Equinox Gold Corp. (EQX) Earnings Call Transcript & Summary

Hello, and welcome to the Special Meeting of Shareholders of Equinox Gold Corp. Please note that today's meeting is being recorded. [Operator Instructions] It is now my pleasure to turn today's meeting over to Mr. Ross Beaty, Chair of the Board of Equinox Gold. Ross, the floor is yours.

Thank you very much, Ingrid, and good morning, everyone, and welcome to the special meeting of the shareholders for Equinox Gold. I thank you for joining us today. And specifically, thank you to the shareholders who came in person and also to those who are listening online. And after the formal portion of today's meeting, we'll have some questions and answers to the extent that we have. Since this is an interest in meeting the following process will [indiscernible] at the meeting. For those registered shareholders or proxy holders attended the meeting in person, when asking any question, please raise your hand and once it's your turn, indicate your name which entity you represent, and if you are a registered shareholder or proxy unless questions are procedural or directly related to motions before the meeting. They will be answered after the formal business of the meeting is concluded. We will also -- sorry, address any nonprocedural media-related questions that were submitted through the website at this time. [indiscernible], Equinox Gold's Senior Vice President of Capital Markets, will act as question moderator for the meeting and will read a out any questions that we get from our online participants. I will now outline the voting procedures. Voting will be conducted by ballot. Registered shareholders and duly appointed proxy holders will be asked to vote on each business item. Shareholders who are attending online, while we're glad you chose to join us. I'm afraid you won't be able to vote your shares through the webcast. We'll only accept votes that was submitted before the proxy deadline of 9 am on July 20 or that were submitted in person today at the meeting. If you've already voted by proxy, it's important that you do not vote again here at the meeting unless you intend to change your initial vote. The final voting results will be included with the minutes of the meeting and will be announced in a press release later today in accordance with Canadian Securities Laws and the policies of the [indiscernible] Stock Exchange. Because we have this special meeting today, we don't have any members of Board and attendants other than myself and Darren Hall, Chief Executive Officer. The rest of our Board is listening in, but not here in person. In addition to Ingrid, other executives and management incentives are Peter Hardie, our Chief Financial Officer; Daniella Dimitrov,, Chief Strategy and Risk Officer; and Jacqlin Anthony, General Counsel and Corporate Secretary. We will now proceed with the formal portion of today's meeting. To expedite matters, I will move and second all motions. The meeting will now come to order, and I will act as Chair. And I will say, actually, that in a very bittersweet moment, this is my last Chair role. The vote is [indiscernible] favor. This will be a combination upon conclusion of the combination. I will be [indiscernible] as Chair and Board member, very after a very exciting run with the company from the very beginning. And [ Charles Chuck Jones ] will become Chair. So this is [indiscernible]. And it's very -- I'm on one hand, very pleased with how the company has grown and developed, very excited about the [indiscernible]. But very sad as well having to exit as an official member of the board. But I'm not going anywhere, particularly, I'm not [indiscernible] share because I'm staying as a Chair of [indiscernible] and Special Adviser of the Board, and I will be attending more meetings and provide my input to the extent it's -- I'm able to. So that's my little spiel. I appoint Jacqlin Anthony, as General Counsel and Corporate Secretary of the meeting. For the purpose of this meeting, I appoint Computershare Investor Services Inc. as scrutineer to compute the votes of any polls taken at this meeting and tend to report the results to me. The objective of today's meeting are set in the company's information circular dated June 19, 2026. I confirm that the notice for this meeting, information circular in the form of proxy were mailed to shareholders on June 22, 2026. The company has received an affidavit confirming proof of mailing from our [indiscernible] Asian Computershare Investor Services Inc. A copy of the affidavit will be attached as scheduled in the minutes of this meeting. Unless there's any objection, I'll dispense the region of the notice of the meeting. Copies of the information circular and other media materials are available at Equinox Gold's website and under the company's profile on SEDAR and on EDGAR. The quorum for the transaction of business at the meeting of shareholders is at least 2 people present or represented by proxy holding 33% or more of the shares entitled to vote on [indiscernible] the meeting of shareholders. The scrutineer has surprised that proxies were received from the holders of a sufficient number of common shares to constitute a quorum. I declare the meeting to be regularly called and properly constituted for the transaction of business. The formal report of the scrutineer will be attached as a schedule to the minutes of this meeting. As most of you are aware, that shareholder meetings, most shares are typically represented by proxies given to matters. The scrutineers advised that a significant majority of the proxies received by