Equinox Gold Reports Record Production with 210,400 Ounces of Gold Produced in Fourth Quarter Achieves Guidance with 602,100 Ounces of Gold Produced in 2021 all dollar figures are in US dollars
TSX: EQX
NYSE-A: EQX
Suite 1501 - 700 West Pender St., Vancouver, BC Canada V6C 1G8
[email protected] +1 604.558.0560 www.equinoxgold.com
NEWS RELEASE
Equinox Gold Reports Record Production with 210,400 Ounces of Gold Produced in Fourth Quarter
Achieves Guidance with 602,100 Ounces of Gold Produced in 2021
all dollar figures are in US dollars, unless otherwise indicated
January 13, 2022 – Vancouver, BC – Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) (“Equinox Gold” or the
“Company”) is pleased to announce record production in Q4 2021 of 210,400 ounces (“oz”) of gold. Equinox Gold
achieved fiscal 2021 guidance with 602,100 oz of gold produced, a 26% increase over 2020 production. Full financial
and operating results will be reported in late February.
Christian Milau, CEO of Equinox Gold commented: “Equinox Gold had a strong fourth quarter . Outstanding
performance at Mesquite and Aurizona was supported by a full quarter of operations at Los Filos and consistent
performance at our other mines. During the quarter we commenced construction at our Greenstone project in
Ontario, Canada and made significant construction progress at Santa Luz in Brazil. These new mines will produce
more than 400,000 ounces (of which 60% is attributable to Equinox Gold) and 100,000 ounces of gold annually,
respectively. We drew no additional debt during 2021 and also announced the sale of our Mercedes Mine , an
agreement that will further strengthen both our balance sheet and investment portfolio.
“During 2021, Equinox Gold produced its millionth ounce of gold as a company and realized over $1 billion in
revenue. In addition to strong cash flow from our operating mines, Equinox Gold has more than $ 300 million in
cash, $200 million available to draw on our revolving credit facility, expected proceeds from the Mercedes sale and
an investment portfolio worth approximately $4 50 million at current market prices. Equinox Gold is in a strong
position to deliver on our ambitious growth strategy in 2022 , including commencing production at our new Santa
Luz mine, advancing construction at Greenstone and conducting exploration programs across our operations.”
The Company’s Los Filos mine outperformed expectations and exceeded the top end of guidance following five
months of consistent operations in H2 2021 and the commencement of mining the new Guadalupe and Bermejal
deposits. The Mesquite and Aurizona mines had strong fourth quarters, with 66,900 and 41 ,300 ounces of
production, respectively, underpinning total Q4 2021 production of 210,400 oz of gold.
2021 Production (oz of gold)
Actuals Guidance1
Mesquite 137,500 130,000 - 140,000
Aurizona 135,000 130,000 - 140,000
Fazenda 60,400 60,000 - 65,000
RDM 58,800 60,000 - 65,000
Los Filos 144,100 120,000 - 140,000
Mercedes2 31,800 30,000 - 35,000
Castle Mountain 25,300 20,000 - 30,000
Pilar3 9,334 9,334
Total – Mines4 602,100 560,000 - 625,000
1. Guidance updated on May 5th to reflect the acquisition of Premier Gold and sale of Pilar and again on August 4th to reflect solid performance at the Brazil
sites and the disruption to mining and development activities at Los Filos as the result of blockades, which were removed at the en d of July. 2. Production
attributable to Equinox Gold post completion of the Premier Gold acquisition on April 7, 2021. Full-year production was more than 42,000 oz of gold. 3. Actuals
attributable to Equinox Gold prior to completion of the Pilar Mine sale on April 19, 2021. 4. Totals may not sum due to rounding.
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The 20 21 production, cash balance and cost figures are preliminary and subject to change when the Company
releases it s Q4 2021 and audited full-year 2021 financial and operating results in late February . Equinox Gold
expects to provide 2022 production and cost guidance around the end of January.
2021 Highlights
• Achieved guidance (560,000 to 625,000 oz) with total production of 602,100 oz of gold
• Cash costs and all-in-sustaining costs1 are expected to be within guidance of $1,025 to $1,075 per oz and
$1,300 to $1,375 per oz sold, respectively
• Achieved 17% and 60% better safety and environmental performance compared to 2020, respectively,
released an inaugural ESG report, continued quarterly online reporting of safety and environmental data
• Continued proactive COVID-19 health and safety protocols with no production days lost due to COVID-19
• Completed acquisition of Premier Gold, increasing diversification and scale with the multi-million-ounce, low-
cost, long-life Greenstone project in Canada
• Increased Greenstone ownership interest to 60% of what will become a cornerstone asset for the Company
• Commenced Greenstone construction with first gold pour targeted for H1 2024
• Advanced Santa Luz construction with first gold pour targeted for late Q1 2022
• Increased Aurizona Mineral Reserves by 73% and completed a positive pre-feasibility study for the addition of
an underground mine to the existing open-pit operation, extending the Aurizona mine life to 11 years and
increasing annual production
• Increased Castle Mountain Mineral Reserves by 17% and completed a positive feasibility study for the Phase 2
expansion, extending the Castle Mountain mine life to 21 years with production increasing to more than
200,000 oz annually during Phase 2
• Advanced Los Filos expansion projects: commenced mining the new Guadalupe open-pit and Bermejal
underground deposits
• Strengthened balance sheet by selling a portion of the Company’s shares in Solaris Resources (TSX: SLS) for
gross proceeds of C$82.5 million with potential for an additional C$50 million in Q1 2022
• Strengthened balance sheet and investment portfolio by selling the Pilar Mine for $38 million, a 1% net
smelter return royalty and 11.6 million shares of Pilar Gold Inc.
