All financial figures are in US dollars, unless otherwise indicated.
Vancouver, British Columbia--(Newsfile Corp. - May 7, 2025) - Equinox Gold Corp. (EQX) ("Equinox Gold" or the "Company") is pleased to announce its first quarter 2025 summary financial and operating results. The Company's unaudited condensed consolidated interim financial statements and related management's discussion and analysis ("MD&A") will be available for download on the Company's profile on SEDAR+ at www.sedarplus.ca, on EDGAR at www.sec.gov/edgar and on the Company's website at www.equinoxgold.com. The Company will host a conference call and webcast on May 8, 2025 commencing at 7:30 am Pacific Time to discuss first quarter results and activities underway at the Company. Further details are provided later in this news release.
Greg Smith, President and CEO of Equinox Gold, commented: "Equinox Gold delivered the highest first-quarter production in the Company's history, producing more than 145,000 ounces of gold, with production expected to increase each quarter through the year. At Greenstone, we successfully navigated our first winter in operation and remained focused on increasing mining and processing rates. Both continue to improve and we are pleased with ramp-up progress as Greenstone advances toward steady-state performance.
"We also look forward to closing our pending merger with Calibre Mining (CXB:CA) during the second quarter. This combination will create a diversified, Americas-focused gold producer anchored by Greenstone and Valentine — two long-life Canadian gold mines — and supported by a robust pipeline of development and expansion projects. With increased scale, enhanced cash flow, and significant long-term growth potential, the combined company is well positioned to deliver meaningful value for all stakeholders."
HIGHLIGHTS FOR THE THREE MONTHS ENDED MARCH 31, 2025
Operational
- Produced 145,290 ounces of gold(1)
- Sold 147,920 ounces of gold(1) at an average realized gold price of $2,858 per oz
- Total cash costs of $1,769 per oz and AISC of $2,065 per oz(2)
- Total cash costs of $1,637 per oz and AISC of $1,979 per oz, excluding the results from Los Filos that were excluded from 2025 Guidance
- Two lost-time injuries and a total recordable injury frequency rate(3) of 1.95 for the rolling 12-month period (1.07 for the Quarter)
- No significant environmental incidents during the Quarter
Earnings
- Income from mine operations of $33.7 million
- Net loss of $75.5 million or $0.17 per share (basic)
- Adjusted net loss of $36.6 million or $0.08 per share(2)
Financial
- Cash flow from operations before changes in non-cash working capital of $73.3 million ($54.5 million after changes in non-cash working capital)
- Mine-site free cash flow before changes in non-cash working capital of $57.7 million ($38.8 million after changes in non-cash working capital)
- Adjusted EBITDA of $137.9 million(2)
- Sustaining expenditures of $42.9 million and non-sustaining expenditures of $49.4 million
- Cash and equivalents (unrestricted) of $172.9 million at March 31, 2025
- Net debt(2) of $1,220.0 million at March 31, 2025
Corporate
- On February 23, 2025, the Company entered into a definitive arrangement agreement for a business combination with Calibre Mining Corp. (OTCQX: CXBMF), as amended on April 23, 2025 (the "Arrangement Agreement"), whereby Equinox Gold will acquire 100% of the issued and outstanding common shares of Calibre (the "Transaction"). The Transaction will create an Americas-focused diversified gold producer with a portfolio of mines and projects in five countries anchored by two high-quality, long-life, low-cost Canadian gold mines. Under the terms of the Arrangement Agreement, Calibre shareholders will receive 0.35 of an Equinox Gold common share for each Calibre common share held immediately prior to closing of the Transaction. Closing of the Transaction is subject to certain regulatory approvals and other customary closing conditions.
Concurrent with the Arrangement Agreement, the Company entered into a subscription agreement to participate in Calibre's private placement convertible note financing. The private placement closed on March 4, 2025 with the Company purchasing a convertible note with a principal amount of $40.0 million and a maturity date of March 4, 2030 (the "Calibre Convertible Note"). If the Arrangement Agreement is terminated prior to closing of the Transaction, the maturity date of the Calibre Convertible Note will be accelerated to January 31, 2026. - Provided 2025 production and cost guidance of 635,000 to 750,000 ounces of gold at cash costs of $1,075 to $1,175 per oz and AISC of $1,455 to $1,550 per oz(2). Guidance does not include any production from Los Filos or Castle Mountain.
- Provided 2025 sustaining and non-sustaining expenditure guidance of $412 million, comprising $310 million of sustaining expenditures and $102 million of non-sustaining expenditures.
