Equinox Gold Corp. · AMEX:EQX
Equinox Gold — Shareholder Meeting (May 2020)
42 slides from Equinox Gold's shareholder meeting presentation, May 15, 2020
Slide 1: The Premier Americas Gold Producer
equinoxgold.com The Premier Americas Gold Producer ANNUAL GENERAL MEETING & CORPORATE UPDATE May 15, 2020
Slide 2: Cautionary Statements
Cautionary Statements Forward-looking Statements This presentation contains certain forward-looking information and forward-looking statements within the Company assumes no obligation and does not intend to update or to publicly announce the the meaning of applicable securities legislation and may i
Slide 3: Leadership Team
Leadership Team ROSS BEATY NEIL WOODYER CHRISTIAN MILAU LENARD BOGGIO MARYSE BÉLANGER CHAIR VICE CHAIR DIRECTOR & CEO LEAD DIRECTOR DIRECTOR (Independent) (Independent) (Independent) TIM BREEN GORDON CAMPBELL GEN. WESLEY CLARK MARSHALL KOVAL PETER MARRONE DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR
Slide 4: 2019 Report Card
2019 Report Card Targets Accomplishments Operations Produce 200,000-235,000 oz • Achieved commercial production at Aurizona at AISC1 of $940-$990/oz • Achieved production guidance with 201,018 oz of gold • Beat cost guidance with AISC1 of $931/oz Exploration • Exploration success along strike at Aur
Slide 5: 2019 Report Card (cont.)
2019 Report Card (cont.) Targets Accomplishments Refinance balance sheet • US$130 M convertible notes with Mubadala, new strategic financial partner • Retired higher cost debt Improve liquidity and • NYSE American listing, TSX listing market visibility • Average daily trading value increased 400% vs
Slide 6: 2020 Targets
2020 Targets Targets Accomplishments Operations & • Optimize and expedite Los Filos expansion Development • Expedite Santa Luz restart • Complete Castle Mountain Phase 1 for 45,000 oz/yr gold1 • Review Castle Mountain Phase 2 for 200,000 oz/yr gold1 Complete PEA for Aurizona underground mine2 Expl
Slide 7: Peer-leading Growth Profile
Peer-leading Growth Profile Growing production in mining friendly jurisdictions 1,200,000 1,000,000 Los Filos - Current Gold Production (oz) Pilar 800,000 Fazenda RDM Aurizona 600,000 Mesquite Castle Mtn - Phase 1 Los Filos - Expansion 400,000 Castle Mtn - Phase 2 Santa Luz 200,000 0 2018 2018 EQX20
Slide 8: The Premier Americas Gold Producer
The Premier Americas Gold Producer 6 4 Castle Mountain Phase 1 & 2 PRODUCING GROWTH MINES PROJECTS UNITED STATES Mesquite MEXICO Aurizona 12.2 Moz 21.9 Moz P&P GOLD M&I GOLD RESERVES RESOURCES1 Santa Luz Los Filos / Expansion Pilar BRAZIL ~570 Koz ~$1,030/oz GOLD PRODUCTION ALL-IN-SUSTAINING IN 2020
Slide 9: Enhanced Scale Creates Re-rate Opportunity
Enhanced Scale Creates Re-rate Opportunity Potential for further re-rate as production continues to grow 2.00x 1.75x B2Gold Kirkland Lake Evolution 1.50x Northern Yamana Star Pretium Saracen 1.25x Endeavour P / NAV (ratio) SSR Centerra Regis Mining Mining 1.00x St Barbara Alamos Equinox Gold Torex (
Slide 10: Right Time to Build a Gold Company
Right Time to Build a Gold Company Gold Equities Still Undervalued $2,000 $150 $1,900 $135 $1,800 $120 $1,700 $105 Gold Price (US$/oz) $1,600 $90 Gold ETFs (US$) $1,500 $75 $1,400 $60 $1,300 $45 $1,200 $30 $1,100 $15 $1,000 $0 2010 2009 2011 2010 2012 2011 2013 2012 2014 2013 2015 2014 2016 2015 201
