Q2 2024 Equinox Gold Corp Earnings Call

thank

Operator: Thank you for standing by. This is the conference operator. Welcome to the Equinox Gold second quarter 2024 results and corporate updates. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then 0.

Speaker Change: Thank you for standing by. This is the conference operator. Welcome to the Equinox Gold second quarter 2024 results and corporate update.

Speaker Change: As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad.

Speaker Change: Should you need assistance during the conference call, you may signal an operator by pressing star then zero. If you're participating through the webcast, you can submit a question in writing by using the text box in the lower left quadrant of the webcast frame.

Operator: If you're participating through the webcast, you can submit a question in writing by using the text box in the lower left quadrant of the webcast frame. I would now like to turn the conference over to Rhylin Bailie, Vice President, Investor Relations, for Equinox Gold. Please go ahead.

Speaker Change: I would now like to turn the conference over to Rhylin Bailie, Vice President Investor Relations for Equinox Gold. Please go ahead. Thank you.

Rhylin Bailie: Thank you, Gaylene, and thank you, everybody, for joining us today for our Q2 call. Peter and I are dialing in from beautiful Princeton, B.C., because we are two days into the ride to Greenstone. So this is a big, um...

Speaker Change: thank you gayelen and thank you everybody for joining us today for our q two call peter and i are dialling in from beautiful princeton b c because we are two days into the right to greenstone so this is a big

Rhylin Bailie: I'm not crossing Canada, I guess I'll cross half of Canada. We're riding from Vancouver to our new mine in Geraldton, Ontario, to celebrate the mine opening but also to raise money for the Geraldton District Hospital, which is the hospital that serves the Greenstone mine workforce and also five Indigenous communities and about almost a 3,000 square kilometer region in northern Ontario. So it's going really well so far. It's super exciting.

Speaker Change: Across half of Canada, we're riding from Vancouver to our new mine in Geraldton, Ontario to celebrate the mine opening, but also to raise money for the Geraldton District Hospital.

Speaker Change: which is the hospital that serves the Greenstone Line workforce, and also...

Speaker Change: five Indigenous communities, and about almost a 3,000 square kilometre region in northern Ontario. So it's going really well so far, it's super exciting.

Rhylin Bailie: We've got people from our mine sites in Brazil and the States and in Mexico that have flown up to Canada to join us for the ride. And we're making our way across the country, raising money for the hospital. Like I said, we've raised almost $1.2 million so far, thanks to the generosity of our vendors and some industry sponsors. We're also raising money for four schools and a hospital in Brazil and for the Alzheimer's Association of California.

Speaker Change: We've got people from our mine sites in Brazil and the States and in Mexico that have flown up to Canada to join us for the ride.

Speaker Change: And we're making our way across the country raising money for the hospital, like I said, we've raised almost $1.2 million so far, thanks to the generosity of our vendors and some industry sponsors.

Speaker Change: We're also raising money for four schools and a hospital in Brazil, and for the Alzheimer's Association of California. So if you're interested in more information about that, you can go to the Ride to Greenstone website or the Equinox Gold website, and please do follow the progress as our cyclists make their way across the country.

Rhylin Bailie: So if you're interested in more information about that, you can go to the Ride to Greenstone website or the Equinox Gold website, and please do follow the progress as our cyclists make their way across the country. After that plug, we'll now turn it over to the conference call. So we will, of course, be making a number of forward-looking statements today. Please do visit our website, Cedar and Edgar, to learn more about the company. And I'll turn the call over now to our President and CEO, Greg Smith.

Speaker Change: After that plug we'll now turn it over to the conference call so we will of course be making a number of forward-looking statements today. Please do visit our website Cedar and Edgar to learn more about the company and I'll turn the call over now to our President and CEO Greg Smith.

Gregory Smith: Thanks, Rhylin. Good morning, and thanks, everyone, for joining the call today. On the line with me is our COO, Doug Reddy, our CFO, Peter Hardie, and our EVP of Exploration, Scott Heffernan, and, of course, our VP of Investor Relations, who you just heard from, Rhylin Bailie. Today we are discussing Equinox Gold's 2024 second quarter financial and operating results. I'll start with a broad overview of the quarter, and then I'll turn over the call to Pete and Doug for more details. I'm going to start with safety.

Greg Smith: Thanks Rhylin, good morning and thanks everyone for joining the call today. On the line with me is our COO Doug Reddy, our CFO Peter Hardie, and our EVP of Exploration Scott Heffernan, and of course our VP of Investor Relations who you just heard from Rhylin Bailie.

Speaker Change: Today we are discussing Equinox Gold's 2024 second quarter financial and operating results. I'll start with a broad overview of the quarter and then I'll turn over the call to Pete and Doug for more details.

Gregory Smith: We did unfortunately have a fatality at our fazenda mine in Brazil in June. This is a tragedy for all of us at Equinox, and we extend our deepest sympathies to our employees and also their family, friends, and co-workers. We did have a site-wide suspension of operations at Pazenda in June to facilitate both the investigation and also to refresh our site safety training. On the environmental side, we did not have any significant environmental incidents during the second quarter.

Speaker Change: I'm going to start with safety. We did unfortunately have a fatality at our fazenda mine in Brazil in June . This is a tragedy for all of us at Equinox and we extend our deepest sympathies to our employees and also the family, friends and co-workers.

Speaker Change: We did have a site-wide suspension of operations at Pazenda in June to facilitate both the investigation and also to refresh our site safety training.

Speaker Change: On the environment side, we did have no significant environmental incidents during the second quarter.

Gregory Smith: And, as previously reported, we published our fiscal 2023 ESG report in May during the quarter. And you can find the report on the Equinox Gold website. So for the quarter, we produced just over 122,000 ounces of gold and sold just over 115,000 ounces at a cash cost per ounce sold of $1747 and an all-in sustaining cost per ounce sold of $2041 per ounce. For the first six months of the year, we produced approximately 234,000 ounces and sold approximately 232,000 ounces at cash costs of $1653 per ounce and all in sustaining costs of $1993 per ounce.

Speaker Change: And as previously reported, we published our fiscal 2023 ESG report in May during the quarter, and you can find the report on the Equinox Gold website.

Speaker Change: before the quarter we produced just over one hundred twenty two thousand ounces of gold and sold just over one hundred fifteen thousand nounces at a cash cost per house sold of see forty seven and an all in sustaining costs per house sold of two thousand and forty one dollars perounes

Speaker Change: for the first six months of the year we produced approximatelytwo hundred andthirty four thousand nounces and sold approximately two hundred thirty two thousand nounces at cash costs of teen and fifty three per ouns and all suaining cost ofone thousand ninehundred ninety three grounds

Gregory Smith: We did have a few developments during the quarter that affected our production and costs in Q2 and also drove an update to our fiscal 2024 guidance. In mid-May, we completed the acquisition of the 40 percent of our Greenstone mine that we didn't already own. We spoke about this on the Q1 call and in a couple of press releases. But as a reminder, this transaction delivers full ownership of the Greenstone mine to Equinox Gold and consolidates ownership of Greenstone, which is one of the largest and highest-grade open-pit gold mines of scale in Canada. This transaction is accretive to our cash flow and our EBITDA.

Speaker Change: We did have a few developments during the quarter that affected our production and costs in Q2 and also drove an update to our fiscal 2024 guidance.

Speaker Change: in midmay we completed the acquisition of the forty percent of our greenstone ine that we didn't already owned

Speaker Change: We spoke about this on the Q1 call and in a couple of press releases, but as a reminder, this transaction delivers full ownership of the Greenstone mine to Equinox Gold and consolidates ownership of Greenstone, which is one of the largest and highest-grade open-pit gold mines of scale in Canada.

Gregory Smith: It delivers substantial near-term value, and it increases the company's average mine life, reserves, and production, all while lowering our consolidated per-ounce operating costs. Greenstone has been ramping up largely on plan, with our first gold pour in late May and just over 16,000 ounces produced through the end of June. Production has continued to ramp up with just under 20,000 ounces produced in July alone at Greenstone. We recently concluded a multi-day shutdown to address various wear and process issues identified through the startup and are now pushing toward achieving commercial production by the end of Q3. With the ramp-up progressing well, we've maintained our guidance for Greenstone with an increase to reflect the consolidation of ownership.

Speaker Change: this transaction is accretive to our cash flow and our ebitda it deliver substantial near-term value and it increases the company's average minelife reserves production all while lowering our consolidated per-ounce operating costs

Speaker Change: Greenstone has been ramping up largely on plan with our first gold pour in late May and just over 16,000 ounces produced through the end of June . Production has continued to ramp up with just under 20,000 ounces produced in July alone at Greenstone.

Speaker Change: we recently concluded a multid shut down to address various where and process issues identified through the start-up and are now pushing toward achieving commercial production by the end of q three with a ramp up progressing well we've maintained our guidance for greenstone with an increase to reflect the consolidation of ownership

Gregory Smith: We previously reported in April that we experienced some geotechnical issues in the south wall of the Piaba open pit at Arizona and that we had temporarily suspended mining in Piaba. We continued to process stockpiled ore through April, and production in Q2 at Arizona primarily reflects processing of this material. We then idled the mill in May and June and accelerated mining in the new Tatejuba open pit. We did begin processing the first ore from Tatajuba in early July.

Speaker Change: We previously reported in April that we experienced some geotechnical issues in the south wall of the Piaba open pit at Arizona, and that we had temporarily suspended mining in Piaba.

Speaker Change: We continued to process stockpiled ore through April , and production in Q2 at Arizona primarily reflects processing of this material. We then idled the mill in May and June and accelerated mining in the new Tatejuba open pit. We did begin processing first ore from Tatejuba in early July .

Gregory Smith: We are working on mitigation activities to recommence mining in Piata, and this is progressing well. As the timing of starting mining again in Piabit does remain uncertain, guidance for Arizona has been reduced to take into account lost production during the suspension of processing in May and June and also to reflect the lower-grade ore mined primarily from Tatejuba through the remainder of the year. At Mesquite, 2024 is primarily a stripping year as we pre-strip the ginger pit, which supplies ore to the mine or to the heap in 2025.

Speaker Change: We are working on mitigation activities to recommence mining in Piata and this is progressing well.

Speaker Change: As the timing of starting mining again in Piava does remain uncertain, guidance for Arizona has been reduced to take into account loss production during the suspension of processing in May and June , and also to reflect the lower grade ore mined primarily from Tatejuba through the remainder of the year.

Speaker Change: Mesquite 2024 is primarily a stripping year as we pre-strip the ginger pit which supplies ore to the mine or to the heap in 2025.

Gregory Smith: Mining at Mesquite has been performing well, with recoverable ounces stacked exceeding planned. However, we are seeing slower than expected recoveries off the heap bleach pad from ore stacked in prior periods, in part due to the increasing pad height. We are working to accelerate production, but we have reduced our 2024 production guidance for Mesquite to account for the slower recovery. Finally, the company has concluded its previously reported assessment of the phase one operations at Castle Mountain, and we've elected to suspend the contract mining and processing at Castle Mountain phase one and transition to residual leach only.

Speaker Change: Mining at Mesquite has been performing well, with recoverable ounces stacked exceeding plan. However, we are seeing slower than expected recoveries off a heap leach pad from ore stacked in prior periods, in part due to the increasing pad height.

Speaker Change: We are working to accelerate production, but we have reduced our 2024 production guidance for Mesquite to account for the slower recoveries.

Speaker Change: Finally, the company has concluded its previously reported assessment of the Phase 1 operations at Castle Mountain, and we've elected to suspend the contract mining and processing at Castle Mountain Phase 1 and transition to residual leach only.

Gregory Smith: We will continue to focus on advancing the permitting and engineering of the phase two expansion at Castle. Our guidance has been updated to reflect this change at Castle Mountain, and Castle will be reported as a development project going forward. Of course, we will continue to recover ounces off the pad through the year and into next year. With these changes reflected, consolidated guidance for 2024 has been updated from 660 to 750,000 ounces of gold to 655 to 750,000 ounces of gold, with costs updated to cash costs of 1305 to 1405 per ounce and all sustaining costs of 1635 to 1735 per ounce. This continues to reflect a substantial increase in gold production at much lower costs over the second half of the year. With that, I'll turn it over to Pete to discuss our financial results.

Speaker Change: We will continue to focus on advancing permitting and engineering of the Phase II expansion at CASL.

Speaker Change: Our guidance has been updated to reflect this change at Castle Mountain and Castle will be reported as a development project going forward. Of course, we will continue to recover ounces off the pad through the year and into next year.

Speaker Change: With these changes reflected, Consolidated Guidance for 2024 has been updated from 660 to 750,000 ounces of gold.

Speaker Change: to six hundred and fifty five to seven hundred and fifty thousand ounsces of gold with cost updated to cash cstuse of thirteen o five to four o five per ounce and all in suaining cost of sixteen and tyfive to seventeenand thirty five per ouns

Speaker Change: This continues to reflect a substantial increase in gold production at much lower costs over the second half of the year.

Speaker Change: With that, I'll turn it over to Pete to discuss our financial results.

Peter Hardie: We're now on slide seven in the presentation. During Q2, we sold 115,000 ounces of gold at a realized price of $2,328 per ounce for revenues of $269 million. Total sales included 10,000 ounces sold by Greenstone, and income from mine operations was $27 million. We had $199 million in operating expenses in Q2 2024 compared to $193 million in Q2 2023. Operating expenses in Q2 2024 increased 3% compared to Q2 2023, primarily due to the contribution of operating expenses at Greenstone, which was a construction project in 2023 and did not have operating expenses, and a higher operating expense at Los Feliz, which was driven by an increase in underground mining activity.

