Equinox Gold Corp (EQX) Q2 2025 Earnings Call Highlights: Strong Production and Strategic ...
Gold Sales: Sold just over 148,000 ounces at an average realized price of $3,200 per ounce.
Pro Forma Consolidated Revenue: Approximately $1.33 billion for H1 2025 from 401,000 ounces.
Greenstone Mining Rates: Increased 23% in Q2 compared to Q1.
Greenstone Processing Rates: Improved 20% over Q1.
August Mining Rates: Averaging 200,000 tonnes per day.
Best Demonstrated Performance: 227,000 tonnes per day in August.
Investment in Critical Spares: Over $25 million to support ramp-up.
First Ore to Plant: Scheduled before the end of August 2025.
First Gold from Valentine: Anticipated approximately a month after first ore to plant.
Sale of Nevada Assets: $115 million.
Warning! GuruFocus has detected 10 Warning Signs with EQX.
Release Date: August 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Equinox Gold Corp (EQX) successfully completed a merger, creating a significant Americas-focused gold producer anchored by two cornerstone Canadian mines, Greenstone and Ballantyne.
The company reported strong Q2 2025 production results, delivering over 219,000 ounces of gold, with improvements in mining and processing rates at Greenstone.
Equinox Gold Corp (EQX) anticipates increased production, cash flow, and earnings in the coming quarters, driven by contributions from Calibre assets and the commencement of production at Valentine.
The company has made significant investments in operational readiness at Valentine, including $25 million in critical spares, with first ore to the plant expected before the end of August.
Equinox Gold Corp (EQX) is focused on disciplined capital allocation, operational excellence, and advancing high-quality organic growth, with a strategy to deliver tangible returns to shareholders through margin expansion and potential dividends or share buybacks.
Negative Points
The grade at Greenstone decreased from 1.06 grams per tonne in Q1 to around 0.9 grams per tonne in Q2, with expectations for gradual improvement over the coming quarters.
There are ongoing discussions with a third community at Los Filos, which could impact future operations and agreements.
The company is dealing with a tax dispute in Nicaragua and a legal matter in Brazil, which could pose risks to financial outcomes and asset sales.
Equinox Gold Corp (EQX) has been undercapitalized in certain areas, such as Los Filos, due to prioritizing capital for Greenstone's ramp-up.
The company has not yet provided specific guidance on costs for Valentine, creating uncertainty around future capital expenditures and operating costs.
Q & A Highlights
Q: The grade at Greenstone came in lower than expected. When should we start seeing improvements, and what measures are being taken to manage and improve grade dilution? A: Darren Hall, CEO: We are seeing improvements in grade, with August grades around a gram per tonne. Improvements are expected as we move more material and improve mining practices. We anticipate quarter-on-quarter improvements, with Q3 grades likely similar to current levels, but with better face positions for effective mining.
Q: Do you have all the necessary equipment in place to improve mining rates at Greenstone? A: Darren Hall, CEO: Yes, all required equipment is in place. We are focused on maximizing the value of our committed capital and have seen increased engagement from our partners, ensuring we have the necessary support equipment to improve haul speeds and overall performance.
Q: Are there ongoing discussions with the third community at Los Filos, and what is the status of agreements with the communities? A: Darren Hall, CEO: We maintain open dialogue with all stakeholders. We have fully executed agreements with two of the three communities and are working on a two-community plan to exploit Los Filos. We are hopeful for a solution with the third community, Karelia, and will work constructively with all stakeholders.
Q: Can you provide an update on the tax dispute in Nicaragua and the legal matter in Aurizona? A: Peter Hardie, CFO: We are confident in a beneficial resolution regarding the Nicaragua tax dispute and have not recorded a provision. The Aurizona legal matter is progressing slowly, typical for Brazil, and we do not expect it to interfere with any asset sales.
Q: What are the expected costs for Brazilian operations in the second half of the year? A: Darren Hall, CEO: We are comfortable with our full-year guidance and expect variations quarter-by-quarter. Brazil's operations are seasonally driven, with most production and cash flow in the second half, impacting unit costs. We anticipate better performance as we deploy more capital across assets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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