Earnings call transcript Q4 2022

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Operator

Thank you for standing by, this is the conference operator. Welcome to the Equinox Gold Fourth Quarter 2022 Results and Corporate Update. [Operator Instructions] The conference is being recorded. [Operator Instructions]

I would now like to turn the conference over to Rhylin Bailie, Vice President, Investor Relations for Equinox Gold. ahead. go Please

Rhylin Bailie

[ph], today Ariel you for everybody Thank our and QX us for call. joining you, thank

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

documents So our EDGAR time a on on disclosure and please on SEDAR website. to our and take continuous visit

the will our CEO, over Greg I call to Smith. turn now

Greg Smith

Thanks, today. joining Rhylin, for everyone and thanks us

Rhylin our our me Scott Heffernan; Exploration, with call Doug VP the of Investor our COO, Reddy; of EVP course, Bailie. our On is CFO, of Relations, Peter Hardie; and

to discuss year here XXXX As fourth operating full you we're all and our of results. quarter know, and financial

And as producing America's We've United a mines reminder, goal seven diversified Equinox the is got and States. focus a across Mexico, Brazil, producer.

including Mind also our along Gold large-scale with Greenstone Ontario Finance. joint constructing We projects, Mine partner venture now several XX% have Orion our that growth in we are

for details. I'll turn then Doug call year with broad start a quarter for and the Pete and the over and more to the overview

for is over production QX of highest ounces. just XXX,XXX our quarterly the year

year highest fact, achieved our And the year also ounce is we In and $X,XXX this persisted quarter, of cost fourth quarterly the for costs inflationary production pressures with while the lowest company's per through history. the in per cost ounces costs cash second $X,XXX ounce. with sustaining finished in costs $X,XXX all over sustaining ounce all in total of per per just ounce. of at We of of per $X,XXX production cash the XXX,XXX total ounce and,

our over Mountain our now. course application We of also the is assets the our the for that in Mine advanced Castle number a of We permit submitted of and process expansion year.

our once completed that currently we Arizona, exploration for later a feasibility locations this can on. year portal at we've three for permits potentially receive working start advance to development also so study we're underground We ramps

expansion Doug feasibility peak we're and construction large at on provide annual Santa production ounces a Brazil, achieved study the that. mine We the see more in mine our Long-Life improvements in mine to and year. Los of starting completed with of XXX,XXX Filos to published some commercial recoveries on a can our now some per and, We Luz details production scale

probably And to have Eric the advance his Greenstone at team mine most continued on construction significantly, budget. of and

yearend, of more remain the over and Gold current track details and in for the I'm projects report complete, XX% XX% Greenstone was to the today overall complete pleased call. on As Doug on of again, half in later the project provide will the we status of First XXXX, first

diversified to private development ongoing is corporate but Creek the of quarters. which the side, Mercedes mine in Sandbox Mining, Royalties, the a the metals On new we sale company. sometime Bear is royalty next Sandbox few we launched public completed working is now and right

safety say excellent to I'm the very has finished pleased we and year-over-year. year to an environmental record continued improve that with

take reduction a they on and as gas how laid to we this announced are that is call I'd our which climate when We XX% to available report, in case. our on business as to usual by compared emissions plan can. look out everyone greenhouse first accomplish target action XXXX our report also recently our of target at encourage Details website, of this

XXXX, sustaining $X,XXX we saw of all These That between toward sites. and of at $X,XXX ounce. ounces of remain ounce Looking per cash with mitigate to and XXXX. through this between costs all in course and year and somewhat elevated over XXX,XXX $X,XXX increase $X,XXX costs in that of being input working as opportunities they the XXX,XXX reflect we cost of ounces expect per optimization an said, our to we are the increasing between pressure production costs costs a full

projects Mountain see to enter phase from production. and overall lower the as Greenstone and in production increase XXXX, Looking benefit Castle Mine those costs also of expect we the beyond the two the expansion

like With that, Peter the to financial our run over results. call hand to I'd Hardie through to

Peter Hardie

We over and on improve a Slide environmental year Safety continue XX-month ended significant practices XX-month recordable X.XX We're Greg. of LTIs environmental just to and in no want X. Thanks with the frequency X.XX, by also to These of total a injury XXXX. rate And company. add, to whole we really it results. rate takes great and frequency the had are rolling everybody, an we effort want QX.

great Equinox we congratulations on the year just say employees safe making It's want our really to for to a And safety. to a of all achievement work. place so, for

year, we an on at at the at stripping at to $XXX investment million And of Arizona, of was primarily preparing items spent next open $XX was phase. development $XXX was development, sustaining construction Los Bermejal It million deferred million pit was was Los Filos, complete Greenstone, year. and for we growth and that The underground that Filos. primarily on its Los $XX invested the million Luz there. sold we really For million in that XXX,XXX We also ounces. $XXX Santa Filos spent Mesquite

On had for slide Greg as $X,XXX good We output $XXX XXX,XXX ounce. an for realized company date. our ounces highest of revenues and had of price six, million, second we quarter. average sold a We to mentioned, the an

mentioned, Greg and costs $X,XXX sustain costs were the were As all per cash $X,XXX for are quarter in ounces.

