Equinox Gold (TSX: EQX) reported revenue of $769.8 million for the second quarter and income from mine operations of $301.7 million, with net income of $230.6 million, or $0.29 per share.
Reported earnings included a number of one-time gains, including $35.9 million unrealized on gold contracts, $18.6 million on the conversion option attached to the company’s convertible notes and $18.2 million on debt modification. Excluding those and other items, adjusted net income was $123.3 million, or $0.16 per share. Adjusted EBITDA was $358.3 million.
Cash flow from operations before working capital changes reached $272.0 million, and mine-site free cash flow was $223.7 million.
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Equinox closed June with $317.8 million in unrestricted cash and $583.0 million of debt, down from $614.7 million at the end of March, leaving net debt of $265.2 million. The company had repaid $990 million of debt in the first quarter. Following the Orla Mining merger, which closed July 31, the combined company reported a pro forma net cash position of $214 million and available liquidity of $1,214 million.
Production totalled 176,836 ounces of gold, down from 197,628 ounces in the first quarter. Greenstone led with 64,656 ounces and Nicaragua contributed 59,476, compared with 81,280 ounces in the prior period. Valentine produced 32,617 ounces, Mesquite 18,572 and Castle Mountain 1,515 from residual leaching. The company sold 177,959 ounces at an average realized price of $4,256 per ounce.
Cash costs were $1,816 per ounce, while all-in sustaining costs totaled out at $2,175 per ounce.
Equinox lifted 2026 production guidance to 870,000 to 920,000 ounces, reflecting five months of contribution from Orla’s Musselwhite mine in Canada and the Camino Rojo project in Mexico, with pro forma output of about 1.1 million ounces on a full-year basis. Cash costs are guided at $1,600 to $1,700 per ounce and AISC at $1,900 to $2,000. Growth capital is budgeted at $600 million to $650 million.
The board meanwhile approved a 50% dividend increase to $0.0225 per share quarterly, payable September 2, and sanctioned a $436 million second-phase expansion at Valentine targeting roughly 223,000 ounces a year from late 2028.
“With completion of the business combination with Orla Mining on July 31, we enter the second half of 2026 as North America’s new senior gold producer, with meaningfully greater production and cash flow, and one of the industry’s strongest organic growth profiles,” Chief Executive Officer Darren Hall said.
Hall retires October 31, with former Orla chief Jason Simpson taking over.
Equinox Gold last traded at $14.96 on the TSX.
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