Equinox Gold (NYSEAMERICAN:EQX) said its combination with Orla Mining has created a larger North American gold producer with three Canadian cornerstone mines and an expanded organic growth pipeline, while management outlined higher production expectations, a dividend increase and a leadership transition.
Speaking on the company’s second-quarter 2026 results call, CEO Darren Hall said the financial benefits of the Orla transaction, which closed July 31, are expected to begin appearing in third-quarter results. The combined portfolio is anchored by the Greenstone, Musselwhite and Valentine mines in Canada, with Musselwhite and Camino Rojo expected to contribute for five months in 2026.
Updated Production and Cost Outlook
President Jason Simpson said Equinox Gold now expects 2026 consolidated production of 870,000 to 920,000 ounces of gold. The outlook includes a full year from legacy Equinox operations and five months of production from Musselwhite and Camino Rojo following the transaction close. On a pro forma basis, the combined company would produce about 1.1 million ounces of gold, he said.
The company expects consolidated total cash costs of $1,600 to $1,700 per ounce and all-in sustaining costs of $1,900 to $2,000 per ounce for 2026. Management expects production growth in the second half to improve fixed-cost absorption and reduce unit costs, supported by stronger expected performance at Greenstone and Valentine as well as the added Orla assets.
Hall said Equinox Gold ended July with about $650 million in cash, a net cash position of approximately $214 million and roughly $1.2 billion of available liquidity.
Peter Hardie, chief financial officer, said the updated cost outlook assumes consolidated fuel prices about 50% higher than the company’s original plan. He said the gold price assumption is close to the current gold price, though Hall noted that gold prices principally affect the company through royalties and related costs rather than its day-to-day operating decisions.
Valentine Ramp-Up Progress
Management highlighted continued operating improvements at the Valentine mine in Newfoundland. The process plant operated above nameplate capacity during the quarter, while efforts to improve ore control, grade reconciliation, dilution management, selective mining and blending contributed to better results than in the first quarter.
Hall said Valentine’s high-grade reconciliation improved by nearly 20% in the second quarter compared with the first quarter. July mill feed averaged more than 1.8 grams per tonne of gold, and Hall said August month-to-date grades were approaching 2 grams per tonne, though he cautioned that the month was still early.
For the balance of 2026, the company’s forecast assumes mill feed grades of about 1.85 grams per tonne and recoveries of 93% to 94%, according to Hall and Matt MacPhail, executive vice president of technical services. The guidance incorporates strong throughput performance but takes what management described as a conservative view of grade delivery.
David Schummer, chief operating officer, said the company has been using OREPro 3D software to better understand blast displacement and define mining polygons. He said polygon mining compliance reached the high 90% range during the most recent month, an improvement from earlier performance. The mine is currently achieving mining rates of approximately 140,000 to 145,000 tonnes per day, Schummer said, compared with about 110,000 tonnes per day earlier in the year.
Equinox Gold’s board also approved full funding for Valentine Phase II, Hall said. The expansion is intended to increase plant capacity to 5 million tonnes annually by the end of 2028. Management said the larger plant should reduce the mine’s short-term exposure to selectivity challenges.
Greenstone Throughput and Recovery Work
At Greenstone, Hall said average throughput was about 26,800 tonnes per day in the second quarter, slightly below nameplate capacity. Through Aug. 4 or Aug. 5, third-quarter throughput had exceeded nameplate at more than 28,000 tonnes per day, he said.
The company still expects to install a trommel by year-end. Hall said the equipment is designed to remove tramp material from mill feed, reducing unplanned downtime and improving plant efficiency. While management believes Greenstone can operate at or above nameplate capacity without the trommel, it expects the installation to help position the operation to challenge installed capacity of roughly 30,000 tonnes per day or more in 2027.
Gold grades have reconciled with expectations, Hall said, but recoveries remained around 80% during the quarter amid higher levels of arsenopyrite. MacPhail said the company is learning more about the orebody as mining advances and is undertaking a sampling campaign to improve modeling. For the second half, management is using assumptions broadly consistent with the second quarter: throughput near 27,000 tonnes per day, grades of about 1 gram per tonne and similar recovery rates.
Mexico Projects and Leadership Transition
The company said it has reached a three-way agreement with the communities around Los Filos in Mexico, providing what Simpson described as social stability for a restart of heap-leach operations. The board approved the restart, with associated funding included in current guidance. Any gold production from the restart before year-end is not included in the company’s production outlook, Hall said.
Equinox Gold is also updating studies for longer-term development at Los Filos, while assessing potential opportunities at Camino Rojo. Simpson said $25 million at Camino Rojo is allocated for portal collar work and underground development related to the sulfide deposit, as well as final heap-leach pad expansion work. Management said the underground work is intended to improve knowledge of metallurgy and obtain bulk samples, rather than represent a full construction commitment.
Hall will retire from Equinox Gold, with Simpson set to become CEO. Hall said he will remain available as an adviser and significant shareholder, while Simpson said the company’s near-term priority is executing operating plans, integrating the combined organization and meeting production and cost commitments.
About Equinox Gold (NYSEAMERICAN:EQX)
Equinox Gold Corp is a Canadian gold mining company headquartered in Vancouver, British Columbia. The company focuses on the acquisition, development, and operation of gold properties, with an emphasis on open-pit heap leach mining. Since its inception, Equinox Gold has pursued a strategy of combining assets in established jurisdictions to build a diversified portfolio that balances production and growth, while maintaining rigorous safety and environmental standards.
Equinox Gold’s operating portfolio spans three countries.