while significantly. XXXX versus quarter annual quarter-on-quarter up basis, up a XXXX, relation it at basis the during are are QX if XXXX, saw versus we thing QX look costs on or to significantly, is costs in our interesting you i.e. an on The costs XXXX

thing of in the QX the of year not second The much did to half we actually from going increases. way is happened QX by see interesting that cost

such in some and offset by media which U.S., were increases flat. grinding the relatively Brazil decreases In in fuel. as fact, cost stayed in consumables saw overall in reagents We

peaked steady pleased sometime see It that. quite and least have in looks So, costs like to we're QX. remained QX at for

a metrics, about for on share respect earnings we're which also happy a million, with Net improved operations that we happy million the from With of or in course of share, basis. with before for adjusted million income of million non-cash $XX cashflow $XX financial $X.XX, saw so an changes flow cash $XX had capital. in $X.X what $XX quarter. per improvement our share, We income to on basis of working means or $X.XX an of EBITDA $X.XX QX, million adjusted

liquidity we over capital ended year million. to just position, respect With and $XXX the with

proceeds about additional $XX year. million, February XXX at our for QX. We the and on of I'll QX, $XX note $XXX total during million. of credit we the during investments additional on was that solar new million million facility undrawn realized share $XXX credit value our liquidity draw on an sales facility $XXX in have did We XXth a an The market million revolving and

draw supplement our to with at million, million prospectus have other $XXX want ATM least aftermarket of the just we about sheet that since. I end to used We and filed note through increased off other base to we program note a of should due supplement, that say, QX, and the will things that January, debt few resilience. improve we've $XX balance during Net did to debt things the the I at supplement. and market paused or

did ceiling an those of callers $X,XXX the ounce. XXXX of help -- for we XXX,XXX flow Also, in about funding, New end significant QX cash XX% strip have The represents that an in balance upside and of floor they hedge resilience a ounce, to is about put sheet production of opportunity and $X,XXX ounces. callers with a up we something through did our Year of place to the

Greenstone Scotia, Another last through credit Year and will covenants ING thing we us we late of Startup. take want which as working to did and worked on our constructively Bemo our lenders, us for revolving in leads, with to really on with just that. course, we, the facility, New our thank retool completed week our And

revolving think our going about share $XXX cash is facility funding? million fund that's $XXX $XXX to existing our $XXX Slide, place On revolving also There for the X, feature got amount, to million. our next all page mean credit the accordion in we've done does of facility. our budget, that a be our million what remaining is and of Greenstone We credit of through on million,

using of course, flows. cash are We, operating

Greenstone. a help about have We to fund

sales contribution for that of in as funding. with pull can help investments $XXX of ounce all that. a share lever our $XXX about on shown we as QX, have have we've sustaining Solaris to since million We course, with a our margin And we

deem construction we the Greenstone. ourselves well-funded at to complete So,

X. page Onto

just We I'll couple have it, our for things. guidance on highlight the year. so a has already Greg touched of

and last of both cost will guidance elevated you ounces see year. production sustaining views First the sold of XXXX costs, On represents that Mercedes But through is increase in stay the all, midpoint about the XX,XXX our peaked. over can year. And our out reflected inflation a the that when costs. we cash attributable that to pull ounce XX,XXX you

their two are U.S. that of will against better also current against dollar Brazilian the to U.S. is continue the Mexican view and exchange performing Royale dollar. which peso, hold rates currencies the the Our

So that's in. factored

of cash weight raises sustaining tailing $XXX And capital course, The and refurbishments year. deferred the need notes couple the equipment to final make $XXX and And the $XXX on stripping million second a facility of greenstone only we just about continue essentials we primarily it. million at really do. production of flows million half there will expenditures. on that Seasonality into growth includes have to we'll of is

year? of I expecting will that, what with kind upcoming through Doug to the it run to over we're And turn for

Doug Reddy

Okay.

-- have mention we to addition reduction of working group on been that that continuous a have, In also that the and involves well production improvement all are I'll initiatives. program minds purchasing as consumable our as guidance

We've of All forward. and and mine geared for beyond forward work, and which that achieving all cost is guidance. improvement and towards down doubled what plans of adherence put put we've we've beating and our our on what benchmarking reconciliation is productivity above production also

were that mines, the mainly award East. and to QX, on we Mesquite. QX. cost that see smaller see at a low Looking mesquite to new contribute ounces Due and in in that That phase have number in had means going at XXXX. that'll relatively Brownie of plan mine to going will under period. less the adopted in leach for Vista ultimately And XXXX, to for order the We pads the in new stripping stripping -- stripping individual we emphasis in we'll pits a a reduce

expiration for mine at extensions. with life permitting continue We and work Mesquite

is glomeration X, same Phase to running and mine glomeration bleach we our have back advancing we working Phase as of on our the pad. all The in crushing run on of increasing going that in time, throughput. both X Mountain, test working of come work, plan Phase X been work we and I'll permitting on QX, crush later on. Castle we'll to so support the were continue with the and At met that through be going heat and In the glomerations, crushing should material the and

by caused a supplier. At Los at Filos, to related production in our QX, we shortage explosive strike a was impact explosives had of a that

We over a also from pit. leach -- had the Guadalupe it higher had some that reduced or the copper the open meant cycle. recovery It content, was which coming had of a that

that to ore So, we're the be able now feeds. that to the separating Excuse me. of separately leach rest from