Pete: Thanks, guys.

Pete: We're now on slide 7 in the presentation.

Pete: During Q2, we sold 115,000 ounces of gold at a realized price of $2,328 per ounce for revenues of $269 million. Total sales included 10,000 ounces sold by Greenstone. Income from mine operations was $27 million.

Speaker Change: We had $199 million in operating expenses in Q2 2024 compared to $193 million in Q2 2023.

Speaker Change: Operating expense in Q2 2024 increased 3% compared to Q2 2023, primarily due to the contribution of operating expense at Greenstone, which was a construction project in 2023 and did not have operating expenses.

Speaker Change: and a higher operating expense at Los Filos, which was driven by an increase in underground mining activity.

Peter Hardie: Offset by lower operating expenses at Arizona that Greg mentioned earlier. On a per unit basis, we had a higher than usual Q2 2024 cash cost of $1,747 an hour. The increase over previous quarters is primarily volume driven due to lower production at Arizona due to the geotechnical issue at the Piava Pit. The same explanation applies to our higher-than-usual, all-in-sustaining cost per ounce for the quarter. Note that Greenstone is not yet in commercial production.

Speaker Change: offset by lower operating expense that arizona the greg mentioned earlier

Speaker Change: On a per-unit basis, we add a higher-than-usual Q2 2024 cash cost of $1,747 an ounce.

Speaker Change: The increase over previous quarters is primarily volume driven with the lower production at Arizona due to the geotechnical issue at the Piava Pit.

Speaker Change: The same explanation applies to our higher-than-usual, all-in-sustaining cost per ounce for the quarter.

Peter Hardie: So when you're looking at our cost metrics, the 10,000 ounces it sold along with the related related cost of production are excluded from the calculation of cash cost and all and sustaining cost metrics we reported in Q2. That said, revenues and related operating costs are still reported in the income statement as required by IFRS.

Speaker Change: Note that Greenstone is not yet in commercial production so when you're looking at our cost metrics, the 10,000 ounces it sold along with the related cost of production are excluded from calculation of cash cost and all in sustaining cost metrics we reported in Q2.

Speaker Change: that said the revenues and related operating costs are still reported an income statement as required by fs

Peter Hardie: Our EBITDA in Q2 2024 was $510 million. Included in EBITDA is a fair value gain on the remeasurement of our Greenstone ownership interest that was recorded when moving from proportionate to full consolidation. For accounting purposes, we record the changes if you sold the 60% ownership interest we had at fair value.

Speaker Change: Our EBITDA on Q2 2024 was $510 million. Included in EBITDA is a fair value gain on remeasurement of our Greenstone ownership interest.

Speaker Change: that

Speaker Change: Recorded when moving from proportionate to full consolidation.

Speaker Change: For accounting purposes, we record the change as if you sold the 60% ownership interest we had at fair value.

Peter Hardie: The gain results from the difference in fair value and the cost that the 60% interest was carried at, and that gain is about $470 million. Our adjusted EBITDA of $51 million for Q2 is the same as Q1 2024, and down $19 million from Q2 2023 is adjusted EBITDA of $71 million. The decrease in adjusted EBITDA in Q2 2024 compared to Q2 2023 was primarily due to the impact of an $8.8 million realized loss on gold contracts in Q2 2024, while we didn't have any in Q2 2023.

Speaker Change: The gain results from the difference in fair value and the cost that the 60% interest was carried at, and that gain is about $470 million.

Speaker Change: Our adjusted EBITDA of $51 million for Q2 is the same as Q1 2024, and down $19 million from Q2 2023 is adjusted EBITDA of $71 million.

Speaker Change: The decrease in adjusted EBITDA in Q2 2024 compared to Q2 2023 was primarily due to the impact of an $8.8 million realized loss on gold contracts in Q2 2024. We didn't have any in Q2 2023.

Peter Hardie: In addition, we had a small realized loss on foreign exchange contracts this quarter, whereas in Q2 2023, we had a 9.1 million realized gain on the same. We had net income of $204 million for basic earnings per share, $0.72. 61 cents a share fully diluted; on an adjusted basis, we had a net loss of six million or one cent. Cash flow from operations before changes to non-cash working capital was $0.045 or $0.12.

Speaker Change: In addition, we had a small realized loss on foreign exchange contracts this quarter, whereas in Q2 2023, we had a $9.1 million realized gain on the same.

Speaker Change: We had net income of $204 million for basic earnings per share, $0.72.

Speaker Change: 61 cents a share fully diluted. On an adjusted basis we had a net loss of six million or one cent per share.

Speaker Change: Cash flow from operations before changes in non-cash working capital was $0.045 or $0.012 a share.

Peter Hardie: With respect to our sustaining spend for Q2, we spent $31 million, which is pretty much in line with what we did in Q1 this year. With regard to Greenstone, with the mine and plant ramping up, Greenstone should now fund itself from a cash flow perspective. For Greenstone on a 100% basis, a total of $1.37 billion of the project to date has been spent on construction and commissioning.

Speaker Change: With respect to our sustaining spend for Q2, we spent $31 million, which is pretty much in line with what we did in Q1 this year.

Speaker Change: With regards to Greenstone, with the mine and plant ramping up, Greenstone should now fund itself from a cash flow perspective.

Speaker Change: For Greenstone, on a 100% basis, a total of $1.37 billion project to date has been spent on construction and commissioning.

Peter Hardie: Equinox's share of that spend was $55 million during the quarter, $109 million year-to-date, and $834 million project-to-date, which excludes capitalized interest and other non-cash amounts capitalized. We had a busy quarter for corporate financing activity to fund the $955 million we needed to acquire the remaining ownership of Greenstone. We amended our existing senior revolving credit facility to arrange a 500 million dollar term loan and completed a bot deal equity financing for gross proceeds of $299 million.

Speaker Change: Equinox's share of that spend was $55 million during the quarter, $109 million year-to-date, and $834 million project-to-date, which excludes capitalized interest and other non-cash amounts capitalized.

Peter Hardie: We issued $42 million shares directly to a rhyme at finance and issued a $40 million promissory note to a rhyme that matures in December 2024. Under the terms of the 299 million bought deal equity financing, the company issued 56.4 million shares at $5.30 per share. The $500 million term loan matures on May 13, 2027. No principal repayments are required under the term loan for the first two years of the three-year term.

Speaker Change: We had a busy quarter for corporate financing activity. To fund the $955 million we needed to acquire the remaining ownership of Greenstone, we amended our existing senior revolving credit facility to arrange a $500 million term loan.

Speaker Change: Completed a bought deal equity financing for gross proceeds of $299 million. We issued $42 million in shares directly to Orion Finance and issued a $40 million dollar promissory note to Orion Finance that matures in December 2024.

Speaker Change: Under the terms of the $299 million bot deal equity financing, the company issued 56.4 million shares at $5.30 per share.

Peter Hardie: Quarterly repayments will commence on August 13, 2026, equal to 10% of the then outstanding principal amount, with the remaining outstanding principal payable at maturity. The company may repay or, pardon me, prepay any portion of the outstanding term loan at any time without penalty. Interest, covenants, and other terms are substantially consistent with the company's existing revolving credit facility, and the terminal benefits from the same security package as the revolving credit facility. During Q2, we also amended two of the convertible notes by extending their maturities by six months.

Speaker Change: the five hundred million dollars term loan matures may thirteenth two and twenty-seven no principal repayments are required under the termalone for the first three years of the three -year term

Speaker Change: Quarterly repayments will commence on August 13, 2026, equal to 10% of the then-outstanding principal amount, with the remaining outstanding principal payable at maturity. The company may repay, or pardon me, prepay, any portion of the outstanding term loan at any time without penalty.

Speaker Change: interest covenants and other terms are substantially consistent with the compan' existing revolving credit facility and the terminal benefits from the same security package as the revolving credit facility

Peter Hardie: The maturity date of the 2019 convertible notes was extended from April 12th of this year to October 12th, and the maturity date of the 2020 convertible notes was extended from March 10th, 2025 to September 10th, 2025. In addition, the conversion price of the 2020 convertible notes was amended from $7.80 per share to $6.50. For the $500 million term loan, the company was required to have in place 328,000 ounces of gold hedges of our, pardon me, our forward gold production through mid 2026.

Speaker Change: during q two we also amended two of the convertible notes by extending their maturities by six months

Speaker Change: The maturity date of the 2019 convertible notes was extended from April 12th of this year to October 12th, and the maturity date of the 2020 convertible notes was extended from March 10th, 2025 to September 10th, 2025.

Speaker Change: In addition, the conversion price of the 2020 convertible notes was amended from $7.80 per share to $6.50 per share.

Speaker Change: For the $500 million term loan, the company was required to have in place 328,000 ounces of gold hedges of our forward gold production through mid-2026.

Peter Hardie: The company elected, and we already had some of those gold hedges in place for the second half of this year that we added to. The company elected to weight the hedges into the next 12 months using gold collars. The collars are arranged as follows. For the second half of 2024, there are 188,000 ounces hedged with a floor of 2150 and a ceiling of 2738 per ounce. For the first half of 2025, there's 100,000 ounces hedged with a floor of 2,189 and a ceiling of $2,905. For the second half of 2025, 20,000 ounces with a floor of 2100 and a ceiling of 3,487 pounds.

Speaker Change: The company elect and we already had some of those gold hedges in place for the second half of this year that we added to

Speaker Change: The company elected to weight the hedges into the next 12 months using gold collars. The collars are arranged as follows.

Speaker Change: For the second half of 2024, there are 188,000 ounces hedged with a floor of 2,150 and a ceiling of 2,738 per ounce.

Speaker Change: For the first half of 2025, there's 100,000 ounces hedged with a floor of 2,189 and a ceiling of 2,905 dollars an ounce.

Speaker Change: And for the second half of 2025.

Speaker Change: 20,000 ounces with a floor of 2,100 and a ceiling of 3,487 per ounce, and finally for the first half of 2026, also 20,000 ounces with a floor of 2,100 an ounce and a ceiling of 3,487 per ounce.

Peter Hardie: And finally, for the first half of 2026, also 20,000 ounces, with a floor of 2,100 an ounce and a ceiling of 3,487. Just with respect to those convertible notes. Extending the notes, the maturity of those two converter moats significantly enhances our financial flexibility as we advance the commissioning of our world-class Greenstone gold mine, which remains on track to pour gold this quarter. Moving to slide 8.

Speaker Change: Just with respect to those convertible notes.

Speaker Change: Extending the notes, the maturity of those two converter moats significantly enhances our financial flexibility as we advance commissioning of our world-class Greenstone gold mine, which remains on track to pour gold this quarter.

Peter Hardie: With respect to our available liquidity at June 30th, we had $160 million of unrestricted cash on hand and $105 million available to draw on a revolving credit facility. The first of our debt maturities comes in October with the $140,000,019 convertible note I just mentioned. It has a conversion price of $5.25 per share. Should the note holders decide not to convert, the company will repay the note using its existing cash and liquidity. Moving to slide nine.

Speaker Change: Moving to slide 8. With respect to our available liquidity at June 30th, we had $160 million of unrestricted cash on hand and $105 million available to draw on a revolving credit facility.

Speaker Change: the first of our debt maturity comes in october with one hundredand forty million two thousand and nineteen convertible note i just mentioned it has a conversion price of five dollars in twenty five cents per share should the shareholder should the note holders decide not to convert the company will repay the out using it sixed its existing cash and liquidity

Peter Hardie: With Greenstone construction complete and commercial production on the near horizon, the financial focus switches to deleveraging. Free cash flow produced by the mines will be used to pay down debt. For the first few years at Equinox Gold, we've been acquiring and building mines and have been using debt as one of the funding methods for doing so, including an additional $500 million term loan to consolidate our Greenstone ownership. This slide demonstrates Equinox Gold's historical leverage as measured by net debt to EBITDA ratio from Q1 2020 through Q4 2023 and pro forma leverage through 2026, as per an analyst. The general trend we see is that leverage in the company increased as acquisitions were completed and mines were being built.

Speaker Change: Moving to slide 9. With Greenstone construction complete and commercial production on the near horizon, the financial focus switches to deleveraging. Free cash flow produced by the mines will be used to pay down debt.

Speaker Change: For the first few years at Equinox Gold we've been acquiring and building mines and have been using debt as one of the funding methods for doing so, including an additional $500 million term loan to consolidate our greenstone ownership.

Speaker Change: This slide demonstrates Equinox Gold's historical leverage as measured by net debt-to-EBITDA ratio from Q1 2020 through Q4 2023, and pro forma leverage through 2026 as per analyst consensus.

Speaker Change: The general trend we see is that leverage in the company increased as acquisitions were completed and mines were being built. This is a natural consequence of using debt as one lever for funding acquisitions and construction.

Peter Hardie: This is the natural consequence of using debt as one lever for funding acquisitions and construction. Leverage peaked in Q1 2020, a few months after construction of Arizona was completed, and again in late 2022 as construction of Greenstone was ongoing and construction of the Santa Luz Mine was completed. Another trend we see in this chart is that as the mines are commissioned and ramped up, that leverage decreases, as Equinox Gold has the benefit of EBITDA and cash flow generated by the new mines. And we expect the same as Greenstone enters into commercial production later this quarter. With that, I turn the presentation over to Doug for a review of the operation.

Speaker Change: Leverage peaked in Q1 2020, a few months after construction of Arizona was completed, and again in late 2022 as construction of Greenstone was ongoing, and construction of the Santa Luz mine was completed.

