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EQX Equinox Gold

Participants
Rhylin Bailie VP, IR
Christian Milau CEO & Director
Peter Hardie CFO
Douglas Reddy COO
Dalton Baretto Canaccord Genuity
Kerry Smith Haywood Securities
Anita Soni CIBC Capital Markets
Wayne Lam RBC Capital Markets
Call transcript
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Operator

Welcome to the Equinox Gold Second Quarter 2021 Financial Results and Corporate Update Conference Call and Webcast. [Operator Instructions]. I would now like to turn the conference over to Rhylin Bailie, Vice President, Investor Relations for Equinox Gold. Please go ahead.

Rhylin Bailie

Thank you, operator, and thank you, everybody, for joining us this morning.

be number course, today. forward-looking of will, making of a statements We

I the please to Milau, download EDGAR documents. time take CEO our now our disclosure So the and for visit opening do to call conference over website, remarks. SEDAR continuous will Christian turn to

Christian Milau

active results just and as to the Rhylin, been usual, pleased in Thanks, X no welcome, been activity. with the pleased shortage really a we investment. to everyone, of We're and news year The this said there's has company the so quarter of of big and half the call. quarter. where first was point And this year get to

And pleased the have of that this would will operations midyear first adapted new it's do building quarter. with investing quarter we to hit company. we and although was the invested our had mines, Pleased them - to of and in are said tougher. a in trough, minimal money head basically we its explore performance. on where good little place that's continue we X. quarters the in look to had We does have with how this quarter build to seem peek we quarter locations, here. thought our moderate. continues a ounces probably impact this in new produced operations. the for couple about we a ended sort be assets of projects with the of that COVID vision the future record ready to XXX,XXX Obviously, keep It year, get to gold, there. long-term variant bit As a really And things we very Delta expected. environment safety COVID as a various the similar little to to which And to or build We've around

as Los hopefully, challenge the we've ownership, and through well towards, going Northern of and last And a periods as the rainy but and with over Filos. season ramp-up. out investment period Brazil to with forward at Mesquite Filos in period getting here of over the a pleased had stability a be coming Castle coming at are taken Los year, We we've Obviously,

we're opportunities to second period So walk very of turning a catalyst-rich we the presentation of where and in to vision. this long-term and through and that year the year indicate future excited you see the this half

XXX,XXX actual In like I under just for the terms just said, the year. we of ounces results, sold -

were there walk ounce a quarters, down costs slightly take detail on on revised Pete ounces the guidance. shutdown high slightly leach was did $XX the up previous Filos less sustaining fairly from cost and some We will write-down on the per pad all-in Los going in Our you the and the that through actual inventory of the production, for quarter. lower - with our the

#X. we future. slide, So does see to highlights impact costs, sustaining the to all-in turn much in the the on the recent over hope which When that not we overall next

through still and per X time. half walk mine we're getting now pleased development with roughly different. this will And and on year exploration, no construction we of about and along Luz. year last now. Doug on will a track terms over budget that, In you continue complete be to Santa it building years, for We're see to but on the

all The we second very and term. have early and job In done getting at camps summer. the had getting in productive We've So construction, things half the team near work for year, We're of tree tracking ready into a done. well we'd a like construction full be this of there. here to clearing works has great launching advanced Greenstone. but that

a really and second through I'll with to to that photos as you a about, leave walk exploration to perspective that. the invest couple but and of half well. detail in Doug year more on talk from drilling some expect excited that see decided and So results of of Doug an from ongoing, areas Lots little will have the in to we the

Filos we've that In X I'm last operations, the we second terms for I period. us. were well. Obviously, of point, I stop the had sure a shareholders the here. as on quarter come mean, will key through frustrating for And that Los for blockades

that think real paid period gone back in got to I original and those than of last - legal a back a obviously, pressure to leaders work, was communities union shorter And blockade resolved, work and start have to walked back the to they've had and level go was There a certain a there. for they earning get work. union out a frustration lot from period We again. on The did there and wage one being year. and not

do And well. bit to few on kudos They've get back on community blockade. district the blockade open also put from distance some as really the step legal the fairly Greg smaller And government job. we've the to back attorney slides color pleased we'll back here. and has in support work situation on more quite ramped you really from a communities into back the them team. actually give And mine, them Guadalupe been from and to operation again, things the a the in see the pit. We there, gotten to So another away appreciate unfortunate and from and pressure up got the and Xochipala, That community, the resolved. to quickly a

there quarter, the Gold see other like full operating time of ago, actually all Los it Filos. Mines. completed in and And the quarter. Premier at a acquisition feels terms completed but undergrounds site the pits at capacity long actions It please across on corporate for us during the the of So we second

that, integrated. is has a took doing of from to rata We quarter. coming on during and job their there's it. about that we're in great think really our investor interest the excited where we'll XX% we you Greenstone i-XX, an Mercedes some the obviously own financing I obviously, be pro walk Ewan been going as and through, up exciting project. stuff

we construction going we things aware, Orion second to there. are think published most almost XX% We've report. our to out on we've the are interest public area in of sold with for in half. lot the team disclosure. that more. us additional for that's love into And been ready but I you a We when first of acquired And We Pilar. also project XX% as gain XX% an the It's And the get really working $XX putting a launch financial royalty well but have. again, a we start Greenstone, million communicating ESG and we well the add equity So for more that even sold and it statements, here now important the project. and love

efficient and countries ways will it next I Peter that closely obviously, should big a on the various to our more managing where looked in but things you key sources for over pass areas So going basis, at be the lot at looking like which have couple we also a forward, a I'll business. of be see our energy financial difference walk to slides. you And through expect of think emissions, on emissions, can very we to we'll more information running the make highlights quarterly our diesel think areas,

Peter Hardie

Thanks, Christian.