• Invested C$51 million in i-80 Gold (TSX: IAU) to maintain an approximate 25% interest on a fully diluted basis
• Announced agreement to sell the Mercedes Mine for $100 million, a 2% net smelter return and 24.73 million
common shares of Bear Creek Mining Corporation (TSX-V: BCM)2
• Current market value of Equinox Gold’s investment portfolio, not including shares in Bear Creek Mining that
will be issued upon completion of the Mercedes sale, is approximately $450 million
• Cash balance (unrestricted) at December 31, 2021 of approximately $310 million (unaudited) with an additional
$200 million available to draw under the revolving credit facility
1. AISC per oz sold is a non- IFRS measure. See Non -IFRS Measures and AISC per Ounce Sold in Cautionary Notes . 2. Subject to completion of definitive
documentation, customary closing conditions and regulatory approvals.
About Equinox Gold
Equinox Gold is a growth -focused Canadian mining company operating entirely in the Americas, with seven
operating gold mines (including Mercedes) and a clear path to achieve more than one million ounces of annual gold
production from a pipeline of development and expansion projects. Equinox Gold’s common shares are listed on
the TSX and the NYSE American under the trading symbol EQX. Further information about Equinox Gold’s portfolio
of assets and long-term growth strategy is available at www.equinoxgold.com or by email at [email protected].
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Equinox Gold Contacts
Christian Milau, Chief Executive Officer
Rhylin Bailie, Vice President, Investor Relations
Tel: +1 604-558-0560
Email: [email protected]
Cautionary Notes
Technical Information
Doug Reddy, Msc, P.Geo., Equinox Gold’s COO, is the Qualified Person under National Instrument 43 -101 for Equinox Gold and has reviewed
and approved the technical information in this document.
Non-IFRS Measures
This news release refers to all-in sustaining costs (“AISC”) per ounce sold, which is a measure with no standardized meaning under International
Financial Reporting Standards (“IFRS”) and may not be comparable to similar measures presented by other companies. Its measurement and
presentation is intended to provide additional information and should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Non-IFRS measures are widely used in the mining industry as measurements of performance
and the Company believes that they provide further transparency into costs associated with producing gold and will assist analysts, investors
and other stakeholders of the Company in assessing its operating performance, its ability to generate free cash flow from current operations
and its overall value. Refer to the “Non-IFRS measures” section of the Company’s Management’s Discussion and Analysis for the period ended
September 30, 2021, for a more detailed discussion of this non-IFRS measure and its calculation.
Cautionary Note to U.S. Readers Concerning Estimates of Mineral Reserves and Mineral Resources
Information about mineral reserve and resource estimates in this news release has not been prepared in accordance with the requirements of
U.S. securities laws. The technical information in this news release has been prepared in accordance with Canadian reporting standards and
certain estimates are made in accordance with NI 43-101. NI 43-101 is a rule developed by the Canadian Securities Administrators that
establishes standards for all public disclos ure an issuer makes of technical information concerning mineral projects. Unless otherwise
indicated, all mineral reserve and resource estimates contained in this news release have been prepared in accordance with NI 43-101 and
the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards on Mineral Resources and Reserves (CIM Definition
Standards). Canadian standards, including NI 43 -101, differ significantly from the historical requirements of the Securities and Exchange
Commission (the SEC), and mineral reserve and resource estimates contained in this news release, or incorporated by reference, may not be
comparable to similar information disclosed by U.S. companies. The SEC has adopted amendments to its disclosure rules to mode rnize the
mineral property disclosure requirements for issuers whose securities are registered with the SEC (the SEC Modernization Rule s). The SEC
Modernization Rules replace the historical property disclosure requirements for mining registrants that are included i n SEC Industry Guide 7.
