Equinox Gold Corp. · AMEX:EQX
Equinox Gold — Investor Presentation (February 2021)
44 slides from Equinox Gold's investor presentation, Feb 9, 2021
Slide 1: 2020 Report Card, 2021 Objectives
equinoxgold.com 2020 Report Card 2021 Objectives VIRTUAL INVESTOR RECEPTION February 9, 2021 1
Slide 2: Cautionary Statements
Cautionary Statements Forward-looking Statements. This presentation contains certain forward-looking information and forward-looking statements actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward- within the meaning of applicable se
Slide 3: 2020 Report Card – We Had a Great Year!
2020 Report Card – We Had a Great Year! The Premier Americas Gold Producer Operations Development Exploration Produce 425,000-465,000 oz of gold1 Advance Castle Mountain Extend Mesquite mine life • Exceeded revised guidance with expansion • Increased Reserves by 28%, Targets and 477,200 oz of gold •
Slide 4: 2020 Report Card – We Had a Great Year!
2020 Report Card – We Had a Great Year! The Premier Americas Gold Producer Corporate Market Growth Strengthen balance sheet Improve trading liquidity and Accretive acquisition • Refinanced debt with low-cost $500M market visibility • Completed acquisition of Targets and corporate credit facility • I
Slide 5: Peer-leading Growth Profile
Peer-leading Growth Profile The Premier Americas Gold Producer 1,500,000 Existing Production Castle Mountain Mercedes* 1,200,000 Santa Luz – Restart Excludes Aurizona Annual Gold Production (oz) Los Filos – Expansion underground, Santa Luz underground, Hardrock* and potential 900,000 Castle Mtn – Ex
Slide 6: Extraordinarily Bullish Macro Fundamentals for Higher Gold Price
Extraordinarily Bullish Macro Fundamentals for Higher Gold Price Demand • Secular uptrend began in Q1 2016 and remains intact • Massive stimulus programs and explosion in sovereign debt in response to COVID-19 “Gold investment pandemic are debasing all global currencies • Negative interest rates dem
Slide 7: Right Time to Build a MAJOR Global Gold Company
Right Time to Build a MAJOR Global Gold Company The market rewards scale and diversification • Less risk and broader investment appetite 1.1x • Overhead costs lower per ounce • Reduced cost of capital 0.8x • More funds available for shareholder returns Equinox Gold set for 2021 outperformance • Enha
Slide 8: Re-rate Potential: EQX is the Growiest Gold Company in the World
Re-rate Potential: EQX is the Growiest Gold Company in the World Evolution Kirkland 1.25x Market Lake cap: US$1 B Northern Star B2Gold 1.00x P / NAV (ratio) Pretium Yamana Sibanye- SSR Mining Stillwater Centerra Regis Endeavour 0.75x Mining St Barbara Alamos Eldorado EQX EQX EQX EQX 2020 OceanaGold
Slide 9: Proforma Asset Diversification Across Four Countries
Proforma Asset Diversification Across Four Countries Canada USA 5.5 Moz Reserves (50% attributable to EQX)1 ~400 Koz annual production (50% attributable to EQX) 4.2 Moz Reserves First production in 2024 ~180 Koz annual production >300 Koz with expansions2 Mexico Brazil 4.7 Moz Reserves1 3.4 Moz Rese
Slide 10: 2021 Guidance: Existing Assets
2021 Guidance: Existing Assets Non- Production Cash Costs1 AISC1,2 Sustaining sustaining (ounces) ($/ounce) ($/ounce) Capital1 Capital1 Mexico Significant 2021 investment = 2022 Los Filos 170,000 - 190,000 $1,125 - $1,200 $1,330 - $1,390 $38 M $95M production growth USA to ~900,000 oz with Mesquite
Slide 11: Equinox Gold: Existing Assets
Equinox Gold: Existing Assets Los Filos Mine, Guerrero, Mexico (100%) • Up to 200,000 oz annual production expandable to 350,000+ oz • 58,500 oz of gold produced in 2020 in truncated year1 • Significant investment in 2021 to advance expansion projects, access Mexico higher-grade ore • 2021 guidance:
