Equinox Gold Corp. · AMEX:EQX
Equinox Gold — Shareholder Meeting (May 2021)
49 slides from Equinox Gold's shareholder meeting presentation, May 5, 2021
Slide 1: The Premier Americas Gold Producer
equinoxgold.com The Premier Americas Gold Producer AGM, Q1 RESULTS & CORPORATE UPDATE May 5, 2021 1
Slide 2: Cautionary Notes
Cautionary Notes Forward-looking Statements. This presentation contains certain forward-looking information and forward-looking Forward-looking statements and information are designed to help readers understand management’s views as of that time statements within the meaning of applicable securities
Slide 3: Equinox Gold Board of Directors
Equinox Gold Board of Directors ROSS BEATY LENARD BOGGIO MARYSE BÉLANGER TIM BREEN GORDON CAMPBELL Chairman Lead Director Director Director Director (Independent) (Independent) (Independent) (Independent) GEN. WESLEY CLARK DR. SALLY EYRE MARSHALL KOVAL CHRISTIAN MILAU Director Director Director Dire
Slide 4: Creating the Premier Americas Gold Producer
Creating the Premier Americas Gold Producer 2018 2019 2020 • Financed and commenced • Refinanced our debt • Added four producing mines and a construction of Aurizona Mine • Mubadala as strategic development-stage project with Look what we’ve • Completed prefeasibility study stakeholder Leagold acqui
Slide 5: Today's Equinox Gold: The Premier Americas Gold Producer
Today’s Equinox Gold: The Premier Americas Gold Producer 7 4 Producing Growth Mines Projects Greenstone (60%) Castle Mountain / Expansion 16.1 Moz 29.4 Moz Mesquite P&P Gold M&I Gold Reserves Resources1 Mercedes ~630 Koz ~$1,230/oz Aurizona Santa Luz Los Filos / Expansion Gold Production All-in-Sust
Slide 6: Track Record of Value Creation
Track Record of Value Creation1 Buy: Mesquite Mine Build: Aurizona Mine Launch: Solaris Resources Acquisition cost: Construction cost: Spin-out value: $158 M $160 M $33 M (40% EQX, 60% EQX shareholders) Value creation to date: Value creation to date: Value creation to date: • 316,000 gold oz produce
Slide 7: Outperforming Gold and the Indices
Outperforming Gold and the Indices EQX Performance vs Gold, Peers1 & Indices Since Start of Trading 250% $60 Market Performance Since Dec 22, 2017 Equinox Gold has 200% $50 EQX Daily Trading Value (US$M)1 outperformed gold, the indices and its 150% $40 peers since the start of trading on 100% $30 De
Slide 8: Why We Are Building a Major Gold Company
Why We Are Building a Major Gold Company The market rewards scale and diversification Equinox Gold set to outperform • Less risk and broader investment appetite • Enhanced scale and diversity with Premier 1.1x acquisition • Overhead costs lower on a per ounce basis • Catalyst rich investment plans •
Slide 9: 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 10: 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 11: Quarterly Results
Quarterly Results Aurizona Mine – core shack 11 11
Slide 12: Q1 2021 Operating Results
Q1 2021 Operating Results Health, safety and environment • Awarded 2020 Chairman’s Safety Award to Castle Mountain 3 LTI’s ACROSS ALL SITES IN Q11 • Three LTI’s in Q1 2021 over more than 4 M work hours • Aurizona experienced a 1-in-10,000-year rain event COVID-19 impact 129,233 oz • No COVID-19 rest
Slide 13: Q1 2021 & Recent Corporate Highlights
Q1 2021 & Recent Corporate Highlights Exploration & Development • Announced positive drill results at depth and along strike at Aurizona Added Greenstone and Mercedes • Completed Castle Mountain Phase 2 feasibility study showing average gold to portfolio production of 218,000 oz/year for 14 years at
Slide 14: Q1 2021 Financial Highlights & Recent Developments
Q1 2021 Financial Highlights & Recent Developments Consolidated financial results • Revenue $229.7 M $318 M • Mine operating earnings $44.2 M CASH AND EQUIVALENTS • Adjusted EBITDA $60.5 M1 • Net income $50.3 M / $0.21 (basic) per share • Adjusted net loss $3.6 M / $0.02 (basic) per share1 $230 M -
Slide 15: Guidance Updated to Reflect Q2 2021 Asset Sale / Acquisitions
Guidance Updated to Reflect Q2 2021 Asset Sale / Acquisitions Non- Production Cash Costs1 AISC1,2 Sustaining sustaining (ounces) ($/ounce) ($/ounce) Capital1 Capital1 Mesquite 130,000 - 140,000 $925 - $975 $1,275 - $1,325 $48 M $9 M Significant 2021 investment = 2022 Castle Mountain 30,000 - 40,000
Slide 16: ESG 2020 Performance: All Safety and Environmental Targets Achieved
ESG 2020 Performance: All Safety and Environmental Targets Achieved ENVIRONMENT COMMUNITIES SAFETY HEALTH Achieved all 2020 More than 40 All 2020 safety targets More than 18,000 COVID-19 environmental targets, no communities directly met, 25% better than tests performed, no production off-site envir
Slide 17: Operational Update