an QX, ounce quarter, $XX came our about basis, about to the over an actually XXX,XXX During in operating $X increase on at $XXX an basis. $XX costs about a quarter. million little sold about over and ounce little $X,XXX sustaining we cost of Cost which from down is of million, ounce $X,XXX ounces million. $X,XXX per over mine the for of an revenues for all-in cost an $XXX That ounce to ounce cash an per ounce resulted prior earnings a

the those quarter As about activity of a we that the corporate very Included on million lot sale of shares there $XXX $X.XX. gains, in Christian including noncash for had mentioned, share million busy per earnings in a mentioned. $XX of Solaris number a net resulted or income are front, Christian of on

with cost of adjusted from about have also gains how we Pilar et that basis classification That arrive the $X.XX the then which like basis. or addition, on fair sale the $X.X other items, were When for a cetera, exchange million. are you earnings items, hedges, basis. increase noncash $XX gains value of items in those million. a on for typically and of gain change had net We an adjusted adjust of share a income a quarter that account of $XXX for on the an million an investment have million. a for foreign gain our at unrealized And sale to In in shares, the basis on resulted effectively $XX we we a we

that interest. some i-XX to profile warrants. about million. our before we over that - of million, in share remained move a XX is of us $XXX strong, is million $XXX flow Gold our we million into all the $XXX With our investment, you is a and market value Current noncash was million, little leaves capital of investments, $XXX fair million, at over XX% to and liquidity equates XX and in million value forward. and add maintain our changes we cash $XXX net was equivalents great growth With revolver our our you respect $XXX And fund to debt to sold June shares in when as undrawn operations was million. of Our This our to position $X.XX put balance working in the Solaris $XX our And a it's respect a when activity with net the sheet that over cash basic did on money and we look basis. that of have.

with are offset decreased Bermejal had at higher-grade start ounces. that - value guidance great we've of of there at or to about result the better So the and it RDM to included Filos. expecting the first ounces. on that Overall, basis, to of now of which generally suspended not XXX,XXX parts that's and performing primarily million obviously, our On actually of an and a decreased half the figure delays the We X,XXX our I previously access or weaker range now due to to Los over At by reduction planned, which a Castle year. production speaking, on grade the year. there second of ore access included range the also about June XX,XXX mentioned is our exception is in We're the further, in million. in mines had half is impact XXX,XXX because We the That's due first for - guidance half XX,XXX development is our Aurizona And for our Mountain, liquidity of obvious Los of now XXXX. blockades, on the to to is increases higher that's the updated basis, the And by - the so July, the is underground production net $XXX $XXX of influences. push operations now range ounce. ounces. year. than primary to guidance Filos, $X,XXX investments due they The cost in X and ounces, an ore. part $X,XXX a XX,XXX the out by

U.S. for The the escalation and first carry an pardon so on the second we - overall production cost Overall, in on reduction at me, all-in consumables looking the basis. increases, course, is cost And the year. seeing sustaining through Brazil. those and is, primarily energy, are pardon, figures, of Aurizona in the

slide, increase And in capital. in million the ounce an of Mountain, ounces. Los about mine a Our decrease sustaining down. come nonsustaining $XX a in the reduction increases, That's primary have can where And a schedule. costs you were quickly doing of ounce Filos Aurizona. per at on an have see itself, just you held a see costs. a as a it's on $XX due sustaining basis. And that's And me, payables respect result a the then basis, is in basis, reduction Luz, as on where On we pad to a down - timing on ounces is at overall incurring pardon our result course, capital year. of spend. see all-in the that expansion, expected. Santa at group project or primarily That's liner and the with on been of a The we're overall We're as some primarily steady Castle to on budget, - cost can sustaining XX there's not you for million at

that So I'll Doug million for Officer, it that, over 'XX And Operating this Reddy, our operations an $XX update. XXXX. year would turn push - out Chief to of of with out into

Douglas Reddy

I - themes say first Pete. to of in operations the and main just the like what's and half X would Thanks, for year XXXX. in happened the affects there how - it that I are half the on how going into second

is stripping one waste had as happening Filos. at Los where Mesquite and and as waste well programs first The at we've large stripping, RDM Aurizona

the that's of in long XX,XXX year. meters our our this have So in investments waste stronger has at makes the a mines near next both been all the to been the team. those an our stripping investment And by mines, a half year. aspect - exploration big within for And into of drilled - second so one of each far year mine. effort on the the term and second is

leach So Mesquite, of our optimizing we've we're there. mine we've Brownie is to continued there's all-in to system XX,XXX each At stripping HX, ounce. done team focused cost year where affect opportunity very If look overall our extension, has a Mountain, life looking the on those The extend completed in sustaining It that at life. at an oxide per work thing Castle on Mesquite, they same plant. as giving future one production, we to and we and ounces able - be pit. we with look every that's $X,XXX exploration I mine and of QX ore been campaign, how to the the has pad continued stronger a operations. at for the the and as

being all-in versus restarted QX the that per had ounces X,XXX and QX at been production produced operations the issues strong Los We have sustaining Filos, Mountain. half of leach Castle to doubled we've had. with pad, percolation well doubling $X,XXX ounces the ounce. a managed the of second at after on has but QX daily being an a ounces see HX be of cost the interruptions we've was should year. the

at ore from mining year We late in Bermejal. Guadalupe the And in the the mentioned, should pit. have are Bermejal coming we development doing We through underground. open as in been underground Pete see

sustaining Our was all-in per cost QX production XX,XXX $X,XXX of ounces and ounce.

mine half a We producer. study, completion look the of the year. this also will updated it's to plant - in of forward CIL second steady which Mercedes the come is a

campaign are We milling.

an So increase coming Mercedes exploration opportunity that production, upside. in in. there's means throughput good that There's we and do happening have areas program to a and several of results with good

ounces cost second Equinox And quarter for XX,XXX an an be all-in production $X,XXX The production should to of consistent level sustaining from of the was a Mercedes attributable ounce. company. at HX

