EQX - Earnings call transcript Q1 2022

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Equinox Gold First Quarter 2022 Results and Corporate Update. [Operator Instructions] I would now like to turn the conference over to Rhylin Bailie, Vice President, Investor Relations for Equinox Gold. Please go ahead.

Rhylin Bailie

thank for and morning. us Sheri, you, you, joining everybody, this Thank

will, a making course, of We be today. number of forward-looking statements

do I our will CEO, to time turn the EDGAR rest take Milau. over website, now our please to call of documents. and the to visit disclosure continuous Christian conference SEDAR read So our the

Christian Milau

we've the and Thanks, first building a We've the out up X first moment. ramping commissioning projects. through Rhylin, walk Americas. the in will large you as an at we're welcome, and X, one Brazil, mines a just in results X towards Slide the commercial everyone. platform take growth got here Americas-focused I in got the reminder started and with really But production Doug, it's on producing Peter at and that's questions. quarter and We've group moment, the sizable

XXX,XXX to year, in and mines year of periods balance next into the sort of will So particularly. reduce new costs years on this the into will we ramp starting as in XXX,XXX fund over we'll quarter, a as projects come strong bring also would continue up hit QX we to producing online stream. the the just And that. first a production year. of slower said over period to And the be through with production this move to bit as expected, quarter, ounces in the we expect we We've year. QX, path higher And first this got be couple our we million growth a ounces clear sheet half as year, leading of X

costs. XXXX They as year. was We how a year. it's happened bit in the and with with our ended with light, back little are to expectations. we that QX last why and And roughly the definitely, were guidance Production moving we hard the pleased in compare we'll early over production So walk year. first very set to those through see you line up quarter's

So here. production quarterly we'll walk you through the

recent the Looking at Slide in March. Recoveries its #X Luz end was poured have terms gold time. good. of been in It first on highlights. Santa of

And up. pleased is that. tracking moment, of we're chance ramping week we're pleased a So at with visit out We the had We're really there. the site with Greenstone progress and it the well. to really coming season. winter last

there, and team pleased good obviously, going and So all as a coming walk the the waves that that's targets Doug well, district Fazenda-Santa Luz put many you on of big out and drilling to stuff some mineralization see they've too together real the Really COVID site. here, ground. the high in ago gold identified. that very press we nice through so recent showing into had managed not significant new activity will well out on these more long belt,

end million that few just that that excited we're in of So in sold $XXX April. have the last announced was end. actually district. million a quarter about of That the closed come We but corporately, end. has we we happen had events just also the of Mercedes after at year, now cash with And $XX quarter after whole

some from $XX that the about purchases also to year million a sold We ago our proceeds of received of Solaris warrant share. we Solaris

million. $XX another in brought we So

And approximately pass to I'll So Peter over quarter here. operating financial and end, to the you through we $XXX brought the results million. it after in walk actual

Peter Hardie

quarter. at worked. also to we course, average lost significant during mining, had the we X.XX. of responsible no that remained of rolling The per very the X.XX incidents We're a With rate quarter X respect lower environmental to time injury recordable for hours had total Thanks. incidents frequency report million pleased, during XX-month

by Aurizona, And XXX,XXX production during produced per XXX,XXX due as we primarily tonne had the little QX expected ounces we the production. year, Christian said, gold. heading of lower tonne the The that the did example had that, more in had At had that's of we We a lower, affected grade happening grams waste of which last there per operations, We at the quarter. ounces RDM sell lower QX lower reliance was quarter. in and was in production access on expected. Mesquite, was into ore for during to grams Brazil, that was for than suspension lower to we addition of in gold, our And than -- expectation. quarter a quarter. so XX-day experienced late X.X was plant the a As that affected to but stripping rain operations. X.XX little An stockpile reference grade events

cost all-in is and our Christian quarter, the for the on Our we for sustaining to of expectations ounce, range. per year for as $X,XXX mentioned, close track guidance remain

due drove we to across that's this part quarter. versus With that production due the cash cost of in year. million. for primarily and -- flow going our also to were quarter see financial expecting XXX,XXX and ounces lower increase of you to and second we're same and the board half quarter see the in escalation increase across in sold industry we it's the by $XXX the to increased cost year, lower revenue AISC volume expect respect for in to the that slightly the the results, the than We the The prior

$X.XX and that changes The share. our We a for operating with changes basis, cash had $XXX decreased million $XXX of that about the before our is for noncash from million. and million And $XX spent due to adjusted position year-end -- a $XX finished of million. mine on cash we was end the adjusted from were in a working that $X.XX CapEx. capital $XX loss operations in quarter, an $XX flow the million, had cash. Our reason loss EBITDA primarily was We or million the a $XX.X on cash we quarter of about the of share on earnings about million

to we April, expect outlined a non-sustaining end As million our X month sale with After to sustaining did of during CapEx, the spend. year also from more take we $XXX close remains the in shares heavy of liquidity, our that from million and good. of and sale in $XXX With in to Mercedes of the guidance, it's the capital million quarter, CapEx it we of the our Solaris. respect

Our was $XXX net debt million.

we of will to turn COO, we, leverage of also remains Reddy, over with our act Doug that, And levers to overall the as have operations. year. our into the it discuss to I the our So reasonable. as remainder sheet to with investments our head And balance strong help course,

Doug Reddy

Thanks, Peter.