- In January 2025, following negotiations that began in November 2023 with the three communities that host Los Filos, the Company reached consensus on terms for new agreements with all three communities. Two communities signed new long-term agreements. One community did not sign the long-term agreement and instead requested to resume negotiation, independent of the other two communities. The Company has been clear with its position that long-term agreements with all three communities are essential to provide the economic and investment conditions necessary for continued operations. The existing agreement with the outstanding community expired on March 31, 2025. Accordingly, the Company announced on April 1, 2025 that operations at Los Filos are suspended indefinitely. The Company has not included any production from Los Filos in its 2025 Guidance. Layoffs at Los Filos have been proceeding; however, the Company will retain the staff required to maintain its environmental obligations and secure the Company-owned infrastructure at the mine site. Commencing April 1, 2025, Los Filos is being reported as a development project.
Development and Exploration
- Issued an updated technical report for Fazenda that includes an updated Mineral Reserve and Mineral Resource estimate, demonstrating mine life extension to 2033.
RECENT DEVELOPMENTS
- On May 1, 2025, Equinox Gold shareholders and Calibre securityholders voted in favour of the Calibre Transaction, authorizing Equinox Gold to issue up to 296,838,303 shares to acquire the outstanding shares of Calibre at the exchange ratio of 0.35 Equinox Gold shares for every Calibre share. The Transaction is expected to close during the second quarter of 2025.
- On May 1, 2025, Equinox Gold shareholders approved all matters of business at the adjourned annual and special meeting of shareholders, including setting the size of the board of directors ("Board"), electing the director nominees, appointing KPMG LLP as Equinox Gold's auditor, and approving amendments to the Company's restricted share unit plan.
- On April 14, 2025, the Company drew down $45.0 million on the Revolving Facility.
(1) Gold production includes 31,518 and 3,222 ounces from Los Filos and Castle Mountain, respectively; gold sold includes 32,133 and 3,222 ounces at Los Filos and Castle Mountain, respectively, which were not included in the Company's 2025 Guidance.
(2) Cash costs per oz sold, AISC per oz sold, adjusted net income (loss), adjusted EPS, adjusted EBITDA and net debt are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.
(3) Total recordable injury frequency rate ("TRIFR") is reported per million hours worked. TRIFR is the total number of injuries excluding those requiring simple first aid treatment.
CONSOLIDATED OPERATIONAL AND FINANCIAL HIGHLIGHTS
| Three months ended | ||||||||||
| Operating data | Unit | March 31, 2025 |
December 31, 2024 | March 31, 2024 |
||||||
| Gold produced(4) | oz | 145,290 | 213,964 | 111,725 | ||||||
| Gold sold(4) | oz | 147,920 | 217,678 | 116,504 | ||||||
| Average realized gold price | $/oz | 2,858 | 2,636 | 2,066 | ||||||
| Cash costs per oz sold(1)(2) | $/oz | 1,769 | 1,458 | 1,567 | ||||||
| Cash costs per oz sold(1)(2) - excluding Los Filos(3) | $/oz | 1,637 | 1,265 | 1,511 | ||||||
| AISC per oz sold(1)(2) | $/oz | 2,065 | 1,652 | 1,950 | ||||||
| AISC per oz sold(1)(2) - excluding Los Filos(3) | $/oz | 1,979 | 1,487 | 1,812 | ||||||
| Financial data | ||||||||||
| Revenue | M$ | 423.7 | 575.0 | 241.3 | ||||||
| Income from mine operations | M$ | 33.7 | 170.1 | 11.4 | ||||||
| Net income (loss) | M$ | (75.5 | ) | 28.3 | (42.8 | ) | ||||
| Earnings (loss) per share (basic) | $/share | (0.17 | ) | 0.06 | (0.13 | ) | ||||
| Adjusted EBITDA(1) | M$ | 137.9 | 218.2 | 52.2 | ||||||
| Adjusted net income (loss)(1) | M$ | (36.6 | ) | 77.5 | (14.4 | ) | ||||
| Adjusted EPS(1) | $/share | (0.08 | ) | 0.17 | (0.04 | ) | ||||
| Balance sheet and cash flow data | ||||||||||
| Cash and cash equivalents (unrestricted) | M$ | 172.9 | 239.3 | 125.3 | ||||||
| Net debt(1) | M$ | 1,220.0 | 1,108.5 | 803.9 | ||||||
| Operating cash flow before changes in non-cash working capital | M$ | 73.3 | 212.7 | 47.7 | ||||||
(1) Cash costs per oz sold, AISC per oz sold, adjusted EBITDA, adjusted net loss, adjusted EPS and net debt are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.
(2) Consolidated cash cost per oz sold and AISC per oz sold for the three months ended March 31, 2025 and December 31, 2024 exclude Castle Mountain results after August 31, 2024 when residual leaching commenced and in addition, the three months ended December 31, 2024 exclude Greenstone results while the mine was in pre-commercial production up until the achievement of commercial production on November 6, 2024. Consolidated AISC per oz sold excludes corporate general and administration expenses.