The stockpile portion the of to during season. processing to mining of a also to the be a a the to the in utilize built prior. up the heavy at was during able looking previous - able season. had was good Brazil, had that a year went dry rainfall mine quarter, plant well. to able rainy And been really So Aurizona but a contrast the team That job did very being

second this potential underground drill at at So the pre-feasibility as that ounce. season year up of of and was excited of all-in to we're in looking second very at in that half a at of study start the coming program XXXX, done wrapped into production looking much the dry study Aurizona. we of second the quarter been for year. the XX,XXX is portion in completion of the XXXX, that's delivery in Large half strong per the cost $X,XXX come was And We're ounces Brazil. at sustaining an the fully

that how run. from in will mine that come impacts at the we'll and looks overall long that the So production Aurizona see

it's For second pit, now few grade mining as had as open production didn't open from scheduled albeit just underground the had up to We in Fazenda, a quarter, steady which expected. new up. early It opened lower areas. happen we has a

year. and long-term in months going ounces XX-kilometer that mine, belt targets that's coming $X,XXX a we numerous including the to for in the be would QX second very XX,XXX the and and long Fazenda full consistent we're sustaining of of mine within At I Fazenda Luz, be dam, both we at half exploration And Greenstone which was cost results I - think RDM, is water program, doing per the and an ounce. area So around company have in had exciting contributing Santa the Santa that the in the all-in between we will have now Luz. very production between a say.

of spite that portion rest that based and sustaining to of an XX,XXX QX, looking rainy The did $X,XXX look provides expansion pit. dam body. in HX all been in that was the we through ore XXXX. I steady more pit and have on ounce. the can for an major the and season, we water the first QX expansion time year all-in XXXX than a the this and production exceptional we're water a ore of XX% ample access lower per mined say at we're cost in of through that's work doing we production XXXX at And strong ounces of happening at And

it's has great and really such So growth pipeline with at projects. I'll of company our that a growth good to projects, looking development a say, be

and move is to we've additional ore. Santa pit projects. the providing Luz other down developing the growth mentioned, we bit of gold QX track first Looking is at are pour on a the construction and as in Santa I'll for next on Luz, open Guadalupe but on which is XX% now expansion, on now, XXXX. Christian slide, construction, been let's mines. more underground our elaborate Filos complete Los

we've study the Los development that CIL is new extend the resumed. on mine overall will also X,XXX-tonne higher to the in that work reserves at has coming one But ore late And we possibly for can at process so Bermejal see that That to day We'll finalizing continue see ore expansions the life. critical increase plant, which the site. per out to potential expansion work from with Underground already Filos. longer-term and stability us the the study year. So communities is grade a will the the Los been part at Filos. of for

at targeted ounces project underway, For XX-year the full-scale life. a million XXXX. reserves The construction exciting are project, being we're a mine X.X already works early of overall, and looking Greenstone very of for QX and

eye all the per as this permitting project. keep that's year. expansion work to second that that through gold X preparatory of year, happening in on is ounces was we XXX,XXX So the then for the expect later Mountain that this the work year. And average Phase on production would start X an in the been half We on expansion, Castle Phase

So page on if on Luz. the to next we Santa move

progress sustaining website project the average. lapse place. that you both already, - well are excellent I lots a cost And will mill, overall you budget, on in photos that have We time the CapEx. initial want we videos site. events million is in as to on year the all-in the are the the The overall I bring of going can the team. of of the for on look well, in first there's there This We for to And schedule. ball I X the They're on in that years as at leach on which tanks. $XXX photos the shows up and see XXX,XXX budget the is $XXX left, have at potential, an the and encourage per exploration a near congratulate the mentioned area, depth. at also And ounce surface on as ounces

- achieved year X.X free LTI-free. million ounce they June, of and LTI hours X.X As X million

that construction. well, at had I site, and keep that they focus going recognize to of a safe just they're So and they've want to up that going been recognition on

excellent well assets in the turning opportunity Belt. to Greenstone. - being ounces one initial million this produced and underground is Community indigenous in permitted the benefits most from works mine and XXX,XXX is It's It The per year So over reserve over the Greenstone to place, ounces page construction. project Previous in and right The ounces area Highway. on excellent attractive million place. life. development Canada. of a of the early Trans-Canada mines infrastructure team are X XX-year got the fully good The advanced. X.X are agreements in the it's produce from for

project for, a project that's We up advancing team the would doing part the the already temporary XX already phase very say, have of years, is it all tree water point. and the a complete. And engineering effluent with been temporary better experienced the complete. and already is The it plant to first I is phase clearing, And of treatment this - is camp the first bringing complete.

project So very it back team the to forward. Christian. going that by moving good I'm focus And to hand

Christian Milau

focus going And cycle. Doug. the in the to a top-tier diversified, been on want gold bigger here. been slides All step our It's on right. downturn mining back has I'm the on the And gold next few and emphasize building at picture here large to company Thanks, look during and long-term do growth.

of our of be we will countries X And production X terms reserve and developing you potential see of the from bases. really values We've Although, one mine job between asset and X is levels flow, what obviously, are when regions. held see split production a in these The and per Slide a been finished is to exploration expanding cash focused a virtually expansion into on growth And and really about portfolio #XX diversified all do these every these in place. on countries. at we countries expanding come and working of our what on our generating quarter X we've and building projects here of of gold nicely production is all countries quarter, assets producing year. the but quarter, them. been all starting $X,XXX good We're

the cycles. is ups downs asset the a whatever, goal key have on be and it's can weather any here our to sector reliant X not and So to nice of diversified or that portfolio

value the that And but This value the QX, the blockade. and it at which the QX. the top stability least think million the we're we're think, really see alluded X/X on just far the in re-rating from prospective. QX quarters as attention share I ounces. time. we're year, finish deplete we're publicly, haven't should portfolio. look that basis, next QX our do. it, fall almost in halfway don't we column I So them for the have the X the Bahia towards seeing and you be part with a is The reserve chart, better really level. or Los obviously at and I mid-tiers scale. confidence years what's end investment that when a the very but we'll I slightly actually to moving determined at through through something here almost potential progressively the better the and mean, talked portfolio about top come. be year. Filos when in But of and had past. And slide, at left, I here, exciting, obviously, is this here, develop as price also situation, Los add of to in tier than and And will the to and Slide of over we over And that's good move And programs, we as do the need you is But bottom Doug it well the even this at it investing sheet really way there sight we we track moving through be and want second Mesquite, quarter and well this look rebuild lose to lot our where into Filos production in when cash that here. creating expand the to deliver enough in the We've ounces We'll on net right we of column. disappointing, price, to, we be Aurizona, to opportunities, But And bit our which cash have pretty asset is flow We're on as at million base positive coming solid resource but to do million already do base amongst have? support expand growth flow it and new little highest #XX, XX% that year. And Mexico we'll plans excited our of think are support that we we do senior of not over start over look assets ounces, to, investment back the into exploration And be from to the $XXX the holds actually of And RDM, to a towards given the the very to planning rock cash going now. the of peers third key alluded business more of kind next conservative the firm, how and profile our for balance like at is to I we assets. to a is that and able Pete the as turn gold of X despite including prices. XX cash, reserve the is eating we're what it corporate. we as we

our of pleasing million me a We million the really is So still the $XXX to as to $XXX group really see banking that. supporting very exciting And investments, revolver see to. Pete availability on us. and that's strong alluded and got lending for

right a and almost fantastically it is would be be Solaris as And a of we always heck to I asset there. our has worth lot that and now. Dan debt job a Richard well. have think worth believe much wonderful one gone as actually done just day, and

