Thank you for standing by. This is the conference operator. Welcome to the Equinox Gold Second Quarter 2025 Results and Corporate Update. The conference is being recorded. I would now like to turn the conference over to Ryan King, Executive Vice President, Capital Markets for Equinox Gold. Please go ahead.

Thank you, operator. Well, good morning, everyone, and thank you for taking the time to join the call this morning. Before we commence, I'd like to direct everyone to the forward-looking statement on Slide 2. Our remarks and answers to your questions today may contain forward-looking information about the company's future performance. Although management believes that our forward-looking statements are based on fair and reasonable assumptions, actual results may turn out to be different from these forward-looking statements. For a complete discussion of the risks, uncertainties and factors which may lead to actual operating and financial results being different from the estimates contained in our forward-looking statements, please refer to our second quarter and year-to-date MD&A and consolidated financial statements available on our website as well as on SEDAR+. And finally, all figures are in U.S. dollars unless otherwise stated. Present today with me on the call are Darren Hall, Chief Executive Officer; Peter Hardie, Chief Financial Officer; and David Schummer, Chief Operating Officer. We will be providing comments on our second quarter 2025 production and cost results and an update on the Greenstone and the Valentine Gold Mines, after which we'll take questions. The slide deck we will be referencing is available on our website at equinoxgold.com under the Shareholder Events section. You can also click on the webcast to join the live presentation. And with that, I will turn the call over to Darren.

Turning to Slide 3, and thanks, Ryan. Good morning, everyone, and I appreciate you taking the time to join us on the call today. Firstly, I would like to acknowledge the efforts of our employees and business partners for their continued focus during the quarter to responsibly deliver over 219,000 ounces during what can be a distracting time as you integrate two businesses together. So well done, and thanks to everyone. With the completion of the merger, we have created a significant Americas-focused gold producer anchored by two cornerstone Canadian mines, Greenstone and Valentine. It is definitely exciting times as we build One Equinox with the leadership team and the entire organization focused on delivering on its commitments, operational excellence, advancing high-quality organic growth, rationalizing the portfolio and importantly, disciplined capital allocation. The benefits of bringing the teams together are already paying dividends, one example of which is reflected in improvements at Greenstone, which we'll talk to later. The company has entered into a pivotal phase with production, cash flow and earnings expected to grow meaningfully in the coming quarters. Turning to Slide 4. Q2 financial results predominantly reflect Equinox's pre-merger assets. On an attributable basis, the company sold just over 148,000 ounces at an average realized price of $3,200 an ounce. Interestingly, had the Calibre transaction been effective January 1, the pro forma consolidated revenue for H1 would have been approximately $1.33 billion from 401,000 ounces, which clearly underscores the enhanced scale and earnings power of the new company. Looking forward, Q3 and Q4 will see increasing production as we benefit from a full quarter of contribution from the Calibre assets, continued improved performance at Greenstone and first gold from Valentine. Turning to Slide 5. Greenstone is a key focus. The ramp-up is progressing, and we are seeing tangible improvements. Q2 delivered solid results where mining rates increased 23% and processing rates improved 20% over Q1. Building on that momentum, Q3 is off to a strong start, with quarter-to-date mining rates 10% higher than Q2 with month-to-date August mining rates averaging 200,000 tonnes per day. Over the 30 days ending August 10, we processed an average of 24,500 tonnes per day with more than one-third of the days above the nameplate capacity of 27,000 tonnes per day. There is still work to do as we focus on minimizing dilution and mining losses around historical workings concurrently with targeted programs to improve fleet productivity and operating discipline. I'm pleased to introduce Dave Schummer as Equinox's Chief Operating Officer, who brings over 35 years of mining experience to the business. Dave and I worked together at Newmont and most recently, Calibre, and he has been working closely with the Greenstone team since mid-May to accelerate the ramp-up and improve efficiencies to safely deliver reliable performance. With that, I will ask Dave to discuss a little more color on some of the team's recent progress at Greenstone.