Speaker Change: Another trend we see in this chart is that as the mines are commissioned and ramped up, that leverage decreases, as Equinox Gold has the benefit of EBITDA and cash flow generated by the new mines. And we expect the same as Greenstone enters into commercial production, hopefully later this quarter.

Speaker Change: With that, I turn the presentation over to Doug for a review of the operations.

Douglas Reddy: Thanks, Pete. We're now on slide 11 of the presentation. At the Mesquite Mine, gold production was 17,677 ounces with an all-in-sustaining cost of 1,283 dollars per ounce. Waste stripping continued in the ginger pit, and the majority of the ore from that pit went to leach pads starting in Q1 of 2025. For the rest of 2024, production was mostly a drawdown of the leach pad inventory, side slope leaching, and leaching of additional ore coming from The recoveries from the leach pad have been slower than expected due to the pad height and associated longer leach cycles.

Doug: Thanks Pete. We're now on slide 11 of the presentation.

Speaker Change: at the mscape mine goalld production was seventeen thousand and six hundred and seven ounances with an all and sustaining costs of one thousand two eighty three dollars broouns

Speaker Change: Waste stripping continued in the ginger pit, and the majority of the ore from that pit goes to leach pads starting in Q1 of 2025.

Speaker Change: For the rest of 2024, production is mostly drawdown of the leach pad inventory, side slope leaching and leaching of additional ore coming from current mining, and re-handling and re-leaching of the old VISTA pad material.

Speaker Change: The recoveries from the leach pad have been slower than expected due to pad height and associated longer leach cycles.

Douglas Reddy: At Castle Mountain, production was up over Q1 at 6,148 ounces at an all-in sustaining cost of $1,424 per ounce. Phase 1 is a small operation that is mining and processing low-grade historic backfill material that needs to be removed from the old open pits prior to mining in-situ material in Phase 2. We completed a review of the mine plan and costs at Castle Mountain for phase one and concluded that mining will be suspended in August for the duration of phase two permitting, while residual leaching will continue through 2024.

Speaker Change: At Castle Mountain production was up over Q1 at 6,148 ounces at an all-in sustaining cost of $1,424 per ounce.

Speaker Change: Phase one is a small operation that is mining and processing low-grade historic backfill material that needs to be removed from the old open pits prior to mining in situ material in phase two.

Speaker Change: look

Speaker Change: We completed a review of the mine plan and costs at Castle Mountain for Phase 1 and concluded that mining will be suspended in August for the duration of the Phase 2 permitting.

Douglas Reddy: And we continue with the phase two permitting process. At Los Feliz, production increased during Q2 to 37,430 oz, and this should continue to improve in H2. The all-in sustaining cost was $2,274 per ounce.

Speaker Change: Residual leaching will continue through 2024.

Speaker Change: And we continue with the Phase 2 permitting process.

Speaker Change: had loss fes production increased during q two to thirty-seven thousand four hundred and thirty ounances and this should continue to improve in h two

Speaker Change: the all and sustaining cost was two thousand and two hundred and seventy-four dollars perouns

Douglas Reddy: During the quarter, the crusher was brought back online, and all the material for crushing that it accumulated while the relocation of the conveyor was underway was then crushed and is now under lease. The productivity program that's been in place at Los Feliz for the last two years continues to show improvement, and we saw an increase in Los Feliz underground mine production continue in Q2. Mining in the new Diego's underground area has also been picking up once the second contractor started development work in the quarter.

Speaker Change: During the quarter the crusher was brought back online and all the material for crushing that it accumulated while the relocation of the conveyor was underway was then crushed and is now under leach.

Speaker Change: The productivity program that's been in place at Los Feliz for the last two years continues to show improvement and we saw an increase in Los Feliz underground mine production continue in Q2.

Speaker Change: Mining in the new Diego's underground area has also been picking up once the second contractor started development work in the quarter.

Douglas Reddy: Our dialogue with our community partners continues; we continue to work towards establishing new agreements so that we can ensure long-term economic viability and stability for the mine. If we move on to the next page, excuse me.

Speaker Change: Our dialogue with our community partners continues. We continue to work towards establishing new agreements so that we can ensure long-term economic viability and stability for the mine.

Douglas Reddy: In Brazil, at the Arizona mine, production was 6,309 ounces with a very high all-in-sustaining cost of over $3,000 per ounce. This reflects the standby costs that were being incurred while the plant was idle and the low ounces produced in the quarter, which resulted in a high cash cost and all-in sustaining cost. As previously announced and mentioned earlier in this call, we suspended mining in the Puyallupan Pit in April after geotechnical instability led to the displacement of material in two locations on the south wall of the Puyallupan Pit.

Speaker Change: If we can move on to the next page. Excuse me.

Speaker Change: In Brazil, at the Arizona mine, production was 6,309 ounces, with a very high all-in-sustaining cost over $3,000 per ounce.

Speaker Change: This reflects the standby costs that were being incurred while the plant was idle and the low ounces produced in the quarter, which resulted in a high cash cost and all-in sustaining cost.

Speaker Change: As previously announced and mentioned earlier in this call, we suspended mining in the Piava Open Pit in April after geotechnical instability led to the displacement of material in two locations in the south wall of the Piava Pit.

Douglas Reddy: We accelerated the start-up of Tattas Uboa compete, and after two months with no more processing, we restarted the process planned at the beginning of July. We continue working on remediation planning and activities in the Piave Open Pit, with safety being the priority. Work at the moment on Piava includes a re-contouring of the pit wall that will happen in two areas. We are drilling a series of dewatering holes, and we've been installing additional monitoring equipment and completing external reviews of geotechnical and hydrogeological information.

Speaker Change: We accelerated the startup of Tata Juve Open Pit and after two months with no ore processing we restarted the process plant at the beginning of July.

Speaker Change: We continue working on remediation planning and activities in the Puyallupan Pit, with safety being the priority.

Operator: Thank you for standing by. This is the conference operator.

Operator: Welcome to the Equinox Gold second quarter 2024 results and corporate update. As a reminder, all participants are in listen only mode and conference is being recorded after the presentation. There'll be an opportunity to ask questions to join the question queue. You may press star then one on your telephone keypad. Should you need assistance during the conference call? You may signal an operator by pressing star than zero.

Speaker Change: Work at the moment on Piava includes the re-contouring of the pit wall. That will happen in two areas.

Speaker Change: We are drilling a series of dewatering holes and we've been installing additional monitoring equipment and completing external reviews of geotechnical and hydrogeological information.

Douglas Reddy: At the Fazenda mine, regrettably, we had a fatality in the underground portion of the mine, as discussed earlier in the call. Production at Fazenda was 14,178 ounces, and the all-in-sustaining cost was $1,876 per ounce for the quarter.

Speaker Change: At the Fazenda mine, regrettably, we had a fatality in the underground portion of the mine as discussed earlier in the call.

Operator: If you're participating through the webcast, you can submit a question and writing by using the text box in the lower left quadrant of the webcast frame.

Speaker Change: production at pzena was fourteen thousand one hundred and seventyeight ounces and the all in sustaining cost was one thousand andeight hundred and seventy six dollars prouns for the quarter

Rhylin Bailie: I would now like to turn the conference over to Rhylin Bailie, vice president, investor relations for Equinox Gold. Please go ahead.

Douglas Reddy: Plant feed is currently 35% from open pit, 65% from underground, and recovery is at 91%. Currently, mining is approximately 50-50 open pit and underground. The open pit contractor is now fully mobilized at Fazenda and is catching up on the mine plan through the rest of the year. In the underground mine, we are mobilizing additional equipment to facilitate a catch-up on development so that we can access additional stopes in Q3 and Q4. At RDM, gold production was 10,675 ounces, and the all-in-sustaining cost was $1,774 per ounce.

Rhylin Bailie: Thank you, Gailene, and thank you everybody for joining us today for our Q2 call. Peter and I are dialing in from beautiful Princeton, B.C, because we are two days into the ride to Greenstone. So this is a big, I'm not quite cross Canada, I guess, cross half of Canada. We're riding from Vancouver to our new mine in Geraldton, Ontario to celebrate the mine opening, but also to raise money for the Geraldton District Hospital, which is the hospital that serves the Greenstone mine workforce and also five indigenous communities.

Speaker Change: Plant feed is currently 35% from open pit, 65% from underground, and recovery is at 91%.

Speaker Change: Currently mining is approximately 50-50 open pit and underground.

Speaker Change: The open pit contractor is now fully mobilized at Fazenda and is catching up on the mine plan through the rest of the year.

Rhylin Bailie: And about a almost a 3000 square kilometer region in northern Ontario. So it's going really well so far. It's super exciting. We've got people from our mindsites in Brazil and the states in Mexico that have flown up to Canada to join us for the ride. And we're making our way across the country, raising money for the hospital, like I said, we've raised almost $1.2 million so far, thanks to the generosity of our vendors and some industry sponsors, we're also raising money for four schools and a hospital in Brazil.

Speaker Change: In the underground mine, we are mobilizing additional equipment to facilitate a catch-up on development so that we can access additional stopes in Q3 and Q4.

Speaker Change: At RDM, gold production was 10,675 ounces and the all-in sustaining cost was $1,774 per ounce.

Douglas Reddy: We changed the rental mining fleet and are catching up on the mining in H2. Construction of the dry stack tailings area is complete and is now fully in operation with cyclone tailings being dried and placed in the storage area. At Santa Luz, production was up compared to Q1 at 13,627 ounces, and an all-in sustaining cost was $2,399 per ounce.

Speaker Change: we changeed the rental mining fleet and are catching up on the mining in age two

Douglas Reddy: Recovery was below plan at 60% for Q2, but elution efficiency and electrowinning modifications were completed in the quarter. SAG mill liners and a new trunnion were installed. The new trunnion has enabled throughput to be increased by about 10%, and a new de-sliming circuit was added. The de-sliming circuit is intended to remove a portion of the total organic carbon and improve overall recovery by about

Rhylin Bailie: And for the Alzheimer's Association of California. So if you're interested in more information about that, you can go to the ride to Greenstone website or the Equinox Gold website. And please do follow the progress as our cyclists make their way across the country.

Rhylin Bailie: After that plug will now turn it over to the conference call. So we will, of course, be making a number of forward-looking statements today. Please do visit our website, Cedar and Edgar to learn more about the company.

Gregory Smith: And I'll turn the call over now to our president and CEO, Greg Smith. Thanks, Berlin. Good morning and thanks everyone for joining the call today. On the line with me is our COO Doug Ready, our CFO Peter Hardy and our EVP of Exploration, Scott Heppernin. And of course, our VP of Investor Relations, who you just heard from, Roland Bailey. Today, we are discussing Equinox Gold 2024 second quarter financial and operating results. I'll start with a broad overview of the quarter and then I'll turn over the call to Pete and Doug for more details.

Speaker Change: And a new D. Sliming circuit was added the disclaiming circuit is intended to remove a portion of the total organic carbon and improve overall recovery by about 6%.

Douglas Reddy: The circuit was brought online and is in commissioning through Q3. The objective is to achieve recoveries around 73% or higher for the second half of the year. Moving on to page 13, at Greenstone, first ore was introduced to the high-pressure grinding rolls and grinding circuits on April 6, the first gold pour was on May 22nd, and the mine poured, produced 16,247 ounces in Q2, milling throughput achieved a rolling 30 day average of 59% of the nameplate of 27,000 tons per day as of July 22.

Speaker Change: The circuit was brought online and is in commissioning through Q3.

Speaker Change: The objective is to achieve recoveries around 73% or higher for the second half of the year.

Speaker Change: Moving on to page 13.

Speaker Change: At Greenstone first ore was introduced to the high pressure grinding rolls and grinding circuits on April six.

Gregory Smith: I'm going to start with safety.

Gregory Smith: We did unfortunately have a fatality at our Fizenda Mind in Brazil in June. This is a tragedy for all of us at Equinox and we extend our deepest sympathies to our employees and also the family friends and co-workers. We did have a site-wide suspension of operations at the end of June to facilitate both the investigation and also to refresh our site safety training.

Speaker Change: The first gold pour was on may 22nd in the mine Port produced 16247 ounces in Q2.

Speaker Change: Milling throughput achieved a rolling 30 day average of 59% of the nameplate of 27000 tonnes per day as of July 22nd.

Douglas Reddy: And as we came to the end of the month, we had our planned shutdown, a major shutdown, and we were up and running back on schedule after that shutdown was completed. Overall, the ramp-up is going very well. We mined over 7 million tons in the quarter, with over 1.2 million tons of that being ore. The stockpile was 2 million tons at the end of the quarter. The fleet now has 25 haul trucks and four shovels, and we look forward to commercial production during Q3.

Speaker Change: And then as we came to the end of the month, we had our planned shutdown major shut down and we were up and running back on schedule.

Gregory Smith: On the environment side, we did have no significant environmental incidents during the second quarter. And as previously reported, we published our fiscal 2023 ESG report in May during the quarter. And you can find the report on the Equinox Gold website. Before the quarter, we produced just over 122,000 ounces of gold and sold just over 115,000 ounces at a cash cost per ounce sold, 1747 and an all-in sustaining cost per ounce sold of $2,041 per ounce. For the first six months of the year, we produced approximately 234,000 ounces and sold remaining costs of 1993 per ounce.

Speaker Change: After that shutdown was completed.

Speaker Change: Overall, the ramp up is going very well.

Speaker Change: We mined over 7 million tons in the quarter with over $1 2 million tons of that being or.