Slide 11: Extraordinarily Bullish Macro Fundamentals
Extraordinarily Bullish Macro Fundamentals Gold Equities Rallying 60% • Synchronized global easing 50% • Fiat currencies being debased 40% • Zero or negative interest rates 30% • Supply issues: COVID-19, lack of exploration 20% • Remember lessons from 5,000 10% years of monetary history! 0% -10% -20
Slide 12: Quarterly Results
Quarterly Results Core shack Aurizona Mine, Brazil 12
Slide 13: Q1-2020: Operating Results
Q1-2020: Operating Results Health & Safety • Total Recordable Injury Frequency Rate of 2.3 / million hours worked • Three lost-time injuries Combined operating results 88,951 oz • Produced 88,951 oz gold Gold Produced • Mine cash costs $849/oz and AISC $968/oz gold sold1 82,629 oz • Sold 82,629 oz g
Slide 14: Q1-2020: Financial Results
Q1-2020: Financial Results Consolidated financial results • Revenue $130.0 M $50 M • Mine operating earnings $43.2 M Adjusted EBITDA1,2 • EBITDA $65.3 M (adjusted $49.5 M)1,2 • Net income $10.9 M (adjusted $17.1 M)1,2 • Cash from ops before changes in working capital $23.2 M $43 M Mine Operating Ear
Slide 15: Q1-2020: Development & Corporate Highlights
Q1-2020: Development & Corporate Highlights Development • Castle Mountain Phase 1 construction 75% complete Successfully • Advanced Phase 2 Castle Mountain feasibility study integrated merger • Advanced Los Filos expansion activities • Advanced engineering review for Santa Luz restart Fully funded C
Slide 16: Operational Update
Operational Update Los Filos Mine Complex Guerrero State, Mexico 16
Slide 17: COVID-19 Response
COVID-19 Response Protecting our workforce and communities Protecting our business Health & Safety Business Continuity Workforce Support Travel restrictions Government engagement Regular communication Remote work policies Contingency plan with suppliers Job protection Restrictions to site access Alt
Slide 18: 2020 Production and Cost Guidance (post merger)
2020 Production and Cost Guidance (post merger)1 Guidance to be updated when practical after Los Filos resumes operations Production AISC3,4 Sustaining Non-Sustaining (oz) ($/oz) Capital1 Capital1 Los Filos1,2 170,000 - 190,000 $1,000 - $1,050 $24 M $51 M Aurizona 115,000 - 125,000 $1,100 - $1,150 $
Slide 19: Los Filos: Expansion Project Underway
Los Filos: Expansion Project Underway Current Expansion ~180,000 oz/yr 350,000+ oz/yr Production Avg. annual production 3.2 Moz life-of-mine production2 • 4.5 Moz Reserves with upside • Expansion project underway • Open-pit and underground mining - Additional open-pit and • Heap leach processing und
Slide 20: Aurizona: Potential for Expansion and Mine Life Extension
Aurizona: Potential for Expansion and Mine Life Extension Current Expansion 115-125,000 oz Upside Potential 2020 production1 Mine life, production • ~1 Moz Reserves with upside • Near-mine extension along strike • Replaced 2019 mining depletion • Regional targets • New Tatajuba resource • Positive s
Slide 21: Aurizona: PEA Results for Underground Mine
Aurizona: PEA Results for Underground Mine1 Potential to increase production and extend mine life 741 Koz $925/oz GOLD PRODUCTION ALL-IN-SUSTAINING COSTS2 $228 M 38% IRR NPV5% at $1,620/oz At $1,620/oz 2.8 g/t 2,800 t/d AVG. GOLD GRADE UNDERGROUND MILL FEED $70 M $1.2 B INITIAL CAPEX REVENUE at $1,6