Filos at Los As the well in of Guadalupe XXXX, we with open mining tons we Filos and the pit, open underground pits. XX% as look open the coming pit continue Los from as

development suspending will We that's than anticipated. prolonged the period and lower be underground, Bermejal productivity given the

Just to zone in context, underground. down central have put Bermejal to of developed five it the we

per XXXX We've need to be in time to production development able in the it, enough mining tons we additional to been achieve to order accessed we've same significant into have XXXX to it, the but scopes at and day. from do

in and this the into reduce eventually at overall at be to the also fed be a to improve So, plans look order And able productivity the for we'll costs. higher-grade to plant. we'll be meantime, CIL timing looking

than we our period. grades articulated extended longer rainy material we and additional XXXX, in had meant trucks. of normal a with year go contractor than had into plant of we fleet Arizona, over stockpile more lower six mining relied by XXXX the the end season of which their on In By usual, QX, and an dump in an increase an addition the an

back to so, higher total And worked removing mine we plan. -- towards moved our a returning being had tons as we

mining have our XXXX. who come XX will fleet, continue we a also significantly build mining want expanded and we once out of dump through contractor of a season course up articulated the we in rainy the that start season at this the second to And we rainy higher addition come In bringing the were year. stockpile to trucks stronger during a with level so

to recoveries mines In well and plan continues at tons reserve and the Fazenda QX higher this Fazenda, open mining in underground replacement. to on Fazenda contributed very the Throughput resource plant year. production that work came at our year, above the mine pit overall, offset grades did the overall the for expiration were work and lower and and from and both

the Luz. expiration the continued also Greenstone We program Santa Fazenda and Belt in between

material we for and At the material in permitting RDM, January, we've dump were mid-December grade restarted equipment. for owner And we waited in but mining QX, processing we in dump low suspended additional as at of processing operated material the using we're init RDM.

We for filtered rays a at also tailing facility we've completed TSF RDM. begun the permitting and storage

Santa difficult. was Luz, had throughput We of to the at the QX ore. lower due Looking hardness

We so and activity we also recoveries. takes and it days which the on perform time -- sulfur to system deal with be content a --. properly to with related to some And several the that, cyanide ore recover. to again. can regenerate had the able Each that that twice. resin overdosing From have had it cyanide our to we happened the happened, It high also the of impact impeded resin,

So, were overall achieving operators leach carbon by the leach previous note, processing. higher than will in using than, I is plant resin possible recoveries

So, in are it we increase higher but a still plan pit, and is that's we've also end, fragmentation January open a since an to had recoveries seen working in also, the strategy as issues. through stabilization come we've By we December, enabled of us adopted the and changed working, and of blending our some through new And throughput. achieve February. year we

on to Greenstone. Equinox. Greenstone's Ultimately, for the become going to Moving cornerstone

It's of goal ounces million-ounce a the five and got first half production projects of XXX,XXX and half first production One the annual in Canada. reserve, XXXX. of coming largest in a

Slide. next the Onto

with are budget just injuries. on at lost has complete and The no is We XX% on track. hours time the and X.X moment, project team the million passed

be fully a also one we the with use. So, QX end have and slide, had several the the four the being as We're And started coming, in They've with at will enclosed. this on trucks the record. added shovel great shovel, buildings capital of Mining second in additional trucks half second you the progress see and now ready the year. getting of four good and complete can for XX% spend of in year.

building see the off of be slide, the as a expect buildings can one several of and which of move photos Four enclosed. finished as if The claddings I the And building, to the East and I'll of roof being next this End are saw just buildings week was has you and the we heated, next yesterday. you note that the to more Mill the the already and buildings enclosed two buildings. done HPGR coming is the already last week, well as on the in lot two of

well. it's really So, progressing

Greenstone. moving the for just this the of the milestones on to The closed So ones commencement installation. main page, ball quarter next upcoming buildings mill being are

move be in piping QX. as We equipment will site And we and will happening the In we'll start. will mechanical buildings. the all QX, electrical on be inside installation

the and and of of four. pre-commissioning will plant relocation by circuit. at commissioning And the completing looking the in power completed, crushing be highly be half QX we're TSF first the will we're and Gulf first QX, In and XXXX the

application over on and page day to around a are other ounces pads XX,XXX we're the projects see XXX,XXX We increase moving in going Mountain, permit next a life. expansion year stacking we'll in include And the Castle production per leach where to an -- submitted tons over of to the XX-year March.

public We in scope process We'll first permitting. the environmental the happening continue review, half through of working XXXX. see of and scoping

in the which on involves QX. pits. wrapped working the mining from from feasibility time, will At we're feasibility open be For same both underground. as up study Bermejal Arizona, That the mining study, we're

we noted, locations. received three As permits Greg for portal have

one would and program it production be could able so expiration series on the so as location, to have initial mine from for also the also decline. selected touch We would us and look ultimately cutouts allow dimensions to that at we a establishing it a serve underground, will for ramp ore. ramp establish a time, we we same ultimately drilling do can expiration of and would At into that a be that

on a a we for period -- decision, delivered in our CapEx was operational and CIL study will XX,XXX we've feasibility we're on high make Los in On we of reserves were while with noted plant XX% a the we'll Filos, after taken previously, also account. into that making study having communities. construction wait while construction a day and depletion as But per for the efficiencies Greenstone, increased we local updated stability work

I'm So, to to back going pass it Greg.