So mines stripping of on our focused as noted, QX. were several in

one pit. had on this has This stronger subsequent especially into in second We production is will already, that half should from these and QX. and focused the subsequent it Production Mesquite a XXXX good benefiting the picked of had stripping we year waste worked have as is in QX we up how we They particularly to of as the quarters, the similar through quarter year. in Brownie be cases. stripping had earlier where move quarters. low in both first we quarter and

I think this year. will strongest in QX quarter be Mesquite our

longer-term so drilling working space, mineable focused Exploration additional will now adjacent to we're mining across be pad And highway. at developing for permitting been at drilling That the overall to opportunities program, on drilling had space permitting pad the fully our current Castle [indiscernible] this opportunity. enhance And leaching reserves leach ore has recoveries in percolation. we filing Mesquite. should slow pad we month, from existing for on leach Mesquite. At into injection We the that for benefiting are for with previously having active additional an areas. are have discussed issue past, not that Mountain, been in we be is which the areas that starting additional we've leached

will south agglomeration more and going areas overall, the pad improved and we been established circuit bring which leach better for Phase operations. percolation in of have for dump we allows feed lead drilling material, nearing will for provide flexibility that feed to XB use So be construction. And to additional in It's Pad the ready a leach completion It recoveries. I. will ore, X times should in has QX. shorter and the it that and and for overall now Phase us in our dump, are in crushing

X. Our Phase planned for the submitted review of Land That's in under County. currently Bureau amendment San and Bernardino mid-March BLM, with was Management

expected. Looking were at Guadalupe additional XX:X contributor an Los a the same in time, behind Filos, lower in our At X:X. to very mines reducing grade. quarter, has resulted in a That quarter from been good strip underground down overall, the than ratio ore anticipated the on open with pit

with going carry plus to higher through. also lower stacking meant the it which it overall, pads. material sequence takes means going longer come lower-grade that leach a we on recovery So we the on They to the for more lists pad, that to recovery, longer had were ore was in that the period, a

some that through So in gold of this will quarter. come

looks have the is XXXX. slow QX. In we in underground, now are improving of it development it's April, forward. up And now a latter in rates and development good we for production So -- in catching did Bermejal start the as go half

mine at alternatives. various We are plan looking

on Aurizona, some Aurizona, continue and year. can dealing hope forward changes quarter. team so We We meters rainfall, the flow. the implement to But to are essentially production be to how we had the cash this a we next high about in overall on rain improve of at it. At page, with X.X look bring able site very late

we up a the of but on are We restricted to some built the low-grade had ore in pit, stockpile. access

we a open highest plan we the liked life in are production feeding are the several that a the larger that throughput ore for last will from But Ideally, given in would we that's in through. we do coming we've that stockpile So operating of a have mine the see to seen overall us have our quarters. at to plant have addition low-grade stockpile the pit.

what work Our include eventual advancing open an pit. to below in and in Piaba portal for the the was continue be to preparation XXXX. does able being lead underground that work establish addition completed will will of the underground of exploration on activities The ultimately drilling development the

ore. mine and at development on last prior their reduced to And Fazenda X to the or in out and in is now underground for week. these the complement So up the we to reserves stopes. RDM, mine will start was other was to down to Santa of tailings same response timing. to end effect, brought the and given being in that depending was ultimately moment. on area, freeboard quarter ongoing related Bahia up needed a resources Production mobile good that are unexpectedly. facility. crusher quarter state is regulation new as quarter, disclosure the the the At much been the primary freeboard coming the drilling catch brought due immediate at an solid crusher weak opportunity Luz by has at that our additions back all while based -- had with and on to at with to a that At RDM and time, in pit the may be had the initial of our up studies reported the quarter, underground either from fixed during the full in proximity reported is we was we also was TSF, and And pits, mine the our infrastructure the the storage environmental changed noted a Fazenda, a and good in we characteristics targets believe we'll the grades. the subsequently which suspension But work, operation mostly reversal the some nonetheless, has very new open open we TSF. that in was agency. due on the for in Fazenda this numerous for At in Drilling and had previous of at X went close raise the returned next which We've district, release targets news to Canto TSF the benefit April. That the decisions able permitting that delayed

to We in temporarily quarter, suspended the if could we are happen QX the or the which mine that authorities. be able start to for would in may are to next discussion achieve us raise, not be with in to and need a then resolution prior this regulatory need the And QX. satisfactory

is operated the that practices. raised TSF life and additional design. to intermittently using note centerline RDM audited is on is I by the raise regularly since And were -- downstream best inspected Now filed design, agency industry independent method. in has from been and been mine tailings considered the completed store each will been has to design. XXXX, the parties. and TSF those method And It during designed overall downstream in A to to a design the with safest which environmental XXXX each alteration was has sorry, the change