Slide 22: Castle Mountain: Two-phase Expansion Project
Castle Mountain: Two-phase Expansion Project Long-life Phase 1 Low-cost Mine 45,000 oz / year1 $58 M Capex 3.6 Moz Gold Reserves 16 Year Initial Mine Life1 Phase 2 $763/oz 200,000 oz / year1 ~$175 M Capex + Fleet Avg. Life-of-Mine AISC2 Q3-2020 Gold Pour 1. As per the July 2018 pre-feasibility study
Slide 23: Santa Luz: Re-start Plan
Santa Luz: Re-start Plan1 11-yr Mine Life Restart Plan $82 M Capex • Existing infrastructure and permits • Resin-in-leach processing retrofit 1.3 Moz • Upside potential - Exploration of two parallel trends Gold Reserves - Potential underground mine ~100,000 oz Avg. Annual Production $856/oz Avg. LOM
Slide 24: Other Assets in the Americas
Other Assets in the Americas Mesquite (California) • Open-pit heap leach mine in operation since 1985 • M&I Resources of 0.43 Moz1, excluding P&P Reserves of 0.58 Moz • 2020 guidance: 120-130,000 oz at AISC of $975-$1,025/oz2 Fazenda (Brazil) • Primarily underground mining with 1.3 Mtpa CIL plant •
Slide 25: Peer-leading Capital Markets Growth
Peer-leading Capital Markets Growth More than C$25 M daily liquidity $2,500 $30 Avg. Market Cap (C$M) Avg. Daily Trading Value (C$M) $25 $2,000 Average Daily Trading Value (C$M) Average Market Cap (C$M) $20 $1,500 $15 $1,000 $10 $500 $5 $0 $0 Dec 17 Jun 18 Dec 18 Jun 19 Dec 19 Jan-May 20 Notes: Mark
Slide 26: Peer-leading Insider Ownership
Peer-leading Insider Ownership Insiders own 11% of the Company Equinox Gold Shareholders Insider Ownership1 Endeavour Mining 30.6% Equinox Gold Equinox 10.6% 9% Ross Beaty 20% 2% B2Gold 1.8% Alacer 1.0% 8% Other Insiders Evolution 1.0% Corporate Northern Star 0.9% IAMGOLD 0.7% 17% Institutional Ocea
Slide 27: Fully Funded for Growth: 2020 Catalysts
Fully Funded for Growth 2020 Catalysts Operations & • Los Filos expansion and CIL construction start Development • Santa Luz construction start • Castle Mountain Phase 1 gold pour • Castle Mountain Phase 2 feasibility study • Commence Aurizona underground prefeasibility study Exploration • Extend mi
Slide 28: Appendix
Appendix 28
Slide 29: Equinox Gold Corporate Summary
Equinox Gold Corporate Summary Common Shares 1 216.2 M Fully Diluted Shares 4 266.9 M Listed Warrants @ C$15.00 2 16.1 M Avg. Daily Trading Value 5 ~ C$17.8 M + US$8.7 M Unlisted Warrants @ avg C$9.60 1,2 23.8 M Cash / Drawn Debt 6 $303 M / $512 M Options @ avg C$7.27 1,2 7.9 M Equity Settled Notes
Slide 30: Comparative Quarterly Highlights
Comparative Quarterly Highlights Three months ended March 31, December 31, September 30, Operating data Units 2020 2019 2019 Gold produced oz 88,951 80,176 62,656 Gold sold oz 82,629 80,330 62,379 Realized gold price $/oz 1,574 1,482 1,473 Mine AISC per oz sold (1,2) $/oz 968 848 953 Financial data
Slide 31: Committed to Continuous Improvement and Responsible Mining
Committed to Continuous Improvement and Responsible Mining Environment Social Governance Equinox Gold is a signatory to Aurizona received Excellence in Insiders have personally the International Cyanide Mining & Metallurgy Industry invested to own ~11% of Management Code; Mesquite award in 2018 and
