Equinox Gold (EQX) 34th Annual BMO Global Metals, Mining & Critical Minerals Conference summary

Operational updates and project progress

• Greenstone operation declared commercial production in November, with 2024 guidance of 300,000–350,000 ounces at $1,100/oz AISC and production expected to increase each quarter as pit access and grades improve.

• Mining rates at Greenstone are ramping up, targeting 170,000–180,000 tons per day with new equipment and improved pit configuration for greater efficiency.

• Valentine Gold Mine build is progressing on schedule, with first production anticipated in Q2 and major construction milestones such as mill motors and ADR/Gold Room completion by March.

• Recent drilling at Valentine has identified significant exploration potential near existing operations, with surface exposure and depth suggesting a new mining district.

• Valentine plant expansion studies indicate potential to increase capacity to over 5 million tons per year with modest capital, leveraging existing infrastructure.

Strategic merger and portfolio outlook

• Announced a merger of equals between two gold producers, combining board and management, aiming to create a major gold producer with nine operating mines across the Americas.

• Combined gold reserve endowment totals 24 million ounces, with an additional 22 million ounces in M&I resources; 2024 production guidance is 950,000 ounces, rising to 1.2 million ounces by 2026 as Greenstone and Valentine reach full capacity.

• The merger is structured as PNAV neutral, with a share exchange ratio reflecting recent trading ranges; shareholder votes are scheduled for April and closing expected in May.

• Portfolio rationalization is anticipated post-merger, with a focus on maximizing value from both core and non-core assets, particularly in Brazil, after thorough review by the combined team.

• Shareholder feedback has been positive, with sustained buying following the announcement and general support for the strategic rationale and Canadian production focus.

Financial strategy and capital allocation

• Convertible debenture plus warrant financing was implemented as a prudent measure during the transaction period, with most of the facility to be eliminated upon closing.

• Near-term focus is on deleveraging the balance sheet, with at least $200 million in debt reduction targeted and potential for higher repayments due to strong cash flow at current gold prices.

• Technical studies at Valentine are advancing, with a decision on expansion timing expected mid-year and a focus on understanding the full scale of the resource for future capital allocation.

• The combined company expects significant organic growth opportunities across its portfolio, including further expansion at Valentine, Los Filos, Castle Mountain, and surplus capacity in Nicaragua.

• Management teams emphasize the complementary skills and human capital benefits of the merger, aiming to create a world-class organization with strong technical and operational capabilities.