So news This the came performing advance release work details from as gravity At at I are our work more you elution more provide the XX. pilot can and we first and Luz. MD&A, the resin of and Luz, in Q&A looking in gold recoveries we had and and done in in Elutions and also that circuits. we the is test plant anticipated Santa part. if want was the in encourage construction you would good, March the the that pour during discuss on Santa

be And we'll up, the are work using through should doing temporary crusher we May that We we moment month. finalize and are later primary while on a come and online at June. still that this crusher ramping the

of see, a previously Luz can commissioning slides million, a moment. plant It the we on budget essentially are Overall you just process there Santa refurbishment the doing mine. is operated the a wrapping up arm. showing and are few as ramping crushing $XXX was at and as the pit As open up well area, the

Equinox We -- Orion being reviews our a X and was over -- a million visit. -- We was that on monthly ounces by and is Looking on contribute has developed basis. part reporting weekly, we ultimately do XX. have at more of quarterly did project just gold quarterly life. of well, than a Page It this will Greenstone XX-year It review.

happening for nearing busy complete. and we is During Engineering clearly the were been our XX% visit, very through with impressed up I'll a say the geared that's we can everything winter, that's all see activity over summer. being

to important project basis. an factor cost cost engineering in and appropriately is able being is a the takeoffs to proper that all that leads material Now do ensuring with the good

geotech that for this has probably The team XX with that's delivered been with completion and very the core project They've a we bringing CapEx has job group to is the the good doing as of CapEx. all in part was a work So trends by of of design is partner reviews The any report the before project great been CapEx around schedule, XX% TSF for that contracted and project way subsequent project. contracts done are investigations became doing just the there's design. the fixed monitoring technical diligence then on been been along were years. a this to that and been additional those then overall as project that lots in the is well and complete. done of changes and was XX% already. on on XX% prior TSF XXXX ahead

weather the on on Page on plant the budget, we've quickly the look on and encourage pages buildings are power the and be that can that foundations times, the in on where batch the building you So progress many summer. earthworks Overall, admin are subsequent happy now placement And as see plant been XX, has and very on you the is a looked the it I and XX, catching going site treatment at administration construction at well. Plant with and and can so the XX% advance the can effluent the during we're have plants And to the essentially will progress see schedule tracking concrete you TSF. area where Page complete. up photos on improving the building.

is power foundations and in we Most shop the I in plant the gone on floor is foundations work schedule. the the ahead said, XX, we concrete snow as going which on Page but on starter foundations when site. batch work construction, the well. well, can when east site plant facility there was tailings mill going end you and were at of And -- for truck as the and going for dam Second in as see was of then the plant storage at of power were

Christian. I'm So hand with to back it going that, to

Christian Milau

of to touch obviously, the now XXXX. full our things, here, for a review I've ESG is online. It's ESG, slides that operations. do And topic want Doug. on We It's here. and a got a few to good second published just just critical Thanks, I report available conclude

We quarterly that. website. access publish do can You on as data our well

So we of and terms steps forward don't publish wait But doing in all with report, our data, that disclosure really our our this. year together pulling until it our the year-end pleased taken at to second is of once only in which report.

making So and kudos that the together pulling for progress. that to team

few a we that, that site, give and year. and come other initiated was a program that that our safety various highlight awards out of on record that now terms good started of very we sites, Mesquite areas we the serious safest In for maybe out have applauds which last

which also the unique improved, most or mine year, safety our with business and our our extreme to for safety sites. For of dedication ideas give awards coming individual the part of Aurizona for sort out was improving we last at for up

you So want full to a bit in our get that, will report. more if on be it

midterm GHG plan working working so our This really that there. long-term bringing are for together targets together reduction focused can and year of on the we plan, long-term on the GHG so as data and our coming we're gases. We is energy as targets set on well intermediate

continue various Los on is the fully that team bring to Aurizona Gregg forward. We at water in with continue now his down communities communities. and plant to to on Mexico partnerships Filos The operational. focus Bush treatment work

were protocols. that no it They COVID, had latest adopt sites. the health, and is during In dissipating at to covered from quick be moment. the good pleased production COVID wave with days of we're We've lost seems very very the reactions terms the to

be So out sort was regulator we'll tailings year that we well. management issued of our and put also putting report last out -- as

supplemental report our rights, at our ESG rights assessments our dams. do human completed if sites, you our want more of And we've sort well of as to assessment kind that on good that practice. something So of we'll couple we're tailings that's human commitments full managing on so a will to be periodically that information and