management have been voted in favor of the share issuance resolution. We appreciate and thank shareholders for their continued confidence and support. For those of you who are attending today, the volume will be conducted by ballot, and I think we just have one shareholder in person -- 2 -- just a second. Okay. Very good. If you're a registered shareholder or proxy or should have received a balance the item of business to be voted on, when you checked in for this meeting. If you are a registered shareholder or proxy holder and did not receive a ballot, please raise your hand now and representative of the scrutineer will bring one to you. If you've already voted by proxy, it's important that you do not vote again. You're at the meeting unless you intend to change your vote. Management's proxy nominee for about all proxies in favor of all matters before this meeting, notwithstanding any ballot being taken. I now present to the meeting to consider and to approve with thermal variation, an ordinary resolution authorized an improving issuance of Equinox Gold shares in connection with the proposed acquisition by Equinox Gold of all the outstanding common shares of [indiscernible] LTE by way of a planner arrangement under the Canada Business Corporations Act, as more particularly set out in the information circuit. I want to make a few comments about this resolution. And some of these are forward-looking, so please refer to the cautionary language forward-looking statements and the information [indiscernible] for the meeting. We announced this proposed merger with or on May 13. We see many benefits from combining the 2 companies, all of which are related to the information circular. But the underlying logic of the merger was to combine 2 North America-focused gold producers, creating a highly complementary portfolio of operating mines in 4 countries entered by 3 high-quality long-life, low-cost Canadian gold mines. Our [indiscernible] mines are expected to produce 450,000 ounces of gold annually with oral [indiscernible] in Ontario, contributed another 235,000 ounces of production any. So at nearly 700,000 ounces of expected annual gold production from Canada. The combined company will be the second largest producer of Canadian gold. In addition, the combined company has a clear path to increase annual production by more than 800,000 ounces from a pipeline of advanced exploration and development projects with the expectation of delivering another 350,000 ounces from [indiscernible] in the U.S. and nearly 500,000 ounces in Mexico from Los Filos and an expansion at Kaminaro. At current bright gold prices, we expect this organic growth will be funded with -- from operating cash flow and available liquidity. Importantly, all growth projects have established the [indiscernible] combined Equinox Gold will have 22.7 million ounces of proven and probable mineral reserves, 25.1 million ounces of measured and indicated mineral resources exclusive of mineral reserves and 13 million deferred neural resources. Each of [indiscernible] and Equinox Gold could have carried on as a mid-tier producer. Combining these 2 companies will counterpart us into that elite group of global senior producers, maximize our production and cash flow and deliver the market premium of having these 3 big mines in Canada. So we feel this is one of those rare situations where 1 plus 1 really does add up to 3. Together, we'll be a stronger, more valuable company and create more shareholder value than either of us could have done individually. We're thrilled that Equinox Gold will benefit from the expertise and successful track record of well-respected industry leaders led by [indiscernible] as Chair of the Board of Directors of [indiscernible] support as Chair Emeritus and Special Investor of the Board. We're also excited that [indiscernible] President and CEO, will join the combined team is present. Are there any questions at this time? Ingrid, do we have any questions from shareholders online?

So we do have a question, but it's not directly related to the business of the meeting, so we can wait and answer then once the meeting has concluded.

Okay. Thanks very much. In that case, I will now move and second the motion to approve the share issue an ordinary resolution of the company, the full text of which is set in schedule aided the information circular, pursuant to the terms of subject the conditions of the arrangement agreement dated May 12, 2026 between Equinox Gold and [indiscernible]. For those shareholders and proxy holders attended today, please record your vote on the ballot. [Voting]

Okay. These are all the resolutions before the meeting. We will provide a few months for our shareholders and proxy holders to complete your paper balance.

On behalf of Computershare, I can confirm that the poll has closed.

Great. Thank you, Ingrid. As a sufficient number of the proxies received by management have been voted in favor of the resolution, I defer the resolution carried. Do we need to say exactly the number?

No, that's in [indiscernible] we'll publish it [indiscernible]

[indiscernible] So I declare the resolution carried. Rather than to land the business of this meeting to wait for the final tabulation of the votes cast, the results of the ballot will be included with the minutes of the [indiscernible] release later today. In accordance with the Canadian Securities Laws and the policies of the [indiscernible] Stock Exchange. It's [indiscernible] the business. I'm so glad you all came. There had been no...

There are no standing questions related to the business about the meeting.