I an great at as see. plans, value well there there some to he'll i-XX given the So and And is we've great creating done and be team think ambitious to and support Ewan wonderful start, stage, know to has I earlier but well. him

terms trough it, in great of, call for through should and be stronger, we're production flow, et a QX So cetera, coming year. quarter. cash that this QX get progressively will

our to strong be a We'll including have sheet. projects, balance fund able all growth We Greenstone.

announcements to the when exciting investment come this year. lots Mesquite. in I will or So through getting and last again, bring most with into back slide, of stride stability Santa the turn starting next Los and second up year way RDM it the mines And some We're you running, working be ounce Filos of around the on together, will our half of which see to I think go catalysts. just towards the to on year like Luz all of our type at to and XXX,XXX year, the getting back hit a

going exciting next into year. really So

slightly that our in do year up a a reduced going had despite potential original We're into to tough of mines. big at have level. ounces, to this straddling it's we and ounces. start Los XXX,XXX this XXX,XXX with to Filos quarter, We still lots that's still disruption investment our We and guidance but XXX,XXX had

a to Mesquite. well. at finding level. keep be It's and life, increasing always giving that here, a and very And I exploration underground had kudos respectable keeps Aurizona mine for has a out still but Aurizona the just think way I to that the So mine of It coming we'll Bahia, say. team your on the from as giving study think due for that eye also keep we production and level results Energizer course as life, and Bunny, in X.X-year kind

team half And of the So in we'll consolidated with and update reserve the results be resource Mesquite. the as our first year. really pleased this what getting second out and at there well done has

here at investment now, continue always a business. our support of sort we'll on lots strong, in we're to well companies. look people projects Team And M&A. really prepared into We've consolidated we this year. we're at So is the look very to to that on I place got and And right opportunistic as coming projects these deliver, think go. But we'll the lots say, of to allow focused. have good deliver

So keep half eye this for of in catalysts an all the out those year. second

I open part your thanks think formal I'll questions. and up the to time end and for there,

Rhylin Bailie

people please to the Christian. Thanks, ask Operator, how Perfect. you can remind questions.

Operator

[Operator Instructions].

Rhylin Bailie

you. Thank

our queue for take While online. of to from I'll we couple callers a wait questions phone up,

disruptions? further Filos of the have to get inevitable at the taken risk the manage just What Let's of out steps you Los way.

Christian Milau

that's obviously a lot. partnership and laser-focused mean, a that we word we're the key something there and is stability goal, I use on, Yes. is

employees working is and that in manage And make kind having of And have mine we've jobs, it's recent are to things communities. But fairly of the benefit come. really it finding a in of that and something the from distributed. COVID level economics. least had this mine in contracts, and we requests that's of management blockade these overhang significant sharing resolutions here whichever have is X open is also, we we the this with more and had months from site almost come challenge the that the stakeholders access provide want taught to it. did this what's involved other ability mine so great visit this benefits ethically X And with parties for getting tough stakeholders in think together the and fairly us, I there learned communities, most about a We're that's to number we've of will sole to some is do benefit happened operating; approach all operating they've the fair And are over. We've a to all resolving And X, at us manage. during to for think establishing locally. our sure that this. this ago. and looking that parties relationships. And to engaged a getting years do change So and since obviously a to situation build I responsibly all to unions, been the process that on go senior and have taken all taken many actually mine stakeholders always We employees, we principled to even communities done have are that government, job

need And to sure problem much it obviously possible, union, creates make have sharing have we as governments we as do we to the as a We obviously it's pie as there. but community, And one fair employees, are have disadvantage over we and fine a possible. we local when well. create of

make that we So as each sure they affect communities want well. to all that understand other

of been of areas. it so also program. on think communication has a part And I certain it's been Part

must a break, view we owe we and a we to have can't relationships and deliver on take of that principal honor things We employees communities, and have that that we unions those. we other and bit do contractual to

So is many I I operating. needs are well of operating, economic as people not has the the those contracts this pay the and getting people and everyone focused salaries mine indefinitely think, where mind that also think and situation we is producing not mine benefits through that, without which can't

with sort shareholder anyone that the that take in accept will we been new some mostly others, of have there, but is despite myself But spirit big way to certain sense, and parameters. but think that with So the community that mislead enough rebuild time is good want to we guarantee. a do it's plans the people those the process, programs to painful with also work don't felt them, think within as areas that approach, communities operate I establishing I we there communities. members pain things in well. have we're are to mine can can we're as partnerships. we And very quite think I of build baseline I But employees, boundaries that there and do joint we no the level that mine principal disadvantage trust. disruption. and well. we with establishing big a certain this And actually slowly are to certain a and good setting the all which It And of as and think are and a negotiate I including forward and can't has

optimistic, to but So does some those I'm it wounds. time heal need quite

Rhylin Bailie

phone, from please. We'll now take the questions some

Operator

The is question from from Dalton Baretto phone first Canaccord. from the

Dalton Baretto

kind I there. on follow of that questioning line same want to of up

on touched anything, resolved? a to a bit up? you did your give little actually give color So if this what, you the little blockade comments. us terms in more how of And can get had bit But Christian, in prepared you