XXX,XXX growth And be profile, which Looking will Greenstone after years, looking in finished is Slide big of is be the for advance right we've ramping X well. the which come to Greenstone will into and going Aurizona this unparalleled through Castle in the growth of now, again, in, that in, ounces terms incremental is Luz, to levels. construction Santa outlook at at -- sequences Filos an about growth. back pleased as investing with picture will sequence here, next production. permitting Los just #XX and course we're got just pretty into timing coming. over And on growth Mountain underground the due and higher ready production as up,

nicely we've we the versus balance So got sector growth to strong fund and of sequenced peers, own in them, currently. growth that sheet projects, all a unparalleled

and focused right valuation, to still bit our we're a not in trading of the we're at peers. moment. you a that executing M&A in delivering look now, discount of on So at terms when And at

closer to Greenstone, our various into to longer-life we milestones keen knock to down Xx ramp that see multiple. which producer really these with rerating is mines we're we'll towards bring newer So off get costs intermediate Luz. that our we We derisk we up Santa peers, -- as continue

excited for sort months. next XX to to of that we're over happen X So the

big over of about have and about prior million Looking our the doubling facility mature our unrestricted increase Again, you still last cash to and the $XXX this facility. review extend balance at the just continue couple that those receipts million company terms the This and RCF, quarter-on-quarter year. Solaris total size see revolving have a slide of is credit of include sheet. the from quarters. warrants, in couple for liquidity, it will to next year, overall We sort flow sort way a if cash on of over hundred Overall, not million. in April Mercedes continue to to we $XXX will we of years, when banking change a the with there's that

still internal goal great We've market making and liquidity when been million growth going quarter So these a plans Gold And shares. of as which our include these diversity. right our assets focused Solaris the to showcase to comprising investments, portfolio alluded execution growth the ground. we construction #XX. is i-XX work and hit on summary with diversified to our value guidance, really about Peter this just mostly in earlier, It's in of got now. now, on each sure countries. is on you reiterated we've this and on on focused the we've which got year of that's Slide We're really And execute also to all and $XXX

show we're the to analysts it think which visits are Santa of conclude exciting in a and Greenstone the sites, to it time production that, Luz and be an September, to So great I'll Q&A. progress cornerstones And time future to our investors base. think first I at we open up to I and with And and going both to of are will those be a site, be it in able few October. planning will years of get couple out

Rhylin Bailie

remind Thank you, please ask can to how people Christian. you Operator, a question?

Operator

Instructions] [Operator

Rhylin Bailie

take online. from I'll few questions a

wonder saw confident affecting and Greenstone? all on you IAMGOLD's share budget your to How if be I feel announcement you'll we stay that So that's price today. at do morning, this able

Christian Milau

world, the team was team with the price And the because the attention course. I've eye other people actual The at really been do few the We're when the on progress. overrun. number Right watch in that with of that's primarily projects going external the place an something now, we're that to the do last there that. with But a engineering, critical team stream said X. issues there, And team this is that has we've we think and an started in new seen Orion, time per Ontario site, third we also for Us and out in the building which keep northern pleased coming lot of there readiness. disappointing a in review currently us market built I led it's really the impact built and the those years. sector keep we've mine like pleased there next the preparation readiness. this And that of projects alluded probably around do mines year and the we with always a very Greenstone and that to to We on Ontario projects the really the we on over few from it year of place, to, years. the their had projects did and or Doug Doug think project spent was Ontario, cost probably all on as as in the project. the over and other of in Eagle the the see a Agnico actual some Yes. share all projects in in pleased on to a we had visit we're but close team And with of earlier, sequence moment, just was

project. And that. I to and into we're anything else Doug, make we cost the were look number so you at don't sure to able build know, the have challenges some to that, as we add escalation, ahead planning we going we're the And if to, of contingencies, that one, market, going felt observe anticipating see the

Doug Reddy

took extensive the getting project. an with review, at on review And our was Greenstone, involved well. on looked then the of and we we our CapEx continue we the due review the of as initiated the do review over to as CapEx. QRA after Greenstone Just an independent engineering then And CapEx our diligence XX%,

gone what many appropriate to believe for contingency. it's So All through we a anticipated we been is be times, in the accounting put escalations. an and done bidding overall --

all we as there think of trends. tracking everything that mitigated a process that, of well as constant So is monitoring is and being by doing

completion, a all team level we're the on announced site, for good doing that a So and readiness it's materials construction we've essentially our good engineering of engineering through. everything all related way reviews through which that project and and a basis we've are we just firm got the site, means XX% before been good working now the to the