Thanks, Darren. We've moved quickly to put more horsepower behind Greenstone's ramp-up. This includes bringing in seasoned advisers with decades of load and haul experience, improving shovel loading cycle times through operator training, the addition of auxiliary equipment to maintain pit floors and shovel dig faces and the introduction of double-sided loading to essentially eliminate haul truck spotting time. We've also recently taken steps to bring in technical specialists to optimize and monitor our blast designs and performance, targeting improved fragmentation, reduced dilution and improved ore presentation to the mill. On the haulage side of things, improved road designs and construction, tighter dump exchanges and recently added support equipment are all helping us move material much more efficiently through increased average speed across the haulage fleet. These enhancements, along with a concerted effort to reduce operating delays, specifically through the implementation of an efficient hot change between shifts, are already contributing significantly to stronger daily performance. As Darren mentioned, month-to-date August mining rates have been around 200,000 tonnes per day with best demonstrated performance to date of 227,000 tonnes per day. And the focus remains on driving dilution down and fine-tuning the process plant to steadily improve operating time, throughput and recovery. Turning to Slide 6, and back to you, Darren.

Thank you, Dave. Valentine is a conventional crush grind CIL plant and will be our second cornerstone mine in Canada, significantly contributing to our cash flow. Before we discuss the Valentine update, I want to acknowledge that there are ongoing wildfires in Newfoundland and Labrador, with several communities under evacuation alerts. Our thoughts are with those affected, and while our operations haven't been impacted, we are staying vigilant and supporting those who have. In Q2 2024, we put together an operating team with substantial commissioning experience led by our team member, who has been closely collaborating with construction leaders over the past year. This investment in talent is proving beneficial, as shown by our readiness for operations, including a fully energized process plant, tested key circuits, and commissioning crews verifying performance. Maintenance systems are operational, procedures are established, and crews are trained. We have invested over $25 million in essential spare parts to ensure a smooth ramp-up. We plan to start processing ore at the plant before the end of August, with the first gold expected about a month later, followed by a steady ramp-up to nameplate capacity by Q1 2026. Moving to Slide 7, as Greenstone approaches nameplate capacity and Valentine is on course to deliver its first gold, we are entering a phase where our production and cash flow will significantly increase. These cornerstone Canadian assets, along with our diversified portfolio, provide us the scale, stability, and leverage needed to capitalize on gold price changes, resulting in improved margins, earnings, and shareholder value. Our strategy is straightforward: prioritize quality over quantity, target production that enhances free cash flow and valuation, promote high-return organic growth, and allocate resources where they create the most value. We continuously evaluate our portfolio to concentrate our resources on the best opportunities, which is exemplified by the recent sale of our Nevada assets for $115 million, yielding tangible returns. We aim to increase our share price through margin expansion, disciplined cost management, and production growth, positioning the company to return capital to shareholders via dividends or share buybacks once we meet our debt reduction targets. We are committed to executing our plan with discipline, and I am confident in our capacity to achieve our goal of being a top quartile valued gold producer. With that, we are ready to take questions. Back to you, operator.

Our first question comes from Ovais Habib with Scotiabank.

Hi, Darren and Equinox team, congrats on a Q2 beat and really great to see Greenstone mill hitting the over nameplate capacity. Darren, a couple of questions from me. Just starting off with Greenstone. The grade at Greenstone came in at around 0.92 grams per tonne, down from around 1.06 grams per tonne in Q1. When should we start seeing grades improve going into the second half? And what measures are you taking to manage and improve grade dilution? Essentially, what I'm asking is, are you expecting grade to improve in quarter-over-quarter kind of going into Q3? Or is this more of a Q4 situation?

Yes. No. Thanks, Ovais. Appreciate your support and questions. Grade, we are seeing improvements in grade. Month-to-date August grades are right around 1 gram a tonne, so improving over what was Q2. We will continue to see improved grades because of face position and face position driven by kind of where we sit in the pit. But obviously, the more material we move, it means the more face positions we make, which means the deeper we get, the more material we have. The more material we move, it allows us to operate more effectively along that grade tonnage curve. But importantly, in everything we're doing right now, it's about ensuring we get the quality as well as the quantity. So Simon, Dave and the team are absolutely focused on moving as many tonnes as efficiently as we can, but importantly, minimizing dilution, so to be able to segregate out the waste from the ore. And then secondly is also to minimize the ore losses in and around historical workings. So it is a work in progress. And as we go forward, I anticipate that we'll see quarter-on-quarter improvements in grade. But I would anticipate that Q3 grades probably won't be too dissimilar to Q2, right? Maybe marginally better. But we are also ensuring that we make face position. So that additional capacity that we've got is ensuring that we end up with nice areas to work in that provide really, really effective mining areas that will positively impact unit mining costs as well, which will then flow through to margin escalation as well.

