Equinox Gold (EQX) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Individual in ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fu ...

[Business Overview](index=4&type=section&id=Business%20Overview) Equinox Gold is a multi-asset gold producer with seven operating mines in the Americas and an eighth, Greenstone, commencing in 2024, aiming for over one million ounces annually - Equinox Gold is a multi-asset gold producer with seven operating mines in the Americas (two in the US, one in Mexico, four in Brazil) and an eighth mine, Greenstone in Canada, expected to commence operations in 2024[8](index=8&type=chunk) - The company's strategic vision is to become a premier Americas-focused gold producer, aiming for an annual output of **over one million ounces**. This growth is planned through expanding current assets and potential acquisitions[9](index=9&type=chunk) [Q1 2024 Highlights](index=4&type=section&id=Highlights%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024) Q1 2024 saw 111,725 ounces of gold produced, $11.4 million income from mine operations, a $42.8 million net loss, and significant progress at the Greenstone project [Operational and Financial Highlights](index=4&type=section&id=Operational%20and%20Financial%20Highlights) In Q1 2024, the company produced **111,725 ounces of gold** and sold **116,504 ounces** at an average price of **$2,066/oz**, resulting in **$11.4 million** income from mine operations but a net loss of **$42.8 million**, or **$0.13 per share**, with Adjusted EBITDA at **$52.2 million** Q1 2024 Key Metrics | Metric | Value | Unit | | :--- | :--- | :--- | | Gold Produced | 111,725 | ounces | | Gold Sold | 116,504 | ounces | | Average Realized Gold Price | $2,066 | per oz | | Cash Costs | $1,567 | per oz sold | | AISC | $1,950 | per oz sold | | Income from Mine Operations | $11.4 | million | | Net Loss | $42.8 | million | | Adjusted Net Loss | $14.4 | million | | Adjusted EBITDA | $52.2 | million | [Corporate and Guidance Highlights](index=4&type=section&id=Corporate%20and%20Guidance%20Highlights) The company provided 2024 guidance for gold production of **660,000 to 750,000 ounces** at an AISC of **$1,630 to $1,740 per ounce**, and fully utilized its at-the-market equity program, raising gross proceeds of **$50.2 million** 2024 Full Year Guidance | Metric | Guidance Range | Unit | | :--- | :--- | :--- | | Gold Production | 660,000 - 750,000 | ounces | | Cash Costs | $1,340 - $1,445 | per oz | | AISC | $1,630 - $1,740 | per oz | | Total Expenditures | $424 | million | - In Q1 2024, the company issued **10.9 million common shares** under its ATM Program for gross proceeds of **$50.2 million**, fully utilizing the program[12](index=12&type=chunk) [Construction, Development and Exploration Highlights](index=5&type=section&id=Construction%2C%20Development%20and%20Exploration%20Highlights) Significant progress was made at the Greenstone project, with commissioning of key circuits advanced and over **1.5 million tonnes of ore** stockpiled, keeping the project on track for its first gold pour in Q2 2024 - Greenstone project commissioning advanced significantly, with the crushing circuit, HPGR, ball mill 1, and other key components commissioned. The project is on track for first gold pour in **Q2 2024**[15](index=15&type=chunk) - Equinox Gold's **60% share** of spending at Greenstone was **$54 million** during Q1 2024[15](index=15&type=chunk) [Recent Developments](index=5&type=section&id=Recent%20Developments) Subsequent to Q1 2024, Equinox Gold acquired the remaining **40% of Greenstone** for **$995 million**, extended convertible note maturities, and addressed a geotechnical event at Aurizona [Greenstone Acquisition and Financing](index=5&type=section&id=Greenstone%20Acquisition%20and%20Financing) Subsequent to the quarter, Equinox Gold agreed to acquire the remaining **40% of the Greenstone project** from Orion for **$995 million**, moving to **100% ownership**, funded by a new **$500 million term loan** and a **$299 million equity financing**, which closed in April 2024 - On April 23, 2024, the company entered a binding agreement to acquire Orion's **40% interest** in the Greenstone mine for **$995 million**, which will give Equinox Gold **100% ownership**[15](index=15&type=chunk) - The acquisition is funded by a new **$500 million three-year term loan** and a bought deal equity financing that raised gross proceeds of approximately **$299 million**[15](index=15&type=chunk) [Other Corporate and Operational Updates](index=5&type=section&id=Other%20Corporate%20and%20Operational%20Updates) The company extended the maturity of its 2019 and 2020 convertible notes, while a geotechnical event at the Aurizona mine paused mining in the Piaba pit, with activities transitioning to the Tatajuba open pit, and **$60 million** was drawn from its revolving credit facility in April 2024 - Maturity dates for the **$139.7 million 5.00% 2019 Convertible Notes** and the **$139.3 million 4.75% 2020 Convertible Notes** were extended by six months each[15](index=15&type=chunk) - A geotechnical event at the Aurizona mine paused mining in the Piaba pit. Mining has commenced at the Tatajuba open pit to provide plant feed by **June 2024**[15](index=15&type=chunk) - On April 9, 2024, the company drew down **$60.0 million** on its Revolving Facility[15](index=15&type=chunk) [Consolidated Operational and Financial Highlights](index=6&type=section&id=Consolidated%20Operational%20and%20Financial%20Highlights) Q1 2024 saw decreased gold production and sales but higher realized prices, leading to a net loss of **$42.8 million** due to increased costs and fair value losses on gold contracts [Q1 2024 Performance Summary](index=6&type=section&id=Q1%202024%20Performance%20Summary) Compared to Q1 2023, gold production and sales decreased, primarily due to planned lower production at Los Filos; however, a **9% higher realized gold price of $2,066/oz** boosted revenue to **$241.3 million**, while costs increased, with AISC per ounce sold rising **18% to $1,950**, driven by lower production at Los Filos and cost pressures in Mexico and Brazil, resulting in a net loss of **$42.8 million** from a **$17.4 million** net income in Q1 2023, largely due to a loss on the fair value of gold contracts Consolidated Highlights (vs. Q1 2023) | Metric | Unit | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | :--- | | Gold Produced | oz | 111,725 | 122,746 | -9.0% | | Gold Sold | oz | 116,504 | 123,295 | -5.5% | | Avg. Realized Gold Price | $/oz | 2,066 | 1,895 | +9.0% | | Revenue | M$ | 241.3 | 234.1 | +3.1% | | Cash Costs per oz sold | $/oz | 1,567 | 1,346 | +16.4% | | AISC per oz sold | $/oz | 1,950 | 1,658 | +17.6% | | Income from mine operations | M$ | 11.4 | 14.5 | -21.4% | | Net Income (Loss) | M$ | (42.8) | 17.4 | N/A | | Adjusted EBITDA | M$ | 52.2 | 57.0 | -8.4% | - The net loss in Q1 2024 was primarily driven by a **$13.9 million 'other expense'** (vs. **$31.9 million 'other income'** in Q1 2023), which included an **$11.6 million loss** on the change in fair value of gold contracts[20](index=20&type=chunk) - Higher cash costs were driven by lower production at Los Filos and the strengthening of the Mexican Peso (MXN) and Brazilian Réal (BRL) against the USD[18](index=18&type=chunk) [Sustaining and Non-sustaining Expenditures](index=7&type=section&id=Sustaining%20and%20Non-sustaining%20Expenditures) In Q1 2024, total expenditures were **$113.9 million**, comprising **$44.6 million** in sustaining and **$69.3 million** in non-sustaining expenditures, with the largest