(3) Consolidated cash cost per oz sold and AISC per oz sold have been adjusted to exclude the results from Los Filos which was excluded from 2025 Guidance.
(4) Gold produced includes 31,518 and 3,222 ounces produced at Los Filos and Castle Mountain, respectively; gold sold includes 32,133 and 3,222 ounces sold at Los Filos and Castle Mountain, respectively.
(5) Numbers in tables throughout this news release may not sum due to rounding.
Operating Data
Gold ounces sold in Q1 2025 were higher compared to Q1 2024 primarily due to production at Greenstone, which was not in production in Q1 2024, offset partially by lower production at Mesquite due to mine sequencing and fewer tonnes processed at Aurizona.
Financial Data
Revenue was 76% higher in Q1 2025 compared to Q1 2024, due to a 38% increase in the realized gold price per ounce sold and a 27% increase in gold ounces sold in Q1 2025 compared to Q1 2024. The Company realized $2,858 per ounce sold in Q1 2025 generating $423.7 million in revenue, compared to $2,066 per ounce sold in Q1 2024 generating $241.3 million in revenue.
Cash costs per oz sold and AISC per oz sold was 13% and 6% higher in Q1 2025 compared to Q1 2024, respectively, mainly due to increased unit costs in Brazil being offset partially by a weaker Brazilian Réal ("BRL"). Cash costs per oz sold and AISC per oz sold excludes the cash portion of the $26.1 million write-down of heap leach inventories at Los Filos to net realizable value ("NRV") in Q1 2025 as a result of using a long-term gold price to reflect the reclassification of heap leach inventories from current to non-current due to the indefinite suspension of operations on April 1, 2025, as it is considered a non-recurring item that is not reflective of the underlying performance of the operation.
In Q1 2025, income from mine operations was $33.7 million (Q1 2024 - $11.4 million). Income from mine operations for the three months ended March 31, 2025 includes income from Greenstone of $24.4 million, which was not in production in Q1 2024. In addition to the impact of Greenstone's operations in 2025, income from mine operations was higher in Q1 2025 compared to Q1 2024 due to the increase in the average realized gold price per ounce sold. These increases were partially offset by the write-down of heap leach inventories to net realizable value at Los Filos of $28.6 million in the Quarter.
Net loss for Q1 2025 was $75.5 million (Q1 2024 - net loss of $42.8 million). The higher net loss in Q1 2025 compared to Q1 2024 is mainly driven by an increase in finance expense in Q1 2025 due to an increase in the amount drawn on the Company's credit facility and the cessation of capitalizing interest at Greenstone following commercial production in November 2024; unfavorable changes in the fair value of gold contracts and Greenstone contingent consideration driven by increases in the forward gold price; and care and maintenance expense at Los Filos resulting from the commencement of layoffs and other suspension activities in January 2025. These changes were offset partially by higher income from mine operations and favorable changes in the fair value of foreign exchange contracts.
In Q1 2025, adjusted EBITDA was $137.9 million (Q1 2024 - $52.2 million). In Q1 2025, adjusted net loss was $36.6 million (Q1 2024 - adjusted net loss $14.4 million).
The increase in adjusted EBITDA in Q1 2025 was primarily due to the impact of Greenstone's operations in 2025 and the increase in the average realized gold price. The increase in adjusted net loss is due to higher finance expense in 2025, higher realized losses on foreign exchange contracts and care and maintenance expenses at Los Filos, offset partially by higher income from mine operations.
Since November 2023, the Company has been renegotiating its land access agreements with the three communities where Los Filos is located. In January 2025, the Company reached consensus on terms for new agreements with all three communities. New agreements were signed with two of the communities during the three months ended March 31, 2025. On March 31, 2025, the Company's land access agreement with the third community expired and the Company announced on April 1, 2025 that operations at Los Filos have been suspended. The expiration of the land access agreement with the third community without a new long-term agreement in place and announcement of suspension of operations were determined to be an indicator of impairment and accordingly, the Company estimated the recoverable amount of the Los Filos cash generating unit ("CGU") and performed an impairment test as at March 31, 2025. The Company determined that the recoverable amount of the Los Filos CGU at March 31, 2025 was more than the carrying amount and that no impairment loss was required to be recognized.
Sustaining and non-sustaining expenditures totaled $42.9 million and $49.4 million, respectively, for the three months ended March 31, 2025. Sustaining and non-sustaining expenditures are broken down by mine site in the MD&A.