Got it. And just in terms of the fleet that you have in place in terms of improving the mining rates as well, do you have all the equipment and mining fees in place? Or do you think you need to beef that up?

No, I think we have all the necessary equipment in place as discussed in the feasibility study. Our focus now is on maximizing the value of our committed capital and what we have already delivered. We're working closely with our business partners and vendors to ensure they are invested in our performance. Over the last quarter, we have seen a significantly higher level of engagement from Komatsu, Caterpillar, and SMS, which is encouraging. In short, we have the equipment we need, and the Board has provided additional support equipment that is positively affecting our operations, alongside increased haul speeds for the truck fleet. Ultimately, it’s about making the most of our invested capital.

Got it. And just moving on to Los Filos. Obviously, you've kind of had the agreements in place now with the two communities. Are you now forgetting the name of the third community, I apologize. But in terms of are you in discussion with that third community as well right now? Or are you dealing with just the two communities that basically have signed on to move forward with Los Filos?

Well, in every jurisdiction that we operate in, we maintain regular and engaged communication and coordination with all of our stakeholders, and that's in whether it be in Mexico, Nicaragua or Ontario. So no, we maintain open dialogue with everyone. The third community that we're having discussions with is Carrizalillo. But what we have done is that we do have fully executed agreements in place with two of the three communities, and we're currently working with those communities to recommence exploration activities and look at a two-community plan to be able to exploit Los Filos as well. But we are hopeful that we will work towards a solution. But as we do everywhere, for those that want to work with us, we will work constructively and responsibly with every stakeholder.

Got it. And just my last question over here, Darren. I mean, great to see you've started selling off non-core assets, and we saw that with Van. Are we going to see more of that going into the second half or early 2026? Any color there would be appreciated.

Yes. No, Ovais, it is that we love all of our children. But again, if we find that some of our assets can create you and our other shareholders and us more value in the hands of someone else, then we will actively explore those opportunities. So are we running processes? No. But have we seen a level of engagement in inbounds as a consequence over the last quarter or two? Yes, absolutely. And as we demonstrated with the Nevada assets, we will move agilely to be able to surface those values as they present. But they will all be focused on ensuring that they positively impact share price, and that's where our focus.

The next question is from Anita Soni with CIBC World Markets.

Firstly, congratulations, David, on your appointment. I think we crossed paths when you were at New Gold in 2014 and 2016. My first question, just a follow-up on the grades at Greenstone. You did indicate that the grades increased quarter-over-quarter of what was mined. Can you give us an idea of what those actual numbers were in terms of what the grades that you mined out of the pit this quarter and last quarter? And then secondly, what would the block model have predicted just so that we can get a benchmark of the kind of ore losses that you're experiencing right now?

Yes, Anita, thanks for the questions. I don't have the mine information in front of me right now. There are two key points to focus on. First, we expect an improvement in grade quarter-on-quarter as we dig deeper into the pit and enhance our practices to minimize mining dilution and ore losses. Second, the volumes of material will also influence the grade presented to the processing plant. Looking back at the feasibility study over the long term, I believe it projected around 300,000 ounces per year. Generally, we see the reconciliation of total metal aligning well with that projection. We are encountering more tonnes at a lower grade, emphasizing the importance of our focus on dilution and ore loss. As we progress through the year, we will be in a better position to discuss the short-term grades. I am confident in the long-term potential of the asset to meet the feasibility study benchmarks, although this does not directly answer your question. I wanted to provide some additional context regarding the long-term outlook. As of the end of July, we had about 6 million tonnes in stockpile, which is significant and affects the comparison between mined and processed grades.

