Equinox Gold (TSE: EQX) (NYSEAMERICAN: EQX) increased gold production during the second quarter as its two newest Canadian mines continued ramping up operations, helping keep the company on track to meet its 2026 production guidance while advancing a major merger and restarting development at its Los Filos mine in Mexico.
The company produced 176,836 ounces of gold during the three months ended June 30. Greenstone Gold Mine in Ontario contributed 64,656 ounces, while Valentine Gold Mine in Newfoundland and Labrador added 32,617 ounces. The remaining production came from Mesquite, Nicaragua and Castle Mountain.
Additionally, Equinox produced 374,464 ounces during the first half of 2026. That total keeps the company on pace to achieve its annual production guidance of between 700,000 and 800,000 ounces.
Chief executive officer Darren Hall said the company’s Canadian operations continued gaining momentum during the quarter. Greenstone and Valentine produced a combined 97,273 ounces as both mines steadily improved operating performance.
Meanwhile, Greenstone achieved stronger mining and milling rates following the winter months. The mine averaged more than 199,000 tonnes of material moved per day, while the processing plant averaged 26,856 tonnes daily.
The company also reported more frequent days operating above the mill’s design capacity. About 69 per cent of operating days exceeded 27,000 tonnes per day during the quarter, compared with 51 per cent in the first quarter.
Hall said management expects that trend to continue through the second half of the year. As a result, Greenstone should deliver higher quarterly production for the remainder of 2026.
At Valentine, the processing plant averaged 7,730 tonnes per day. That equaled roughly 113 per cent of its nameplate capacity.
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Equinox continued reshaping business beyond day-to-day operation
Additionally, Equinox expects gold production at Valentine to increase during the second half of the year. Management attributed that outlook to stronger ore grades entering the mill and continued processing performance.
The company also plans to begin early work on the mine’s Phase 2 mill expansion later this year. That project aims to increase future processing capacity as the operation matures.
Hall said operational improvements at both Canadian mines remain a priority. He added that stronger execution and ongoing optimization efforts continue improving performance as the assets move through their production ramp-up.
Furthermore, Equinox continued reshaping its business beyond day-to-day mining operations. During the quarter, the company announced a proposed business combination with Orla Mining Ltd. (TSE: OLA) (NYSE: ORLA).
If completed, the transaction would create a North American gold producer expected to generate approximately 1.1 million ounces annually in 2026. Equinox also said the combined company could eventually increase annual production to approximately 1.9 million ounces through internally funded development projects.
Hall said the proposed merger would combine several long-life mining assets capable of generating significant cash flow over time. He added that management believes the transaction would strengthen long-term shareholder value.
Additionally, Equinox reached another milestone by securing 20-year land access agreements with the three communities surrounding its Los Filos mine in Mexico.
The agreements allow the company to begin planning for a restart after a lengthy period of uncertainty. Equinox also established a new framework governing labour and supply services that management described as more disciplined, transparent and sustainable.
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Los Filos has potential to become major producing asset
Meanwhile, engineers continue evaluating options to optimize the operation before mining resumes. One option includes a rightsized carbon-in-leach development plan designed to improve the project’s long-term economics.
Hall said Los Filos has the potential to become another major producing asset within Equinox’s portfolio once operations restart. He added that the company intends to advance technical work while preparing the site for renewed production.
The company said management will focus during the second half of 2026 on improving operations at Greenstone and Valentine, completing the proposed Orla transaction and advancing the Los Filos restart alongside other internal growth projects.