Christian Milau

mine that's demanded challenging color. entertaining is for the very are kind you requests of intricate due there's more which the give and that ultimately a bit We having in a not owed demands, in time. where but beyond a I'll bonuses well details, contracts mean situation what's and I union and also the Yes. be are formulas. can't that owed Obviously, all all. I being at don't situation, And go into

agreed And so important wages very unfortunately, And are and I than region up guess, the of to of most that the it actually in the quickly up morale, work groups think I the end think financials But than there was on day, to our other in mean, to impact have et the and much, didn't come end. resulted in this vitally what block end jobs the lost And loss the support back And voluntarily the employees - the that cetera. more action. realize downtime and really give income. We obviously a for a to add to legal at blockade. the came in is I and they day, back work. I at the steady of the

some in process. I say that up earned lot sense. we've that a and given in trust we've hope respect wouldn't So I

Most they own think is, some I again, the exploration it's and community, the They X% of terms Guadalupe, it about community. land. have of think, of I in land. In only brand-new a

the communities. other actually the than different few There's very people that at very work mine. So

is, from to word, We the So that's ore they economics mining, not own the process familiar of can't going maybe I front. part in process I'm land happen the also their part fair the to of with it, a getting think the community but call that mining. pit education, of

site a locations be are site. managed obviously We has regulations through processing It that to suitable. have and on

So jobs to our is have our economics to successful organization part of because workforce call it, it possible. need to just do flexibility the can't as move X for, around be contractors of all education. and that Part pit all give and it community we is we to

attorney land to but But The way make also the And return to the good the against up to filing there's state the involved. be about And call been we I blockading. that think somewhat the on impact federal district just help charges to attorney I think all end legally going of tried the a have pressures with, education So was that really representative, are state that it, all criminal relied process, in at not a on although on by also, groups I we're our accept and as they involved sharing from, it, there has stand think And this. understood think we're own. to the day, is And we the actually I that this. stakeholders well that some blockades serious legal to they district the call government, union. heavily need I this.

suspect So of that blockade. for group think leading was honestly, a there, small the I support it less have this of I not on I that for less employees, only measures in with that over people obviously, build community it much to a in we're agreements to say them. mean, exploration, through with I number support leadership this. It's trust a And hours them for wasn't resulted work land many cetera, community. would influence rent would wide et that in, there's mine with continue just that time, away, have and to community. to so XX going and X.X much we as involvement

Dalton Baretto

there. build plant no put anything said there in response I Okay. can your sinking prior and capital spend Is place some there's guarantees so the in into know And to real you last then to on? you the

Christian Milau

these but as ultimately will Well, that CIL messaging get are think is something of X there, is next in cautiously proceed significantly. new want And pie And areas build to in and consequences senior as time, talk that, that take and that of be there we start to them, to And this site. get focused do and to bit to not a that build stability benefiting I we understand we're new them key out and in communicate. want some to as were do on they go some to investing we Guadalupe as going they we to stability. with having jobs, front partnership to want I groups we they're make very investing here the possible. we're see contracts, that The we'll I'll leadership want decisions there's in need obviously. and that speak, new we of Bermejal and in have Obviously, think before here, stability the with much investment invest but at our that, those one, the mine.

stable, countries capital. other investing, And X $X capital reallocate extremely as back allocate of attractive have becomes here. and we're the we'll there. sites this it, continue more to We billion And capital one call where we'll

Dalton Baretto

then jump and Okay. just then And in me one back X for I'll last Good. queue.

you So actually A cut disproportionate that? around XX,XXX underground pushed guidance I expecting Bermejal at Can the in else are context here? is some mean, being anything Bermejal even days. ounce out. Like, underground? much was you from place play with seems how add blockade the about XX for the And there

Christian Milau

mean I'll forget But and I you of my is off. comments here. don't on turn let a on pad, big Yes. don't that piggyback Doug leach it any this just

flow going and up, have time, there's And So to - had down there's they that time the you to it blockade. ramp they it absolutely this unfortunately, ramped union solution when get again. right

a to sense. in So taps certain we the turn off had

it time it year pushed few Bermejal, this the of But those what also to it think is some that's into one is ounces that were And I ore those ramp with all just the of impacts up. tonnes it good development quite don't meant new pushes out. attributes does biggest of this add ounces so will And many to months well probably little take a that year. get as now, disproportionate And really a unfortunately.

Douglas Reddy

development of at the contribution mostly year. the small it's very with No, end

up really back the pushed again. XXXX. the of pushed and contribution ounces very bring a the underground, pad actually It production ore good good to the second impact from from Bermejal finish very having But year. out and a leach out bringing would all to of be a down been all to it spilling sort year QX, half have it going what pushes then the So into the essentially be still over of will on better Guadalupe, out

Christian Milau

take it do we And serious. really

doesn't just and have almost down with It working work. getting people testing COVID there to people happen back we again X,XXX So overnight.

get some safety So of just that process back people we in, ready or of ease and the through retrain work them go. sort up protocols do have to to to and redo

a big of to it's a so shift turn. little bit And

Operator

next from is question Securities. Smith The from Haywood Kerry

Kerry Smith

Los to just Filos on follow maybe up again. Christian, So

guess. their you've got even mean and got they share, I it's already around roughly maybe kind I seems pro employees you at rata X%, will. you've employees right that want are If if if Xochipala. X,XXX more, like it or of XX from already X% It's they're

So you do it pro of how deliver they jobs more at that maybe that for deserve seems the to community has rata wouldn't come formula more other expense when suggest the communities? jobs like the because that

Christian Milau

on Yes. tricky I with the training labor always is committed to in end doing is that And up X with mean we we all region skilled with communities it so we've program thing that kind the that some are from front. of certainly, community. can Xochipala

I an a to making hiring think trained. some that those commitment of - a bit of people it, overt come call out more we're little

Scott other I Doug is their into So not future call in their want sort too the at that - some But right the exploration of community have land Guadalupe coming strip it, table They to is and ahead it's but of and of long, ultimately the the upside land. to pit. don't I myself, it looking is, far side perfect. too of around of think get a

area. And future exploration exploration excitement certainly some is of that in the and

land we to job, sort a on of their land. articulating a small exploration, for they think continue et actually get of and we probably cetera. that piece exploitation is see lot need we're paid I that what do But So that to them, to we of this, is and feature, have

pay less, we jump it, the time more it because do land to come. to exploration hectare there's queue, will of obviously, explore. exploiting come, the and So and allow us to need but they for we're can't not ahead We per

think and And the little education a required of is timing so on patience bit and process. there I

So that's see it. I how

Kerry Smith

of do agreements to agreement. what communities X that aren't today? so basically communities Is the all on with ignore just just X that kind just that in have And place Okay. you chose clear, And Xochipala happened?