Greg Smith

of I'd navigating to a budget, in on the some our at to XXXX, we just forward Greenstone, doing at also shape commissioning largest XXXX. had looking completion challenges one has the projects, like acknowledge And team in the We're a progress challenges. we're improve solid We Canada. Doug. great operations, been and and gold but manage continuing Thanks, as mines growth costs through of Equinox We're from fund year team. to in to to be briefly on expect that now, hard mentioned, those schedule. our construction Doug job the working our

I conclude and I'll it for think, there Q&A. pass Rhylin back

Rhylin Bailie

can question? Greg. how people Thanks, to please a Operator, remind you ask

Operator

[Operator Instructions]

Rhylin Bailie

year, an your meters you queuing exploration MDA Thank three, results? drilled I And sorry, like see the we've about you're see we underground going in while from When will that start they're question for and Scott, you. up, to can it of got you. Arizona QX. looks this XX,XXX those

Scott Heffernan

under components. meters. Arizona had drill at X program We XX,XXX XXXX just The did

deep, areas of to the portions of the address the to the study mine. far. deeper few a to on growth converting looking inferred deep holes questions geotechnical in indicated mentioned big so at the resources call that's The some to holes first and support was component couple also Those been times reserve a itself Cabo feasibility at on support were

the results be study those will will So released funnel mid-year QX. into that feasibility

X,XXX square to trend we the shallow open hit the two and package. near mine across other to within targets pit the thousand-kilometer regional majority But a targeting itself program main mine, there. of a The -- of components of multiple land was on both effort support included targets the life extension, meters focused approximately have west the that looking number targets, the east targets

early here So those look QX, release will in probably results to QX.

Rhylin Bailie

you. Thank phone, please. will questions from the Officer take

Operator

comes ahead. question of first go Our Wayne RBC. from Lam Please

Wayne Lam

morning, Good guys.

you optimizations? items bit what where a can complete savings the Just assessment seen been just the curious, the how give And has or of the to spend? And that reconciled independent and left see then on of large have utilized so detail wondering given year, last you at the contingency date and Greenstone, how far? items bottleneck as you much the more some has

Peter Hardie

to I'd through It's end the always of to installation. mill was be. we regards path going end and to in ball process, for building building east plant critical say bottleneck enclosure starting So the our what in getting then items, on plant east knew

be it. and They'll electrical for have team's the turn work and and done. where week. we four the two The compensate been the how finished program going then, of at productivity on say year. more out area. We're going buildings installation. able we forward, issues we're our buildings this would to adapt able most very that inside I good is the starting for compensate piping detailed being one path adjust critical And to to last to in in Obviously, remains be delays to this the off around move But for buildings. to

we such as schedule we're Really, winter maintain during summer the and we we're this of that our come then where we the the pushing be projects to into TSF into Earthworks months. productive, the other don't some much progress areas able get as or through most back spring and to as

minor construction. against overall say very compensating our overall things elsewhere that within for with overall, they've So and I'd schedule been adopting good the

Greg Smith

currently it's mentioning, we do around Doug, to risk expect Yeah, April. probably worth believe, assessment. It's I another quantitative for scheduled,

party getting schedule and budget. So, from an on an update independent to that we're looking forward doing

on little the the With the dollar, of respect questions, ones Mexican of it. probably Brazilian The we've last Canadian With the pay the a dollar weaker Brazilian on pay year, so -- optimizations, used has to that's It's other $XXX areas. about helping. one rail, against million the savings the through been foreign exchange. is your two Wayne, end of unlike USD, our of frankly main bigger contingency Canadian respect one to

Wayne Lam

And depletion you Or once Is maybe life? then Mesquite, Okay, how at think a it there? the should reserve have year? should approaching of about reinvest reserve greater given we capital think future mine to the potential for we short beyond great. the stripping just Thank about I'm mature the a curious, you. how capability case kind additions in this of asset

Greg Smith

you'll get right, program, talk ore. it then into So, for asset. Every hear the year a is essentially, stripping about Mesquite, mature quite yes, us we a and

that's So, particular from to then to it's and this XXXX, during be have part to year. essentially, our stripping the in different where into the and were areas down we'll cyclical no doing benefit of get we mine that diving to able been ore and we this strip is down where ore, year latter

mine are what programs through that we of be while to the as continuously put the to we plan year able at looking revised on ounces to can we It do work table more lower plan. produced, revisions have the this happens and [ph] to being to models a number just be we see forward. Joel able to go We mine improve doing

Peter Hardie

in increase Yes. U.S. had -- costs. the pretty in We in we significant everybody, down a like

the maximize XXXX, smaller Mesquite at sense pit for period cash mine with plans that that And so, flow over time. looked we to made when to it go of in scenario

But that drill we mine progress working XXXX extend and drilling. some XXXX, through we'll And requires additional then so, on have programs that to Mesquite, life beyond. and as