Speaker Change: Stockpile was 2 million tons at the end of the quarter.

Speaker Change: The fleet now has 25 haul trucks and four shovels.

Speaker Change: And we look forward to commercial production during Q3.

Gregory Smith: So with that, I'm going to hand it back to Greg.

Speaker Change: So with that I'm going to hand, it back to Greg.

Doug: Thanks, Doug.

Gregory Smith: Yeah, it's been a mixed, mixed quarter for us. We've had to work through some challenges that have been on a few of our minds, and particularly in Arizona.

Greg Smith: Yes, it's been a mixed mixed quarter for us and we've had to work through some challenges at a few of our mines and particularly at or Zona.

Gregory Smith: And we've had to make some revisions to our guidance as a result, but it was also a very positive quarter for the company in that we were able to complete the acquisition of the rest of Greenstone, achieve the first gold pour, and then start the ramp up toward commercial production. And really, we're at an inflection point now; we expect a stronger second half from a number of our mines. But more importantly, Greenstone is ramping up to commercial production over the next few months.

Greg Smith: And we've had to make some revisions to our guidance as a result.

Greg Smith: But also a very positive quarter for the company and that we were able to complete the acquisition of the rest of the greenstone achieve first achieve first gold pour and then start the ramp up towards commercial production and really we're at an inflection point now we expect a stronger second half from a number of our mines, but more importantly, greenstone is ramping up to commercial production over.

Gregory Smith: We did have a few developments during the quarter that affected our production and cost in Q2 and also drove an update to our fiscal 2024 guidance.

Gregory Smith: And we already produced more gold at Greenstone in July than we did in all of Q2. So the big picture here is we are significantly increasing our production at lower costs during a period of historically strong gold prices and what we think is a continuing bullish macro outlook for gold. And I think I'll wrap it up there and turn it over to Rhylin to start the Q&A.

Gregory Smith: In mid-May, we completed the acquisition of the 40% of our greenstone mine that we didn't already own. We spoke about this on the Q1 call and in a couple of press releases, but as a reminder, this transaction delivers full ownership of the greenstone mine to Equinox Gold and consolidate its ownership of greenstone, which is one of the largest and highest-grade open-bit gold mines of scale in Canada. This transaction is accretive to our cash flow in our EBITDA.

Gregory Smith: It delivers substantial near-term value and it increases the company's average mine life, reserves, production, all while lowering our consolidated per ounce operating costs. Greenstone has been ramping up largely on plan with our first gold pour in late May and just over 16,000 ounces produced through the end of June. Production has continued to ramp up with just under 20,000 ounces produced in July alone in greenstone. We recently concluded a multi-day shutdown to address various wear and process issues identified through the startup and are now pushing toward achieving commercial production by the end of Q3. With the ramp up progressing well, we've maintained our guidance for greenstone with an increase to reflect the consolidation of ownership.

Speaker Change: The next few months and we already produced more gold at greenstone in July than we did in all of Q2.

Speaker Change: So the big picture here is we are significantly increasing our production at lower costs. During a period of historically strong gold prices and what we think is a continuing bullish macro outlook for gold.

relent: I'll wrap it up there and turn it over to relent to start the Q&A.

Rhylin Bailie: Thanks, Greg and Doug. Gaylene, can you please remind our participants how to ask a question?

Speaker Change: Thanks, Greg and Doug do you mean can you please remind our participants how to ask a question.

Operator: Certainly. Once again, to join the question queue, you may press star and then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. If you're participating through the webcast, you can submit a question in writing by using the text box in the lower left corner of the webcast frame. Pause for a moment as callers join the queue.

Speaker Change: Certainly once again to join the question queue. You May Press Star then one on your telephone keypad.

Tony: Tony acknowledging your request.

Speaker Change: Using a speaker phone please pick up your handset before pressing little kids.

Speaker Change: John Your question. Please press Star then two.

Speaker Change: If you are participating through the webcast you can put them into questions I didnt buy using the text box in the lower left corner of the webcast screen.

Speaker Change: Well pause for a moment as callers join the queue.

Rhylin Bailie: Okay, so I do have a few questions from online. So one that came in first, we'll ask first: how are you going to catch up in the second half of the year to achieve your guidance?

Speaker Change: Hey, So I do have a few questions from my mind. So when that came in first of all ask first how are you going to catch up in the second half of the year to achieve your guidance.

Gregory Smith: We previously reported in April that we experienced some geotechnical issues in the south wall of the PIABA open pit at Arizona and that we had temporarily suspended mining in PIABA. We continued to process stockpiled or through April and production in Q2 at Arizona primarily reflects processing of this material. We then idled the mill in May and June and accelerated mining in the new Tattasuba open pit. We did begin processing first or from Tattasuba in early July.

Gregory Smith: Sure, I can take that. The main plan here, Rhylin, as you can see from the guidance, is that most of our sites will have a stronger second half of the year, particularly Los Feliz and, of course, Greenstone, as we ramp up to commercial production. You know, Greenstone is a very large mine, and production of Greenstone definitely moves the needle for us. So yeah, in the second half of the year, we'll produce a lot more gold than we did in the first half. Okay, Mike Parkin sent me a question. He's our analyst from

Speaker Change: Sure I can take that.

Speaker Change:

Speaker Change: The main the main plan here related as you can see from the guidance is that most of our sites will have a stronger second half of the year, and particularly well below sort of course greenstone as we ramp up to commercial production green.

Speaker Change: Greensville is a very large mine in production of greenstone definitely moves the needle for us. So yes. The second half of the year will produce a lot more gold than we did in the first half.

Gregory Smith: We are working on mitigation activities to recommence mining in PIABA and this is progressing well. As the timing of starting mining in PIABA does remain uncertain, guidance for Arizona has been reduced to take into account loss production during the suspension of processing in May and June and also to reflect a lower grade or mind primarily from Tattasuba through the remainder of the year.

Peter Hardie: What will Castle Mountain Care's maintenance costs be on an annual basis? Will there be any severance payments? And if so, how much and when will those flow through the financials?

Rhylin Bailie: Okay, Mike Parkin sent me a question. He's our analyst from National Bank sent me a question by email. This is for Peter.

Speaker Change: Okay, Mike Parkin sent me a question. He is our analyst firm National Bank for me a question by email. This is for Peter well Castle mountain in care and maintenance costs be on an annual basis will there be any severance payments and if so how much in land mobile stroke flow through the financials.

Speaker Change: Thanks, Mike.

Speaker Change: I'll start with the later part, yes, there will be severance payments.

Gregory Smith: At MISKEET 2024 is primarily a stripping year as we pre-strip the ginger pit which supplies ore to the mine or to the heap in 2025. Mining at MISKEET has been performing well with recoverable ounce of stock exceeding plan. However we are seeing slower than expected recoveries off the heap leach pad from ore stack in prior periods in part due to the increasing pad height. We are working to accelerate production but we have reduced our 2024 production guidance from MISKEET to account for the slower recoveries.

Speaker Change: We will we haven't.

Peter Hardie: updated the market provided guidance on what care maintenance will look like heading into next year and beyond. And we'll do so when we update guidance, or perhaps earlier than that, with respect to the remainder of the year. So the guidance that we provided for Castle Mountain effectively takes us through the point at which we go on to residual leach. We, which will be sometime during Q3, expect to continue to pull ounces from the pad.

Speaker Change: Updated the market provided guidance.

Speaker Change: Guidance on what <unk> will look like heading into next year and beyond and.

Speaker Change: We will do so when we when we update guidance or perhaps earlier than that.

Speaker Change: With respect to the remainder of the year will be residual leaching.

Speaker Change: So the guidance that we provided for castle mountain effectively takes us through the point at which we go onto residual leach.

Gregory Smith: Finally, the company has concluded its previously reported assessment of the Phase I operations of Castle Mountain and we have elected to suspend the contract mining and processing at Castle Mountain Phase I and transition to residual leach only. We will continue to focus on advancing permitting and engineering of the Phase II expansion at Castle. Our guidance has been updated to reflect this change at Castle Mountain and Castle will be reported as a development project going forward.

Speaker Change: Which will be sometime during Q3, we expect to continue to pull ounces from the pad.

Peter Hardie: You know, for several months afterward, and we'll provide a more comprehensive update on those costs as we move forward. It will depend in part on when the residual leach tapers off and when it no longer is beneficial through

Speaker Change: Or several months after and will provide a more comprehensive update on those costs as we move forward.

Speaker Change: It will depend in part on.

Speaker Change: When the residual leach tapers off and when it no longer is a beneficial through continued residual leach based on Nielsen being pulled in the cost to do it okay.

Gregory Smith: Of course we will continue to recover ounces off the pad through the year and into next year. With these changes reflected, consolidated guidance for 2024 has been updated from 660 to 750,000 ounces of gold to 655 to 750,000 ounces of gold, with costs updated to cash costs of 13.05 to 14.05 per ounce and all in sustaining costs of 16.35 to 17.35 per ounce. This continues to reflect a substantial increase in gold production at much lower costs over the second half of the year.

Rhylin Bailie: Okay, thank you, Peter. All right. Question from...

Peter: Thank you Peter.

Speaker Change: A question.

Douglas Reddy: I'll just add to that that at Castle Mountain, our mining and our crushing are contractors, so those contract terminations have been provided to the contractors. And we have a very small team overall who will continue to work on the residual leaching. So it is quite a compact and small operation. It remains a small team as we move into residual leaching.

Speaker Change: I'll just add to that that are at castle mountain, our mining and our crushing is contractors. So those those are contract terminations have been provided to the contractors and we have a very small team overall, who will continue to work on the residual leaching. So it is it is.

Speaker Change: Compact and small operation or remains a small team as we move into residual leach.

Douglas Reddy: Yeah, thanks, Doug. Thank you.

Peter: Yeah. Thanks, Doug Thank you.

Peter Hardie: With that, I'll turn it over to Peter to discuss our financial results. Thanks, Greg. We're now on slide seven in the presentation. During Q2, we sold 115,000 ounces of gold at a realized price of 2,328 per ounce for revenues of 269 million. Total sales included 10,000 ounces sold by Greenstone. Income for mine operations was 27 million. We had 199 million in operating expenses in Q2,24 compared to 193 million in Q2, 2023.

Speaker Change: Question for Mary Carey Smith, our analysts that Haywood Securities who is currently on an airplane and when do you expect to be able to get back into your mining at Toyota and how many times. They go or are answered their production do you have it how did you back.

Rhylin Bailie: A question from our Kerry Smith, our analyst at Haywood Securities, who is currently on an airplane. When do you expect to be able to get back into mining at Paiaba? And how many tons of ore or ounces of production do you have at Tatajuba?

Douglas Reddy: So, to return to mining in Piava, we're doing work in Piava now, but it's in the upper areas of the pit. We will, during the course of this year, be going in and mining certain areas, especially on the west end of Piava's open pit. The overall plan is based on doing all the dewatering program and all the geotechnical and recontouring activities. We would like to be doing some additional mining in Piava Pit by the end of this year, but the real focus is going to be doing a large program in 2025.

Speaker Change: So for return to mining and peer, but we're doing we're doing work in P. Oven now, but it's at the upper areas of the pit we will during the course of this year would be going in and mining certain areas.

Speaker Change: Especially on the West end of open pit.

Peter Hardie: Operating expense in Q2, 2024 increased 3% compared to Q2, 2023, primarily due to the contribution of operating expense at Greenstone, which was a construction project in 2023 and did not have operating expenses. And a higher operating expense at Los Filos, which was driven by an increase in the underground mining activities. Offset by lower operating expense at Arizona, the Greg mentioned earlier. On a per unit basis, we had a higher than usual Q2, 2024 cash cost of $1,747 an ounce.

Speaker Change: Overall plan is based on doing all the dewatering program and all the geotechnical and recon touring activities.

Speaker Change:

Speaker Change: We would like to be doing some additional mining in <unk> by the end of this year, but the real focus is going to be.

Speaker Change: Doing a large program in 2025, but again it all is dependent on working through all of our activities that we're doing to remediate and make the pit totally safe keep the regulators totally informed and being able to move in and.

Douglas Reddy: But again, it all depends on working through all of our activities that we're doing to remediate and make the pit totally safe, keep the regulators totally informed, and being able to move in and be able to mine, especially on the east end of the pit.

Peter Hardie: The increase over previous quarters is primarily volume driven with the lower production at Arizona due to the geotechnical issue with the Piavo pet. The same explanation applies to our higher than usual all in sustaining cost per ounce for the quarter. Note that Greenstone is not yet in commercial production. So when you're looking at our cost metrics, the 10,000 ounces it sold along with the related cost of production are excluded from the calculation of cash cost and all in sustaining cost metrics we reported in Q2.

Speaker Change: And be able to mine, especially on the east end of the pit.

Operator: Thank you, Doug. Operator, can we please take some questions from the phone?

Speaker Change: Thank you, Doug operator can be pretty state some questions from the phone.

Operator: Certainly. The first question from the phone lines is from Anita Soni with CIBC World Markets. Please go ahead. Hi, good morning.

Speaker Change: Definitely.

Speaker Change: Question from the phone lines as somebody that Sony with CIBC World markets. Please go ahead.

Anita Soni: Hi, good morning, everyone. First question, I think I'm going to focus on Greenstone. When we look at the throughput rates that you delivered this quarter, can you just give us a little idea of how that ramped up over the course of the year, or sorry, over the course of the quarter, and what the exit rates are right now in throughput?

Speaker Change: Good morning, everyone first question I think I'm going to focus on greenstone.