Christian Milau

communities. exploitation be do in see thing. here exploitation. it agreement. have by exploration have all and place And I'll with that Xochipala with We same X also all on misunderstanding, up really them exploration straight Yes. is They do an a think, agreements as the I versus there's really we an

If mining add there a kind of I process profit Doug, on from risk the obviously that if - it's all explaining it's at when once it, pay it. you're going drilling gold for, that land, call the part for of exploring we of to comments, that's mining rate capital please our But you're them. is had you and And But almost ground. any we're like higher into we're it, access land. making it, think

Douglas Reddy

the since renewed the first so. the XXXX agreements time agreements had Carrizalillo communities were And guess, for was those mine, Xochipala. of We with an in in the I Mezcala start established X Xochipala, XXXX. agreement for and with or been this had

very new as the it relationship. our But and properties open very ground, to it's Christian important south So mining it's us. - license, on small of prospective, impacts very but Guadalupe important piece a pit leases end of mining mentioned, the

through been And we've newer working a of Xochipala working the been so over other that the a buildup for with community relationship it's decade. essentially versus with

Kerry Smith

Right.

were were or And so and forget? I And X-year agreements they X-year Carrizalillo renewed the terms, in those Doug, you Mezcala, with have XXXX.

Douglas Reddy

Mezcala. XX I X for it's for Carrizalillo, and think

Kerry Smith

it what new X? term that the would be then agreement that Is And the Or Okay. XX? with it Xochipala, struck you is on agreement?

Douglas Reddy

one term. years. is is The No. shorter there XX Exploration, a I new think,

I'm it's but I renewed, annually, gets - a sure every is it XX-year. years but the few think it's not exploitation

Kerry Smith

Okay. you. Got

seems to really comp, percolation tonne I'm these And cost it's probably why secondarily Mesquite Why the all. then percolation of maybe ton high that's a no just Castle you're question on There's there. why clays Mountain. means case. And I'm having Okay. at sure per with on wondering this basis. the - Mountain. on issue what is less body? been not per ore mining and like answer really Doug oxide I've just Castle at can issues. a - that, the seems the significantly good a

just those could if X you comment So wonder I on issues.

Douglas Reddy

is previously not find, JSLA material is mined JSLA It's pit. - material This the is place. put open Sure. into

there's component with leach So in irrigating that spray was we when problem. a a were initially fair emitters of the find there pads penetration essentially, And material.

been been while has most of step each tried. say try have and takes change. varying productive course, things would to is, I emitters, several approach which a the So through

thing it do don't model know you once, is working. If which you

been it's been pad emitters are the and most through. being to successful production and it applied doubling of allowed process So QX ramp essentially gallons the a up between has the QX. the the working bearing one, of And has minute to per which our that us

work efforts, know a essentially... key we We percentage clients. other percolation high on but driven item it's to that Mining and the of by is continue costs,

Peter Hardie

owner It contractor, versus number is a X, mining.

Christian Milau

over Yes, the to and pad. trucking leach

else I'd of run mine, it's look and anything it, to So if about there's abnormal been have but... into

Peter Hardie

Yes.

It's it's Peter Kerry. I a in think lower it's denominator, just also - part here.

would at level we the quite it's While it. expect the not up come production from has QX, significantly

so obviously, and production - not And it's a volume. large

reduced per with So that unit basis. a it denominator, amplifies just on

Kerry Smith

- you're lower the ounces, the denominator obviously? So is referring lower not to lower tonnes,

Peter Hardie

Yes.

Kerry Smith

Yes.

Okay.

Okay.

that the you've up? and goal And and do kind think other the fine solution like that's areas bearing to of focus tune you you're on best that's so get run Is Doug, here? and solution going is kind got of that emitters, the with now you the now to production the try can

Douglas Reddy

And they've that at not which been - the for more couple they moment. way efforts have through. to by actions that resting more the through series have want applaud I'll do. going that just their And team of try, the a very taken a site been on the work to and We've we're we're to methodically things No, done got that. it's they at

to doing. that been would process in it's recovery of step and being an overall, say that's through It and able better a we've while leach the percolation important I takes and pad. obviously higher So get what

Kerry Smith

Yes, of course.

Okay.

on run good whatever run I just a G&A? quarterly for or Okay. mean, you last And an What be quarter-over-quarter. for would fluctuates maybe forward Peter. going it annual prefer basis, a question basis quarterly a rate G&A lot X rate. The

Peter Hardie

over, sorry, the corporate in of was that initial - for the professional For of hear transaction lot to we activity, through acquisition. to $X of higher quarter, a that that Yes, then related fees due was G&A And share-based respect part in the couple million. the of unfortunately, quarter. it cleanup resolved this obviously and your Leagold question. I that until with during Premier integration One, had and a flowed quarter sale a reasons. to was different costs also there was plans the didn't Pilar, and an And now the Equinox comp, carried item was about of

We $X.X million quarter run of it a tend expect think overall to rate. dollars We about in ounce. as per a

so And on basis, basis, annualized expect normalized be would an $XX ounce. an to in we around

Rhylin Bailie

take I'll a of questions Kerry. from Thanks, couple online.

combine and going whole about to questions We all-in into I'm of one. a sustaining to bunch have costs, try

second of cost raised guidance, you've all-in in the this but half your So cost there be will you say year. sustaining lower

you So 'XX? into your the just sort when going be of all-in to even then that would sustaining that trying costs hit at point? cost like And goal, further all-in what are to target down sustaining your road, figure out X million-ounce what look