I understand your concern, but I believe the grades were expected to be around 1.3 this year. I'm trying to make sense of the 0.92. Additionally, you mentioned that you mined 50% more than you milled. Did you use the ore you mined directly, or is there a different explanation for what's happening at the mine? Is there any stockpiling going on? You also indicated that the grades from the stockpile being processed at the mill are lower. I’m looking to clarify the material movement and the situation regarding those operations.

Yes. And again, it's probably worthwhile us sitting down and walking through what that looks like. But absolutely, right, there's a stockpile and there's a surge capacity in front of the plant. I mean I don't have the number at hand. Maybe Dave does. But I would anticipate that probably less than 1/5 of the material that is direct dumped into the primary crusher. I think the majority of the material is actually rehandled from the stockpile to be able to ensure that we get a consistent feed from not only grade but also arsenic and sulfur, and we get a nice blend of product to get a nice stable feed into the plant that will have a positive impact on recovery. So the stockpile is a critical part of the process here because we don't go direct mine to mill.

And it's Peter here, Anita. We did see an increase of the stockpile from the end of Q1 to the end of Q2, but we can address some of those items perhaps in more detail offline.

Okay. For my second question, I would like to ask about the disclosures regarding the tax situation in Nicaragua and the legal dispute related to the tax rebate, as well as the Aurizona legal matter. Can you provide insights into the tax issue? Do you anticipate a resolution soon, or is this a concern we should have? Additionally, regarding Aurizona, is there a potential impact on your ability to pursue asset sales in Brazil?

Yes, it's Peter here. Regarding Nicaragua, while I can’t go into too much detail as we are still in discussions with the tax authority, there has been a change in tax law. We are quite confident that our Nicaragua operations are covered under the previous regulations, and we believe we will reach a favorable outcome. As for the timeline for resolution, I'm unsure. However, we did not set aside any provisions, which suggests we expect a successful resolution is likely. On the matter of Aurizona, legal matters in Brazil typically proceed very slowly, so we do not anticipate a quick resolution there. Additionally, there is no ongoing process related to Aurizona or any other assets in Brazil that would impede our operations. If there were such issues, we wouldn’t expect them to disrupt the process.

Yes. As it didn't, given this recent merger between Calibre and Equinox.

Exactly, yes.

Okay. And then last question I guess I'll move to Los Filos. So Los Filos in the last two years, Peter, as you guys had indicated previously, has been a bit undercapitalized. You were preserving capital to get the ramp-up at Greenstone up and running. So if Los Filos comes back outside of the CIL, what kind of CapEx should we be expecting in terms of a recapitalization of that mine?

Yes. Anita, I mean, we're working through what a potential restart may look like at Los Filos. And as we have visibility into that, we'll be absolutely transparent with what those requirements are. But our focus right now is working with the two communities on developing a two-community plan, which would involve the construction of a CIL. And that's starting with recommencing exploration activities here in the next, we'll call it, weeks. and then continuing the studies in the background to be able to look at refreshing some of those longer-term economics. So it's really about the longer-term capital requirements and what that asset looks like as a world-class gold asset. And if we're faced with the first world problem of being able to restart, then we'll start to provide that information because those numbers change on a pretty regular basis. And depending on the commitments we make and the agreements we have in place with the communities, that will also impact what that capital start looks like. But we're comfortable that the provisions that we've made and the progress that we've made is preserving our ability to recommence when we do have those agreements in place.

No, I was just going to say, Anita, it's Peter again. And given the longer history perhaps with Los Filos than others in the room, no one will actually be happier than me to have to come forward with that information. So looking forward to the day when we do.

The next question is from Mohamed Sidibe with National Bank Financial.

Just maybe on the cost front in the quarter. I just wanted to maybe dive in a little bit deeper into the Brazilian operations cost. They seem to have been doing better than guidance and better than what I was expecting there. Should we expect those similar unit costs to continue into the back half of the year? Or how should we be thinking about cost out of the Brazilian operations?

Well, maybe I'll start with kind of a 30,000-foot view and then see if Pete's got anything to add to it. But on June 13, I think or thereabouts, we reestablished guidance for the full year, and we're very comfortable with our consolidated and piece guidance for all of our assets going into it. And I think with that, we will see variation on a quarter-to-quarter and month-to-month basis as we see different levels of spend and different reactions too. But again, holistically for the year, we're very comfortable with the guidance. I mean, Pete, anything you'd layer on that?