Slide 12: Equinox Gold: Existing Assets
Equinox Gold: Existing Assets Aurizona Mine, Maranhão, Brazil (100%) • 130,300 oz of gold produced in 2020 • Near-mine and regional exploration, advancing PFS for potential underground mine • 2021 guidance: 120,000 - 130,000 oz at AISC of $1,075 - $1,125 per oz Brazil Fazenda Mina, Bahia, Brazil (10
Slide 13: Existing Growth and Development Projects
Equinox Gold: Existing Growth and Development Projects Los Filos Expansion, Guerrero, Mexico (100%) • Expansion projects to achieve 350,000+ oz per year target • Developing additional open-pit and underground mines • Finalizing study for new 8,000 t/d carbon-in-leach plant for high-grade ore Mexico
Slide 14: 2021 Guidance: Investing for Growth
2021 Guidance: Investing for Growth Significant investment in 2021 leads to production of ~900 Koz in 2022 and ~1 Moz from 2023 Sustaining Capex • Los Filos: Open-pit waste stripping ($13M), underground development ($9M), Sustaining Capex Non-Sustaining fleet rebuilds and processing equipment ($13M)
Slide 15: Premier Gold Acquisition Highlights
Premier Gold Acquisition Highlights Equinox Gold acquiring outstanding shares of Premier Gold at 0.1967 Equinox Gold shares per Premier share • Equinox Gold acquiring Premier’s interest in: - Hardrock Project (50%), Ontario, Canada (permitted for construction) - Mercedes Mine, Mexico (~50,000 oz/yea
Slide 16: Premier Gold’s Hardrock Project: Permitted and Construction Ready
Premier Gold’s Hardrock Project: Permitted and Construction Ready The Hardrock Project is one of the most attractive development assets in Canada • Large-scale with over 5.5 Moz in reserves1 • Average annual gold production of 414,000 oz for first five years, 358,000 oz life of mine1 • Excellent inf
Slide 17: Hardrock: One of the Highest-grade Open-pit Gold Projects in Canada
Hardrock: One of the Highest-grade Open-pit Gold Projects in Canada Reserve Grade and Estimated Annual Production of Open-pit Gold Projects in Canada1 Producing Development 2.0 Lynn Lake 1.5 Hardrock Reserve Grade (g/t Au) Valentine Lake Canadian Malartic Moose River Magino Rainy River 1.0 Dublin Gu
Slide 18: Other Premier Gold Assets
Other Premier Gold Assets Mercedes Mine, Sonora, Mexico (100%) • 2,000 t/d underground gold and silver mine • Currently operating at 1,200 t/d for ~50,000 ounces of gold production per year • Potential to increase throughput toward 80,000 to 90,000 ounces per year Acquiring producing and Hasaga Proj
Slide 19: Equinox Gold: Well Positioned Within Peer Group
Equinox Gold: Well Positioned Within Peer Group P/NAV1 (x) 2024E Production1 (Moz Au) 2021E - 2024E Prod. Growth1 (%) Total Reserves3 (Moz Au) 2 Evolution 1.20x Northern Star 2.1 Pro Forma Equinox PF Equinox 77% 77% Northern Star 19.4 Northern Star 1.12x Endeavour 1.4 Equinox Equinox 48% Eldorado 17
Slide 20: Funded to Execute on Growth
Funded to Execute on Growth Cash1 Drawn Bank Debt3 Operating Strong balance $400 M $300 M Cash Flow4 sheet and cash Unrestricted cash on flow funds hand plus C$75 M Term loan 2020 operating growth financing $100 M cash flow $400 M $90 M Q3 20205 $170 M Q1-Q3 20205 Corporate revolver Available liquid
Slide 21: 2021 Objectives
2021 Objectives The Premier Americas Gold Producer Operations Development • HSE: Manage COVID-19, stay safe • Complete Los Filos feasibility study, advance and healthy expansion projects Investing • ESG: Set targets, expand • Complete Castle Mountain feasibility study, for growth disclosures, improv