Christian Milau

like long-term Pete, areas or it, of the of And move question. bigger also more that as these is, we higher the to affects sustaining new naturally these up in so in grades, of but in RDM, more if can part you some finish stripping big when high-level investment some or you're granular into putting please mines, with overall think jump the take there's anything see areas see into all-in production, costs an I'll that. goes perspective, that Mesquite From I add. end mean it and lot up a costs, come you'll into, going you're capital, you I We're of that what and investments call denominator. details down. opening

us of all-in down. cost. of costs will see Greenstone, Those expansions, a for sustaining up Luz, prize that you cost. impact be lower and running, where that Greenstone the naturally you'll additional we have get which projects got the low Santa certain and the very some So Then are are naturally come benefit those has to projects want

up running, has As get cost. sustaining it lower and Santa we a Luz all-in

of benefit longer-life, and over So high-quality time. of in you actually operating cost. kind putting down into have have that a we're developing the we're mines the lower bigger coming place projects will The investing

down. So the average come will

are a is HX for to I jump of versus just outsized In Filos HX increase factors the Los there's impact sustaining out that big this an X had year, key terms HX, probably cost, me ounce all-in $X,XXX effectively. think the in

So higher so the you year the had first is across that brings your going for you're up a average half, the our all-in have half, cost because cost much but second whole a much cost in higher. lower to

of have where metric higher X a similar HX that math have And simple addition in a or it. cost. was Just to X we sites that,

X% FX year. on certainly also offsetting in We're average, an areas, well. just getting et But overplay average bit take, impact So little of benefits reagents, And the of there. certain there's want exchange of or as bring up I still this and inflation bit give foreign that a for having that's a to fuel, in don't in that, Brazil. but or cetera,

Rhylin Bailie

Good.

Okay.

Given the buyback? share undervaluation of you are your considering stock,

Christian Milau

And I our Santa it's of a other on a that's capital in assets, Luz, are right focused of make. And we something good capital of today. coming up, we to finishing investment think lot It's do. I investing and look to question. best is allocated still have to Greenstone now But off at with in lot is trade-offs. front have we'd those X love couple really spent where thing mean we us, a a of

price to like way. the for come along But we announce we in the something as certainly if capital be assets. want start them, projects, that, that to isn't we looking share at through - investing we get our deliver I of buybacks think to share moving, visibility want to start more certainly on to those As today commit

Peter Hardie

investing longer those I that for now the plan And be think that, then - for and That's whole to it's growth shareholders. returning say we term, to future absolutely shareholders. of want returning returns fair making to capital

Rhylin Bailie

from remaining take questions the phone, we'll please? Operator, the

Operator

CIBC over phone from The next Markets. from is Soni World the Anita question

Anita Soni

idea question give being First capital spent an is have of Could the you to year. non-sustaining and that $XX regards with what million Los year me that's in Filos just you this there on then? this

Christian Milau

high of give year. little of has they granularity, mean, and I'll Pete or add was Guadalupe a particularly But can first I continues areas, obviously, that I year level, to That mean, the a stripping Bermejal in very Guadalupe. half either of Doug key the and it. There's Bermejal. up kind on the this are and lots opening for at

us. As key the mine brand-new X Those those bodies projects those growth are for are, are it, to ore call areas. adding the life,

Peter Hardie

Yes.

Anita Soni

Okay.

- number that before? Or that was the had number? number that So same prior reduced you that was from

Christian Milau

it's slightly reduced. No,

Peter Hardie

it reduced We by before. $XX million Yes. from

Anita Soni

with I regards next then more And is right. of a picture. question, All big Okay. just guess,

towards noticed So the on sorry, what the XXXX gearing production. for XX of Slide in got bar of got kind I Slide slide you've on that on is you're - terms XX-XX, you've XXX,XXX ounces,

kind is of taking you Santa of of if Is - still CX just impact proportion plus that it assuming next XXX,XXX slower can for at year? the I any a Los account Luz? Filos. idea an us give there think is into start-up Or maybe that's

Christian Milau

year, next commercial far be it we or achieve whether and depends will for probably gold off on that. actually the production, date I pour but XXX,XXX we not Well, not that get mean, to

We quarter. expect first gold to the pour in

probably to of X X the have you'll obviously, ramp-up But you'll then like get quick really if the So addition, have we bit XXX,XXX. pushing weeks, a to probably If Santa little slower, later. of be Aurizona towards bit Luz. a of a XXX,XXX it's

through this that Mesquite it's - and to and stacking year, stride in where in it's lot have a that of right falls brownie year. next QX, has You actually - QX X ore hitting

And is uninterrupted full at We've be see Los Filos, you level. year. sort a next an will well. producing a obviously, as steady So nice of Aurizona improvement there. year nice Castle year got from a hopefully,

Anita Soni

question ask. I the just then wanted And last Okay. to

build. I as colleagues, in half or capital guess, look reassess Hardrock struggling study capital Given a your you start spend or take the the project Have the you Cote their that taken year? to feasibility one of second for will competitors at inflation at new with cost you the in is into - business of

Christian Milau

project mean over. that. I sure we're actually absolutely. and the Orion We've make projects job a I jobs, capital us just it, to is behind to look number standing is a Vancouver, with of of think, here the Also Yes, and taken one come first her closely we've key with when in team head at out we comfortable. for we're working very hired

Looking and But is have COVID do which to is actual some separate it's builders piece we that's from out well, other there we foreign escalations, challenges and that and as perspective. obviously need at operators I a there something think which to another exchange all project. had, manage that impacts, the corporate cost can

we come any out our number, few factor in of those months. when points. And absolutely, initial So next with we'll the hopefully, that see capital you'll in

Anita Soni

in think trying accelerate capital then want capital? the were the push XX Could maybe or months. spend would you next terms spend, CapEx to option? And XX you in phasing Okay. guys to that indicated Or I just that original the had of you that sort of still or an be

Peter Hardie

just Sorry, here? specifically are about talking we Greenstone

Anita Soni

yes. talking Yes, about Hardrock, we're

Peter Hardie

Yes.

phase sorry, or we're no, - yes it. planning So not to

want We've best you Ross well, happen think and I the way seen it I right, thinking our No, here, that build try too to and capital in phases do or stands operating period. mine as to to the it, many cut indication. methodology way behind and build give Sorry, this any don't we times. into and don't know corners the push in

on Let's operating it's be day understood, actually well best X. the deliver well project let's make project sure and that the will financed,

don't any have it. phase now So to we intention

Operator

line The your Research. Independent is Tumazos John John from John, open. is Tumazos from next question Very

