Equinox Gold Corp. · AMEX:EQX
Equinox Gold — Investor Presentation (January 2021)
44 slides from Equinox Gold's investor presentation, Jan 4, 2021
Slide 1: The Premier Americas Gold Producer
equinoxgold.com The Premier Americas Gold Producer CORPORATE PRESENTATION January 4, 2021
Slide 2: Cautionary Statements
Cautionary Statements Forward-looking Statements. This presentation contains certain forward-looking information and forward- Forward-looking statements and information are designed to help readers understand management's views looking statements within the meaning of applicable securities legislati
Slide 3: 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, UNLOCKS 5.5 Moz Hardrock Project VALUE • Hardrock to be developed through a Joint Venture partnership between Equinox Gold and Orion Mine Finance1 • Creates i-80 G
Slide 4: Transaction Highlights
Transaction Highlights Equinox Gold acquiring outstanding shares of Premier Gold at 0.1967 EQX shares per PG share • Proforma ownership: 84% Equinox Gold and 16% Premier, on an issued share basis • Equinox Gold acquiring Premier’s interest in: - Hardrock Project, Ontario, Canada (permitted for const
Slide 5: Equinox Gold: The Premier Americas Gold Producer
Equinox Gold: The Premier Americas Gold Producer Hardrock (50%) 8 4 Producing Growth Castle Mountain Phase 1 & 2 Mines1 Projects2 UNITED STATES i-80 Gold (30%) Mesquite Mercedes MEXICO Aurizona 15.2 Moz 28.2 Moz P&P Gold M&I Gold Reserves3 Resources3 Santa Luz Los Filos / Expansion Pilar BRAZIL ~750
Slide 6: 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 Reserves4 (Moz Au) 3 Evolution 1.32x Northern Star 2.1 Pro Forma PFEquinox Equinox 64% Northern Star 19.4 B2Gold 1.17x Endeavour 1.4 Equinox Equinox 39% Eldorado 16.7 3 Norther
Slide 7: Equinox Gold Proforma: Peer-leading Growth Profile
Equinox Gold Proforma: Peer-leading Growth Profile Sequential development of projects for annual production growth 1,400,000 Existing Production 1,200,000 Castle Mountain Mercedes Annual Gold Production (oz) 1,000,000 Santa Luz – Restart Los Filos – Expansion 800,000 Hardrock Castle Mtn – Expansion
Slide 8: Equinox Gold Proforma: Well Funded to Execute on Growth
Equinox Gold Proforma: Well Funded to Execute on Growth Strong balance sheet and cash flow funds growth1 Cash2 Drawn Bank Debt3 Operating $370 M $300 M Cash Flow4 Unrestricted cash on hand Term loan plus C$75 M financing $370 M $100 M 2020 operating cash flow $90 M Q3 20205 Corporate revolver $170 M
Slide 9: Hardrock Project: Permitted and Development Ready
Hardrock Project: Permitted and Development 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 infrastructure loca
Slide 10: Hardrock Project: Feasibility Highlights
Hardrock Project: Feasibility Highlights • Project is currently owned and managed by Feasibility Study Highlights (base case $1,400/oz Au)2 Greenstone Gold, a 50/50 joint venture company Permitted for between Premier and Orion Mine Finance Group1 Stage construction • Located in Beardmore/Geraldton G
Slide 11: Hardrock Project: Benchmarking
Hardrock Project: Benchmarking One of the highest-grade open-pit gold mines of scale 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 Magin
Slide 12: Launching i-80 Gold Corp.
Launching i-80 Gold Corp. Equinox Gold will hold 30% of this quality, Nevada-focused gold producer 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
Slide 13: Portfolio of Producing and Development Gold Assets
Portfolio of Producing and Development Gold Assets Mercedes Mine, Sonora, Mexico (100%) • 2,000 t/d underground gold and silver mine UNLOCKS • Currently operating at 1,200 t/d for ~50,000 ounces of gold production per year VALUE • Potential to increase throughput toward 80,000 to 90,000 ounces per y
Slide 14: 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 15: Aurizona: Potential for Expansion and Mine Life Extension
Aurizona: Potential for Expansion and Mine Life Extension Current Expansion 120-130,000 oz Upside Potential 2020 production1 Mine life, production, underground • ~1 Moz Reserves with upside • Near-mine extension along strike • Replaced 2019 mining depletion • Regional targets • New Tatajuba resource
Slide 16: Mesquite: Outperforming Expectations
Mesquite: Outperforming Expectations Current Extension 130-140,000 oz Upside Potential 2020 production1 Historical dumps, new deposits • Open-pit heap leach since 1985 • Significant ore-grade oxide material • Replacing mining depletion with remaining in historical dumps exploration success and stack
Slide 17: Castle Mountain: Long-life Low-Cost Mine
Castle Mountain: Long-life Low-Cost Mine 3.6 Moz gold reserves, average AISC ~$763/oz over initial 16-year mine life1 Current Expansion ~40,000 oz ~200,000 oz Avg. annual production1 Avg. annual production2 • First gold pour October 15, 2020 • Phase 2 feasibility targeted for end of 2020 • Phase 1 m
Slide 18: Santa Luz: Full Construction Underway
Santa Luz: Full Construction Underway Restart Project Highlights ($1,500/oz gold) 1 Avg. annual gold production (2022 - 2026) 110,500 oz Avg. annual gold production (Life of Mine) 95,000 oz Total gold production (LOM) 903,000 oz Average gold recovery 84% Initial mine life 9.5 years Initial capex $10
Slide 19: Other Assets in the Americas