Operational Update Aurizona Mine – keying doré bar 17
Slide 18: Equinox Gold: Operating Mines – Q1 Results and Outlook
Equinox Gold: Operating Mines – Q1 Results and Outlook Mesquite Mine, California, USA (100%) • 2021 guidance: 130,000 - 140,000 oz at AISC of $1,275 - $1,325 per oz • Significant stripping campaign underway to access higher-grade ore, exploration focused on mine life extension • Q1: Produced 23,147
Slide 19: Equinox Gold: Operating Mines – Q1 Results and Outlook
Equinox Gold: Operating Mines – Q1 Results and Outlook Aurizona Mine, Maranhão, Brazil (100%) • 2021 guidance: 120,000 - 130,000 oz at AISC of $1,075 - $1,125 per oz • Underground potential, near-mine and regional exploration underway • Advancing prefeasibility study and reserve update for potential
Slide 20: Equinox Gold: Growth and Development Projects
Equinox Gold: Growth and Development Projects Santa Luz Construction, Bahia, Brazil (100%) • Average 110,500 oz annual production for first five years • Initial 9.5-year mine life, expansion potential from underground resources Sequential • $362 M after-tax NPV5% and 67% IRR at $1,600/oz gold develo
Slide 21: Santa Luz Project: Full Construction Underway
Santa Luz Project: Full Construction Underway First gold pour targeted for Q1 2022 • Past producing mine: refurbishing existing infrastructure and retrofitting processing plant • $103 M initial capex • $21 M sustaining capex • After-tax NPV5% $420 M (at $1,700/oz gold) • After-tax IRR 75% (at $1,700
Slide 22: Greenstone Project: Permitted and Construction Ready
Greenstone Project: Permitted and Construction Ready Greenstone is one of the most attractive development assets in Canada1 • Large-scale with over 5.5 Moz in reserves • After-tax NPV5% $1.1 B ($1.8 B at $1,800/oz gold)2 • After-tax IRR 20% (29% at $1,800/oz gold)2 • Average 414,000 oz/year gold pro
Slide 23: Equinox Gold: Exploration to Support Operating Mines
Equinox Gold: Exploration to Support Operating Mines Mesquite, California, USA • Exploration in 2020 increased Reserves by 28%, M&I Resources by 94% • $9 M exploration budget for 2021 focused on reserve and resource growth in Brownie, Vista East and Rainbow deposits • $2.6 M spent during Q1 2021 - B
Slide 24: New Exploration Projects & Investments
New Exploration Projects & Investments Hasaga Project, Red Lake, Ontario (100%) • Historic mining district in the heart of the Red Lake gold camp • 1.1 Moz in M&I open-pit resources at 0.83 g/t gold Two exploration- • More than 23,000 m drilled in 2020 confirming substantial underground potential st
Slide 25: Diversified Asset Portfolio Across Four Countries
Diversified Asset Portfolio Across Four Countries Canada USA 5.5 Moz Reserves (60% attributable to EQX) ~240 Koz annual production1,2 4.8 Moz Reserves First production in 2024 ~170 Koz annual production >300 Koz with expansions1 Mexico Brazil 4.7 Moz Reserves 3.1 Moz Reserves ~220 Koz annual product
Slide 26: Peer-leading Growth Profile
Peer-leading Growth Profile P/NAV1 (x) 2024E Production1 (Moz Au) 2021E - 2024E Prod. Growth1 (%) Total Reserves2 (Moz Au) 16.1 Torex (58%) Greenstone is expected to add more than 240 koz/yr to Equinox Gold’s production profile 1. Based on analyst consensus estimates and market data as at April 30,
Slide 27: Re-rate Potential as Milestones Achieved and Production Grows
Re-rate Potential as Milestones Achieved and Production Grows 1.30x Market cap: Kirkland US$1 B Lake Evolution Sibanye- Stillwater B2Gold 1.00x P / NAV (ratio) Endeavour Yamana Mining Pretium SSR Mining Oceana 0.70x Gold Alamos Regis EQX EQX EQX St Barbara Centerra 2021E 2022E 2024-25E Eldorado Tore
Slide 28: Funded to Execute on Growth
Funded to Execute on Growth Operating Cash1 Bank Debt3 Strong balance Cash Flow4 sheet and cash flow funds Unrestricted cash Term loan FY 2020 operating growth ~$350 M $100 M drawn cash flow $217 M Corporate revolver Q1 2021 operating Available liquidity cash flow $200 M drawn ~$550 M2 $79 M $200 M
Slide 29: 2021 Catalysts: Investing for Growth
2021 Catalysts: Investing for Growth Operations & • Produce 600,000-665,000 oz of gold at $1,190-$1,275 per oz AISC Development Complete Castle Mountain expansion feasibility study • Advance Los Filos expansion projects Significant 2021 • Complete Santa Luz construction investment = 2022 • Commenc
Slide 30: Appendix
Appendix Los Filos Mine – picture taken in August 2017 30
Slide 31: Equinox Gold: Corporate Summary
Equinox Gold: Corporate Summary Common Shares 1 298.9 M Fully Diluted Shares 4 369.7 M Listed Warrants @ C$15.00 2 16.0 M Avg. Daily Trading Value 5 ~ C$20 M + US$14 M Unlisted Warrants @ avg C$9.19 1,2 3.5 M Cash / Net Debt 6 ~ $350 M / $230 M Options @ avg C$7.38 1,2 4.6 M Convertible Notes @ avg.
