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Introduction & Market Context
Equinox Gold (NYSE:EQX) Corp (TSX:EQX) (NYSE-A:EQX) reported a net loss of $75.5 million ($0.17 per share) for the first quarter of 2025, despite benefiting from strong gold prices averaging $2,858 per ounce. The company’s stock fell 9.66% following the presentation on May 8, 2025, as investors reacted to the financial results and ongoing challenges at the Los Filos mine in Mexico, which has been suspended indefinitely.
The quarter’s performance highlights the company’s transition period as it works to ramp up its Greenstone mine in Canada while simultaneously pursuing a transformative merger with Calibre Mining, expected to close in Q2 2025.
Quarterly Performance Highlights
Equinox Gold produced 145,290 ounces of gold in Q1 2025 and sold 147,920 ounces at an average realized price of $2,858 per ounce. The company reported revenue of $423.7 million and income from mine operations of $33.7 million. Despite the strong gold price environment, the company recorded a net loss of $75.5 million, with adjusted EBITDA reaching $137.9 million.
As shown in the following quarterly results summary:
Cash costs were $1,769 per ounce and mine all-in sustaining costs (AISC) were $2,065 per ounce. However, when excluding the troubled Los Filos operation, these figures improved to $1,637 per ounce and $1,979 per ounce, respectively. The company invested $42.9 million in sustaining capital expenditures and $49.4 million in non-sustaining expenditures during the quarter.
The financial results reflect both operational challenges and strategic investments:
Strategic Initiatives
The most significant strategic development is Equinox Gold’s merger with Calibre Mining, announced on February 23, 2025. Both EQX shareholders and CXB securityholders voted in favor of the transaction on May 1, with closing expected in Q2 2025. The merger is positioned as transformative for Equinox’s portfolio and financial position.
The combined entity will create a diversified Americas-focused gold producer with a stronger Canadian presence:
The merger will create a company with seven producing mines, one in construction, and five expansion/development projects. The combined entity will hold approximately 23 million ounces of proven and probable gold reserves and 22 million ounces of measured and indicated gold resources. The 2025 production guidance for the combined company is 950,000 ounces, with a clear path to achieving over 1.2 million ounces annually once Greenstone and Valentine mines are fully ramped up.
Detailed Financial Analysis
Equinox Gold’s financial position as of March 31, 2025, showed available liquidity of approximately $173 million in unrestricted cash and $65 million in undrawn credit facilities. The company’s drawn debt stood at $1,135 million, with convertible notes of $312 million.
A key focus of the presentation was how the Calibre merger will accelerate the company’s deleveraging plan:
The chart illustrates how the combined company expects to reduce its debt to EBITDA ratio to below 1.0x in 2025, significantly faster than Equinox could achieve on its own. For standalone Equinox Gold, the leverage ratio had improved from 3.75x in Q4 2022 to 1.95x in 2024, but the merger is expected to dramatically accelerate this improvement.
The company’s financial position was further detailed:
Operational Performance
Equinox’s flagship Greenstone mine in Ontario, Canada, continued its ramp-up in Q1 2025, producing 44,449 ounces of gold with cash costs of $1,570 per ounce and AISC of $1,836 per ounce. Mining rates reached 137,000 tonnes per day, with mill throughput at 18,400 tonnes per day and recovery at 80.7%.
The Los Filos mine in Mexico, which produced 31,518 ounces in Q1 with significantly higher costs of $2,233 per ounce, has been suspended indefinitely, with layoffs and other suspension activities already commenced. This decision represents a significant shift in the company’s operational portfolio.
The company’s Brazilian operations delivered mixed results, with the Bahia Complex being the standout performer, producing 27,565 ounces at cash costs of $1,642 per ounce and AISC of $2,008 per ounce.
Forward-Looking Statements
Excluding Los Filos, Equinox Gold’s 2025 production guidance ranges between 635,000 and 750,000 ounces of gold, with cash costs between $1,075 and $1,175 per ounce and AISC between $1,455 and $1,550 per ounce. The company expects significant improvement in the second half of the year, with H1/H2 cash costs projected at approximately $1,305 and $1,005 per ounce, respectively.
The detailed production and cost guidance by mine is illustrated below:
Looking ahead, Equinox Gold emphasized four key factors that will transform the company in 2025:
The company highlighted its exceptional leverage to strong and rising gold prices, near-term low-cost production growth from two world-class mines, increased cash flow with lower consolidated operating costs, and the emergence of Equinox Gold as a Canadian gold powerhouse through the Greenstone and Valentine mines.
With the Calibre merger nearing completion and the Greenstone mine continuing its ramp-up, Equinox Gold is positioning itself for a significant transformation in 2025, despite the current challenges reflected in its Q1 results.
Full presentation:
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