Speaker Change: When we look at the the throughput rate.

Speaker Change: He could look like this quarter can you just give us a little idea of how that ramps up over the course of the year I'm sorry over the course of the quarter and what the exit rates are right now on throughput.

Peter Hardie: That said, the revenues in related operating costs are still reported in the income statement, as required by IFRS. Our EBITDA on Q2, 2024 was 510 million. Included in EBITDA is a fair value gain on remeasurement of our Greenstone ownership interests that recorded when moving from proportionate to full consolidation. For counting purposes, we record the change as if you sold the 60% ownership interest we had at fair value. The gain results from the difference in fair value and the cost that the 60% interest was carried out, and that gain is about 470 million.

Douglas Reddy: So, April, May, we were 40, 50% of rated throughput, and came up to just under 60% as we came into July. Then we had a major shutdown, so we've taken care of a lot of the items that we've noticed during the ramp-up, and we'll continue, we've restarted, and continue with the ramp-up in August. I'm sure, but I'm not sure exactly what other details they were looking for.

Speaker Change: So April may we were 40% to 50% of of rated throughput came up to just under 60% as we came into into July then we had a major shut so we've taken.

Speaker Change: Care of a lot of the items that we've noticed during during the ramp up and we will continue our we've restarted and continue with the ramp up in in August I'm sure I'm not sure exactly what the other details they were looking for.

Peter Hardie: Our adjusted EBITDA of 51 million for Q2 is the same as Q1, 2024, and down 19 million from Q2, 2023 is adjusted EBITDA of 71 million. The decrease in adjusted EBITDA on Q2, 2024 compared to Q2, 2023 was primarily due to the impact of an 8.8 million realized loss on goal contracts in Q2, 2024. We didn't have any in Q2, 2023. In addition, we had a small realized loss on foreign exchange contracts this quarter.

Gregory Smith: No, that's good. Another question in terms of the definition of commercial production: I noticed it said within 10% of the design grade. You guys are substantially over the design grades, and I have a second question related to that in a second, but does that mean that, when you're looking for commercial production, you're looking for it to come down to the sort of 1.5 that you were expecting over the next, I guess, three, four years rather than the 2.5 that you took for this quarter?

Speaker Change: No that was that's good and another question in terms of the definition of commercial production.

Speaker Change: I noticed you said within 10% of that design a green.

Speaker Change: You guys are substantially over the design Great. Then I have a second question related to that in a second but the does.

Speaker Change: Does that mean that you you know when you when you're looking for commercial production you are looking for it to come down to the sort of one five that you were expecting over the next I guess four years right.

Peter Hardie: Whereas in Q2, 2023, we had a 9.1 million realized gain on the same. We had net income of $200,000,000 for basic earnings for sure, 72 cents, 61 cents a share, fully diluted, on an adjusted basis, we had a net loss of $6 million or 1 cents per share. Casual from operations before changes in non-cash working capital was $45 million or $12 cents a share. With respect to our sustaining spend for Q2, we spent $31 million, which is pretty much in line with what we did in Q1 this year.

Speaker Change: Two point that you did this.

Gregory Smith: Yeah, it won't continue at the 2.5. I mean, that was essentially, as you'll be aware, putting a lot of ounces that go into the circuit, you know, and that was done while we had the ability to feed some high-grade material and be able to add that to the mill. And going forward, we'll get tempered down to more of the targeted production, overall production rate. So it won't continue at 2.5. That would be glorious, but we can't do that forever.

Speaker Change: Yeah, well it won't continue the 2.5, I mean that was essentially a as you'll be aware, putting a lot of ounces that go into the circuit, you know and that was done and where we have the ability to feed some high grade material in and be able to add that into into the mill.

Speaker Change: And going forward it will move it gets tempered down to more of the the targeted production overall production rates. So it won't continue at two five that would be glorious, but we can't do that forever.

Peter Hardie: With regards to greenstone, with the mine and plant ramping up, greenstone should now fund itself from a cash flow perspective. For greenstone on a 100% basis, a total of $1.37 billion project to date has been spent on construction and commissioning. Equinox to share of that spend was $55 million during the quarter, $109 million year to date, and $834 million project to date, which excludes capitalized interest and other non-cash amounts capitalized. We had a busy quarter for corporate financing activity.

Gregory Smith: It was a good surprise. I was, but you know, I didn't hold my breath that it was going to be was going to be sustained.

Speaker Change: It was it was a good surprise I would say hey, you know I can hold my prospect.

Speaker Change: What's kind of interesting.

Gregory Smith: Yeah, I anticipated that somebody would do the calc and say, "How come you have your ounces produced and you have 88% recovery?" But if you look at the number of ounces that go into the circuit, then it all makes sense. And by putting in a higher grade, we took care of building up the ounces.

Speaker Change: Yeah, I anticipated that somebody would do the do the calc and say how come you Neurolysis producers and you have 88% in recovery, but if you look at the number of ounces that go into circuit then it all makes sense and by putting in the higher grade we took curve of building up the ounces in circuit very quickly okay.

Douglas Reddy: Okay, and then as we get to the, so I'm doing some calculations on the mining and the ore stockpile rates. I think, can you just talk about truck availability? I think you're getting around 2 million tons per year from trucks. I did the math right on that per annum if you annualized it. And are the design rates on those trucks more, like, could you just tell me what the design rates on the trucks are? I thought they were somewhere around three or three and a half.

Speaker Change: Okay.

Peter Hardie: To fund the $955 million we needed to acquire the remaining ownership of greenstone. We amended our existing senior revolving credit facility to arrange a $500 million term loan. Completed to bought the equity financing for gross proceeds of $299 million. We issued 42 million shares directly to Aronement Finance and issued a $40 million promissory note to Aron Mine Finance that matures in December 2024. Under the terms of the $299 million bot deal equity financing, the company issued 56.4 million shares at $5.30 per share.

Speaker Change: And then as we get to the cause.

Speaker Change: Doing some calculations on the in the <unk>.

Peter Hardie: The $500 million term loan matures May 13, 2027, no principal repayments required under the term loan for the first three years of the three year term. Quarterly repayments will commence on August 13, 2026, equal to 10% of the then outstanding principal amount with the remaining outstanding principal payable at maturity. The company may repay or pardon me, prepay any portion of the outstanding term loan at any time without penalty. Interest, covenants, and other terms are substantially consistent with the company's existing revolving credit facility and the term loan benefits from the same security package as the revolving credit facility.

Speaker Change: Mining in the worst stockpile right.

Speaker Change: Thank you can you just talk about the truck availability I think youre getting around 2 million tons per.

Speaker Change: Track, if I did the math right on that per annum, if you annualize it and our design rates on those trucks more like I think well could you just tell me what they design rates on their trucks or thought they were somewhere around.

Douglas Reddy: But of course, that depends on your haul distances. So can you just talk about the availability of the trucks? Yeah. All distances are affected at this very start for a couple of reasons.

Speaker Change: Mm three three and a half but of course that depends on your holiday. So can you just talk about.

Speaker Change: Yeah.

Speaker Change: All distances are affected at the very start for a couple of reasons one that.

Douglas Reddy: One thing that while we've been pioneering essentially the pit, we've been moving a lot of the soil material, some of which needs to be treated. So that means we have to take it down to an area where it can be dealt with. That consumes some of the cycle time.

Speaker Change: While we've been been pioneering essentially the pit we've been moving a lot of the soil material some of which needs to be to be treated so that means we have to take it down to an area where it can be dealt with.

Speaker Change: That consumes some of the cycle time, we've also been doing a lot of work, but taking kleen waste down tour Oh tailings.

Douglas Reddy: We've also been doing a lot of work with taking clean waste down to our tailings facility. Again, longer cycle time for those trucks. So you can't really, you'd have to separate them out between the mine and those other activities. But essentially, with a fleet of 25 trucks and four shovels on site, we'll be continuing the ramp up towards a... Capacity of 180,000 tons a day by the end of the year. Anita, it's great.

Speaker Change: Facility again longer cycle time for those trucks so.

Speaker Change: You can't really you'd have to separate them out between mine and those other activities, but essentially with a fleet of 25 trucks four shovels on site.

Peter Hardie: During Q2 we also amended two of the convertible notes by extending their maturities by six months. The maturity date of the 2019 convertible notes was extended from April 12th of this year to October 12th and the maturity date of the 2020 convertible notes was extended from March 10th, 2025 to September 10th, 2025. In addition, the conversion price of the 2020 convertible notes was amended from $7.80 per share to $6.50 per share.

Speaker Change: We will be continuing the ramp up towards a pay cut.

Speaker Change: Capacity of 180000 tonnes a day by the end of the year and you guys. It's Greg here I might just add.

Gregory Smith: I might just add, I don't know if there's a recent picture of it on our website, but if there's not, I can send one to you. This first year of mining at Greenstone is a little bit complex for a couple of reasons. You'll remember when we were there; there are the old McLeod tailings that are there from previous mining. Part of our permit requires that we excavate those tailings and move them to our facility, and we do have some trucks dedicated to doing that.

Greg Smith: Don't know if there's a recent picture on our website, but if theres artic in San Juan for you. The first this this first year of mining at.

Gregory Smith: We also have this, we call it type D soil, which is contaminated soil in the main open pit. It's a delicate job to move that material, and we're in the process of doing that. As we do that, it opens up additional areas of that open pit for us to mine. If you look at a recent picture, what you'll see there is a couple of awkward islands in the middle of our pit where we're still excavating type D soil.

Speaker Change: Greenstone did a little but a little bit complex for a couple of reasons.

Speaker Change: And you'll remember when we were there there's the old Mccloud tailings that are there from previous mining part of our permit requires that we excavate those tailings and move into our facility and we do have some trucks dedicated to doing that we also have as we call. It type D soil, which is contaminated soil in the in the main open pit, which is the delicate job to move that.

Peter Hardie: For the $500 million term loan, the company was required to have in place 328,000 ounces of gold hedges of our forward gold production through mid-2026. The company elect, and we already had some of those gold hedges in place for the second half of this year that we added to. The company elected to wait the hedges into the next 12 months using gold collars. The collars are arranged as follows. For the second half of 2024 there are 188,000 ounces hedged with a floor of 2,150 and a ceiling of 2,738 per ounce.

Greg Smith: Ariel and and we're in the process of doing that and as we do that you know it opens up additional areas of that open pit for us to mine. So if you looked at our recent picture where Youll see there is sort of a couple of awkward islands in the middle of our pit, where we're still excavating the type the soil and it does provide some complexity in in mind.

Gregory Smith: It does provide some complexity in terms of mining efficiency in the first half of this year. We're working through that quickly, and I think over the next quarter or so, largely through type D soil, we open up the pit, the McLeod tailings are well advanced, and we start to really see those efficiencies as we go into Q4. For the first year, as Doug said, pioneering this pit with some of the historic issues does make it a little more complex, but again, we've been able to build a large stockpile, feed the mill, and are on track to be able to meet our targets.

Peter Hardie: For the first half of 2025 there's 100,000 ounces hedged with a floor of 2,189, a ceiling of 2,905 dollars, and for the second half of 2025, 20,000 ounces with a floor of 2,100 and a ceiling of 3,487 per ounce, and finally for the first half of 20,26, also 20,000 ounces with a floor of 2,100 an ounce and a ceiling of 3,487 per ounce.

Speaker Change: Efficiency in these sort of the first half of this year, we're working through that quickly and I think over the next quarter or so largely through the type D. Soil. We opened up the pit Mcleod tailings are well advanced and we started to really see those efficiencies as we go into Q4 here. So this is just for the first year as Doug said pioneering this paired with the some of the historic issues does make it a little more comp.

Speaker Change: Flex, but again, we've been able to build a large stockpile feed the mill and are on track to be able to meet our targets.

Peter Hardie: Just with respect to those convertible notes, extending the notes, the maturity of those two convertible notes significantly enhances their financial flexibility as we advance commissioning of our world class, Greenstone Gold Mine, which remains on track to pour gold this quarter. Moving to slide 8, with respect to our available liquidity at June 30th, we had 160 million of unrestricted cash on hand and 105 million available to draw on a revolving credit facility.

Gregory Smith: Okay, and then just a last question on that, on the mining rates. I think they meant you guys mentioned that some of it was dedicated while looking back at the last couple of quarters, but basically, it was talking about how the mining rates, some of that was dedicated to providing waste rock for the tailings dam. Are you through with that? Or is it now? Are you basically just using the fleet to take ore and waste from the pit? Or are you still looking at helping out the tailings facility?

Speaker Change: Okay, and then just a last question on that on the mining rate I think you guys mentioned that some of that.

Speaker Change: Dedicate I was looking back at the last couple of quarters, but basically we're talking about how the mining rate. Some of that was dedicated to providing waste rock for the tailings dam is are you through that is it now are you basically just easy enough to meet to do ore and waste in the pet or are you still looking at helping at the tailings facility.

Douglas Reddy: We're still hauling clean waste down to the...

Peter Hardie: The first of our debt maturities comes in October with 140 million 2019 convertible note I just mentioned. It has a conversion price of $5.25 per share. Should the note holders decide not to convert, the company will repay the note using its existing cash and liquidity.

Speaker Change: So we're still we're still hauling clean ways down to the team up.

Douglas Reddy: Okay, and how much... It's on the next, it's on the next, it's on the next stage. Right, so how much material, like in terms of millions of tons, do you have to deliver to the waste rock, to the tailings facilities this year?

Speaker Change: Okay and how much on an index is done the next it's a next stage.

Speaker Change: Right, so how much how much how much.