non-sustaining expenditure being **$52.8 million** for the Greenstone project Q1 2024 Expenditures ($ millions) | Category | Sustaining | Non-sustaining | Total | | :--- | :--- | :--- | :--- | | **Total Expenditures** | **$44.6** | **$69.3** | **$113.9** | | Greenstone | $— | $52.8 | $52.8 | | Los Filos | $17.4 | $— | $17.4 | | Aurizona | $15.0 | $2.2 | $17.2 | [Operations](index=8&type=section&id=Operations) This section details the Q1 2024 operational performance of each of the company's seven gold mines across the US, Mexico, and Brazil, highlighting production, costs, and key developments [Mesquite Gold Mine, California, USA](index=8&type=section&id=Mesquite%20Gold%20Mine%2C%20California%2C%20USA) Mesquite's Q1 2024 production increased **34% YoY to 22,025 ounces**, driven by higher ore tonnes stacked from three contributing pits, leading to a **33% decrease in AISC per ounce sold to $1,188**, with the 2024 outlook for **75,000-85,000 ounces** focusing on waste stripping at the Ginger pit Mesquite Q1 2024 Performance (vs. Q1 2023) | Metric | Unit | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | :--- | | Gold Produced | oz | 22,025 | 16,405 | +34% | | Gold Sold | oz | 23,783 | 16,406 | +45% | | Cash Costs per oz sold | $/oz | 1,153 | 1,129 | +2% | | AISC per oz sold | $/oz | 1,188 | 1,780 | -33% | - The decrease in AISC was due to higher ounces sold and minimal sustaining capital spend in Q1 2024 compared to significant capitalized stripping in Q1 2023[28](index=28&type=chunk) - 2024 guidance is **75,000-85,000 oz of gold** at an AISC of **$1,410-$1,510/oz**. The focus will be on waste stripping of the Ginger pit[31](index=31&type=chunk)[32](index=32&type=chunk) [Castle Mountain Gold Mine, California, USA](index=10&type=section&id=Castle%20Mountain%20Gold%20Mine%2C%20California%2C%20USA) Castle Mountain's Q1 2024 production was up **6% YoY to 4,716 ounces**, but AISC per ounce sold increased significantly by **67% to $2,618**, driven by increased mining contractor rates, a higher proportion of more expensive crushed ore, and a **$2.5 million inventory write-down**, with the company evaluating reduced activities for Phase 1 operations Castle Mountain Q1 2024 Performance (vs. Q1 2023) | Metric | Unit | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | :--- | | Gold Produced | oz | 4,716 | 4,455 | +6% | | Gold Sold | oz | 4,716 | 4,455 | +6% | | Cash Costs per oz sold | $/oz | 2,303 | 1,244 | +85% | | AISC per oz sold | $/oz | 2,618 | 1,567 | +67% | - Higher costs were driven by increased mining contractor rates and a higher proportion of crushed/agglomerated ore. Costs were also impacted by a **$2.5 million inventory write-down** to NRV[37](index=37&type=chunk)[38](index=38&type=chunk) - The company is evaluating the Phase 1 operation, which could result in reduced activities and production while awaiting Phase 2 permits, expected to continue into fiscal 2026[43](index=43&type=chunk) [Los Filos Gold Mine, Guerrero, Mexico](index=12&type=section&id=Los%20Filos%20Gold%20Mine%2C%20Guerrero%2C%20Mexico) Los Filos saw a **39% YoY decrease** in Q1 2024 production to **23,955 ounces**, due to a planned focus on waste stripping and crusher downtime, resulting in a **43% increase in AISC per ounce sold to $2,424**, with future performance and expansion plans contingent on successfully renegotiating land access agreements with local communities Los Filos Q1 2024 Performance (vs. Q1 2023) | Metric | Unit | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | :--- | | Gold Produced | oz | 23,955 | 39,574 | -39% | | Gold Sold | oz | 26,315 | 39,611 | -34% | | Cash Costs per oz sold | $/oz | 1,761 | 1,507 | +17% | | AISC per oz sold | $/oz | 2,424 | 1,696 | +43% | - Lower production was planned, focusing on waste stripping (strip ratio of **11.2 vs 4.7** in Q1 2023) and a crusher relocation that took it offline for **70% of the quarter**[48](index=48&type=chunk) - Future guidance and the potential CIL plant expansion are subject to the successful execution of new social and land access agreements with local communities. Failure to reach agreements may lead to a re-evaluation or cessation of operations[56](index=56&type=chunk) [Aurizona Gold Mine, Maranhão, Brazil](index=14&type=section&id=Aurizona%20Gold%20Mine%2C%20Maranh%C3%A3o%2C%20Brazil) Aurizona's Q1 2024 production fell **8% YoY to 23,857 ounces**, with AISC rising **21% to $1,973/oz**, due to mine sequencing, heavy rainfall, and geotechnical activity limiting access to ore; a subsequent geotechnical event has paused mining in the Piaba pit, with operations transitioning to the Tatajuba deposit, which may impact 2024 guidance Aurizona Q1 2024 Performance (vs. Q1 2023) | Metric | Unit | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | :--- | | Gold Produced | oz | 23,857 | 25,800 | -8% | | Gold Sold | oz | 24,506 | 26,539 | -8% | | Cash Costs per oz sold | $/oz | 1,360 | 1,197 | +14% | | AISC per oz sold | $/oz | 1,973 | 1,634 | +21% | - A geotechnical event on March 27, 2024, caused by heavy rains, has restricted access to the Piaba pit, pausing mining activities there[67](index=67&type=chunk) - To mitigate the impact, mining has commenced at the Tatajuba deposit, originally planned for Q4 2024. The company will provide an update to 2024 production guidance when more information is available[68](index=68&type=chunk) [Fazenda Gold Mine, Bahia, Brazil](index=16&type=section&id=Fazenda%20Gold%20Mine%2C%20Bahia%2C%20Brazil) Fazenda's Q1 2024 production decreased **8% YoY to 14,402 ounces**, while AISC increased **36% to $1,745/oz**, attributed to lower grades from both open pit and underground sources due to mine sequencing and development delays, with higher costs driven by lower production and increased labor costs Fazenda Q1 2024 Performance (vs. Q1 2023) | Metric | Unit | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | :--- | | Gold Produced | oz | 14,402 | 15,685 | -8% | | Gold Sold | oz | 14,483 | 16,012 | -10% | | Cash Costs per oz sold | $/oz | 1,510 | 1,153 | +31% | | AISC per oz sold | $/oz | 1,745 | 1,279 | +36% | - Production was lower due to lower grades from open pit mining (mine sequencing) and lower tonnes from underground due to slow development rates[74](index=74&type=chunk) - Underground mining unit costs were higher due to increased labor costs from renegotiated contracts and fewer tonnes mined[75](index=75&type=chunk) [RDM Gold Mine, Minas Gerais, Brazil](index=18&type=section&id=RDM%20Gold%20Mine%2C%20Minas%20Gerais%2C%20Brazil) RDM had a strong quarter, with production increasing **72% YoY to 10,932 ounces**, driven by higher grades from in-situ mining compared to processing low-grade stockpiles in Q1 2023, leading to a **24% decrease in AISC per ounce sold to $1,801** RDM Q1 2024 Performance (vs. Q1 2023) | Metric | Unit | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | :--- | | Gold Produced | oz | 10,932 | 6,342 | +72% | | Gold Sold | oz | 11,125 | 6,024 | +85% | | Cash Costs per oz sold | $/oz | 1,709 | 1,557 | +10% | | AISC per oz sold | $/oz | 1,801 | 2,368 | -24% | - The significant production increase was due to higher grades from in-situ mining. In Q1 2023, production was hampered by a license delay and reliance on low-grade stockpiles[84](index=84&type=chunk) [Santa Luz Gold Mine, Bahia, Brazil](index=20&type=section&id=Santa%20Luz%20Gold%20Mine%2C%20Bahia%2C%20Brazil) Santa Luz production fell **18% YoY to 11,836 ounces** in Q1 2024, with AISC rising **56% to $2,519/oz**, due to lower recoveries (**53.9% vs 62.6%** in Q1 2023) and plant downtime for