I So think project us right to before that one as the follow through we as possible we're level at fixed is at even be is able help now the that where was this and the to of critical. pivotal construction many of and being which with announced contracts factors contracts stage

Rhylin Bailie

year? that you've do you on in budgeted able the cost inflation in seeing Staying guidance to again, that feel companies given achieve all trend, all-in the you. Thank other we're going be do adequately like you're cost that to for think your and sustaining you

Christian Milau

Yes.

budgeting and guidance in I some in think we any our if for anticipate our in cost. and year, we did of I'll review early And $XX.XX the first we I that half when start Pete, have you did anticipate as the the comments, said, please jump year. as well. of But

first $XX within meant of we're or $XX the think I weakest. to our be quarter, in that which is basically

best coming were anticipate some to nicely. into visibility, particularly as we that have to and So year. Pete, we've add? I anything our Brazil done don't in else I did we California there's because And think Mexico know we're this tracking if and

Peter Hardie

all are close expected we very and that's into for factored was cost our to we guidance. No, escalation, what tracking

Rhylin Bailie

Thank you. question now, Operator, please. a call we’ll the from take

Operator

Absolutely.

with first comes Mike The question from Financial. Bank National Parkin

Mike Parkin

is Greenstone on base versus or any remind your diesel have place? Can budget -- if case you your in oil hedges for us just what you for

Doug Reddy

Is that in operations? versus construction to reference

Mike Parkin

Yes.

are earthworks. contractor there Just in to terms there there of or doing component it's like your an are you tonne per imagine moved Is exposed factor a -- -- to contract? is locked-in that the I a with inflationary price you

Doug Reddy

pricing we working contracts approach set -- It's been Yes. have for allow on for for to the pretty consumables. long-term number. it. a The And the much earthworks. escalation specific overall

have me a to give out. sit through You minute dig of and to paper that my pile

you So back afterwards. I'll we'll or e-mail come you to

Peter Hardie

is None hedged. of it

Mike Parkin

trigger to the surface Is the to me is just potentially e-mail fine. you it potentially closure press your Mountain disturbance, And respect going the there that in what defer if terms of plan. in Rhylin, to with going of good you Castle release potential gave expansion? that that to Okay. update is that that around that's afterwards, new in X Phase can Phase starting X, color or then terms of

Doug Reddy

and always we very overall anticipate the [indiscernible], we to consider given account. going we're And No, we've overall do I That's mandate already don't be several the the bring be be But that know a careful make but staying will to so into acronym assessment us, factors doing we but it. we an think will anticipate that as end that a year what within we've impact mitigating stands various we'll think -- through taken we our up know process work in that timing. through I the sure possible for it footprint. smooth for. as will in -- to been it been

Christian Milau

to We've than of environmental Yes. operations. taken amendment rather just approach to impact plan the statement required environmental an conservative assuming the a impact, is an new here

that. So a to couple do of years

Mike Parkin

of steel exposed of if And steel like steel kind Okay. so, just that Greenstone, elevated equipment you to you back or circling your are the And mill, then ordered? seeing as in as those protected prices? the -- the of of has are printing all large well terms are prices to been

Doug Reddy

escalation We mentioned -- would warning do both heart to essentially be ways with would be. that. what beyond sites. able site And We're savings. be to but good the where prices as that are cost that the bit a the frequent did of We bringing for pieces we which budget to of we'd job say, such did find saw able through project would Greenstone they they that remainder know doing to meeting includes early financing work what a what accounted was, was to potential we a a that. the took how overall, original I they further for on contingency and can make to for and basis we have when and looking see reasonable I already for Major be a on to they Equinox, for and overall Orion. trends, as on cost escalation been steel reduce had consume But their earlier, the mitigating all as it team things to closer the play out did they equipment contingency see opportunities some actions online, it have, very to that of account The contracted. the

way. all it's So one not

Christian Milau

just the this And the A interesting are give in big of the contracted a those color, The shipped are being think day. now. site, was few lines come of track watching most through to We ordered window gate. items trucks it the actually month, set. arrived we've got on steel little more big time in the I through were

things and still There's of that be actually contracts are are in the still lot big line. a those smaller pipeline. But some fixed price I'd in things time in say have So they set the a to finalized have that.

So pretty that we're feeling actually. good about

Mike Parkin

versus complete engineering greater a that off. Okay. of of your a percent And function it [co-tape] kicked when is having

behind of terms X% you're off project the of behind? kicked months quarter when within project You're their or yet in

Doug Reddy

prior the a us be forward had that targeted their the they've `brought was engineering engineering team well, coming very And they then or been a where updated engineering, to finishing on move build where it point drawings to managed started changed it involved be up stage but in vendor up reviews on prior engineering XX% advanced we was were that been Greenstone's we drawings doing. through getting doing would team, to and to were all as there in. activities been we and the needed through April. And us they certain to already had vendor that

it to it little coming March, -- sorry, just completion -- was completed been just behind bit April. it's the actually, because a and So got it's in

very are we're takeoffs, So critical with to on accurate. that and And achieving the have much building make to are not track actual facilities the material sure we're that that going on a means the process all blowout materials into go plant which that.