Speaker Change: Material like in terms of millions of times do you have to deliver to that waste rock to the Yadkin facility. This year.

Peter Hardie: Moving to slide 9, with Greenstone Construction Complete and Commercial Production on the near horizon, the financial focus switches to de-lavaging. Free cash flow produced by the mines will be used to pay down debt. For the first few years at Equinox Gold we've been acquiring and building mines and have been using debt as one of the funding methods for doing so, including an additional $500 million term loan to consolidate our Greenstone ownership.

Douglas Reddy: I'll get back to you shortly. I don't have that number on the top of my tongue, but I'll get back to you shortly. You don't have a memorized book?

Speaker Change: I'll get back to you shortly don't have that number off the top of my tongue, but get back to you shortly.

Anita Soni: You don't have a memorized deck? Okay, that's it for my questions. I'll get back in the queue.

Speaker Change: Remember I think [laughter], okay. That's it for my questions I'll get back in the queue.

Speaker Change: Thanks.

Operator: The next question is from Wayne Lam with RBC Capital Markets. Please go ahead.

Speaker Change: The next question is from Wayne Lam with RBC capital markets. Please go ahead.

Peter Hardie: This slide demonstrates Equinox Gold's historical leverage as measured by net debt to EBITDA ratio from Q1 2020 through Q4 2023 and perform a leverage through 2026 as per analyst consensus. The general trend we see is that leverage in the company increased as acquisitions were completed and mines were being built. This is a natural consequence of using debt as one leverage funding acquisitions in construction. Leverage peaked in Q1 2020, a few months after construction of Arizona was completed and again in late 2022 as construction of Greenstone was ongoing and construction of the San Luis mine was completed.

Wayne Lam: Yeah, thanks, guys. I guess maybe just circling back to Greenstone, you know, really nice to see you guys hit the 2 million ton or stockpile as planned. Could you give us an idea of the grade of that stockpile? And then, maybe just as a follow-up on the 2.5 gram ton? Typically, we see much lower grade feed put through the early stages in Red Bigelow Mill. But I was just wondering if you guys are seeing any positive reconciliation versus plan? And, you know, with some of the higher-grade material put through the mill to accelerate some upfront cash flow?

Wayne Lam: Yeah. Thanks, guys.

Speaker Change: I guess maybe.

Wayne Lam: Maybe just.

Speaker Change: Going back to greenstone really nice to see you guys hit the 2 million ton ore stockpile as planned.

Speaker Change: Could you give us a great of.

Speaker Change: An idea of the grade of that stockpile and then maybe just as a follow up on the two and a half gram a tonne. It typically we see much lower grade feed put through the early stages and rectangular mill, but.

Speaker Change: Just wondering if you guys are seeing.

Speaker Change: Any positive reconciliation versus plan and.

Speaker Change: With some of the higher grade material put through the mill to accelerate some upfront.

Peter Hardie: Another trend we see in this chart is that if the mines are commissioned and ramped up, that leverage decreases as Equinox Gold has a benefit of EBITDA and cash flow generated by the new mines and we expect the same as Greenstone enters into commercial production hopefully later this quarter.

Speaker Change: Cash flow.

Gregory Smith: Wayne, it's great here. I'll start with the high grade into the plant, and then Doug can respond to some of your other questions here. As we were ramping up... basically, in the first couple of benches or the first mining we did, we did have a fair bit of high-grade ore. And as we started to ramp up the mill, we started to have very good recoveries right off the bat. So we're seeing, you know, plus 90% recoveries pretty much right away.

Greg Smith: When it's Greg here I'll start with the high grade into the plant and then Duncan can respond to some of your other questions here as we were ramping up basically in the first couple of benches of or the first mining. We did we did have a fair bit of high grade ore and as we started to ramp up the mill we stop.

Douglas Reddy: With that, I turn the presentation over to Doug for a review of the operations. Thanks Pete. We're now on slide 11 of the presentation. At the Mesquite mine, Gold production was 17,607 ounces with an all-in sustaining cost of $1,283 per ounce. Waste stripping continued in the ginger pit and the majority of the ore from that pit goes to leach pads starting in Q1 of 2025. For the rest of 2024, production is mostly drawn down to the leach pad inventory, side slope leaching and leaching of additional ore coming from current mining and rehandling and re-leaching of the old Vista pad material.

Duncan: To have very good recoveries right off the bat. So we're seeing you know plus 90% recoveries are.

Duncan: Pretty much right away in part that's because of the increased residents time or time in the tanks when youre not.

Gregory Smith: In part, that's because of the increased residence time in the tanks when you're not up to full capacity. But, you know, when you start one of these plants up, you've got to build up that inventory in the tanks, and then you have this sort of rolling gold inventory in your tanks. Because we had access to such high-grade material, and we were getting very high recoveries right out of the gate, we took that opportunity to feed in some high-grade ore and ramp up that inventory quickly, which got us into producing gold more quickly than we otherwise would have. It wasn't a cash flow decision.

Duncan: Up to full capacity, but you know when you start one of these these plants up you've got to build up that inventory in the tanks and then you have the sort of rolling.

Duncan: Gold inventory in your tax because we had access to such high grade material and we were getting the very high recoveries right out of the gate, we took that opportunity to feed into some high grade ore and ramp up that inventory quickly, which got us into producing gold more quickly than we otherwise would have it wasn't it wasn't a cash flow decision. It was more of a commissioning disk.

Douglas Reddy: The recoveries from the leach pad have been slower than expected due to pad height and associated longer leach cycles. At Castle Mountain, production was up over Q1 at 6,148 ounces at an all-in sustaining cost of $1,424 per ounce. Phase 1 is a small operation that is mining and processing low-grade historic backfill material that needs to be removed from the old open pits prior to mining in situ material in Phase 2. We completed a review of the mine plan and costs at Casamount for Phase 1 and concluded that mining will be suspended in August for the duration of Phase 2 permitting.

Gregory Smith: It was more of a commissioning decision, and frankly, we had some very high grades that were coming out. Doug will get into it, but we've got different bins for the stockpile. And we had a couple days there where we were feeding, I think, five grams per ton and material like that. So we were able to do that as part of our commissioning, and, you know, it reflected in the grade over the second quarter. As Doug said to Anita, that's not something that's going to persist, but it was helpful as we were ramping up the plant.

Duncan: Isn't.

Doug: And frankly it was it was we had some very high grades that were coming out our stock Doug will get into it but we've got different bins for stockpile and we had a couple of days there where we were feeding I think five grams per tonne material like that so.

Speaker Change: We were able to do that and as part of our commissioning and it reflects in the grade over the second quarter as Doug said to me that that's not something that's going to go to persist, but it was helpful. As we were ramping up.

Wayne Lam: The plant.

Douglas Reddy: Yeah, so I think the other question was just about the stockpile where we're partly feeding from the stockpile, but we're also doing some direct feed to the crusher as well. So it's not all first in, first out by any means, and reconciliation overall has been quite good.

Doug: Yeah. So the I think the other question was just about the stockpile, where part were partly feeding from stockpile, but we're also doing some some direct feed to the to them to the crusher as well. So it's not it's not all first in first out by any means.

Douglas Reddy: Residual leaching will continue through 2024 and we continue with the Phase 2 permitting process. Addless filo production increased during Q2 to 37,430 ounces and this should continue to improve in H2. The all in sustaining cost was $2,274 per ounce. During the quarter the crusher was brought back online and all the material for crushing that it accumulated while the relocation of the conveyor was underway was then crushed and is now under leach.

Speaker Change: And reconciliation overall has been quite good so average grade I'd have to look it up because we have been focused on certain bins. So again I'll come back to that later during the call.

Douglas Reddy: So average grade, I'd have to look it up because we have been focused on certain bins, so again, I'll come back to that later during the call. I'm going to just take a moment and answer Anita's question about total rock fill for the TMF. It's 7.8 million tons in 2024, so I'll come back with a grade on that stockpile.

Speaker Change: I'm going to just take a moment and answer you. This question about total Rockville for the T. M. F. It's $7 8 million tons in 2024, so I'll come back with a great on the stockpile.

Douglas Reddy: The productivity program that's been in place at Los Filos for the last two years continues to show improvement and we saw an increase in Los Filos undergone mine production continue in Q2. Mining in the new Diego's underground area has also been picking up once the second contractor started development work in the quarter. Our dialogue with our community partners continues we continue to work towards establishing new agreements so that we can ensure long-term economic viability and stability for the mine. If we move on to the next page, excuse me.

Douglas Reddy: Okay, great. Thanks.

Speaker Change: Okay, great. Thanks, and then.

Speaker Change: Maybe just given the higher cost of castle I mean, I think it makes sense to suspend operations.

Speaker Change: But just looking across the portfolio.

Speaker Change: You guys have other a couple other operations kind of running up towards those.

Speaker Change: Those cost levels at Felix incentive loose and so just wondering at Clo's. If there's a more definitive cutoff point on didn't negotiations, where you kind of decide you can't subsidized anymore and then sent to lose you guys are now several years through an eight year mine life for an asset that's had challenges.

Wayne Lam: And then maybe, just given the higher costs of CASEL, I mean, I think it makes sense to suspend operations. But just looking across the portfolio, you guys have a couple other operations kind of running up towards those cost levels at Phelos and Santa Luz. And so, just wondering at Phelos if there's a more definitive cutoff point in the negotiations where you kind of decide you can't subsidize it anymore. And then at Santa Luz, you guys are now several years through an eight-year mine life for an asset that's had challenges dating back a decade under So, just wondering if there's a point at which you decide that that asset consumes too much capital and attention to continue to operate?

Douglas Reddy: In Brazil, at the Arizona mine production was 6,309 ounces with a very high all in sustaining cost over $3,000 per ounce. This reflects the standby costs that were being incurred while the plant was idle and the low ounces produced in the quarter which resulted in a high cash cost and all in sustaining cost.

Speaker Change: Dating back a decade ago underneath that so just wondering if there's a point at which you decide that that asset consumes too much cap.

Speaker Change: Capital and attention to continuing to operate.

Douglas Reddy: Okay, so with Los Feliz, we knew the first half of the year would be weaker than the second half. And you can already see, now that we've done the relocation of the conveyor, and we have all the material under leach, our ounces are significantly up in Q2. And they'll continue to go up in the second half of the year.

Speaker Change: Okay. So with lost pillows, we knew the first half of the year would be weaker than the second half and you can already see.

Douglas Reddy: As previously announced and mentioned earlier in this call, we suspended mining in the Piavo in April after geotechnical instability led to the displacement of material in two locations in the south wall of the Piavo pit. We accelerated the start-up of Tata Jiubo Open Pit and after two months with no more processing we restarted the process plant at the beginning of July. We continue working on remediation planning and activities in the Piavo Open Pit with safety being the priority.

Speaker Change: The now that we've done the relocation of the conveyor and we have all the material under leach ore else's are significantly up in Q2, they'll continue to go up in the second half of the year.

Douglas Reddy: Um... All in sustaining cost is, you know, in that case being driven by the ounces that we're producing. So we should see that improve in Los Feliz in the second half of the year as well. The bigger question at Los Feliz has been the establishment of new agreements. That's the key element for Feliz, being able to get a path forward and build a CIL.

Speaker Change:

Speaker Change: All in sustaining costs as you know in that case is being driven by the ounces that were producing so we should see that improve in las villas and the second half of the year as well.

Speaker Change:

Douglas Reddy: Work at the moment on Piavo includes recontering of the pit wall that will happen in two areas. We are drilling a series of dewatering holes and we've been installing additional monitoring equipment and completing external reviews of geotechnical and hydrogeological information.

Speaker Change: The bigger question that Las villas has been the the establishment of new agreements.

Speaker Change: The key element for feel is being able to get a path forward and to build the CIL. So it's a large mine with a great opportunity, we're giving it our best shot to be able to work out everything with the communities and we're in dialogue and we hope that we can determine the new paths for <unk>.

Douglas Reddy: So it's a large mine with a great opportunity. We're giving it our best shot to be able to work out everything with the communities, and we're in dialogue, and we hope that we can determine the new path for Feliz overall. Um... With Santa Luz, yes, we've, well, let's speak, let's, first of all, we're significantly better than the previous recoveries at Santa Luz. We invested in new technology, and we've been working on getting it to refine it.

Douglas Reddy: At the Fizenda mine, regrettably we had a fatality in the underground portion of the mine as discussed earlier in the call. Production at Fizenda was 14,178 ounces and the all in sustaining cost was 1876 dollars per ounce for the quarter. Plant feed is currently 35 percent from Open Pit, 65 percent from the underground and recovery is at 91 percent.

Speaker Change: This overall.

Speaker Change:

Speaker Change: With Santa Luiz, Yes, we've.

Speaker Change: Well, let's let's be let's first of all were significantly better than the previous recoveries that sad to lose we invested in new technology.

Speaker Change: And we've been working on getting it to refine.

Speaker Change: Refine it obviously scaling up from pilot plant to the industrial scale has had challenges.

Douglas Reddy: Obviously, scaling up from pilot plant to the industrial scale has had challenges, and we see it as a very promising district. If I turned it over to Scott, he'd be able to talk at length about the opportunities that we have in the immediate area around Santa Luz. So we're there because we believe in the long-term side of it, albeit we're in commissioning on the de-sliming circuit, and we have a target that we want to achieve this year, and we will continue to look at this from the big picture.

Douglas Reddy: Management. Currently mining is approximately 50-50 open fit and underground. The open pit contractor is now fully mobilized at Fizenda and is catching up on the mine plan through the rest of the year. In the underground mine we are mobilizing additional equipment to facilitate a catch up on development so that we can access additional stoves in Q3 and Q4.