modifications, with the 2024 focus on improving plant throughput and recoveries through planned upgrades Santa Luz Q1 2024 Performance (vs. Q1 2023) | Metric | Unit | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | :--- | | Gold Produced | oz | 11,836 | 14,485 | -18% | | Gold Sold | oz | 11,575 | 14,249 | -19% | | Cash Costs per oz sold | $/oz | 2,053 | 1,581 | +30% | | AISC per oz sold | $/oz | 2,519 | 1,610 | +56% | - Lower production was caused by **14% lower recoveries** and increased plant downtime for modifications to the detox, ADR, and electrowinning circuits[94](index=94&type=chunk) - The focus for 2024 is to improve recoveries to **73% or more** in H2 2024. Planned upgrades include a new trunnion and a desliming circuit in late Q2 2024[99](index=99&type=chunk) [Development Projects](index=22&type=section&id=Development%20Projects) The company is advancing key development projects including the Greenstone project nearing completion, and evaluating expansions at Los Filos, Castle Mountain, and Aurizona [Greenstone Project, Ontario, Canada](index=22&type=section&id=Greenstone%20Project%2C%20Ontario%2C%20Canada) The Greenstone project is nearing completion, with commissioning activities advancing in Q1 2024; ore was introduced to the grinding circuit in April, with the first gold pour expected in May 2024 and commercial production targeted by the end of Q3 2024, as Equinox Gold has moved to acquire **100% ownership** of the project - Ore was introduced into the system on April 6, 2024. The first gold pour is expected in **May 2024**, with commercial production targeted by the end of **Q3 2024**[105](index=105&type=chunk) - As of Q1 2024, **$1.3 billion** (100% basis) has been spent on construction and commissioning. Equinox Gold's share was **$54 million** in the quarter[104](index=104&type=chunk) [Los Filos Expansion, Guerrero, Mexico](index=22&type=section&id=Los%20Filos%20Expansion%2C%20Guerrero%2C%20Mexico) The company has not yet made a construction decision for the Los Filos expansion, which involves building a CIL plant, as the decision is contingent on operating stability, successful renegotiation of land access agreements, permits, and market conditions - A construction decision for the CIL plant has not been made. The decision depends on operating stability, renegotiating land access agreements, permits, and market conditions[107](index=107&type=chunk) [Castle Mountain Expansion, California, USA](index=22&type=section&id=Castle%20Mountain%20Expansion%2C%20California%2C%20USA) The permitting process for the Phase 2 expansion at Castle Mountain is advancing, with the company receiving a determination from the Bureau of Land Management (BLM) that its plan is complete in Q1 2024, and the next step, formal environmental analysis (EIS/EIR), expected throughout 2024 and 2025 - The company received BLM determination that the Mine and Reclamation Plan for the Phase 2 expansion is complete in Q1 2024[110](index=110&type=chunk) - The formal Environmental Impact Statement (EIS) / Environmental Impact Report process is anticipated to occur throughout **2024 and 2025**[110](index=110&type=chunk) [Aurizona Expansion, Brazil](index=23&type=section&id=Aurizona%20Expansion%2C%20Brazil) The company is advancing engineering studies for a potential underground mine at Aurizona, with construction of a portal and underground decline planned to commence in late 2024 to allow for bulk sampling and further drilling - Engineering studies for an underground mine at Piaba pit continued in Q1 2024. Construction of a portal and decline is planned for **late 2024**[112](index=112&type=chunk) [Health, Safety and Environment](index=23&type=section&id=Health%2C%20Safety%20and%20Environment) The company reported two lost-time injuries in Q1 2024, with safety and environmental incident rates well below targets - The company reported **two lost-time injuries** in Q1 2024. The 12-month rolling Total Recordable Injury Frequency Rate (TRIFR) was **1.55 per million hours worked**, well below the 2024 target of **3.00**[113](index=113&type=chunk) - There were no significant environmental incidents in Q1 2024. The 12-month rolling Significant Environmental Incident Frequency Rate (SEIFR) was **0.30 per million hours worked**, below the target of **1.26**[114](index=114&type=chunk) [Community Development and ESG Reporting](index=23&type=section&id=Community%20Development%20and%20ESG%20Reporting) Equinox Gold engaged in community development activities across its operations and achieved an improved Morningstar Sustainalytics ESG Risk Rating in March 2024 - The company engaged in numerous community development activities across its operations in Canada, Brazil, Mexico, and the USA, focusing on health, education, skills training, and cultural support[116](index=116&type=chunk)[117](index=117&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) - In March 2024, the company received an improved Morningstar Sustainalytics ESG Risk Rating of **31** (lower is better), a **14% improvement** from its 2023 score[122](index=122&type=chunk) [Corporate](index=24&type=section&id=Corporate) Key corporate activities include the acquisition of the remaining **40% of Greenstone**, full utilization of the ATM equity program, and extension of convertible note maturities - Announced the acquisition of the remaining **40% of Greenstone** from Orion for **$995 million**, to be funded by a new **$500 million term loan** and a **$299 million equity offering** that closed in April 2024[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) - The At-the-Market (ATM) Equity Program was fully utilized in Q1 2024, raising gross proceeds of **$50.2 million** from the issuance of **10.9 million shares**[126](index=126&type=chunk) - Subsequent to quarter-end, the maturity dates of the 2019 and 2020 convertible notes were extended by six months each, and the conversion price of the 2020 notes was amended from **$7.80 to $6.50 per share**[127](index=127&type=chunk) [Financial Results](index=25&type=section&id=Financial%20Results) This section provides a detailed overview of the company's financial performance, including revenue, net income, and key financial metrics for Q1 2024 and prior periods [Q1 2024 Financial Performance](index=25&type=section&id=Q1%202024%20Financial%20Performance) The company reported a net loss of **$42.8 million** for Q1 2024, compared to a net income of **$17.4 million** in Q1 2023, with the negative swing primarily due to a **$13.9 million 'other expense'**, which included significant losses on the fair value of gold and foreign exchange contracts, compared to a large 'other income' in the prior-year period, and income from mine operations also decreased to **$11.4 million** from **$14.5 million YoY** Selected Financial Results ($ millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | 241.3 | 234.1 | | Income from mine operations | 11.4 | 14.5 | | Finance expense | (17.4) | (12.7) | | Other income (expense) | (13.9) | 31.9 | | Net income (loss) | (42.8) | 17.4 | | Basic EPS ($/share) | (0.13) | 0.06 | - Revenue increased **3% YoY** due to a **9% higher realized gold price**, which offset a **6% decrease** in gold ounces sold[130](index=130&type=chunk) - Other expense of **$13.9 million** in Q1 2024 was mainly driven by a **$11.6 million loss** on the change in fair value of gold contracts and a **$4.0 million loss** on foreign exchange contracts. This contrasts with a **$31.9 million other income** in Q1 2023, which included a **$34.5 million gain** on the sale of an investment[137](index=137&type=chunk) [Selected