Slide 32: Peer-leading Gold Reserves, Diversified Asset Base
Peer-leading Gold Reserves, Diversified Asset Base One third of 12.2 Moz P&P Reserves and 21.9 Moz Castle Mountain Phase 1 & 2 M&I Resources1 is in each of USA UNITED STATES the USA, Mexico and Brazil Mesquite 4.1 Moz Reserves MEXICO Aurizona Castle Mountain Mesquite Santa Luz Los Filos / Expansion
Slide 33: Los Filos: Expansion Activities Underway
Los Filos: Expansion Activities Underway GUADALUPE OPEN PIT 9 years 34.5 Mt at 1.37 g/t; 1.520 Moz1 BERMEJAL OPEN PIT 5 years 34.6 Mt at 0.57 g/t; 0.631 Moz1 BERMEJAL UNDERGROUND 9 years 6.4 Mt at 6.57 g/t; 1.348 Moz1 Uncrushed Offices & Leach Pad #1 Workshops LOS FILOS OPEN PIT Crush 7 years Crushe
Slide 34: Aurizona: Mine Life Extension Along Strike
Aurizona: Mine Life Extension Along Strike PIABA NORTH TREND Tatajuba grades similar GENIPAPO MESTRE or higher than Piaba: CHICO • 13.74 g/t Au/ 35 m • 2.71 g/t Au/ 56 m PIABA MICOTE • 2.47 g/t Au/ 69 m • 1.42 g/t Au/ 34 m • 1.14 g/t Au/ 120 m TATAJUBA BOA High-grade near-surface PIABA TREND ESPERAN
Slide 35: Aurizona: Mine Life Extension Underground
Aurizona: Mine Life Extension Underground Framing the future: a new combined open-pit and underground resource 2019 Reserve Pit 2019 Resource Pit • Expanded underground resource - Indicated: 460 Koz @ 1.96 g/t Au, Inferred: 1.1 Moz @ 1.98 g/t Au1 • Open-pit extends to 200 m depth, 190 drill holes be
Slide 36: Aurizona: District-scale Potential on EQX Land Package
Aurizona: District-scale Potential on EQX Land Package Numerous regional targets within ~1,100 km2 land package 36
Slide 37: Castle Mountain: Easy Site Access in Safe Jurisdiction
Castle Mountain: Easy Site Access in Safe Jurisdiction Castle Mountain Mesquite 37
Slide 38: Proven & Probable Mineral Reserves
Proven & Probable Mineral Reserves Proven Probable Proven and Probable Mine/Project Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained (kt) (g/t) gold (koz) (kt) (g/t) gold (koz) (kt) (g/t) gold (koz) Aurizona 12,399 1.51 600 7,379 1.51 358 19,778 1.51 958 Castle Mountain 136,611 0
Slide 39: Measured & Indicated Mineral Resources
Measured & Indicated Mineral Resources Measured Indicated Measured and Indicated Mine Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained (kt) (g/t) gold (koz) (kt) (g/t) gold (koz) (kt) (g/t) gold (koz) Aurizona 14,264 1.52 697 20,066 1.7 1,097 34,330 1.62 1,793 Castle Mountain 160
Slide 40: Inferred Mineral Resources
Inferred Mineral Resources Contained Gold Mine Tonnes (kt) Grade (g/t) (koz) Aurizona 17,267 1.98 1,100 Castle Mountain 171,395 0.40 2,210 Mesquite 23,542 0.46 349 Los Filos 98,204 0.83 2,633 RDM 8,305 1.50 401 Fazenda 6,040 2.45 476 Pilar 20,399 3.21 2,108 Santa Luz 7,700 2.02 501 Total Inferred 35
Slide 41: Technical Disclosure
Technical Disclosure National Instrument 43-101 There is no certainty that the mine plans and economic models contained in any of the reports Unless otherwise stated, scientific and technical information concerning the Mesquite Mine is will be realized. Readers are further cautioned that mineral res
Slide 42: Contact: ir@equinoxgold.com
+1 604.558.0560 ir@equinoxgold.com www.equinoxgold.com TSX: EQX | NYSE-A: 42 EQX