Peter Hardie

I'll for the proactive that already -- was what could rising and Greenstone for was at containment already equipment cost to procurement fixed, in described, Christian large help getting in Doug is price and done as with environment. and the orders have transaction function key as the those close the fall team and add soon focus we so from as us who through And a

So of fall year. through a lot summer and there's focus the on last that

Rhylin Bailie

please. from the question phone, next the take we’ll Operator,

Operator

Absolutely. private The comes Spencer from next Lehman, a investor. question

Unidentified Analyst

a when about I'm around I was had how million. $XXX don't million, understand sheet. of cash. end the It quite math, much and that And December, $XXX balance debt the little the on at confused do I you lost seemed you like the

And that from $XXX does cash and guess, which at lost debt. was -- million. And somewhat pay cash we're the see or cash all down the go? I about much where now down you're net zero I net you $XXX million $XXX debt million, Did like don't debt the pretty where much. $XXX that was So to you

Christian Milau

Let $XXX million. -- me of the the million mean I $XXX plus our start, the It's just cash year over end just is at now

Unidentified Analyst

$XXX end I'm the million year. at the of saw sorry, was the I cash

Christian Milau

No.

Unidentified Analyst

incorrect? that getting I'm that Finance. Maybe from Yahoo! Is

Christian Milau

got CFO. Peter nodding Yes, his He's it I've must be. head here.

million gone So $XXX within $XXX add then million you we another yes, million, quarter the of $XXX-ish it's end. from days to received

spending $XXX the of free X/X $XXX lot XX% we're And said the half is half half of quarter. we end. the first a not of basis, of it's cash go. much And of over generating at thing And of the in a the that we're is, year. million capital, other year our that of approximately this we're the second we flows below lot to that's a year, think total a on So in I big quarter of about with cash the so have million quarterly Greenstone, which then for that, on not almost million remember the projects and $XXX

last is walk we ramping sheet. good the balance and walk you is as to you shape. first please if reach will the weaker. as year -- through in going then starts of we we're did QX So up It well, probably second definitely year quarter the is half Pete you us through, can But And sheet strong. to, off-line, through want out balance in the

Unidentified Analyst

my incorrect, debt Yahoo! that I still long-term at is Well, figure $XXX that it. million? $XXX million, cash explained, $XXX Finance, say around to million there I'm your Is that explains going if was the if saw

Christian Milau

think about it's remember I I can if correctly. level, that

Peter Hardie

Yes.

Unidentified Analyst

Okay.

months? being do -- coming that been hasn't or reduced see that could you -- are with that now you over amount you the So see that comfortable

Peter Hardie

coming here. Yes. don't reducing It's in the Peter that We're months. We see over a CapEx-intensive period.

call, include that As credit facilities. expansion the of credit look might our to about refinance. facilities, earlier to Christian alluded point the That we're the of an cycle where in we'll on

when deleveraging you see online. around Greenstone I comes can that think occurring

comfortable with we're We level have. leverage the for room So we of definitely have more.

you'll move so up we And little maintain going And a XXXX, deleveraging. then as these to we we're as see go levels, maybe the into move forward.

Unidentified Analyst

my my was Yahoo! statement, I the Finance apologies, Well, trusting mistake guess.

Rhylin Bailie

touch it. that flagged glad corrected. you get certainly I'm in number I'll have and

for So to our it attention. thank bringing you

Rhylin Bailie

we'll and a have few So now today. we some take quite questions online, from

the clarifying. probably So question first is and worth interesting

So Brazil politics, Brazil permitting.

So Sun their with the is way in related Brazil? permitting change election that October towards has you the mining feel Belo RDM And will issues? that any do a to view setback about upcoming what

Christian Milau

an mines. indigenous speak intimate don't permitting-related I I I'm It's that. not do there, issue for for with the we there details. intra which Belo all sure. is is communities, have our believe And that Yes, and I'll can't Christian take here. around Sun familiar

different. is it So

bureaucratic for a about operations, all state-oriented through has states got of work methodologies bit the best We're think you just walk raises. possible, thing We've in in this agencies. because tailings generally, steps is can past. is improved dam dams, had compare get different team that. have best all confident it for dam do on getting process little we is takes a using the the probably the environmental uncertain sometimes I -- timelines place we It's but helped your and little say good that. through our or that with as you through can is bit permitting permitting we've that that. permitting particularly in sense. going get the top-notch that have And But current tailings the difficult it's around within. success years to like raises few and timing for a permits RDM I over to the in the permitting And aspects, things quite and use the good and process. tailings see, government, we the Brazil. oranges still do Brazil we'll there us safest there we paperwork time certain the and feel a mine with a navigate quite our it's quite it's to and in still downstream It's the I'm in procedural last X we're and apples the challenged sometimes The word one

