Equinox Gold Corp. · AMEX:EQX
Equinox Gold — Investor Presentation (May 2021)
36 slides from Equinox Gold's investor presentation, May 10, 2021
Slide 1: The Premier Americas Gold Producer
equinoxgold.com The Premier Americas Gold Producer CORPORATE PRESENTATION May 10, 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: The Premier Americas Gold Producer
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-Sustaining i
Slide 4: Q1 2021 Results & Recent Developments
Q1 2021 Results & Recent Developments 3 LTI’s Added Greenstone and Mercedes to portfolio with Premier acquisition $44 M ACROSS ALL SITES IN Q11 MINE OPERATING EARNINGS Castle Mountain Phase 2 feasibility 129,233 oz study shows ~$2 B net cash flow $350 M GOLD PRODUCED CASH AND EQUIVALENTS4 Santa Luz
Slide 5: Guidance Updated to Reflect Q2 2021 Asset Sale / Acquisitions
Guidance Updated to Reflect Q2 2021 Asset Sale / Acquisitions Non- Production Cash Costs1 AISC1,2 Sustaining sustaining (ounces) ($/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 6: ESG 2020 Performance: All Safety and Environmental Targets Achieved
ESG 2020 Performance: All Safety and Environmental Targets Achieved 2020 ESG Report published May 5th, select data published quarterly at www.EquinoxGold.com ENVIRONMENT COMMUNITIES SAFETY HEALTH Achieved all 2020 More than 40 All 2020 safety targets More than 18,000 COVID-19 environmental targets,
Slide 7: 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 8: 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 PFS and reserve update for potential underground mine
Slide 9: Increased Scale & Diversification, Peer-leading Growth Profile
Increased Scale & Diversification, Peer-leading Growth Profile 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 • Year-on-ye
Slide 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: Appendix
Appendix Los Filos Mine – picture taken in August 2017 16
Slide 17: 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 18: 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 19: 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 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: 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 24: 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 25: 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 25
Slide 26: 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 27: Exploration to Support Operating Mines, Develop New Districts
Exploration to Support Operating Mines, Develop New Districts 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 Aurizona, Maranhão, Braz
Slide 28: Aurizona: Mine Life Extension Along Strike and Underground
Aurizona: Mine Life Extension Along Strike and Underground 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
Slide 29: 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 29
Slide 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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
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+1 604.558.0560 ir@equinoxgold.com www.equinoxgold.com 36 TSX: EQX | NYSE-A: EQX