Doug Reddy

other we working heat the expansion leach that currently permits in always get which something through, at we're permitting's and thing we're to two obviously, Mesquite, we're couple that doing pad the next is expect And months. have

to opportunity continue be stack more. able So us those give the to obviously to

them and space, to permit reserves. pad be resources we develop additional able can time So, while to the convert at so same always add it's more

it's a process. never-ending -- not So, it's

Wayne Lam

maybe end a guidance it have the then operations Okay. And one, last especially first half costs mines cost Great. just of the the year. at looking near Thanks. the in breakeven of elevated of across few just upper relatively seems the like

of on reopening is putting Castle cost where with say, scenario and higher X review, Mountain maintenance improved maybe given care of As optimization the pause, putting any construction, you and Los part on that CIL might mines? for, the those Phase that there see or reopening with just the economics Folis

Doug Reddy

we but during at So, there's good we be into do production operation that into wanted ultimately while it's a X working something everything discussed, that process more present our operation needs. we We is than one process, Phase Obviously, in us. and so through reason permitting thing Mountain. we're coming the to a back why were Castle for

to means to of from also our to footprint leach that. material out there. previous that gold dump aside move the the from also able be It having essentially We're operators and able

pre-stripping X. for the a for Phase works as actually us it So,

crush we third outcome, during is, that and good did the moot And Glomeration. try of get want a the in versus it's mine we process. So, one then get and this run to

So, a phase one be an of Mountain. by doing scale get at Castle to to operations opportunity we do the larger virtue able test

Greg Smith

Yeah, a and you Felix mean, about those, large I asked think vine. Felix I also Wayne, is

restart shut a a it's very that. like down mine, expensive to You mine know,

suspension open Filos to with doesn't the focused so. fair reduced term mine. some do say now working CapEx is We've right I at pit the the the we're near think of of Birmingham trying and we're it's that to our in Guadalupe Los on operation, very mean not the underground hard Filos focus Underground. that But to improve and

on we're think at I the that's not at something considering this and time. all, So, table that don't

Wayne Lam

on things going see Congrats at me. from all nice and corner That's to well Greenstone. the

Rhylin Bailie

Thanks so quickly, capital? in you for jump and load Filos quickly selling -- question from consuming much since talking online. it's about consider ask Would a

Peter Hardie

quick speculate I -- plans got on the We individual in no. want I any answer mean, no to is mine. process. We've don't

in we've assets the know, commercial the in on You obviously portfolio. certain been past,

huge the lots past. the But potential it's deposit rare. a in addressed with mines type I of sold incredibly of Philos, this and have that I infrastructure. challenge resource, exploration, a a in we We permitted mean, huge think deposit's QX, reserve

like with that parting pretty something be so, would And challenging.

think, to life, a operation it focus I valuable is again, that for very that our improve and company. long optimize turn the operation and working into operation

Rhylin Bailie

Operator more from the phone calls will take lines, please.

Operator

ahead. comes from Anita question CIBC World go next of Soni Please Our Markets.

Anita Soni

thanks and, morning question. my for taking Good

you just revolving I mentioned you of idea credit had were give the retooled changes your wanted for address Could to So, that made? first facility. what an covenants you us

Peter Hardie

you it’s The Peter. Anita, and Yeah, a call I more, covenants development guess reflect what company phase. would

So, us a it adjusted of We're that effectively going scenario, had are, and see full very and case a took we're accordingly. conservative quite covenants we disclose plenty to but turn, comfortable through not Greenstone they what room to exactly there's Construction.

Anita Soni

Okay.

in tailings XXXX that some the you you've doing cetera. essentials only mentioned lists, is you So, mentioned sustaining Greg the capital that of the deferrals are that had, and think et I

to in Is So, to XXXX up that would fair say? a in sustaining see catch XXXX? capital we expect and

Greg Smith

extent, underground mine we've That's stripping those areas think, largest term plans probably bigger the at a at lesser areas two where Bermejal the of I And the to some one. retooled big deferred we've and chunkier I mean are capital to Mesquite a Los is reduce then, near Filos. capital. where

And to We part obviously big so, Bermejal with of Filos, Los Filos. yes, is mean, eventually the a into get I that's back future the to develop, intention want of our underground.

will we capital spend. is that So eventually

cost. the reduce and the In program to we're that work and to increase meantime, retool productivity going

of underground, back exact to some determined, timing be definitely at that but will is we in point. So, Bermejal be

time. ore. We're you're that's don't trying mentioned, to be involve going we're Mesquite, we've same giant that to I XXXX to always stripping. mine the crazy to down stripping mean, get have to or I at But got thing. Mesquite, smooth up catch as that in think Doug drills working over to out going anything. toward that continuing operate will and a going

Greenstone don't at coming But allocation Always out of that a CapEx. carved otherwise, additional in to think I for funds with that, that decisions bunch to online that obviously whole money going be capital we've we're up and have anything frees XXXX. spending looking year, some next critical

we us want a haven't I would where once sort area feasibility in area the go pit that's spending the this later QX of even we'd appropriate level year that on the basis any personally, Arizona, I think, end, we year, study, construction start year. underground think I for move and another in XXXX into see of budgeted in like next portal to the an that money as But decline. on reaches west the and to be this or

will out not that it's a situation where road. we've bunch kicked So, a of down the there's and it necessary but come, stuff stuff carved

Anita Soni

Sure.