years foreign from regulations what quickly. the say, slightly sure I've been of comment. make I'm heard to comment not totally say, I'm I'll elections, terms has positive mildly labor Bolsonaro's In been, I on I'd certainly, to but and last government happen laws more a boy, and and streamlined, permitting that, country, and relations that's over have towards a things general that investment lot more would rules qualified allow and in the people, of few

nuisance in permits sometimes things in and lot reduced historically You Bahia, new probably getting a Brazil. lawsuits you that us saw seen with the of have

say don't shift the a want that I see would going forward think at I October, government if in a to even does government not who's So step moment, predict think don't in direction And in positive see say swinging the in where the shift years even going would to say aspect. to you win a where to the -- change X environment now sense. right positive a and and do we've it's you're it change felt around pretty I'm business investment Brazil in that over that that in a close Brazil. don't certain to mining, in been enough last because a I But going the changes countries bit world certainly you're Brazil I overall to been if where change right think swinging little negative see bit that. the I I more has foreign been doing slightly positive towards more little positive has

Doug Reddy

prior on labor if prior to Bolsonaro’s saw mining coming add, just I can. even his and legislation reforms Even term. term, would I we to And

and continue been time some friendly it’s would power now. in that, terms of So of of would in President. for regardless investment who’s hope, jurisdiction we mining course, a And foreign that

Operator

cost Thank to you question. very much. Back

hedging diesel, given are you stockpiling what are So possibly future considering related your to or percentage of reduce costs? to costs diesel

Christian Milau

a anything, site on I'd where basis diesel missed XX% are of sites to daily our Mesquite will Yes. Pete moving like XX% basis. on something, would tonnes say sites truck, costs heavy add XX%, individual that I and XX% if be to to diesel-oriented It depends heavy probably less closer closer the but are be the probably

So in the XX% to probably overall. it's XX%

the as you'd fuels see go moves similarly. oil it through price. the control much usually But government is and completely it's much diesel Mexico, some in prices, certain price as and the call factor subdued step as when oil oil prices. Brazil a doesn't these number to up But up, ground slightly sometimes not on it where of degree, when So the in price of change the -- countries diesel fuel quite a of down that as you pretty The it's goes price, in at as work of in look market-oriented. U.S., obviously, the more, I'd it, a doesn't the it you within go

So slightly it's stable. -- of overall our Xth And to all-in sustaining XXth only more costs.

increase, So but XX% or on does things XX% consumables. an it isn't massive to labor like a and increase It of add there.

Peter Hardie

explore to hedge. do Yes, opportunities we

yet, We going we haven't won't done that doesn't any do forward. mean but any as of

Rhylin Bailie

growing to cost. and I've got related sustaining questions about X production long-term all-in

So one going them makes I'm sense. to combine to into that try

of will So year see long-term of target? that X you per costs how sustaining ounces about and all-in as you When million can XXX,XXX ounce sort affect toward talk move production we growth. expect incremental that that to ultimately your

Christian Milau

Yes.

so information had there, terms sequencing, But on timeline of it's the today we not that production essentially. is [XX], little Santa the on Luz, in fluid. incremental a So bit that maybe coming

done. 'XX. that Greenstone, box. start first that in put a of kind tick half of ounces that's will So in the XXX,XXX We'll

So from Los will see onwards, improve. rate Filos more a gradual. little you'll then be that run

ounces. And sort take, then after over see likely plant, XX And give when that see months, move higher-grade of we or we ores next XX,XXX through CIL gradually in get another you'll total. XX,XXX go that As up, new happen ounces it you'll Greenstone's the will done. a up build

to from be Greenstone. plan actually call Mountain, XXX,XXX dealt increase get that some onwards Castle that building you'll permit there. adding production. ounces and in from we're So build We incremental point with it XXXX while at the

you So will your finished. get Greenstone permit. be

You start building Castle Mountain II. in Phase

ores see XXXX will it, we improvements call a you thing And there. or you'll to again, there. extra when the as over gradual of XXX,XXX see incremental ounces kind start next underground So Aurizona underground into get few be marginal the years,

that was? question The second part of

Rhylin Bailie

Just costs? all-in longer-term sustaining

Christian Milau

Longer-term all-in sustaining, yes, good question.

of So yes, an this half as first the in cost I elevated said, we year. have

The second is anticipated below of half changes depending to course, on of inflation, year, were the any be $X,XXX.