Just that Brazil, as those who are familiar with the company would know, is very seasonally driven, and we tend to generate most of the production cash flow in the second half of the year, which has obviously an impact on the unit cost overall. But as Darren said, very solidly in range for delivering on our updated guidance.

Yes, I think it's important to mention that there have been capital constraints over the past few years regarding our deployment of capital. As our organization evolves and we generate more capital, we are now able to focus on deploying that capital across our assets. We expect assets like Brazil to perform better as we allocate more resources. This will enhance their ability to assess opportunities and increase reliable production. Whether it's through exploration results or investing in equipment to reduce unit costs, all these factors will have a positive effect on our portfolio. With the significant changes occurring, particularly with Greenstone ramping up and Valentine being imminent, we're entering a new phase that will enable us to reinvest in assets that have not received much attention in recent years. These are indeed exciting times for our entire portfolio.

Great. I would like to shift the conversation to Greenstone. Following up on the grade question, you mentioned an increase in the stockpile at the asset quarter-over-quarter. Could you provide information on the grades of the 6 million tonnes in the stockpile?

Sorry, you broke up there right at the end. Do you mind just repeating that question? Apologies.

Would you be able to tell us what are the grades for the stockpile, the 6 million tonnes of stockpile that you have at Greenstone?

In terms of splits, there's different grade splits. And from memory, Mohamed, I think we're looking at about 6 million tonnes at just over 0.5 gram as a total. And I believe there's about 1.5 million tonnes at about 0.7x in terms of the higher grade portion. So we'll call it the Bin 2. So, but we can get offline and provide more color that you would like. But again, we've got a significant stockpile that's very similar to what we have processed year-to-date and then a larger stockpile of lower-grade material. So we talk about 1.5 million tonnes, basically the average grade processed year-to-date.

Right. And then just final question on Valentine. So in the MD&A, you noted that you have about CAD 54 million left on your total CapEx there. How should we think about the capital spend at the asset as you ramp up, specifically as it relates to development CapEx or initial CapEx on nonsustaining CapEx for that asset in the second half of the year?

The expenditure on the project detailed in the MD&A will carry us through to the first gold output. When considering this, it's important to note that we are nearing the end of the project, and the spending will become more consistent compared to the earlier phases. The best way to view this is as a steady expenditure until we achieve the first gold output. After that, we will see the typical buildup of working capital along with the associated ramp-up costs. We have not yet provided guidance on the costs for Valentine, and it is unlikely we will do so until we reach commercial production. However, you can make reasonable assumptions based on a 2.5 million tonne per year operation.

Yes. And I think that, again, if I was sitting in your issues, Mohamed, I mean I'd be taking average mining costs and average processing costs and using them as the basis for. There is no surprise in terms of we deferred $100 million worth of spend and now it's going to come out in Q4 as opposed for capital. There's none of those shenanigans that have been played out. I mean we've played this pretty straight bet at this at providing updates as we've gone through and the EAC estimates that we foreshadowed, we're tight on, we're comfortable with. And as Pete mentioned, it's really going to be the operating ramp-up, which are tied into basically capital demands from an operating cost perspective as opposed to capital injection per se from being lumpy.

And I'd just add to that, it's fully funded.

Yes, absolutely. It's funded through cash and cash flow. We didn't provide all-in sustaining and cash cost guidance for the end of the year because while we are comfortable with our production estimate, unit costs can vary widely, which can distract from the discussion. However, we are not concerned about our delivery in the second half of the year or our ability to fund it. Our goal is to reach close to nameplate capacity by the end of Q1, but definitely in Q2. We have received significant investment from the Board for capital spares, and the extra time during the build has allowed the operating team to conduct redundancy checks. We have allocated $25 million for additional spending on pumps and redundancies to mitigate any issues that may arise during the ramp-up, which have all been included in the initial project capital.

The next question is from Jeremy Hoy with Canaccord Genuity.

Remaining on the topic of Valentine, could you let us know what the key metrics we should be watching are during the ramp-up process?