Speaker Change: And.

Speaker Change: We see it as a very prospective district.

Speaker Change: If I turn it over to Scott he'd be able to talk at length about the opportunities we have in the immediate area around sad to lose so we're there because we believe in the long term side of it, albeit we're in commissioning on the diesel aiming circuit.

Speaker Change: And our we have a target that we wanted to achieve this year and we will continue to look at this from the big picture, So as opposed to doing a strategic view on on.

Douglas Reddy: At RDM gold production is 10,675 ounces and the own sustaining cost is $1,774 per ounce. We change the rental mining fleet and are catching up on the mining in H2. Construction of the dry stack tailings area is complete and is now fully in operation with cyclone tailings being dried and placed in the storage area.

Douglas Reddy: So as opposed to doing a strategic view on Santa Luz at this point in time, we have these two larger projects in the plant that we wanted to get through and see them perform, and that's the trunnion and the de-sliming.

Scott: I have to lose at this point in time, we have these two.

Speaker Change: Larger project in the plant that we wanted to get through and see them perform and that's the trend in the D. Slamming.

Gregory Smith: I mean, Wayne, as a general comment, you know, we're in the business of producing gold. But obviously, we want to produce gold profitably. We have no interest in being a charity here.

Speaker Change: I mean Wayne as a general comment you know we're in the business of producing gold, but obviously.

Douglas Reddy: At Santa Lue's production was up compared to Q1 at 13,627 ounces and an all-in sustaining cost was $2,399 per ounce. Recovery was below plan at 60% for Q2. Illusion efficiency and electro-winning modifications were completed in the quarter. Sagnall liners and a new trunnion were installed. The new trunnion enables has enabled throughput to be increased by about 10%. A new dislinings circuit was added. The dislinings circuit is intended to remove a portion of the total organic carbon and improve overall recovery by about 6%. The circuit was brought online and is in commissioning through Q3. The objective is to achieve recoveries around 73% or higher for the second half of the year.

Wayne Lam: We want to produce gold profitably, we have no interest in being a charity here so.

Gregory Smith: So of course, if a mine is proving not to be economically viable, we don't see the long-term economic benefit of running a mine, then we're going to assess options for that mine. You know, Castle's a bit of a different story because it was a very small, you know, contract, normal pilot plant type of operation while we work towards a large expansion. And we ended up running it longer than we had anticipated, just because of the permit timelines.

Wayne Lam: Of course, if a mine has proven not to be economic or we don't see the long term economic benefit of running a mine that we're going to assess options for that mine caf.

Douglas Reddy: Moving on to page 13.

Wayne Lam: Castles of it's a bit of a different story because it was a a very small contract.

Wayne Lam: Almost pilot plant type of operation, while we work towards the large expansion and we ended up running it longer than we had anticipated just because of the permit timelines. So in that case to your point if it made sense.

Gregory Smith: So in that case, to your point, it made sense for us to do that and really focus on the permitting for phase two. But you know, as Doug said, let's assume this is a large ore body and an attractive deposit. Obviously, the long-term plan there is to build a CIL plant that massively increases recoveries and really changes the flavor of that mine. To do that, we've got to have new agreements with the community.

Wayne Lam: For us to do that and really focus on the permitting.

Wayne Lam: For phase two.

Speaker Change: But you.

Doug: As Doug said, let's view us as a large ore body attractive deposit obviously the long term plan. There is to build a CIL plant and that massively increases recoveries and really changes the flavor that mine to do that we've got to have new agreements with the community. So that's the focus right now and sad to lose yeah. There's no question, it's been a challenge for US it's new technology.

Gregory Smith: So that's the focus right now. In Santa Luz, yeah, no question, it's been a challenge for us. It's new technology and, you know, not around the world, but it is a novel use of that technology in Santa Luz.

Douglas Reddy: At Greenstone, first ore was introduced to the high pressure grinding rolls and grinding circuits on April 6th. The first gold pore was on May 22nd and the mine pore produced 16,247 ounces in Q2. Milling throughput achieved a rolling 30 day average of 59% of the name plate of 27,000 tons per day as of July 22nd.

Doug: <unk>.

Speaker Change: You know not not around the world, but it is a novel use of that technology at Santa lose and.

Gregory Smith: And the team has been, you know, it's a little bit like whack-a-mole. We get some great results, and then something happens, and we kind of take a couple steps back. I was just there, and I spent a lot of time with the team. They've done a lot of good work, and we're expecting a much better second half of the year here at Santa Luz.

Wayne Lam: The team has been you know it's.

Speaker Change: A little bit like whack, a mole we get some some great results and then something happens that we kind of take a couple of steps back but.

Wayne Lam: I was just there spent a lot of time with the team they've done a lot of good work and we're expecting a much better second half of the year here at Santa Lucia.

Gregory Smith: As we came to the end of the month, we had our planned shutdown, major shutdown, and we were up and running back on schedule after that shutdown was completed. Overall, the ramp up is going very well. We mined over 7 million tons in the quarter with over 1.2 million tons of that being ore. Stockpile was 2 million tons at the end of the quarter. The fleet now has 25 hull trucks and four shovels, and we look forward to commercial production during Q3. With that, I'm going to hand it back to Greg. Thanks, Doug.

Wayne Lam: Okay, great. Yeah, hopefully you guys can get up to the 70% plus level in the second half, maybe just the last one for me, looking ahead on the convert coming due in October. Peter had alluded to having the cash on hand and cash from operations to cover that, but it would seem to consume quite a bit of capital and reserve during the ramp up. So, I guess just in terms of alternative funding options, would you look to refi with another refinance similar to the one done last September, or is there potential to renew the ATM, or just curious what the available funding options might be if you have to repay that with cash?

Speaker Change: Okay, Great hopefully you guys can get up to the 70% plus level.

Speaker Change: In the second half and maybe just last one for me looking ahead on that.

Speaker Change: Convert coming due in October Peter had alluded to having the cash on hand, and cash from operations to cover that but.

Speaker Change: It would seem to consume quite a bit of capital in reserve during the ramp up so I guess just in terms of alternative funding options.

Speaker Change: Would you look to refi with another convert similar to the one Titan.

Speaker Change: Last September or is there a potential to renew the ATM or just curious what the available funding options might be if you have to repay that.

Gregory Smith: It's been a mixed quarter for us. We've had to work through some challenges at a few of our mines, particularly at Arizona, and we've had to make some revisions to our guidance as a result. But also a very positive quarter for the company in that we were able to complete the acquisition of the rest of greenstone, achieve first gold pore, and then start the ramp up toward commercial production. And really, we're at an inflection point now.

Speaker Change: With cash.

Peter Hardie: B, do you want to handle that one? Sure.

Wayne Lam: Pete do you want to handle that one.

Gregory Smith: We expect a stronger second half from a number of our mines, but more importantly, greenstone is ramping up to commercial production over the next few months, and we already produced more gold at greenstone in July than we did in all of Q2. So the big picture here is we are significantly increasing our production at lower cost during a period of historically strong gold prices, and what we think is a continuing bullish macro outlook for gold.

Peter Hardie: Sure. First of all, Wayne, we do believe we'll be able to manage it through cash and our existing liquidity. If you recall, when we did the convert last year, we were expecting an April maturity on that note. And so we issued that convert at that time, then we took the proceeds of that, and put them on the revolver to reduce interest costs in the meantime. So we have room on the revolver to draw that was put there thanks to that note issuance from last year, as well as existing cash.

Wayne Lam: Sure.

Pete: First of all when we do believe we'll be able to manage it through cash and our existing liquidity. If you recall when we did the convert last year.

Pete: We're expecting in April.

Speaker Change: Surety on that note and so we issued that convert at that time, then we took the proceeds of that put it on the revolver to reduce interest costs in the meantime.

Speaker Change: So we have room on our revolver to draw that was put there. Thanks to that note issuance from last year as well as existing cash with respect to greenstone. We are given the the ramp up rate that work and trajectory requiring we're currently on with an addition, with commercial production expected this quarter.

Peter Hardie: With respect to Greenstone, given the ramp-up rate and trajectory we're currently on, in addition to commercial production expected this quarter, we're currently comfortable that we can repay that note if needs be when it comes mature through existing sources. With respect to prospective sources, of course, everything you mentioned is available, but they're not in our current plan.

Operator: And I think I'll wrap it up there and turn it over to we were then to start the Q&A. Thanks, Reagan Doug. Gaelaine, can you please ask or remind our participants how to ask a question? Certainly. Once again, to join the question Q, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speaker phone, please pick up your handset before pressing any keys.

Speaker Change: <unk>.

Speaker Change: Were currently comfortable that we can that we can repay that notice H D. When it comes to mature through existing sources.

Operator: To withdraw your question, please press star then two. If you're participating through the webcast, you can submit a question and write in by using the text box in the lower left corner of the webcast frame. Pause for a moment as colors join the queue.

Speaker Change: With respect to perspective sources of course, everything you mentioned is available, but they're not in our current plan.

Wayne Lam: Okay, great. Thanks for taking my questions and best of luck with the ramp-up and operations in the months ahead.

Speaker Change: Okay, great. Thanks for taking my questions and best of luck with the ramp up in the operations in the months ahead.

Speaker Change: Excellent.

Rhylin Bailie: Thanks, Wayne. So we do have some questions online that I still haven't answered in the other things that the speakers have addressed. So the archive of the website will be up in probably, sorry, the archive of the webcast will be on the website in a couple of hours. So you're welcome to go back and have another listen.

Speaker Change: Thanks, Brian So we do have some questions online that I still have already been answered in the other things that the speakers have addressed so be archive of the web site will be up on and you probably say archive webcast will be on the website in a couple of hours. So you're welcome to go back and have another lesson well have a transcript of the entire thing.

Gregory Smith: Hey, so I do have a few questions from online. So one that came in first, we'll ask first. How are you going to catch up in the second half of the year to achieve your guidance?

Speaker Change: Probably on Saturday and if there is other questions I'll get back to you later this evening I have to get on the road because he's got a big cycle ahead of him today.

Gregory Smith: Sure, I can take that. I mean, the main plan here, as you can see from the guidance, is that most of our sites will have a stronger second half of the year. In particularly Los Filos and of course Greenstone as we ramp up to commercial production.

Rhylin Bailie: We'll have a transcript of the entire thing up probably on Saturday. If there are any other questions, I'll get back to you later this evening. I have to get Pete on the road because he's got a big cycle ahead of him today. But I will get back to everybody else sometime tonight. So Greg, do you have any closing remarks?

Speaker Change: We'll get back to everybody else and sometimes Tonight. So Greg do you have any closing remarks.

Gregory Smith: No, just thanks again everyone for attending the call, and you know where to find us if you've...

Greg Smith: No just thanks again, everyone for attending the call and you know where to find US if you got any more questions.

Gregory Smith: Greenstone is a very large mine and production of Greenstone definitely moves the needle for us. So yeah, the second half of the year, we'll produce a lot more gold than we did in the first half.

Rhylin Bailie: Perfect. Oh, Peter, I'm just gonna please donate. It's a great cause. Operator, you can now conclude the call.

Speaker Change: Perfect Peter I'm, just going to add please donate.

Speaker Change: A great cause.

Peter Hardie: Okay, Mike Parkin sent me a question. He's our analyst from National Bank sent me a question by email.

Speaker Change: Alright, thanks, very much operator, you can now conclude the call.

Operator: Thank you. This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

Peter Hardie: This is for Peter. What will capital mountain care maintenance cost be on an annual basis? Will there be any severance payments? And if so, how much and when will those throw flow through the financials? Thanks Mike.

Speaker Change: Thank you.

Speaker Change: To close today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant Paul.

Unknown Executive: Unknown Executive, Wayne Lam, Don DeMarco, Arun Lamba, Jeremy Hoy, Equinox Gold, Don DeMarco, Arun Lamba, Jeremy Hoy, Equinox Gold, Don DeMarco, Arun Lamba, Jeremy Hoy, Equinox Unknown Executive, Wayne Lam, Don DeMarco, Arun Lamba, Jeremy Hoy, Equinox Gold, Michael Parkin, Michael Parkin, Don DeMarco, Arun Lamba, Jeremy Hoy, Equinox Gold, Michael Parkin, Don DeMarco, Arun Lamba, Jeremy Hoy, Equinox Gold, Michael Parkin, Don DeMarco, Arun Lamba, Jeremy Hoy, Equinox Gold, Michael Parkin, Don DeMarco, Arun Lamba, Jeremy Hoy, [music]

Peter Hardie: I'll start with the later part. Yes, there will be severance payments. We will we haven't updated the market provided guidance on what care means will look like heading into next year and beyond. And we'll do so when we when we update guidance or perhaps earlier than that, with respect to the remainder of the year, we'll be residual leaching. So the guidance that we provided for Castle Mountain effectively takes us through the point at which we go on to residual leach.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Yeah.

Speaker Change: [music].

Peter Hardie: Which will be sometime during Q3, we expect to continue to pull ounces from the past at, you know, for several months after. And we'll provide more comprehensive update on those costs as we move forward. It will depend and part on when the residual leach tapers off and when it no longer is beneficial to continue to residual leach based on the ounce of being pulled in the cost to do it. Okay, thank you Peter. All right.

Speaker Change: Yeah.

Speaker Change: [music].