Slide 22: Committed to Responsible and Ethical Mining: Strong ESG Commitment
Committed to Responsible and Ethical Mining: Strong ESG Commitment Health and safety Air quality (incl. vibration and noise) Waste and tailings facility management Community engagement and development Water management Human rights and diversity Energy and greenhouse gas emissions Human resources and
Slide 23: Peer-leading Insider Ownership
Peer-leading Insider Ownership Insider Ownership2 Endeavour Mining 24.1% 8% 0.5% Equinox Gold Equinox 8.5% Equinox Gold Ross Beaty B2Gold 1.8% Shareholders1 17% Other Insiders Evolution 1.0% High Net Worth Northern Star 0.9% 55% Retail/Other IAMGOLD 0.7% 15% Corporate OceanaGold 0.7% Institutional T
Slide 24: Equinox Gold: The Premier Americas Gold Producer
Equinox Gold: The Premier Americas Gold Producer 8 4 Producing Growth Mines1 Projects2 Hardrock (50%) Castle Mountain / Expansion Mesquite 15.2 Moz 28.2 Moz Mercedes P&P Gold M&I Gold Reserves3 Resources3 Aurizona Santa Luz Los Filos / Expansion >1 Moz >$600 M Pilar Path to Gold Total Liquidity Prod
Slide 25: Appendix
Appendix 25
Slide 26: Pro Forma Capitalization
Equinox Gold: Pro Forma Capitalization (as at Dec 15, 2020 unless otherwise noted) Millions (except share price) Equinox Gold Premier Gold Pro Forma 6 Share Price (C$ / US$) 1 $12.68 / $9.96 $3.32 $12.55 / $9.85 Market Cap (C$ / US$) 1 $3.1 B / $2.4 B $780 M $3.7 B / $2.9 B Shares Outstanding 242.4
Slide 27: Equinox Gold: Aligned with Shareholders
Equinox Gold: Aligned with Shareholders The Premier Americas Gold Producer Performance Stock Units Bonus 20% Executive compensation 30% Incentive to CEO Pay Restricted • CEO and Executive compensation heavily weighted toward Outperform Structure Stock corporate and market performance Units 20% • Ind
Slide 28: Acquiring Premier Gold: Unlocking Value, Executing on Growth
Acquiring Premier Gold: Unlocking Value, Executing on Growth • Equinox Gold acquires a 50% interest in the permitted, development-ready, 5.5 Moz UNLOCKS Hardrock Project VALUE • Hardrock to be developed through a Joint Venture partnership between Equinox Gold and Orion Mine Finance • Creates i-80 Go
Slide 29: Equinox Gold / Premier Gold Transaction: A Win for All Shareholders
Equinox Gold / Premier Gold Transaction: A Win for All Shareholders Benefits to Premier Gold shareholders Benefits to Equinox Gold shareholders • Premier shareholders receive an immediate premium • Consistent with Equinox Gold’s strategy to grow through with i-80 Gold shares and meaningful ownership
Slide 30: Hardrock Project: Feasibility Highlights
Hardrock Project: Feasibility Highlights Feasibility Study Highlights (base case $1,400/oz Au)1 Permitted for Stage construction • Project is currently owned and managed by Greenstone Gold, a 50/50 joint venture company Mine type Open pit between Premier and Orion Mine Finance Group Throughput 27,00
Slide 31: Hardrock Project: Production and Cost Profile
Hardrock Project: Production and Cost Profile Annual Gold Production and AISC1 (100%) 500 $1,000 Production (koz Gold) 400 $800 14-year initial mine AISC ($/oz) 300 $600 life with average AISC of $618/oz1 200 $400 100 $200 0 $0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Production(koz) Production (000's) AISC
Slide 32: Hardrock Project: Upside in Greenstone Gold District
Hardrock Project: Upside in Greenstone Gold District Upside from underground and satellite deposits Hardrock Mineral Resource Estimate1,2 (100% basis) (exclusive of Mineral Reserves) In-Pit Underground Category Units Total (>0.3 g/t Au) (>2.0 g/t Au) Western-most hole MM170 Tonnes (Mt) 5.97 9.97 15.