U.S. companies must provide disclosure on mineral properties under the SEC Modernization Rules for fiscal years beginning Jan uary 1, 2021
or later. Under the SEC Modernization Rules, the definitions of proven mineral reserves and probable mineral reserves have been amended to
be substantially similar to the corresponding CIM Definition Standards and the SEC has added definitions to recognize measure d mineral
resources, indicated mineral resources and inferred mineral resources which are also substantially similar to the corresponding CIM Definition
Standards; however, there are still differences in the definitions and standards under the SEC Modernization Rules and the CI M Definition
Standards. Therefore, the Company’s mineral resourc es and reserves as determined in accordance with NI 43 -101 may be significantly
different than if they had been determined in accordance with the SEC Modernization Rules.
Forward-looking Statements
This news release contains certain forward -looking information and forward-looking statements within the meaning of applicable securities
legislation and may include future-oriented financial information. Forward-looking statements and forward-looking information in this news
release relate to, among other things: the strategic vision for the Company and expectations regarding exploration potential, production
capabilities and future financial or operating performance; the Company’s ability to successfully advance its growth and development projects,
including the construction of Santa Luz and Greenstone and the expansions at Los Filos, Aurizona and Castle Mountain; the expectations for
the Company’s investments in Solaris Resources, i-80 Gold and Pilar Gold; completion of the sale of the Mercedes Mine; the duration, extent
and other implications of the novel coronavirus (COVID -19); and the Company’s production and cost guidance. Forward- looking statements
or information generally identified by the use of the words “will”, “strategy”, “expects”, “expected”, “advancing”, “clear path”, and similar
expressions and phrases or statements that certain actions, events or results “could”, “would” or “should”, or the negative c onnotation of
such terms, are intended to identify forward- looking statements and information. Although the Company believes that the expectations
reflected in such forward- looking statements and information are reasonable, undue reliance should not be placed on forward -looking
statements since the Company can give no assurance that such expectations will prove to be correct. The Company has based these forward-
looking statements and information on the Company’s current expectations and projections about future events and these assumptions
include: Equinox Gold’s ability to achieve the production, cost and development expectations for its respective operations and projects; prices
for gold remaining as estimated; currency exchange rates remaining as estimated; construction at Santa Luz and Greenstone being completed
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and performed in accordance with current expectations, expansion projects at Los Filos, Castle Mountain and Aurizona being completed and
performed in accordance with current expectations; tonnage of ore to be mined and processed; ore grades and recoveries; availability of funds
for the Company’s projects and future cash requirements; capital, decommissioning and reclamation estimates; Mineral Reserve and Mineral
Resource estimates and the assumptions on which they are based; prices for energy inputs, labour, materials, supplies and services; no labour-
related disruptions and no unplanned delays or interruptions in scheduled construction, development and production, including by blockade;
the Company’s working history with the workers, unions and communities at Los Filos; tha t all necessary permits, licenses and regulatory
approvals are received in a timely manner; the Company’s ability to comply with environmental, health and safety laws; the st rategic vision
for i-80 Gold and its ability to successfully advance its projects; the strategic vision for Solaris Resources and its ability to successfully advance
its projects; the exercise of the Solaris Resources warrants; and the ability of Pilar Gold to successfully operate the Pilar mine and to meet its
payment commitments to th e Company. While the Company considers these assumptions to be reasonable based on information currently
available, they may prove to be incorrect. Accordingly, readers are cautioned not to put undue reliance on the forward-looking statements or
information contained in this news release.
The Company cautions that forward- looking statements and information involve known and unknown risks, uncertainties and other factors
that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements and
information contained in this news release and the Company has made assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation: fluctuations in gold prices; fluctuations in prices for energy inputs, labour, materials, supplies
and services; fluctuations in currency markets; operational risks and hazards inherent with the business of mining (including environmental
accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave -ins,
flooding and severe weather); inadequate insurance, or inability to obtain insurance to cover these risks and hazards; employee relations;
relationships with, and claims by, local communities and Indigenous populations; the Company’s ability to obtain all necessary permits,
licenses and regulatory approvals in a timely manner or at all; changes in laws, regulations and government practices, including
environmental, export and import laws and regulations; legal restrictions relating to mining including those imposed in connection with
COVID-19; risks relating to expropriation; increased competition in the mining industry; a successful relationship between the Compa ny and
Orion; the failure by Pilar Gold to meet one or more of its payment commitments to the Company; and those factors identified in the Company’s
MD&A dated March 19, 2021 and its Annual Information Form dated March 24, 2021, both of which relate to the year-ended December 31,
2020, and in the Company’s MD&A dated November 3, 2021 for the three and nine months ended September 30, 2021, all of which are
available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar. Forward- looking statements and information are designed to
help readers understand management's views as of that time with respect to future events and speak only as of the date they are made.
Except as required by applicable law, the Company assumes no obligation to publicly announce th e results of any change to any forward-
looking statement or information contained or incorporated by reference to reflect actual results, future events or developme nts, changes in
assumptions or changes in other factors affecting the forward-looking statements and information. If the Company updates any one or more
forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to those or other
forward-looking statements. All forward -looking statements an d information contained in this news release are expressly qualified in their
entirety by this cautionary statement.