Douglas Reddy: I'll just add to that that at Castle Mountain, our mining and our crushing is contractors. So those those contract terminations have been provided to the contractors and we have a very small team overall who will continue to work on the residual leaching. So it is it is quite a compact and then small operation remains a small team as we move into residual leach. Yeah, thanks, Doug. Thank you.

Douglas Reddy: A question from our Carrie Smith, our analyst that he would take care of you who is currently on an airplane. When do you expect to be able to get back into mining at piaba and how many turns of ore or answers of production, do you have it? How did you go? So, for return to mining in Piavo, we're doing work in Piavo now, but it's at the upper areas of the pit.

Speaker Change: Yeah.

Speaker Change: [music].

Douglas Reddy: We will, during the course of this year, be going in and mining certain areas, especially on the west end of Piavo from pit. But, overall plan is based on doing all the dewatering program and all the jute, technical and re-contouring activities. We would like to be doing some additional mining in Piavo pit by the end of this year, but the real focus is going to be doing a large program in 2025.

Speaker Change: Yeah.

Douglas Reddy: But, again, it all is dependent on working through all of our activities that we're doing to remediate and make the pit totally safe. Keep the regulators totally informed and being able to move in and be able to mine, especially on the east end of the pit.

Speaker Change: [music].

Operator: Thank you, Doug. Operator, can we please take some questions from the phone? Certainly.

Anita Soni: The first question from the phone line is from Anita Sonny with CIBC Wild Markets. Please go ahead. Hi, good morning, everyone.

Anita Soni: First question, I think I'm going to focus on greenstone. When we look at the throughput rates that you delivered this quarter, can you just give us a little idea of how that ramped up over the course of the year and over the course of the quarter and what the exit rates are right now? So, April, May, we were 40, 50% of rated throughput came up to just under 60% as we came into July.

Anita Soni: Then we had a major shut, so we've taken care of a lot of the items that we've noticed during the ramp up and we'll continue. We've restarted and continue with the ramp up in August. I'm sure I'm not sure exactly what the other details they were looking for. No, that was that's good.

Anita Soni: Another question in terms of the definition of commercial production. I noticed it said within 10% of the design grades. You guys are substantially over the design grades and I have an effect question related to that in a second. But does that mean that when you're looking for commercial production, you're looking for it to come down to the sort of 1.5 that you were expecting over the next three, four years rather than the 2.5 that you delivered this quarter?

Anita Soni: Yeah, it won't continue at the 2.5. I mean, that was essentially where putting a lot of ounces that go into the circuit and that was done where we had the ability to feed some high grade material and be able to add that into the milk. And going forward, it gets tempered down to more of the targeted production, overall production rate. So we'll continue with 2.5. That would be glorious, but we can't do that forever.

Anita Soni: It was a good surprise. I didn't hold my breath, but it was going to be sustained. Yeah, I anticipated that somebody would do the call and say, how come your ounces produce and you have 88% recovery. But if you look at the number of ounces that go into circuits, then it all makes sense. And by putting in the higher grade, we took care of building up the ounces and circuit very quickly. Okay.

Anita Soni: And then as we get to the, so do some calculations on the mining and the war stock pile rates, I think, can you just talk about the truck availability? I think you're getting around 2 million tons per hour. Trucks. I did the math right on that per annum, if you analyze it. And our design rates on those trucks more like, like, what could you just tell me was the design rates on the trucks are, I thought they were somewhere around three, three and a half, but of course that depends on your whole distances.

Anita Soni: So can you just talk about the whole of the trucks. Yeah, all distances are affected at this very start for a couple of reasons. One that while we've been pioneering essentially the pit, we've been moving a lot of the soil material, some of which needs to be treated. So that means we have to take it down to an area where it can be dealt with, that consumes some of the cycle time.

Anita Soni: We've also been doing a lot of work, but taking clean waste down to our tailings facility. Again, longer cycle time for those trucks. So you can't really, you'd have to separate them out between mine and those other activities. But essentially with a fleet of 25 trucks, four shovels on site will be continuing the ramp up towards a capacity of 180,000 tons a day by the end of the year. Anita, it's great here.

Anita Soni: I might just add. I don't know if there's a recent picture on our website, but if there's not, I can send one to you. The first, this, this first year of mining at Greenstone is a little bit complex for a couple of reasons. You remember when we were there, there's the old McLeod tailings that are there from previous mining. Part of our permit requires that we excavate those tailings and move into our facility and we do have some trucks dedicated to doing that.

Anita Soni: We also have this, we call it type D soil, which is contaminated soil in the in the main open pit, which is the delicate job to move that material. And we're in the process of doing that. And as we do that, it opens up additional areas of that open pit for us to mine. So if you looked at a recent picture, what you'll see there is sort of a couple of awkward islands in the middle of our pit where we're still excavating the type D soil.

Anita Soni: And it does provide some complexity in mining efficiency in these sort of the first half of this year. We're working through that quickly and I think over the next quarter or so, largely through the type D soil. We open up the pit, the cloud tailings are well advanced and we start to really see those efficiencies as we go into Q4 here. So you just for the first year as Doug said, pioneering this pit with some of the historic issues doesn't make it a little more complex. But again, we've been able to build a large stockpile feed the mill and you know, are on track to be able to meet our targets.

Anita Soni: Okay. And then just a last question on that on the mining rates. I think they meant you guys mentioned that some of it was dedicated while looking back at the last couple of quarters. But basically we're talking about how the mining rates. Some of that was dedicated to providing waste rock for the tailings down. Are you through that? Is it now? Are you basically just using the fleet to do or and waste from the pit or are you still looking at helping up the tailings facility?

Anita Soni: So we're still for you. We're still hauling clean waste down to the TMF. Okay. And how much? It's on a next. It's a next stage. Right. So how much how much how much material like in terms of millions of times do you have to deliver to the waste rock to the tailings facility this year? I'll get back to you shortly. Don't have that number on the top of my tongue. Like get back to shortly. You know how that memorized like? Okay.

Anita Soni: That's my questions. I'll get back in the key. Thank you. Thanks, Vera.

Wayne Lam: Thanks. The next question is from Wayne Lam with RBC capital markets. Please go ahead. Yeah, thanks, guys. I guess maybe just circling back to Greenstone. You know, really nice to see you guys hit the two million ton or stockpile was planned. Could you give us a grade of an idea of the grade of that stockpile and then maybe just as a follow up on the two and a half gram of time.

Wayne Lam: Typically, we see much lower grade feed put through the early stages and rent bigger mill, but just wondering if you guys are seeing any positive reconciliation versus plan. And, you know, some of the higher grade material put through the mill to accelerate some upfront cash flow. Wayne, it's great.

Wayne Lam: You're all start with the high grade into the plant and then Doug can can respond to some of your other questions here. As we were ramping up, basically in the first couple of benches of or the first mining we did, we did have a fair bit of high grade ore. And as we started to ramp up the mill, we started to have very good recoveries right off of that. So we're seeing, you know, plus 90% recoveries pretty much right away.

Wayne Lam: In part that's because of the increased residents time in the tanks when you're not up to full capacity. But, you know, when you start one of these plants up, you've got to build up that inventory in the tanks and then you have the sort of rolling gold inventory in your tanks. Because we had access to such high grade material and we were getting the very high recoveries right out of the gate.

Wayne Lam: We took that opportunity to feed in some high grade ore and ramp up that inventory quickly, which got us into producing gold more quickly than we otherwise would have. It wasn't a cash flow decision. It was more of a commissioning decision. And frankly, it was, we had some very high grades that were coming out. Our stock, Doug will get into it, but we've got different bins for stockpile. And we had a couple of days there where we were feeding, I think, five grams for ton and material like that.

Wayne Lam: So, we were able to do that and as part of our commissioning and, you know, it reflects in the grade over the second quarter. As Doug said, you're needed. That's not something that's going to persist, but it was helpful as we were ramping up the plant. Yeah, so the, I think the other question was just about the stockpile where part we're partly feeding from stockpile, but we're also doing some, some direct feed to the, to the, to the crusher as well.

Wayne Lam: So, it's not, it's not all first and first out by any means. And reconciliation overall has been quite good. So, average grade, I'd have to look it up because we have been focused on certain bins. So, again, I'll come back to that later during the call. I'm going to just take a moment and answer and use this question about total rock fill for the TMF. It's 7.8 million tons in 2024. So, I'll come back with a grade on the stockpile.

Wayne Lam: Okay, great. Thanks. And then maybe just given the higher cost of castle. I mean, I think it makes sense to suspend the operations, but just looking across the portfolio. So, you guys have a, a couple other operations kind of running up towards those cost levels at Filos and Centalus. And so, just wondering at Filos, if there's a more definitive cutoff point on the negotiations where you kind of decide you can't subsidize it anymore.

Wayne Lam: And then at Centalus, you guys are now several years through an eight year mine life for an asset that's had challenges being back a decade ago under Yamada. So, just wondering if there's a point at which you decide that that asset consumes too much capital and attention to continue to operate. Okay, so with lost fellows, we knew the first half of the year would be weaker than the second half, and you can already see now that we've done the relocation of the conveyor, and we have all the material under leach, our ounces are significantly up in Q2, they'll continue to go up in the second half of the year.

Wayne Lam: All in sustaining cost is in that case being driven by the ounces that we're producing, so we should see that improve in lost fellows in the second half of the year as well. The bigger question that lost fellows has been the establishment of new agreements, that's the key element for fellows being able to get a path forward and to build a CIL. So it's a large mine with a great opportunity, we're giving it our best shot to be able to work out everything with the communities, and we're in dialogue, and we hope that we can determine the new path for fellows overall.

Wayne Lam: With Santa Luz, yes, we've, well, let's first of all, we're significantly better than the previous recoveries of Santa Luz, we invested in new technology, and we've been working on getting it to refine it, obviously scaling up from pilot plant to the industrial scale has had challenges, and we see it as a very prospective district. If I turned it over to Scott, he'd be able to talk at length about the opportunities that we have in the immediate area around Santa Luz.

Wayne Lam: So we're there because we believe in the long-term side of it, albeit, we're in commissioning on the desalining circuit, and we have a target that we want to achieve this year, and we will continue to look at this from the big picture. So as opposed to doing a strategic few on Santa Luz at this point in time, we have these two larger projects in the plant that we wanted to get through and see them perform, and that's the trend in on the desalining.

Wayne Lam: I mean, Wayne is a general comment. We're in the business of producing gold, but obviously we want to produce gold profitably. We have no interest in being a charity here. So of course, if a mine is proving not to be economic, we don't see the long-term economic benefit of running a mine, then we're going to assess options for that mine. You know, Catholic is a bit of a different story because it was a very small contract, almost pilot plant type of operation, while we worked towards large expansion.

Wayne Lam: And we ended up running it longer than we had anticipated just because of the permit timelines. So in that case, to your point, it made sense for us to do that and really focus on the permitting for phase two. But you know, as Doug said, this field is a large or a body attractive deposit. Obviously, the long-term plan there is to build a CIL plant and that massively increases recoveries and really changes the flavor of that mine.

Wayne Lam: To do that, we've got to have new agreements with the community, so that's the focus right now. In Santa Luz, yeah, no question. It's been a challenge for us. It's new technology and, you know, not around the world, but it is a novel use of that technology at Santa Luz. And the team has been, you know, it's a little bit like whack-a-mole. We get some great results and then something happens and we kind of take a couple steps back.

Wayne Lam: But I was just there, spent a lot of time with the team. They've done a lot of good work and we're expecting a much better second half of the year here at Santa Luz. Okay, great. Yeah, hopefully you guys can get up to the 70% plus level in the second half. Maybe just last one for me, looking ahead on the Convert coming due in October. Peter had elude to having the cash on hand and cash from operations to cover that, but would seem to consume quite a bit of capital and reserve during the ramp up.

Wayne Lam: So I guess just in terms of alternative funding options, would you look to refi with another Convert similar to the one done last September or is there potential to renew the ATM or just curious what the available funding options might be if you have to repay that with cash.

Peter Hardie: Pete, do you want to have a bad one? Sure. First of all, Wayne, we do believe we'll be able to manage it through cash and our existing liquidity. If you recall, when we did the Convert last year, we were expecting an April maturity on that note. And so we issued that Convert at that time, and then we took the proceeds of that, put it on the revolver to reduce interest costs in the meantime.

Peter Hardie: So we have room on the revolver to draw that was put there thanks to that note issuance from last year, as well as existing cash with respect to greenstone, we are given the ramp up rate that we're introductory requiring we're currently on with in addition with commercial production expected this quarter, we're currently comfortable that we can that we can repay that note if needs be when it comes mature through existing sources. With respect to prospective sources, of course, everything you mentioned is available, but they're not in our current plan. Okay, great.

Wayne Lam: Thanks for taking my questions in. Best of luck with the ramp up in operations in the website. Thanks, Wayne. So we do have some questions online that I still have already been answered in the other things that the speakers have addressed. So the archive of the website will be up on in probably sorry, archive of the webcast will be on the website in a couple of hours. So you're welcome to go back and have another listen.

Wayne Lam: We'll have a transcript of the entire thing probably on Saturday. If there was other questions, I'll get back to you later this evening. I have to get Pete on the roads because he's got a big cycle ahead of him today, but I will get back to everybody else some time tonight.

Gregory Smith: So Greg, do you have any closing remarks? No, just thanks again everyone for attending the call and you know where to find us if you've got any more questions. Perfect, go Peter. I'm just going to add, please donate. It's a great cause. Thanks very much.

Operator: Operator, you can now conclude the call. Thank you. This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day. [inaudible] a lot of work to do.

Unknown Executive: She's got a lot of work to do.