Can you introduce Equinox Gold?

Equinox Gold was formed in late 2017 through the merger of three companies. Our flagship project at that time was the development-stage Aurizona gold mine in Maranhão, Brazil. Over the next few years we acquired a producing mine in the US, built a mine in the US and another mine in Brazil, and completed a merger that gave us four mines in Brazil and a mine in Mexico. With the scale achieved through those transactions we were able to acquire the project that we are currently building in Ontario, Canada, which will be our flagship asset when it is in production next year. Today, Equinox Gold is a diversified gold company with seven producing mines in Brazil, Mexico and the US, and a mine under construction in Canada, but Brazil is really where the company started.

What are the recent updates at your Brazilian mines?

In 2022, Equinox Gold brought our Santa Luz gold mine into commercial production, our newest mine in Bahia, Brazil. The mine had been a past producer, and we reengineered and rebuilt it with a new processing system – a resin-in-leach system, which is the first of its kind in Brazil. Santa Luz is close to our Fazenda gold mine, and we call these two our Bahia Gold Complex. Between these mines we are producing approximately 130,000 oz/y, and there is good upside to both. We will focus on this gold complex for the next few years as we believe there is a great opportunity to expand Fazenda, drill out some additional resources between the two projects, and turn these two mines together into a significant asset for Equinox Gold and Brazil.

We’re also producing around 120,000 oz/y from our Aurizona gold mine, and also advancing the development of an underground expansion that would increase production and extend the Aurizona mine life. Our RDM gold mine in Minas Gerais is a smaller asset where we have had some challenges over the past couple years, and are now starting to increase production.

What is your outlook for gold moving forward?

The real challenge the industry has faced recently been less about gold prices and more associated with inflation. 2022 was a challenging year for gold producers in terms of increased input costs – the cost of reagents, explosives, mill steel, labor, fuel, etc. increased dramatically throughout 2021 and 2022. We have seen those costs level off in 2023, but the gold price has not matched that increase in costs. If these elevated costs persist for a length of time, the gold price will have no choice but to react to the upside. Even if gold does not move on its own, the reality is, if you are not making a margin you are not going to produce as much gold, supply will drop and that will be bullish for the gold price. Gold has always gone up and will continue going up long term, but in this difficult economic environment we need to focus on what we can control: costs, efficiencies and maximizing our margin. Then, in those periods where gold really runs, we will have the opportunity to make significant money for our shareholders. I think as interest rates start to come down again and the US dollar comes off a bit, it is going to be extremely bullish for gold.

What are Equinox Gold’s goals and strategy for the next 24 months?

Equinox Gold has the strategic vision of building a company that will safely and responsibly produce more than 1 million oz/y. We are currently producing approximately 600,000 oz/y. To reach our million-ounce goal we will keep developing our portfolio and potentially acquire additional assets to continue to grow the company. In Brazil, we are looking forward to getting underground at Aurizona and are very excited about the possibilities at Santa Luz and Fazenda, since we believe combining those two projects into one operating unit will enhance the production profile and longevity of our Brazil portfolio.