Quarterly Information](index=27&type=section&id=Selected%20Quarterly%20Information) The company's quarterly results show fluctuating performance, with revenue peaking in Q4 2023 at **$297.8 million**, and the net loss of **$42.8 million** in Q1 2024 following three consecutive quarters of net income Quarterly Revenue and Net Income (Loss) ($ millions) | Quarter | Revenue | Net Income (Loss) | | :--- | :--- | :--- | | Q1 2024 | 241.3 | (42.8) | | Q4 2023 | 297.8 | 3.9 | | Q3 2023 | 284.7 | 2.2 | | Q2 2023 | 271.6 | 5.4 | | Q1 2023 | 234.1 | 17.4 | [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position, working capital, and cash flow are detailed, highlighting the impact of recent financing activities and future commitments [Liquidity Position](index=28&type=section&id=Liquidity%20Position) As of March 31, 2024, the company had **$125.3 million** in cash and cash equivalents and **$164.6 million** undrawn on its **$700 million** revolving credit facility, with subsequent financing activities in April, including a new **$500 million term loan** and a **$299 million equity offering**, significantly bolstering liquidity to fund the Greenstone acquisition and other commitments - At March 31, 2024, the company had cash and cash equivalents of **$125.3 million** and **$164.6 million** available under its revolving facility[142](index=142&type=chunk) - In April 2024, the company secured a new **$500 million term loan** and raised approximately **$299 million** in gross proceeds from an equity offering to fund the Greenstone acquisition[143](index=143&type=chunk) - Management believes current liquidity and expected cash flows are sufficient to meet financial, operating, and capital commitments over the next 12 months[144](index=144&type=chunk) [Working Capital and Cash Flow](index=28&type=section&id=Working%20Capital%20and%20Cash%20Flow) Net working capital decreased to **$101.3 million** at quarter-end from **$354.4 million** at year-end 2023, primarily due to the reclassification of the 2020 Convertible Notes to current liabilities, while cash provided by operating activities was **$17.9 million**, a significant decrease from **$143.4 million** in Q1 2023, which had benefited from a **$139.5 million** gold prepay arrangement - Net working capital decreased from **$354.4 million** (Dec 31, 2023) to **$101.3 million** (Mar 31, 2024), mainly due to an increase in the current portion of loans and borrowings[146](index=146&type=chunk) - Cash provided by operating activities was **$17.9 million** in Q1 2024, down from **$143.4 million** in Q1 2023[150](index=150&type=chunk) - Cash used in investing activities was **$108.8 million**, primarily for capital expenditures of **$104.8 million**, with Greenstone accounting for **$55.7 million** of that spend[151](index=151&type=chunk) [Outstanding Share Data](index=29&type=section&id=Outstanding%20Share%20Data) As of May 8, 2024, the company had **386.4 million shares** issued and outstanding, with a fully diluted count of **470.2 million** - As of May 8, 2024, the company had **386,395,908 shares** issued and outstanding. The fully diluted share count is **470,212,952**[153](index=153&type=chunk) [Commitments and Contingencies](index=29&type=section&id=Commitments%20and%20Contingencies) The company has total commitments of **$1.95 billion**, with **$720 million** due within one year, and is addressing environmental fines and civil actions - As of March 31, 2024, the company had total commitments of **$1.95 billion**, with **$720.0 million** due within one year[154](index=154&type=chunk) - The company is facing environmental fines totaling **$10.2 million** and public civil actions related to a 2021 rain event at Aurizona. Management believes the claims are without merit and has not recognized a provision[156](index=156&type=chunk) [Non-IFRS Measures](index=30&type=section&id=Non-IFRS%20Measures) This section provides reconciliations of non-IFRS financial measures, including cash costs, AISC, Adjusted EBITDA, Adjusted Net Income, and Net Debt [Reconciliation of Costs](index=31&type=section&id=Reconciliation%20of%20Costs) The company reconciles operating expenses to non-IFRS measures like cash costs and All-In Sustaining Costs (AISC); for Q1 2024, total cash costs were **$182.6 million ($1,567/oz)** and total AISC was **$227.2 million ($1,950/oz)** Reconciliation of Cash Costs and AISC (Q1 2024, $ millions) | Metric | Value | | :--- | :--- | | Operating expenses (IFRS) | 183.8 | | Silver revenue | (0.6) | | Fair value adjustment on acquired inventories | (0.6) | | **Total cash costs** | **182.6** | | Sustaining capital | 39.0 | | Sustaining lease payments | 2.6 | | Reclamation expense | 2.8 | | Sustaining exploration expense | 0.2 | | **Total AISC** | **227.2** | [Reconciliation of EBITDA and Net Income](index=33&type=section&id=Reconciliation%20of%20EBITDA%20and%20Net%20Income) The company adjusts its IFRS net loss to calculate non-IFRS measures like Adjusted EBITDA and Adjusted Net Loss; for Q1 2024, the net loss of **$42.8 million** was reconciled to an Adjusted EBITDA of **$52.2 million** and an Adjusted Net Loss of **$14.4 million**, with adjustments primarily related to unrealized gains/losses on derivatives and foreign exchange Reconciliation to Adjusted EBITDA (Q1 2024, $ millions) | Metric | Value | | :--- | :--- | | Net income (loss) | (42.8) | | Income tax expense | 8.5 | | Depreciation and depletion | 46.4 | | Finance expense / (income) | 15.4 | | **EBITDA** | **27.7** | | Adjustments (derivatives, FX, etc.) | 24.5 | | **Adjusted EBITDA** | **52.2** | Reconciliation to Adjusted Net Income (Q1 2024, $ millions) | Metric | Value | | :--- | :--- | | Net income (loss) | (42.8) | | Adjustments (derivatives, FX, share-based comp, etc.) | 28.4 | | **Adjusted net income (loss)** | **(14.4)** | [Net Debt](index=34&type=section&id=Net%20Debt) Net debt increased to **$803.8 million** as of March 31, 2024, up from **$733.0 million** at the end of 2023, reflecting a decrease in cash and cash equivalents during the quarter Net Debt Calculation ($ millions) | Metric | Mar 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total debt | 929.1 | 925.0 | | Less: Cash and cash equivalents | (125.3) | (192.0) | | **Net debt** | **803.8** | **733.0** | [Internal Controls and Procedures](index=35&type=section&id=Internal%20Controls%20Over%20Financial%20Reporting%20and%20Disclosure%20Controls%20and%20Procedures) Management is responsible for internal controls over financial reporting, with no material changes reported in Q1 2024 - Management is responsible for establishing and maintaining adequate internal controls over financial reporting. No changes in these controls that have materially affected, or are reasonably likely to materially affect, the company's internal controls were reported for Q1 2024[181](index=181&type=chunk) [Cautionary Notes and Forward-looking Statements](index=35&type=section&id=Cautionary%20Notes%20and%20Forward-looking%20Statements) The report contains forward-looking statements regarding production guidance and project development, which are subject to various risks and uncertainties - This report contains forward-looking statements regarding production guidance, project development timelines (Greenstone, Castle Mountain, Los Filos, Aurizona), the Greenstone acquisition, and other strategic objectives. These statements are subject to various risks and uncertainties[182](index=182&type=chunk)[185](index=185&type=chunk)

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find compa ...

