering investors exposure to a growing, lower-cost gold narrative.