Yes, it will be tonnes milled, Jeremy. As soon as we start production, we'll provide regular updates on throughput, which I believe will be the key measure. This is a long-life asset, and there will be fluctuations regarding grade. We're confident in the grade, as we've shown through our previous releases and recent production results. I feel assured it's really going to be about demonstrating a steady state or ramp-up in throughput. That's what matters most. Everything else is somewhat inconsequential in relation to that. Mining rates are looking good, and we've had solid mining performance. All the necessary materials and assets are ready to go. There have been some delays in the project build that have pushed back some of our timelines. However, we're quite confident from a mining perspective, and it's ultimately going to come down to mill throughput.

Appreciate it. One last one and just thinking about the future, there's a lot of exploration potential at some of these assets, and I appreciate that there's focus on ramp-ups and operations at the moment. But are you able to give some sort of loose priority or ranking in terms of where you see the greatest exploration potential?

Yes, thank you, Jeremy. Despite a few developments in our business, our focus remains on exploration. We are actively exploring in Nicaragua, having invested between $70 million and $90 million this year. On July 25, we released some very encouraging results from Nicaragua, which are among the best we have seen from that property. We have also seen success around Valentine and expect to provide an update on recent exploration results from there later this quarter. As we generate cash and move past significant capital expenditures, we can restart work in some areas that have not received enough attention from an exploration standpoint. Los Filos is one such example with our two-community plan moving forward. Maintaining our focus on Nicaragua is crucial, as well as on Valentine, given the potential in both assets. Additionally, Mesquite is a long-term asset that has not seen much capital investment over the past few years, and we plan to initiate exploration programs there in the coming months. I see us as an exploration company supported by $3 billion to $4 billion in revenue. If I were in your position modeling this, I would expect approximately $100 per ounce in exploration spending as an operating cost going forward. We anticipate significant exploration success across all our assets.

The next question is from John Tumazos with John Tumazos Independent Research.

Thank you for the good job that's on. Looking to next year, assuming Los Filos idles as it is at the moment, what is a reasonable target for cash cost company-wide, $1,400, $1,300, $1,200, $1,100? How much better do you think things will get?

I'll step back for a moment. I'll let Pete start, and then I'll jump in to wrap things up. Thanks for the question, John. He's there, considering.

We are fortunate to have plenty of opportunities. However, please note that anything we discuss today is not guidance for next year. If you're estimating, for Q2, on a combined basis, we are close to $1,400 per ounce in cash costs. This is before Greenstone is fully operational and with Valentine not yet contributing. If you want to model this, you could reduce that by about $100 to $150 an ounce. I want to highlight that we will provide guidance in the new year as we typically do. We are beginning to realize the benefits of our larger, lower-cost producers coming online, which I understand is the focus of your question. We look forward to offering more accurate information next year, but if you want to consider it now, that's how I would approach it.

Yes, I may have put Pete in a tough position, and I apologize for that. Looking at the guidance we provided this year, which is $1,400 to $1,500 an ounce, we expect that by 2026, with Valentine and Greenstone contributing more significantly, our production costs per ounce will decrease. Given the current gold market, we anticipate a strong cash flow generation potential. With margins between $1,000 and $1,500 an ounce, we will be in a beneficial situation to first reduce our debt and then, by this time next year, have discussions about ways to return value to shareholders through dividends or share buybacks. However, we do need to navigate the rest of the year to set realistic expectations for 2026. Taking this year's guidance and looking ahead positions us very favorably.

If I could ask you to stick your necks out a little further. Looking to 2027, is it a reasonable goal to be assuming the Castle Mountain capital doesn't start, Los Filos mill doesn't start? Is it a reasonable target to be in a net cash position at current gold prices by the end of '27?

Yes, I think that's reasonable.

Thanks, John. Appreciate your support and continued support over the journey. It is much valued.

This concludes the question-and-answer session. I would like to turn the conference back over to Darren Hall for any closing remarks.

Yes. No, I'd just like to thank everyone for joining the call today and taking the time. It is appreciated. Our continued support is acknowledged, valued and respected. And again, as always, myself and the entire team are available to field any questions after the call and any time during the quarter. So I look forward to continued engagement. And if anyone has any questions, reach out. But other than that, have a wonderful day, and back to you, operator.

This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.