in So was was though Not sustaining. right? Bermejal -- development capital, underground that

Greg Smith

It primary capital generally. was development. I'm a mix saying

Anita Soni

Yes, what of of year? be going anything sustaining of year. should year. it understand assuming Luz, about the the rates this wondering the I are years if in next if just I was for you over want are doing guided capital just was I might recoveries not terms done course Santa get the you're that two just thinking need generally. to when recovery this you kind in you to think And where that there then

Greg Smith

of half of stability. achieving backed the the XX% were We to it year. in the looking in at for first budget, half of a year, getting we the XX% second on So, minimum focus off the

As through we changed we're we over XX% the plan, came January, and at in in February. XX% December and were

real makeup stability. coming water was dam And the of thing activity to less back or which in ppm water hindrance key storage was X.X than from but zero a to ensuring is a resin. is cyanide, key the a our big that we're, So,

detox. And now working the system's properly with our all

really so, resin. be helping we on was that a good establish activity And to the to saw able that

Anita Soni

and was did resources, that it question yesterday you last I or last is coming later just night? miss this Did then reserves And guys that update Okay. on?

Greg Smith

state did forward studies global yesterday. and looking not update. available No, our year, complete, we consolidated course reserve as resource update a are of our single are updated statement be And They'll state. in of projects the a the most won't study be versus a steady as there throughout

Peter Hardie

years, we've with of the number Anita. Consistent been doing what last over

year what we've come been and a it, at our global we into X I doing we annual on the point will when do doing to point until we've do so and some updates continuing as an the and we get we be harmonized what and where been everything is time report think And that's in annual reserve to update. want resource the but another to we've consolidated do summary to available, website. update, for integrated or get future those probably

Anita Soni

was lot would also are gold people to good it of of have calling so context a be from price I cost on assumptions then just a resettle their that. of and sort assumptions, the updating

interest you rate And your just rate then me now is the know right floating what on debt? can let

Peter Hardie

it's X.X%. about Combined,

Anita Soni

floating? that and or floating, Is the fixed just

Peter Hardie

that's Pardon just the Sorry, floating. me.

Anita Soni

Thank you, very much.

Operator

comes Our go next Securities. Smith Haywood question Kerry ahead. Please from of

Kerry Smith

Thanks, operator.

resources, generally reserves directionally? Just us about a in depletion would think expect generally would you bit? the going down just basis company and would Or the for and be you year-over-year you replace you on a how a that a you kind do your bit to reserves youth or point on Like overall follow-up up question of as ballpark, to unchanged? resources they're a or

Greg Smith

Primary Yes. primary as exploration has with to replenish goal. again, drilling the and reserves been goal

have Secondarily, under years. assets capitalized over been a the three, of our lot five last

real So, base. need resource push a the up to build there's -- real

that aggressive expiration forth. has year, respect the by pretty in so in Luz been so and Santa So,

an So, but reserve the the now that beyond years reserves three there'll that basis, the expenditures lag will a put growth. of we for the from kind significant three with is resource hope with now before annualized off paying that last ground be that two, and years into expiration getting replacing we're resources -- be substantive on

Kerry Smith

Okay. cast, is two on the Doug Mountain for just the this Phase on permit Ashley Casa application. And

Or to mine X, there to Phase you hundred the to mine? that that thought now like, you maybe -- any of operation? run the feasibility, crushing confident we run X or some looked percent pretty you a point Given crushing add of just in over are may for some will conglomeration, is phase you two be that need at expecting glomeration at are switching have revisit a only Phase are which that you're assumption

Doug Reddy

remember, Kerry, material. we're lot work and through look performance the of Nstitute lots with currently processing. that dump better But and work confident we to material get doing for and for we metal that No, quite Mountain modeling castle a the the crushing additional material, of test we're we're we're dealing -- overall on conglomeration met

doing doing all at but look we for we're right X, network, we and modeling treating that additional were if way. we're the material, be material, same that Phase the it the it because So, make sure why the would crush agglom -- in that's metal geo want as it we to

all optimize to concepts. the regards We anything see we to the it'll anticipate of test we've in also but work part in is our background. in change done able we're can doing we're that it at out work everything looking opportunities previous prove don't and be whether overall, footprint to and So,

Peter Hardie

that that the portion to have feasibility you a Kerry small And in study, highest-grade a mill of material recall reporting the in do material.

it at circuit. ditch required grades the would to And mill potential we scenarios just be are where triage ore one so, through looking that different put you not and

If And that so at opportunity operation of trade-off overall is studies pretty and looking reduce some to on. and kind are that's sheet, that's capital, something the doing there's to some flow us. we an simplify interesting something that

much So, to re-permitting can and to We that we some already any over confirmed there make being year. modifications the we've that'll contemplate on confirm flow back go sheet. does do that. to submitted. permit progress the what done work not sort course want application I of our pretty would any Nothing compared of to is and have that

Kerry Smith

Okay.

off covered application all that's in that So then?

Peter Hardie

Yes.