Other Assets in the Americas Fazenda (Brazil) • Avg. 75,000 oz/year gold, operating since 1990s • 2020 guidance: 50-55,000 oz at AISC of $925-$975/oz1 • Primarily underground operation with some small open pits • Consistent reserve replacement with exploration success • District potential with Santa
Slide 20: Re-rate Potential as Production Continues to Grow
Re-rate Potential as Production Continues to Grow 1.50x Market cap: US$1 B Kirkland 1.25x Lake Evolution Northern B2Gold Star 1.00x Pretium Yamana P / NAV (ratio) SSR Mining Endeavour Sibanye- Regis Mining Stillwater Centerra 0.75x Eldorado St Barbara Alamos Equinox Gold Equinox Gold 0.50x Torex (Cu
Slide 21: Path to One Million Ounces of Production: Near-term Catalysts
Path to One Million Ounces of Production Near-term Catalysts Operations & Castle Mountain Phase 1 gold pour Development Santa Luz construction start Commence Aurizona underground prefeasibility study Los Filos restart • Los Filos Bermejal Underground and CIL study and construction • Castle M
Slide 22: Appendix
Appendix 22
Slide 23: Premier Transaction: Pro Forma Capitalization
Premier Transaction: Pro Forma Capitalization Millions (except share price) EQX PG Pro Forma 6 Share Price (C$ / US$) 1 $13.10 / $10.35 $2.52 $13.10 / $10.35 Market Cap (C$ / US$) 1 $3.2 B / $2.5 B $598 M $3.8 B / $3.0 B Shares Outstanding 242.4 237.4 289.0 In-the-Money Convertible Notes 2 44.5 - 44
Slide 24: Premier Transaction: A Win for All Shareholders
Premier Transaction: A Win for All Shareholders BENEFITS TO PREMIER GOLD BENEFITS TO EQUINOX GOLD SHAREHOLDERS SHAREHOLDERS • Premier shareholders receive an immediate premium with • Consistent with Equinox Gold’s strategy to grow through i-80 Gold shares and meaningful ownership in a leading accret
Slide 25: Equinox Gold: Comparative Quarterly Highlights
Equinox Gold: Comparative Quarterly Highlights Three months ended Sep 30, Jun 30, Mar 31, Operating data Units 2020 2020(1) 2020(1) Gold produced oz 124,867 127,016 88,951 Gold sold oz 128,437 125,824 82,629 Realized gold price $/oz 1,899 1,712 1,574 AISC per oz sold (2,3) $/oz 1,035 950 994 Financi
Slide 26: Equinox Gold: Aligned with Shareholders
Equinox Gold: Aligned with Shareholders Insider Ownership1 Incentive to Outperform Endeavour Mining 24.1% Equinox Gold Equinox 8.5% Performance B2Gold 1.8% Bonus Stock Units 30% 20% Evolution 1.0% Northern Star 0.9% CEO Pay IAMGOLD 0.7% Structure Restricted OceanaGold 0.7% Stock Units 20% Torex 0.6%
Slide 27: Equinox Gold: COVID-19 Response
Equinox Gold: COVID-19 Response Protecting our workforce, our communities and our business Test – Trace – Isolate Health & Safety Business Continuity Workforce Support Travel restrictions Government engagement Regular communication Remote work policies Contingency plan with suppliers Job protection
Slide 28: Equinox Gold: Committed to Responsible Mining
Equinox Gold: Committed to Responsible Mining Environment Social Governance Equinox Gold is a signatory to Aurizona received Excellence in Insiders have personally the World Gold Council, the Mining & Metallurgy Industry invested to own ~9% of Mining Association of Canada, award in 2018 and 2019 com
Slide 29: 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 30: 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 30
Slide 31: Castle Mountain: Easy Site Access in Safe Jurisdiction
Castle Mountain: Easy Site Access in Safe Jurisdiction Castle Mountain Mesquite 31
Slide 32: Mercedes Mine: Sonora, Mexico
Mercedes Mine: Sonora, Mexico New optimization plan yields positive Q3 2020 results • 100% owned producing underground gold-silver mine Key Metrics • Located in Sonora, Mexico Mine Ownership 100% • Strong Q3 2020 performance Mine Type Underground - Focused on improving operating margins - Consolidat
Slide 33: Hardrock Project: Production and Cost Profile
Hardrock Project: Production and Cost Profile 14-year initial mine life with average AISC of $618/oz1 Annual Gold Production and AISC1 (100%) 500 $1,000 400 $800 Production (koz Gold) AISC ($/oz) 300 $600 200 $400 100 $200 0 $0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Production (000's) (koz) AISC (US$/oz s
Slide 34: 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) Western-most hole In-Pit Underground MM170 Category Units Total (>0.3 g/t Au) (>2.0 g/t Au) 18.49 g/t Au – 20.5m Tonn
Slide 35: Red Lake Properties: Red Lake, Ontario
Red Lake Properties: Red Lake, Ontario Quality exploration assets to drive future growth Two High-quality Exploration Assets within the Hasaga 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 36: Hasaga: Red Lake, Ontario
Hasaga: Red Lake, Ontario A promising discovery in the heart of the Red Lake Camp 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 Hasaga Mine (1938-52) Howey Mine (1930-52) 218k Oz Au @ 4.94 g/t 422k Oz Au @ 3.12
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 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 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 meaning National Instrument (NI) 43-101, was the lead consultant for the Project update. An NI 43-101 Scientific and technical information concerning the Los Filos Mine Complex is summarized, derived, technical report detailing the project update will
Slide 44: Contact
+1 604.558.0560 ir@equinoxgold.com www.equinoxgold.com TSX: EQX | NYSE-A: 44 EQX