All dollar amounts shown in United States dollars, unless otherwise indicated. VANCOUVER, British Columbia, April 23, 2024 (GLOBE NEWSWIRE) -- Equinox Gold Corp. (TSX:EQX, NYSE:EQX) is pleased to announce that it has entered into a binding share purchase agreement (the "SPA") with certain funds managed by Orion Mine Finance Management LP ("Orion") to acquire Orion's 40% interest in Greenstone Gold Mine GP Inc., giving Equinox Gold 100% ownership of the Greenstone Mine ("Greenstone") in Ontario, Canada (the ...

Consolidated Financial Statements For the years ended December 31, 2023 and 2022 (Expressed in thousands of United States dollars, unless otherwise stated) Consolidated Financial Statements For the years ended December 31, 2023 and 2022 | CONTENTS | | | --- | --- | | Management's Report | 3 | | Report of Independent Registered Public Accounting Firm – Consolidated Financial Statements | 4 | | Report of Independent Registered Public Accounting Firm – Internal Control over Financial Reporting | 6 | | Consolid ...

Equinox Gold to Announce 2023 Financial and Operating Results and 2024 Guidance on February 21, 2024February 16, 2024 7:05 AM EST | Source: Equinox Gold Corp.Vancouver, British Columbia--(Newsfile Corp. - February 16, 2024) - Equinox Gold Corp. (TSX: EQX) (NYSE American: EQX) will release its audited financial and operating results for the fourth quarter and fiscal year ended December 31, 2023, along with its 2024 production and cost guidance, on Wednesday, February 21, 2024, after market clos ...

Forward-looking Statements. This presentation contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation and may include future-oriented financial information or financial outlook information (collectively "FOFI"). Actual results of operations and the resulting financial results may vary materially from the amounts set out in an FOFI. Forward-looking statements and forward-looking information in this presentation relate to, among other ...

[Business Overview](index=4&type=section&id=Business%20Overview) Equinox Gold is a growth-focused mining company with seven operating gold mines in the Americas, aiming to become a premier producer of over one million ounces annually - Equinox Gold operates **seven gold mines** across the Americas, including the USA, Mexico, and Brazil[10](index=10&type=chunk) - The company holds a **60% interest** in the Greenstone Project in Canada, currently under construction[10](index=10&type=chunk) - The strategic vision is to become a premier Americas gold producer, targeting **over one million ounces of gold annually** through asset expansion and acquisitions[11](index=11&type=chunk) [Highlights for the Three Months Ended September 30, 2023](index=4&type=section&id=Highlights%20for%20the%20Three%20Months%20Ended%20September%2030%2C%202023) The company reported strong Q3 2023 operational and financial performance, with significant progress on the Greenstone project and strategic financing activities Q3 2023 Key Highlights | Category | Metric | Value | | :--- | :--- | :--- | | **Operational** | Gold Produced | 149,089 ounces | | | Gold Sold | 148,231 ounces | | | Average Realized Gold Price | $1,917 per ounce | | | AISC per ounce sold | $1,630 | | **Financial** | Net Income | $2.2 million ($0.01/share) | | | Adjusted Net Income | $28.7 million ($0.09/share) | | | Adjusted EBITDA | $81.2 million | | | Cash and Cash Equivalents | $356.7 million | | | Net Debt | $729.5 million | - The Greenstone construction project reached **93% completion** by Q3 2023, remaining on budget and on track for first gold in H1 2024[18](index=18&type=chunk) - In September 2023, the company issued **$172.5 million** in 4.75% unsecured senior convertible notes, maturing in 2028[18](index=18&type=chunk) [Recent Developments](index=5&type=section&id=Recent%20Developments) Recent corporate actions include debt repayment, a gold purchase and sale arrangement, and a new board appointment - On October 3, 2023, **$166.0 million** of the Revolving Facility was repaid using convertible note proceeds[18](index=18&type=chunk) - On October 31, 2023, the company received **$75 million** from a gold purchase and sale arrangement with Sandbox Royalties Corp[18](index=18&type=chunk) - Fraz Siddiqui joined the Board of Directors on October 31, 2023, as Mubadala Investment Company's appointee[18](index=18&type=chunk) [Consolidated Operational and Financial Highlights](index=6&type=section&id=Consolidated%20Operational%20and%20Financial%20Highlights) Consolidated results show significant improvements in Q3 2023, driven by higher production and reduced costs, leading to a return to net profit Consolidated Financial Performance (Q3 2023 vs. Q3 2022) | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Gold Produced (ounces) | 149,089 | 143,615 | +3.8% | | Gold Sold (ounces) | 148,231 | 143,032 | +3.6% | | Revenue (Million $) | 284.7 | 245.1 | +16.2% | | Income from Mine Operations (Million $) | 25.2 | 7.4 | +240.5% | | Net Income (Loss) (Million $) | 2.2 | (30.1) | Turn to Profit | | Adjusted EBITDA (Million $) | 81.2 | 25.6 | +217.2% | | AISC per ounce sold ($/ounce) | 1,630 | 1,751 | -6.9% | - Gold sales increased in Q3 and the first nine months of 2023, primarily due to higher production at **Los Filos, Aurizona, and RDM mines**[19](index=19&type=chunk) - Net income for Q3 2023 was **$2.2 million**, a significant improvement from a **$30.1 million net loss** in Q3 2022, driven by higher mine income and fair value gains on warrants[22](index=22&type=chunk) Sustaining and Non-Sustaining Expenditures (Nine Months Ended Sep 30, 2023) | Category ($ millions) | Sustaining | Non-sustaining | Total | | :--- | :--- | :--- | :--- | | USA | 11.1 | 18.8 | 29.9 | | Mexico | 17.7 | 0.5 | 18.2 | | Brazil | 48.5 | 15.4 | 63.9 | | Canada (Greenstone) | — | 270.3 | 270.3 | | **Total** | **77.2** | **305.0** | **382.2** | [Operations](index=8&type=section&id=Operations) This section details the operational performance of each gold mine, including production, costs, and specific challenges or improvements [Mesquite Gold Mine, California, USA](index=8&type=section&id=Mesquite%20Gold%20Mine%2C%20California%2C%20USA) In Q3 2023, Mesquite's production fell 46% year-over-year to 24,050 ounces due to mine sequencing and temporary leach pad issues. Despite lower output, AISC per ounce sold decreased by 13% to $1,129, benefiting from minimal sustaining capital expenditures. The mine's 2023 strategy involves a small pit approach to reduce waste stripping and manage costs Mesquite Q3 2023 vs. Q3 2022 Performance | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Gold Produced (ounces) | 24,050 | 44,953 | -46% | | Gold Sold (ounces) | 24,049 | 44,711 | -46% | | Cash Costs per ounce sold ($/ounce) | 1,073 | 921 | +16% | | AISC per ounce sold ($/ounce) | 1,129 | 1,292 | -13% | - Lower production in 2023 is due to mine sequencing, with most ounces expected on the leach pad in H2 2023[29](index=29&type=chunk) - 2023 production guidance for Mesquite is **80,000 to 90,000 ounces**, with AISC guidance of **$1,415 to $1,480 per ounce**[36](index=36&type=chunk) [Castle Mountain Gold Mine, California, USA](index=10&type=section&id=Castle%20Mountain%20Gold%20Mine%2C%20California%2C%20USA) Castle Mountain's Q3 2023 gold production decreased by 17% year-over-year to 4,237 ounces, a result of placing fewer recoverable ounces on the leach pad. AISC per ounce sold rose 17% to $1,648, as the transition to higher-cost crushing and agglomeration has not yet delivered the anticipated throughput and recovery improvements Castle Mountain Q3 2023 vs. Q3 2022 Performance | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Gold Produced (ounces) | 4,237 | 5,093 | -17% | | Gold Sold (ounces) | 4,237 | 5,093 | -17% | | Cash Costs per ounce sold ($/ounce) | 1,384 | 1,104 | +25% | | AISC per ounce sold ($/ounce) | 1,648 | 1,410 | +17% | - Lower production resulted from fewer recoverable ounces placed, with plans to relocate the crusher plant in 2024 for improved throughput[41](index=41&type=chunk) - 2023 production guidance for Castle Mountain is **25,000 to 30,000 ounces**, with AISC guidance of **$1,865 to $1,950 per ounce**[46](index=46&type=chunk) [Los Filos Gold Mine, Guerrero, Mexico](index=12&type=section&id=Los%20Filos%20Gold%20Mine%2C%20Guerrero%2C%20Mexico) Los Filos saw a 71% year-over-year surge in Q3 2023 production to 39,455 ounces, driven by increased ore mining. However, recoveries were hampered by solution management issues and high-copper content ore. AISC per ounce sold fell significantly by 41% to $2,082, benefiting from higher production volumes and lower inventory write-downs compared to Q3 2022 Los Filos Q3 2023 vs. Q3 2022 Performance | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Gold Produced (ounces) | 39,455 | 23,121 | +71% | | Gold Sold (ounces) | 39,817 | 22,677 | +76% | | Cash Costs per ounce sold ($/ounce) | 1,863 | 3,105 | -40% | | AISC per ounce sold ($/ounce) | 2,082 | 3,499 | -41% | - Production recovery was delayed by solution management and high-copper ore, with most built-up inventory expected to be recovered in Q4 2023[53](index=53&type=chunk)[54](index=54&type=chunk) - Mexico enacted significant mining law changes in May 2023, impacting concession life, water rules, and community profit sharing, with the company assessing the operational impact[62](index=62&type=chunk) [Aurizona Gold Mine, Maranhão, Brazil](index=14&type=section&id=Aurizona%20Gold%20Mine%2C%20Maranh%C3%A3o%2C%20Brazil) Aurizona's Q3 2023 production rose 25% year-over-year to 32,185 ounces, thanks to better access to high-grade ore and increased mill throughput. AISC per ounce sold remained stable at $1,492, as the benefit of higher gold sales was offset by increased mining costs and sustaining capital for a new tailings storage facility Aurizona Q3 2023 vs. Q3 2022 Performance | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Gold Produced (ounces) | 32,185 | 25,709 | +25% | | Gold Sold (ounces) | 31,247 | 25,507 | +23% | | Cash Costs per ounce sold ($/ounce) | 991 | 1,006 | -1% | | AISC per ounce sold ($/ounce) | 1,492 | 1,476 | +1% | - Production increased due to better access to higher-grade ore and increased processing, supported by an additional mining contractor[66](index=66&type=chunk) - 2023 production guidance for Aurizona is **120,000 to 130,000 ounces**, with AISC guidance of **$1,410 to $1,500 per ounce**[71](index=71&type=chunk) [Fazenda Gold Mine, Bahia, Brazil](index=16&type=section&id=Fazenda%20Gold%20Mine%2C%20Bahia%2C%20Brazil) Fazenda's Q3 2023 production was stable year-over-year at 17,503 ounces, supported by a higher average underground gold grade. However, AISC per ounce sold increased by 19% to $1,431, driven by higher unit costs in both mining and processing due to contract adjustments and maintenance activities Fazenda Q3 2023 vs. Q3 2022 Performance | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Gold Produced (ounces) | 17,503 | 17,234 | +2% | | Gold Sold (ounces) | 17,434 | 17,057 | +2% | | Cash Costs per ounce sold ($/ounce) | 1,239 | 1,055 | +17% | | AISC per ounce sold ($/ounce) | 1,431 | 1,207 | +19% | - Higher AISC resulted from increased mining unit costs due to contractor adjustments and underground maintenance, alongside higher processing costs[79](index=79&type=chunk)[80](index=80&type=chunk) - 2023 production guidance for Fazenda is **60,000 to 65,000 ounces**, with AISC guidance of **$1,390 to $1,430 per ounce**[83](index=83&type=chunk) [RDM Gold Mine, Minas Gerais, Brazil](index=18&type=section&id=RDM%20Gold%20Mine%2C%20Minas%20Gerais%2C%20Brazil) RDM achieved its highest quarterly production since Q4 2020, with Q3 2023 output jumping 58% year-over-year to 16,327 ounces. This was driven by higher grades from mining in-situ ore. AISC per ounce sold decreased by 4% to $1,547, reflecting the significant production increase and lower mining costs after transitioning from contract to owner mining RDM Q3 2023 vs. Q3 2022 Performance | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Gold Produced (ounces) | 16,327 | 10,321 | +58% | | Gold Sold (ounces) | 15,987 | 10,231 | +56% | | Cash Costs per ounce sold ($/ounce) | 1,140 | 1,281 | -11% | | AISC per ounce sold ($/ounce) | 1,547 | 1,617 | -4% | - Production increased due to higher grades from in-situ ore mining and reduced reliance on low-grade stockpiles, improving from 2022 permit delays[89](index=89&type=chunk) - 2023 production guidance for RDM is **50,000 to 60,000 ounces**, with AISC guidance of **$1,685 to $1,870 per ounce**[93](index=93&type=chunk) [Santa Luz Gold Mine, Bahia, Brazil](index=20&type=section&id=Santa%20Luz%20Gold%20Mine%2C%20Bahia%2C%20Brazil) Santa Luz, which reached commercial production in October 2022, produced 15,332 ounces in Q3 2023, consistent with Q2 2023. AISC per ounce sold was $1,834, a 15% increase quarter-over-quarter, mainly due to higher mining unit costs from longer haul distances. The operational focus remains on stabilizing the plant and improving gold recoveries Santa Luz Q3 2023 vs. Q2 2023 Performance | Metric | Q3 2023 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Gold Produced (ounces) | 15,332 | 15,321 | 0% | | Gold Sold (ounces) | 15,459 | 14,856 | +4% | | Cash Costs per ounce sold ($/ounce) | 1,644 | 1,480 | +11% | | AISC per ounce sold ($/ounce) | 1,834 | 1,592 | +15% | - The mine's resin-in-leach process is undergoing optimization to increase recoveries, which remained consistent with Q2 2023[98](index=98&type=chunk) - 2023 production guidance for Santa Luz is **60,000 to 70,000 ounces**, with a focus on achieving **70% or more recoveries** in H2 2023[103](index=103&type=chunk) [Development Projects](index=22&type=section&id=Development%20Projects) The company is advancing key development projects, including the Greenstone construction, and optimizing expansion plans for Los Filos, Castle Mountain, and Aurizona [Greenstone Project, Ontario, Canada](index=22&type=section&id=Greenstone%20Project%2C%20Ontario%2C%20Canada) The Greenstone Project (60% owned by Equinox Gold) reached 93% overall completion as of September 30, 2023. The project remains on budget and is on track for its first gold pour in the first half of 2024. As of quarter-end, $1,087 million (89%) of the $1,225 million construction budget had been spent on a 100% basis - The Greenstone project is a **60/40 partnership** with Orion Mine Finance Group, with Equinox Gold's Q3 2023 spending share at **$90 million**[106](index=106&type=chunk)[111](index=111&type=chunk) - Key Q3 2023 