Kerry Smith

Got it.

the short in-house currently I it the help the of years cost plan like sort question three mine flow was Mesquite, lower guys XXXX, the what and of with do cash the Does the other do at you or model that for in model internally? to reduced Okay. do as life actually the years? of have you ratio impact plans term had Mesquite XXXX how you And mine you strip mine for here. or Like in two

Greg Smith

The -- already, a the in there's as that. expiration and it's can to mine it. building budget, plan in we that have latest as permitting. I we It's from say? remodel comes continuously What information We it revision get in we're already the on working

from the plan. mine change will budget it know I So,

Peter Hardie

work Kerry. to it's previous that, to year next to that We I mine bring for plan adjust a there's this would level we're think, up plan say to working mine had on the production on be fair done levels. back But year.

increases effect Just -- there. production of cost cyanide, there major Mesquite, an the significant in input That especially, right? really production the saw States we have and explosives all on in costs diesel, at United

It'll that takes internally on guidance what given structure we mine cost some can account next we're don't information. plan, year's -- we and year. like, this here year year over And the have have of do later that for should so, this And that yet. of what kind progress into year? working current on the look course XXXX this the and will more that'll So,

Kerry Smith

Okay. the And at three-year say just working but it that they're it then? Mesquite team mine Or XXXX? year would at one to be the like Is that plan site is fair have a operating against? it

Peter Hardie

There's But we'll there. plan it's terms permitting a areas five or some have west, differences to -- expansion sorry, if I to all the the resources then a that the multi-year is and we permitting timing of you that other timeline mean, continue in eventually order didn't have. there have of didn't east right? very throw to on plan, any out that that model there any, the also pad want we move, highway site between to of a plus currently and proceeding to years out in constraints, utilize if you mine need easy would we'd would

deposit around Mesquite. the some itself, of permitting expansion So, opportunity a actually constraint is timelines that really not it's at the

us the we filling is with play, we can. want and to in do do, So, out gaps that that can of when you and permitting as kind to you best continuing need model while as those that the goal for

Doug of it's bought has at it's, So, as a since continuous said, we Mesquite, and it. kind process been

money Mesquite's us I quarter, I continues mean, mind made it costs a our great Since for in XXXX, acquisition think, been us. to we've acquired it recovered and I been was mean, acquisition be. -- our well for us above great great it's it's we've except single a costs. one, mine every a

been it's important So, a with Mesquite that our process it continue along. like us to that's all kind additional just permitting. for see and requires mature asset of

Kerry Smith

fashion? the Bermejal, in same that helpful. deferral of Well, plan Filos the impact kind shutdown of the that's does Okay. of Bermejal at question of And significant with the the Los the underground long-term there any

Greg Smith

would been alleviates by couple Bermejal it can to change productivity gives it for the our the development year, day X,XXX Deferring mean, because need this actually. doesn't One, the year. get some make it need. productivity there opportunities. to that have we pure we doing be actually Filos to cash so it to of this tons I at Los the low able we X,XXX rain essentially that Well, It's be rate. per would've a just to investment prolonging such pain net a

coming were per in mining just high ton we're And as the in stokes. initial the too we cost

material by a suitable that know grade it that So, also you to but means it because bleach, to you the bleach, an able sending opportunity to it to in certain for for heat have heat going behind to gives tire it process We CIL. be CIL. can not to leave a a go material the it's

So how that, underground. off. just then for that And will we'll Bermejal means deal push we'll we restructure with look us approach it meantime to

Peter Hardie

And for actually course the but underground. to back is of And have mine Filos into Longer effect bit production said, you not mining Bermejal bur free of we're near-term ounces, underground of lower the term, a the going include go because at eventually. those the because term, cash deferral on flow plans as long I we're save capital. we we

going itself. plant, And as the getting obviously said, heat would bleeds Doug through a higher that CIL than if recovery materials you're just on you

to study economic once recoveries those tradeoff is an in place. you're And that get going put there so, deferring it higher to you've where CIO

Kerry Smith

going? and on been how and quickly, had all question communities supplier I of me that's the behind wondered pulse then I bit assume explosive maybe And three of the your this strike at you that give for Fields, that's just this of a could now, if little you an last update

Greg Smith

the earlier was of strikes QX. it long explosive mean, past, I that part Yeah, earlier was affected

in So of all talking where Bermejal communities. that's done efforts we'll be doubling with Well the underground communities. will another communities. pulse point in obviously, down And be our to on dialogue be we're the the to

to together. work to bright we it dialogue future a to see collectively able need that -- it a partnership. able need working can involves be and what I mean, it we we've and everybody to make relationship be be a Filos, tried to at but Los have that clear It's there's our on is

Peter Hardie

and including the I has we're improved in Filos, And is relations our would from informal community getting We've increased team that strengthened, communication communities. a bit quite coming this few feedback Los the last months. say the our at

as or it's, that six months been far. said, a everyone so that this acknowledges and it's into in lot putting five a communication So, effort recognizes sure and good And Doug we're we're making project. that of partners relationship, that

we're but they with good the manifest been mitigate it's past So, we've those hard challenges far, say the in won't I so working in karry, but communities can't necessarily the to had and that. future, certainly

Kerry Smith

Right.

so And there the were jobs communities Okay. shut was Bermejal the underground that to ago be to told was going going were Greg, some I'm while that a disappear. assuming that down,

new So for that's news today right? them, not

Greg Smith

this officially be made. basis conversations changes under indefinitely suppose, there's Filos. to I more that cost need it and informal been but to that around are going the news today, persist some profile It's of And can't

going And taken. be to so, and need so to actions

Kerry Smith

guys. great quarter. appreciate, Thanks, Okay.