Wayne from is question Next Lam RBC. from

Wayne Lam

if lot to the kind I be extent you and you mine. I'm ballpark provide Filos annually kind at just Los of was in wondering paid the more payments. Mexico, able PTU around and sharing just subcontracting subcontract amount there of of what that's at to scrutiny recently might terms a payments wondering, PTU out profit in guys a do seems to be

Christian Milau

the my Wayne. mean, and review that mean phase. the there of top still know I is that some are investigation contracting how it's in, there have don't it, - I coming outsourcing is and I some coming. number call changes I off the to and Yes. laws head, to admit

So not to but we impact? we'll as may think may it I with experienced bringing It sharing shift it to impact. Mexico, going massive versed you I have our Do well more. into you there. a in-house out for and from an much on to team much shouldn't it the, a sharing the But the, you going outward ballpark shouldn't or it, it are and expect bonus may It impact don't is can't costs. it's the perspective They be site entity I'm is have bit in how profit how And this. employees, it the at make see and operators into whatever or in contractors give call shift adapt profit where slight even a allocated. paid it, necessary or shifting to the work. a it mine call -

Wayne Lam

Perfect. kind that ounces, that. thinking about Los part obviously, at And Okay. the path a of to was big then Filos X expansion just curious, of million

comfortable and timing of And to, about guys see had of you should CIL moving plant? how stability. that past to of more the Kind interruptions term with happened the and over some that year, we over the have the talked near the expansion? with one, think proceeding Given guys are ahead still you that

Christian Milau

Yes.

here, do, of key proceed and maybe we it's mean for just it's a mine. great think CIL we more be stability, to what still to the that want invest but I future little until but in line in it them yet, we will our stability, that and part the I investment deposit a clear indicate that rebuild that a on want cautiously we radar. And won't the great there. to have we

year. into get and stakeholders. are launch as and well, it use we don't we We to of can local second to, out study the still then what here need half articulate the the to the it, communities plans maybe as quite call in that quickly So the

we may investing will Bermejal obviously, don't there. We the CIL. take well And in way Those of underground. little be the of a Guadalupe plant, material lost. certain is the the the good operate but ounces reprocess here, it. are it thing bit it just leach of I parts need the cautious deposit is more to the It's pad through we if CIL and to of most later. underway, They some ultimately that to deferred Guadalupe guess, with efficient, and on that not more continue, CIL we run obviously, But and may just are obviously put some approach

Wayne Lam

able reagents then seeing And maybe inflation percentage detail Would cyanide Great. more the a terms labor be you're what and that cost terms flagged. you in Okay. provide and and U.S. was on of on Brazil? within the just to bit

Peter Hardie

here. Yes. date. labor We're not seeing as the It's It's more on much Peter energy. on to definitely

electricity - on consumables. Brazil, So in and also diesel and then and

an on in the So U.S., call X% and similar structure jurisdiction. overall seeing we're of more say, the reagents on it's the as in it and cost about overall in each well. basis, you X%, And U.S., fuel it

that's And we're down be is to but could increases on suppose over are these or on to a the the world I add you hate grinding term, position. same mean, supply probably is the wait see going recovery structural the in and just to issue I to time. whole I Brazil. use going Okay, media come this COVID chain issue you a in think

Wayne Lam

into And it's it. head similar that Got you how just maybe the Okay. kind kind well about we as it, ramp-up seen are I line, of of guys in terms on Santa at here? budgeting costs on of thinking tracking Luz, but budget,

Douglas Reddy

We're over to of we're time first and materials on on and lot - spent in for the the of I site. going XX% budget, a equipment, Santa the of think construction, construction everything the already of bills for we've remainder - Luz all is on regards through XX% construction, over

we're Santa So Luz, advanced I and good. we're think well on

Christian Milau

others it, operating mines. benchmarks. Aurizona other operations, that got similar were call and Fazenda of actually around as, some some even, and obviously, we've the we're our In terms people And of call of it, using

have basis. using a got volume we the mining also benefit. we've So contractor. the We're good same And now

We have the same on mines X contractor.

may our believe so Luz the And X. of be Santa favorable contract most out

other think And that Doug of of of, equipment So, are hopefully, of any equipment. that helps pressures. big mills saying guys are only to there the the cost site. call pieces as I of they said, offset on day or arrive peripheral. And any still pieces the are may They're X it, core the none be kind

us those behind of are probably Santa Luz. any fortunately, at So challenges logistics generally

Douglas Reddy

just course, opportunities producer, at to being beyond we, able purchasing And we can where as look do a individual multi-mine sites. for of the

it benefits effort at us ongoing important bring this and know purchasing in doing is thing group can And if do to So obviously matter we that there's be escalation. reaps that's what because the costs background an benefits long term, time. overall continued But down. if we no

as that's well. going on So

Christian Milau

some But And today, in because of ESG these an fantastic there's power having from they're to is already at in renewable not from major perspective. ways, facilities another a perspective locations. also I'm and proving built look forward thing that looking facilities using a companies involved energy. Brazil, production are we're cost independent to going this and is And also to that power look but other other mining, a are at, from taking and sources anything there's that opportunities quite promise green but

get kinds all for our at becomes business as smart but in of partly very of more terms looking our from an opportunities, win-win perspective. emissions a So focus and baselines kind of of in that we also for ESG because things costs, we're it's about those serious us. great that And And sense. it's in

Rhylin Bailie

for Thank us That's today. of the end you, joining questions. our everybody,

Christian think If you it hesitate I will do over do back for anything, of to closing remarks. touch. in please get to not turn

Christian Milau

said little was Thanks, would challenge Rhylin. it earlier a it's And bit of a I more telegraphed. been pretty as this comprehensive knew think And second we're on, looking really run-through. exciting. I be. It forward in a be of the to half half It's first the should pretty second We well And year. half.

So X. QX and for much. tuned very Thank you stay

Rhylin Bailie

now Operator, disconnect you the can lines.

Operator

call. you. concludes This today's Thank conference

have Thank disconnect and your all you pleasant You for a day. may lines. participating,