Slide 32: Liquidity & Capital Resources
Liquidity & Capital Resources 1 3 5 2 4 6 1. Sold 10 M SLS shares at C$8.25/share. 2. Issued 7.5 M EQX shares at C$10/share. 3. Pilar sale for $38 M (paid in several tranches to July 2021) net fees and offtake retirement. 4. Purchased 10% of Greenstone from Orion. 5. Invested $19 M in i-80 Gold at s
Slide 33: Peer-leading Insider Ownership
Peer-leading Insider Ownership Insider Ownership2 Endeavour Mining 20.2% 8% 0.5% Equinox Gold Equinox 8.5% Equinox Gold Ross Beaty Northern Star 1.4% Shareholders1 15% Other Insiders B2Gold 1.3% High Net Worth 50% Evolution 1.0% Retail/Other IAMGOLD 0.8% Corporate Torex 0.5% 22% Institutional Yamana
Slide 34: Aligned with Shareholders
Aligned with Shareholders 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% • Individual and corporate objectives with defined tar
Slide 35: Greenstone: One of the Highest-grade Open-pit Gold Projects in Canada
Greenstone: 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 Greenstone Hardrock Reserve Grade (g/t Au) Valentine Lake Canadian Malartic Moose River Magino Rainy River
Slide 36: Greenstone Project: Feasibility Highlights
Greenstone Project: Feasibility Highlights Feasibility Study Highlights (base case $1,400/oz Au)1 Permitted for Stage construction • The project is managed by Greenstone Gold Mines, a 60/40 joint venture company between Equinox Mine type Open pit Gold and Orion Mine Finance Group Throughput 27,000 t
Slide 37: Greenstone Project: Production and Cost Profile
Greenstone Project: Production and Cost Profile Annual Gold Production and AISC (100%) 500 $1,000 Production (koz Gold) 400 $800 14-year initial mine AISC ($/oz) 300 $600 life with average AISC of $618/oz 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 38: Mercedes Mine: Sonora, Mexico
Mercedes Mine: Sonora, Mexico New optimization plan yielded 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 H2 2020 performance (operating at 1,
Slide 39: 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 • Op
Slide 40: 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 41: Aurizona: Mine Life Extension Along Strike
Aurizona: Mine Life Extension Along Strike PIABA NORTH Numerous TREND deposits within Tatajuba grades similar GENIPAPO MESTRE or higher than Piaba: CHICO trucking • 13.74 g/t Au/ 35 m distance of • 2.71 g/t Au/ 56 m PIABA MICOTE • 2.47 g/t Au/ 69 m existing plant • 1.42 g/t Au/ 34 m and surface • 1.
Slide 42: 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 42
Slide 43: Castle Mountain: Easy Site Access, Synergies with Mesquite Mine
Castle Mountain: Easy Site Access, Synergies with Mesquite Mine Phase 2 expansion will be contained Castle Mountain within existing approved mine boundary Mesquite 43
Slide 44: Castle Mountain: Phase 2 Expansion
Castle Mountain: Phase 2 Expansion1 Average 218,000 oz gold per year at $858/oz AISC, generates ~$2 B net cash flow at current prices • After-tax NPV5% $640 M ($1.1 B at $1,800/oz gold) • After-tax IRR 18% (25% at $1,800/oz gold) • $1.3 B cumulative net cash flow ($2.0 B at $1,800/oz gold) - $114.1
Slide 45: Equinox Gold: Proven & Probable Mineral Reserves
Equinox Gold: Proven & Probable Mineral Reserves Proven Probable Proven & 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 Mounta
Slide 46: Equinox Gold: Measured & Indicated Mineral Resources
Equinox Gold: Measured & Indicated Mineral Resources1 Measured Indicated Measured & 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 Castl
Slide 47: 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 86,271 0.58 1,608 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 Santa Luz 7,265 2.07 483 1 Greenstone 15,300 3.78 1,8
Slide 48: Technical Disclosure
Technical Disclosure National Instrument 43-101 Scientific and technical information concerning the Los Filos Mine Complex is summarized, derived, or summarized, derived, or extracted from the “NI 43-101 Technical Report Mercedes Gold-Silver Mine, extracted from the “Independent Technical Report for
Slide 49: Contact: ir@equinoxgold.com
+1 604.558.0560 ir@equinoxgold.com www.equinoxgold.com 49 TSX: EQX | NYSE-A: EQX