a we say $X,XXX, from lower the $X,XXX, term, inflation, in all-in estimate, $X,XXX forward. long very So current current adding today. a as And operations, Part I I cost to want before big already. is closer step but don't say would costs of the think with probably say $X,XXX the improving that to I'd I rough just mines change there type sustaining move

norms. peers see and industry you'll will more it gradually be So down, in come that line with and

Rhylin Bailie

and specific, the to down cost are how Castle get Filos, project we Los So Mountain there? going

Doug Reddy

too takes the that Castle is Mountain originally Well, such has in recovery run-of-mine, percolation we the It ore the but been issues was treat with change a way ore. this particular the long.

to to it period course, just and under of get regards operation shorter leach crush improves has agglomeration a of full Phase much in reducing ability bigger Phase other more project. area in It It's have different does will time the leach provide gives overall for a is II, much story. scale. and I. that we carry of our amount a a the So time. the a of things to It switching recovery to whole quicker bunch

a to provides better we it when So overall move ounce II. the per Phase cost

towards Phase step So Phase a I II. is

Christian Milau

Phase cover can I XB, doing the leach will remember, you X. of now, have to pad on Right just add rest we're I, the basically Phase space. which that Pad And

or is capital quarters. into X that So X concentrated

pad the the expansion, then number the X,XXX benefit look is at leach of of lot next for So cost that a just that if get of in mean one-off you years. last quarter, this you I

Doug Reddy

remainder the I. So phase of

Christian Milau

Phase I. of remainder the For

of it's costs. just as going down cost because the that's got costs. versus Doug So guess sustaining disadvantages you've all-in into one really to I cash said, capital come And all-in sustaining of lumpy

If period, you does short-term all-in in heavy have a it reflect capital costs.

Doug Reddy

backing most still gotten ways, I XXXX, earlier. some through And during with done which the contributing that in Los particular Filos next it's mentioned in of have that as more and many development been XXXX, But of now several should pit. phase the in it's up the producing Guadalupe. fully be There's we've stripping happening of to projects

XXXX it's ore the for and it to are And Filos. pushed We into ultimately, more we're a nice opposed been doing should got that have gives open to still comes be far as a previously onto all Bermejal development that when Filos cost the Los higher CIL so would doing the expansion catch-up. pad. XXXX that happened on higher-grade better It putting stripping the to and ore underground, by ore got grade so Those it it have pit. have yesterday underground, delayed or per now on Los a ultimately a future efficient, preference to Bermejal more the plant. leach contribute is have And to structure our recovery because ounce than better a would in

repeatedly, before cost future. a the it been be it's want said ultimately, commitment a we that relationship better to see that operations, we've overall per But bigger, with So CapEx, the to for but ounce. as we communities make stable to would stable look we --

Christian Milau

progress of producing And couple that. gold relations We've last than able into to back been community on we're to steady. of have The quarters encouraged by date. focusing that get and been issues sort having

the here. to and So on it actually focused see the that we the how get progress call moment at down team now costs those at plan, we're shorter do mine we is site and the pleased improve term

Rhylin Bailie

funded will expansion you to be Are equity projects achieve for required? Question and all Peter. sufficiently of your any there financing

Peter Hardie

any equity funding. our balance comfortable We We're are of funded. intention with we no the of sheet, have and sufficiently strength

Rhylin Bailie

that's take question coming I'm been in to going me. a to

down of as of main Thursday website since our noticed, been some have has may last So you week.

website our had technical So issue. a vendor

All of were their clients down.

website hosted affect So it vendor. systems. the our not It was a from certainly not because Equinox Gold. of any computer was It isolated Equinox third-party by is separate Gold completely did to

we It we what you has have information certainly put is So website. need, of a up from the hopefully condensed online. it short-term most but normally interim

the back website of that functionality through vendor. is Some

to we considering we are we want to that know So that got but until XXX% transitioning vendor, wait back they've stability.

stick that be with So for now, hopefully, our going this it's consistent interim least or week. we'll disclosure. back at website website we we're with big know because But next to week

can by us you reach So phone by and always e-mail.

you patience in regard. thank your So that for

no have online. questions We further

turn So will remarks. to Christian back I over it closing for

Christian Milau

Greenstone and the out, put progress, everyone, people projects to ground And to come get the year, sites that our see for happening joining. Good site this Brazil keep for looking ground. are this and year. mines. on Rhylin, brand-new on particularly of on Thanks, half during to keep we our important we'll up-to-date Thanks second the at and in boots of visits you thanks, as we'll in joining. And great to year, things forward really you execute up and date, each Ontario the

Rhylin Bailie

you may very you Thank conference Operator, close much. the now call.

Operator

This call. you. conference concludes Thank today's

your have participating, may disconnect and pleasant you lines. Thank for day. You a

Equinox Gold (EQX) 4 May 222022 Q1 Earnings call transcript