SELECTED FINANCIAL RESULTS FOR THE THREE MONTHS AND YEAR ENDED MARCH 31, 2025 and 2024
| $ amounts in millions, except per share amounts | Three months ended | |||||
| March 31, 2025 |
March 31, 2024 |
|||||
| Revenue | $ | 423.7 | $ | 241.3 | ||
| Cost of sales | ||||||
| Operating expense | (292.6 | ) | (183.8 | ) | ||
| Depreciation and depletion | (97.4 | ) | (46.2 | ) | ||
| Income from mine operations | 33.7 | 11.4 | ||||
| Care and maintenance expense | (9.9 | ) | - | |||
| Exploration and evaluation expense | (1.8 | ) | (2.5 | ) | ||
| General and administration expense | (17.7 | ) | (14.1 | ) | ||
| Income from operations | 4.3 | (5.3 | ) | |||
| Finance expense | (48.3 | ) | (17.4 | ) | ||
| Finance income | 2.1 | 2.0 | ||||
| Other income (expense) | (22.9 | ) | (13.5 | ) | ||
| Net income (loss) before taxes | (64.9 | ) | (34.2 | ) | ||
| Income tax recovery (expense) | (10.6 | ) | (8.5 | ) | ||
| Net income | $ | (75.5 | ) | $ | (42.8 | ) |
| Net income per share attributable to Equinox Gold shareholders | ||||||
| Basic | $ | (0.17 | ) | $ | (0.13 | ) |
| Diluted | $ | (0.17 | ) | $ | (0.13 | ) |
Additional information regarding the Company's financial and operating results is available in the Company's Q1 2025 Financial Statements and accompanying MD&A for the three months ended March 31, 2025, which will be available for download on the Company's website at www.equinoxgold.com, on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov/edgar.
CONFERENCE CALL AND WEBCAST
The Company will host a conference call and webcast on Thursday, May 8, 2025, commencing at 7:30 am PT (10:30 am ET) to discuss first quarter results.
Conference Call
Toll-free in U.S. and Canada: 1-833-752-3366
International callers: +1 647-846-2813
Webcast
www.equinoxgold.com/financials
ABOUT EQUINOX GOLD
Equinox Gold is a growth-focused Canadian mining company with operating gold mines in Canada, the USA and Brazil and a path to achieve more than one million ounces of annual gold production from a pipeline of expansion projects. Equinox Gold's common shares are listed on the TSX and the NYSE American under the trading symbol EQX. Further information about Equinox Gold's portfolio of assets and long-term growth strategy is available at www.equinoxgold.com or by email at ir@equinoxgold.com.
EQUINOX GOLD CONTACTS
Greg Smith, President & Chief Executive Officer
Rhylin Bailie, Vice President, Investor Relations
Tel: +1 604-558-0560
Email: ir@equinoxgold.com
NON-IFRS MEASURES
This news release refers to cash costs, cash costs per oz sold, AISC, AISC per oz sold, AISC contribution margin, adjusted net income, adjusted EPS, mine-site free cash flow, adjusted EBITDA, net debt, and sustaining capital expenditures that are measures with no standardized meaning under IFRS, i.e. they are non-IFRS measures, and may not be comparable to similar measures presented by other companies. Their measurement and presentation is consistently prepared and 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 IFRS. Numbers presented in the tables below may not sum due to rounding.
Cash Costs and Cash Costs per oz Sold
Cash costs is a common financial performance measure in the gold mining industry; however, it has no standard meaning under IFRS. The Company reports total cash costs on a per oz sold basis. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate operating income and cash flow from mining operations. Cash costs are calculated as mine site operating costs, net of non-recurring items that are not reflective of the underlying operating performance of the Company, and are net of silver revenue. Cash costs are divided by ounces sold to arrive at cash costs per oz sold. In calculating cash costs, the Company deducts silver revenue as it considers the cost to produce the gold is reduced as a result of the by-product sales incidental to the gold production process, thereby allowing management and other stakeholders to assess the net costs of gold production. The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.
AISC per oz Sold
The Company uses AISC per oz of gold sold to measure performance. The methodology for calculating AISC was developed internally and is outlined below. Current IFRS measures used in the gold industry, such as operating expenses, do not capture all of the expenditures incurred to discover, develop and sustain gold production. The Company believes the AISC measure provides further transparency into costs associated with producing gold and will assist analysts, investors and other stakeholders of the Company in assessing its operating performance, its ability to generate free cash flow from current operations and its overall value. AISC includes cash costs (described above) and also includes sustaining capital expenditures, sustaining lease payments, reclamation cost accretion and amortization and exploration and evaluation costs.
This measure seeks to reflect the full cost of gold production from current operations, therefore, expansionary capital and non-sustaining expenditures are excluded. The following table provides a reconciliation of cash costs per oz of gold sold and AISC per oz of gold sold to the most directly comparable IFRS measure on an aggregate basis: