Equinox sells Brazilian operations to CMOC for over $1B

Core Viewpoint - Equinox Gold has sold its Brazilian operations to China's CMOC Group for over $1 billion, marking a strategic shift towards becoming a North American-focused gold producer [1][4]. Group 1: Sale Details - The sale includes Equinox's 100% interest in the Aurizona mine, RDM mine, and Bahia complex, which are expected to produce 250,000–270,000 ounces of gold this year [2]. - The total consideration for the sale consists of an upfront cash payment of $900 million and a contingent cash payment of up to $115 million based on production, due one year after closing [3]. Group 2: Strategic Shift - The CEO of Equinox Gold stated that the asset sale is a pivotal step that positions the company as a pure North American-focused gold producer, supported by robust cash flow and a strong growth profile [4]. - Following the divestment, the company's portfolio will focus on the Valentine and Greenstone mines in Canada, along with the Mesquite mine in California [4][6]. Group 3: Financial Impact - The sale is expected to strengthen Equinox's financial position, allowing the company to repay its $500 million term loan and a $300 million loan with Sprott [8]. - This immediate debt retirement will significantly reduce interest expenses and enhance per-share cash flow, facilitating organic growth funding [9]. Group 4: Future Production Outlook - Equinox anticipates that the Valentine and Greenstone mines will contribute significantly to production, with expectations of 700,000–800,000 ounces next year as they reach nameplate capacity [10].