Slide 33: Mercedes Mine: Sonora, Mexico
Mercedes Mine: Sonora, Mexico New optimization plan yields positive Q3 2020 results Key Metrics Mine Ownership 100% • 100% owned producing underground gold-silver mine Mine Type Underground • Located in Sonora, Mexico 2,000 t/d Plant Throughput Capacity • Strong Q3 2020 performance (operating at 1,2
Slide 34: Red Lake Properties: Red Lake, Ontario
Red Lake Properties: Red Lake, Ontario Quality exploration assets to drive future growth Hasaga Two High-quality Exploration Assets within the Historic Red Lake Gold District Hasaga (100% owned) • Hasaga was the first mine developed in the Red Lake camp, with only minimal exploration since 1952 • Pr
Slide 35: Hasaga: Red Lake, Ontario
Hasaga: Red Lake, Ontario Hasaga, Ontario HMP155-W1 11.8 m of 2.66 g/t Au HMP167-W1 Incl. 3.5 m of 6.01 g/t Au 3.5 m of 76.12 g/t Au Incl. 0.6 m of 455.00 g/t Au A promising Hasaga Mine (1938-52) 218k Oz Au @ 4.94 g/t Howey Mine (1930-52) 422k Oz Au @ 3.12 g/t discovery in the Buffalo O/P Howey HMP1
Slide 36: Launching i-80 Gold Corp.
Launching i-80 Gold Corp. Track Record of Value Creation Quality Growth Pipeline 34,000 – 40,000 oz in 2020 OREGON IDAHO McCoy-Cove South Arturo production guidance PEA and exploration permitting complete History of Deal-Making Success Getchell South Arturo South Arturo and McCoy-Cove acquired (100%
Slide 37: i-80 Gold: Overview
i-80 Gold: Overview Quality portfolio of high-grade assets with ~2.5 Moz M&I Resources and 2.1 Moz Inferred Resources1 High Quality Cornerstone producing South Arturo mine operated by Newmont and Barrick’s Nevada JV Portfolio Highly prospective pipeline of development and exploration assets dr
Slide 38: Equinox Gold: Proven & Probable Mineral Reserves
Equinox Gold: 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 Moun
Slide 39: Equinox Gold: Measured & Indicated Mineral Resources
Equinox Gold: 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 1.70 1,097 34,330 1.62 1,793 Cast
Slide 40: Equinox Gold: Inferred Mineral Resources
Equinox Gold: 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 73,980 0.32 752 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 7,265 2.07 483 Tot
Slide 41: Premier Gold: Mineral Reserves
Premier Gold: Mineral Reserves GOLD (Au) PROVEN RESERVES PROBABLE RESERVES PROVEN+PROBABLE RESERVES Grade Tonnes Grade Au Ounces Tonnes Grade PROPERTY Tonnes Mt Au Ounces 000's Au Ounces 000's g/t Au Mt g/t Au 000's Mt g/t Au Greenstone (50% Hardrock)* 2.81 1.28 116 64.85 1.27 2,654 67.66 1.27 2,770
Slide 42: Premier Gold: Mineral Resources
Premier Gold: Mineral Resources GOLD (Au) MEASURED RESOURCES INDICATED RESOURCES MEA+IND RESOURCES INFERRED RESOURCES Tonnes Grade Au Ounces Tonnes Grade Au Ounces Tonnes Grade Au Ounces Tonnes Grade Au Ounces PROPERTY Mt g/t Au 000's Mt g/t Au 000's Mt g/t Au 000's Mt g/t Au 000's Greenstone Proper
Slide 43: Technical Disclosure
Technical Disclosure National Instrument 43-101 Project update. An NI 43-101 technical report titled “NI 43-101 Technical Report, Hardrock Project, Ontario, Scientific and technical information concerning the Los Filos Mine Complex is summarized, derived, or extracted Canada” detailing the project u
Slide 44: Contact: ir@equinoxgold.com
+1 604.558.0560 ir@equinoxgold.com www.equinoxgold.com 44 TSX: EQX | NYSE-A: EQX