milestones included Highway 11 realignment, power plant commissioning, and process plant pre-commissioning activities[110](index=110&type=chunk) - The project is expected to produce **over 400,000 ounces of gold annually** for its first five years of operation[106](index=106&type=chunk) [Los Filos Expansion, Guerrero, Mexico](index=23&type=section&id=Los%20Filos%20Expansion%2C%20Guerrero%2C%20Mexico) The company has deferred a construction decision on the Los Filos expansion, which includes a new CIL plant. The decision to proceed will depend on operating stability in the region, market conditions, and capital availability. The current focus is on optimizing cash flow and community relations - A construction decision for the CIL plant, originally planned for 2023, has been deferred[114](index=114&type=chunk) [Castle Mountain Expansion, California, USA](index=23&type=section&id=Castle%20Mountain%20Expansion%2C%20California%2C%20USA) The company is advancing optimization and engineering for the Phase 2 expansion, which is expected to increase average annual production to 218,000 ounces. The required permit amendment application is under review by US federal and county agencies, with a draft Environmental Impact Statement (EIS) anticipated to be developed throughout 2024 - The Phase 2 expansion is projected to yield **3.2 million ounces of gold** with lower industry quartile AISC[115](index=115&type=chunk) - The permit amendment application, submitted in March 2022, is expected to lead to a draft Environmental Impact Statement (EIS) in 2024[116](index=116&type=chunk) [Aurizona Expansion, Brazil](index=23&type=section&id=Aurizona%20Expansion%2C%20Brazil) The company is advancing plans for a potential long-life underground mine at Aurizona. Rather than completing a full feasibility study at this time, the focus is on planning for the construction of a portal and underground decline in 2024 to facilitate bulk sampling and further exploration drilling - The expansion aims to extend mine life beyond **10 years** through an underground mine and satellite open pits alongside the existing operation[117](index=117&type=chunk) - Plans include constructing a portal and decline in 2024 for bulk sampling and underground exploration prior to full expansion commitment[118](index=118&type=chunk) [Health, Safety and Environment](index=23&type=section&id=Health%2C%20Safety%20and%20Environment) The company reported a low Total Recordable Injury Frequency Rate and addressed environmental incidents at Castle Mountain - In Q3 2023, there were **three lost-time injuries**, with a 12-month rolling TRIFR of **1.28 per million hours worked**, below the **3.25 target**[119](index=119&type=chunk) - Three significant environmental incidents occurred at Castle Mountain in Q3, related to bird mortalities, which were addressed with deterrent devices[120](index=120&type=chunk) [Community Development and ESG Reporting](index=24&type=section&id=Community%20Development%20and%20ESG%20Reporting) The company published its inaugural Water Stewardship Report, submitted climate and ESG data, and engaged in extensive community development activities - The company published its inaugural **2022 Water Stewardship Report** in July 2023, aligned with ICMM framework[128](index=128&type=chunk) - Climate change data was submitted to CDP and ESG data to S&P Global CSA during the quarter[127](index=127&type=chunk) - Extensive community engagement included project updates for First Nations, skills training in Brazil, and community facility construction in Mexico[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) [Corporate](index=24&type=section&id=Corporate) Corporate activities included convertible note issuance and debt repayment, strategic divestitures, and gold hedging to manage cash flow - On September 21, 2023, **$172.5 million** in convertible notes were issued, with net proceeds of **$165.1 million** used to repay **$166.0 million** of the Revolving Facility on October 3, 2023[131](index=131&type=chunk) - On March 31, 2023, **11.6 million units of i-80 Gold** were sold for **$23.6 million**, resulting in a **$34.5 million gain** and reclassification of the investment[140](index=140&type=chunk)[141](index=141&type=chunk) - In Q1 2023, **12.0 million shares** in Solaris Resources Inc. were sold for gross proceeds of **$53.4 million**[142](index=142&type=chunk) - Gold collar contracts were entered into during Q1 and Q2 2023 to manage cash flow variability during Greenstone construction, covering **13,694 ounces per month** through March 2024[137](index=137&type=chunk)[138](index=138&type=chunk) [Financial Results](index=26&type=section&id=Financial%20Results) The company reported a significant increase in Q3 2023 revenue and a return to net income, driven by higher gold sales and improved financial instrument valuations Selected Financial Results (Three Months Ended Sep 30) | $ millions (except per share) | 2023 | 2022 | | :--- | :--- | :--- | | Revenue | 284.7 | 245.1 | | Income from mine operations | 25.2 | 7.4 | | Net income (loss) | 2.2 | (30.1) | | Basic EPS ($) | 0.01 | (0.10) | - Revenue for Q3 2023 increased by **16%** year-over-year, driven by a **4% increase in gold ounces sold** and a **12% increase in average realized gold price**[145](index=145&type=chunk) - Net income significantly improved in Q3 2023 due to higher mine operations income and favorable fair value changes, including a **$1.6 million gain on warrants** compared to a **$13.4 million loss** in Q3 2022[22](index=22&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position with substantial cash and working capital, supported by increased operating cash flow and strategic financing Liquidity Position (as of Sep 30, 2023) | Metric | Value (Million $) | | :--- | :--- | | Cash and cash equivalents | 356.7 | | Net working capital | 510.0 | | Revolving Facility Drawn | 700.0 (fully drawn) | - Cash provided by operating activities for the nine months ended September 30, 2023, was **$232.6 million**, a substantial increase from **$10.9 million** in the prior-year period, largely due to **$149.4 million** from gold prepay arrangements[168](index=168&type=chunk) - Cash used in investing activities for the nine months ended September 30, 2023, was **$319.2 million**, primarily for **$386.3 million** in capital expenditures, with **$265.8 million** allocated to the Greenstone project[169](index=169&type=chunk) [Outstanding Share Data](index=31&type=section&id=Outstanding%20Share%20Data) The company's share capital structure includes issued and outstanding shares, along with potentially dilutive securities from stock options, RSUs, and convertible notes Share Capital Structure (as of MD&A date) | Security Type | Number of Shares | | :--- | :--- | | Issued and Outstanding | 312,980,933 | | Issuable under Stock Options | 1,155,194 | | Issuable under RSU | 6,861,543 | | Potentially Issuable on Conversion of Notes | 71,839,167 | | **Fully Diluted Outstanding** | **392,836,837** | [Commitments and Contingencies](index=32&type=section&id=Commitments%20and%20Contingencies) The company has significant contractual commitments and has recognized provisions for legal matters, while assessing potential environmental fines - As of September 30, 2023, total contractual commitments were approximately **$2.17 billion**, with **$582.0 million** due within one year[173](index=173&type=chunk) - A provision of **$8.4 million** has been recognized for various legal matters[174](index=174&type=chunk) - Potential environmental fines of **$10.2 million** related to a 2021 rain event at Aurizona are not provisioned, as cash outflow is not deemed probable[175](index=175&type=chunk) [Related Party Transactions](index=32&type=section&id=Related%20Party%20Transactions) No significant related party transactions were reported for the three and nine months ended September 30, 2023 - No significant related party transactions occurred during the three and nine months ended September 30, 2023[177](index=177&type=chunk) [Non-IFRS Measures](index=33&type=section&id=Non-IFRS%20Measures) This section defines and reconciles non-IFRS financial measures, including adjustments to cash cost calculations for peer comparability - This section defines and reconciles non-IFRS measures like cash costs, AISC, adjusted EBITDA, adjusted net income, and net debt to comparable IFRS figures[178](index=178&type=chunk) - Effective Q2 2023, cash cost calculation was adjusted to exclude sustaining lease payments, aligning with World Gold Council standards for improved peer comparability, with restated comparative periods[181](index=181&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (Q3 2023) | Item ($ millions) | Value | | :--- | :--- | | Net income (loss) | 2.2 | | Add: Income tax (recovery) | (8.1) | | Add: Depreciation and depletion | 58.9 | | Add: Finance expense | 15.3 | | Less: Finance income | (3.0) | | **EBITDA** | **65.2** | | Add/Less: Adjustments | 16.0 | | **Adjusted EBITDA** | **81.2** | [Accounting Matters](index=38&type=section&id=Accounting%20Matters) The interim financial statements adhere to IFRS, with consistent accounting policies and critical estimates as the prior annual period - The condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards (IFRS)[197](index=197&type=chunk) - Accounting policies and critical estimates are consistent with the December 31, 2022, annual audited consolidated financial statements[197](index=197&type=chunk)[198](index=198&type=chunk) [Internal Controls Over Financial Reporting and Disclosure Controls and Procedures](index=38&type=section&id=Internal%20Controls%20Over%20Financial%20Reporting%20and%20Disclosure%20Controls%20and%20Procedures) Management confirms responsibility for internal controls over financial reporting, with no material changes identified during Q3 2023 - Management is responsible for internal controls over financial reporting, with no material changes identified during Q3 2023[199](index=199&type=chunk) [Cautionary Notes and Forward-looking Statements](index=39&type=section&id=Cautionary%20Notes%20and%20Forward-looking%20Statements) This section highlights that the MD&A contains forward-looking statements subject to risks and uncertainties, with mineral reserve estimates prepared under Canadian standards - This MD&A includes forward-looking statements on production guidance, project timelines, and financial performance, subject to various risks and uncertainties[200](index=200&type=chunk) - Key assumptions include stable gold prices, currency exchange rates, operating conditions, and timely receipt of permits[201](index=201&type=chunk) - U.S. readers are cautioned that mineral reserve and resource estimates adhere to Canadian NI 43-101 standards, differing from SEC disclosure requirements[205](index=205&type=chunk) [Technical Information](index=40&type=section&id=Technical%20Information) Qualified Persons under NI 43-101 have reviewed and approved the technical content of this document - Doug Reddy and Scott Heffernan, Qualified Persons under NI 43-101, have reviewed and approved the technical content of this document[206](index=206&type=chunk)

Financial Data and Key Metrics Changes - The company reported cash costs per ounce of $13.61 for Q2 2023, similar to Q1 2023 and down from $14.82 in Q2 2022. The all-in sustaining cost per ounce was $15.02, down from $15.76 in Q1 2023 and $16.57 in Q2 2022 [11][17][19] - EBITDA for Q2 2023 was $64 million, or $71 million on an adjusted basis, with a net income of $5 million, resulting in basic and fully diluted earnings per share of $0.02. On an adjusted basis, there was a net loss of $6 million or $0.02 per share [11][19] Business Line Data and Key Metrics Changes - The company sold 138,000 ounces of gold in Q2 2023, generating $217 million in revenue, which is an increase of 15,000 ounces compared to Q1 2023 and 18,000 ounces compared to Q2 2022 [19] - At Los Filos, productivity improvements were noted with a 15% increase in open pit productivity and a 23% increase in underground ore tonnes mined [22] Market Data and Key Metrics Changes - The average realized price for gold sold in Q2 2023 was $19.62 per ounce, compared to $19.31 year-to-date [19] - The company experienced a net debt increase from $548 million at the end of Q1 to $661 million at the end of Q2 [95] Company Strategy and Development Direction - The company is focused on completing the Greenstone Gold mine, which is 85% complete and on track for first gold pour in H1 2024. The remaining construction budget is approximately $170 million [9][12][24] - The company aims to enhance its portfolio by acquiring larger, longer-life mines to improve production profiles, while currently prioritizing the completion of Greenstone [110] Management's Comments on Operating Environment and Future Outlook - Management noted tapering in unit input costs, particularly for diesel and cyanide in Brazil and the U.S., although these decreases are somewhat offset by currency strength in Brazil and Mexico [3] - The company is optimistic about achieving strong production in the second half of the year, with 55% of the annual production expected in this period [13] Other Important Information - The company reported a tragic fatality at the Santa Luz mine in June, leading to a one-week suspension of operations for investigation and safety training refresh [40] - The company has a right of first refusal (ROFR) on Orion's 40% stake in Greenstone, indicating interest in potentially increasing ownership [72][126] Q&A Session Summary Question: What is the plan for the $140 million convertible notes due next April? - Management is exploring options, including issuing equity if the notes are in the money, and is in discussions with the holders [30] Question: How much of the $170 million remaining for Greenstone will fall into the next fiscal year? - Management indicated that they are on track for the $277 million planned spend this year, but specific splits were not available [31] Question: Can you provide details on the fatality at Santa Luz? - Management declined to provide details out of respect for the employee's family [81] Question: How is the permitting process for Castle Mountain Phase 2 progressing? - Management reported that the application is straightforward and is currently in the permitting process, expected to be completed in 2025 [91] Question: What is the status of liquidity and capital spend? - Management expressed satisfaction with existing liquidity and indicated no immediate plans to bolster it outside of current operations [88]