Operator

go comes ahead. from Sclodnick John next of Our Please Desjardins. question

John Sclodnick

Thanks, most answered. guys. been And of them have

gold a your lenders [indiscernible] with if Impressive stance push that? and just So was changed from wondering was maybe the and a good finally contracts, just there couple caller from if Gold and me. on hedging, what

Peter Hardie

saw, the Gold It's Peter, through had we It right and a -- as was end good all very October below of end rise question, October of At the XXXX. January. rapid John.

rise had January, year an as this gold we to cash a wanted Greenstone. year, to to some management construction a capital-intensive We through flow. take way fund opportunity again at in just the to And continued have team, lock with especially

a a and particularly of quite So uptick curve the gold, the as steady just the kind thinking. of was three and in high that floor that given, and of suppose. ceiling, the And result function I change was the of months

us or place enjoy callers. year just We will a the With the And thought So, given was with do. those price that thing of us really quite gold that allow see to of speaking, large in period. fiduciary end do. intensive next to responsible to prudent with were QX really spread lenders, to, allowed higher a and respect through to they during supportive generally they course hedges [indiscernible] capital thing to like it

Greg Smith

incrementally our back of enough look to over of in across balance on kind but Greenstone, cash actions, to the get we've profile, got you flow ensure action just ensure if our that resiliency sheet one John, four we many, year. to and the absolutely we've production smaller taken line think, it's get collectively commercial maybe I last or more months so, designed next

the if next some we well, introduces anyways, and a without number we're right? And of complete wasn't up, when consideration. from transaction, had listen, and then it That's kind like and then part put this over looked in it. it of this on just risk caller more what the flow while mitigation and the build. doesn't, in things. if a rolled And least gold We hurrah we this and we're great. -- the legal like, our going high and back EBITDA we gold fiving of was all place one of that half and hedges it, So, done going It's at be we've runs, rationalizing looked of that, at off to cash protection different year

rationalized It was So we opportunistic. kind how of it. that was

place. we we got put recent those waited and printed slightly But had maybe since happy that of one if that later, kind of a here the caller. that day top higher sitting think day we we're bump would've pretty we I in

Unidentified Analyst

operation status additional Last sense. impressive kind for makes just Great that at there. the now no, X me, just long four at curious are one of continue Yeah, levels Castle required. was permits Phase in how could I'm risk and get nice the mitigation to

Peter Hardie

into you get because of the probably overall given years dump plus I small material, can -- a -- once keep -- the there. size you operation like the mean, XX get pretty through you you could just resource it's

headroom. we've So, of plenty got

but in think around the long. years or of no writing that past communicated have out so, it we nine I we've intention

XXXX it's to maybe of more that timing plus like we think, to minus receiving expanding sometime like six we that I having months year than that impossible -- certainly to permit. get or next and down exactly so busy mid again, the say months, pin line. I that it's six pushing can plus to But in on target eight minus. we're trying permit the

Operator

ahead. Parkin Mike Please from of is question Bank. National last Our go

Mike Parkin

question gold capital pipeline Hi, would Greenstone Mountain rank of order bit environment? it X you this guys. after of price Phase Is brings something Castle is up actually deploy how you your kind else? assuming a or good terms That of a first? look to in would Where project

Greg Smith

come mean, to I allocation it Yeah, down does decisions. capital

cost to future of underground you've some then Filos. And longer X, and portfolio, in and bigger, so, in say, Arizona, environment life Phase decisions. the at castle assets our chunkier pretty context include obviously, that got of assets we've of you and the some especially the we've course the Los with and addition would Mountain, goal Greenstone, got the it's price made look those smaller fair But

expansion up -- ranked only and one right is Castle one is is back probably Filos. to start being of up to that absolutely that after I Greenstone actively something And on mine. so build to we're a to position think, very and lower want get the into Mountain as or is at underground mentioned now running. Arizona we're earlier, out running And keen get and that start that's working is the in we

and there as continued to it's heavily And a big start to at profile we've -- that's Filos. work higher a do nut more got to before ready say had investing crack. to we're risk It's we've

we Mountain castle get terms get as I the by like Arizona is we we'd happen the in results And, into stand I something can. soon happening, the where as of we to of of as Greenstone's feasibility and this end capital study permit. think So, will subject think quick as year available to

Mike Parkin

underground that the use any impact the of to others? last suspension, with than Filos does three back And far Los communities one maybe more just question

Greg Smith

other more two it than affect would the Carillo communities. Yeah,

Operator

My Thank you everybody. We're of of actually will the time email. to by apologies didn't we closing questions so for any have do chance you unfortunately, remarks? you online get later back and Greg, that. have get out to a to any today

Greg Smith

No.

attending any think, or you always I call, additional questions. or thanks if us out and well-considered of again reach And just can for have by the the phone you email questions make. again, by everyone comments to for to

Rhylin Bailie

Thank you Operator, very can us much call. joining everybody today. close for you the now

Operator

This concludes conference Thank today's you. call.

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

Equinox Gold (EQX) 22 Feb 232022 Q4 Earnings call transcript