Equinox Gold's Q1 2025: Key Contradictions in Greenstone Operations and Los Filos Negotiations

Greenstone mill modifications and recovery improvements, Greenstone production ramp-up timeline, Greenstone mill performance and cost expectations, Los Filos production and community negotiations are the key contradictions discussed in Equinox Gold Corporation's latest 2025Q1 earnings call.



Record Gold Production and Sales:
- Equinox Gold produced just over 145,000 ounces of gold and sold approximately 148,000 ounces in Q1 2025, marking the highest first quarter production in the company's history.
- The increase was driven by the ramp-up of operations at the Greenstone mine and the commencement of commercial production at the Santa Luz mine.
- Despite this, the company did not include production and costs from the Los Filos mine in its 2025 guidance due to the inability to reach long-term agreements with local communities.

Financial Performance and Debt Reduction:
- Equinox Gold reported $173 million in unrestricted cash at the end of Q1, with a focus on paying down debt, fueled by strong production and record gold prices.
- The company drew $40 million on its revolving credit facility and invested $40 million in Caliber Mining convertible notes during the quarter.
- This focus on debt reduction is part of the company's strategy to leverage its balance sheet and return capital to shareholders.

Operational Challenges at Greenstone:
- Greenstone's unit costs were higher in Q1 compared to Q4, with planned increases in the fleet and plant maintenance contributing to this.
- The mine experienced challenges with the availability of loading units, which affected tonnage moved and increased downtime in the plant.
- Despite these challenges, the mine's throughput began to improve in March and April, indicating progress toward design capacity.

Suspension of Los Filos Operations:
- Operations at the Los Filos mine were suspended due to the inability to secure new long-term agreements with one of the three local communities, leading to nonrecurring charges of $29 million.
- The suspension resulted in a net realizable value adjustment of inventory and approximately $35 million in mine suspension and care and maintenance charges for Q2.
- The company is not expecting any production from Los Filos for the remainder of 2025, pending negotiations with local communities.