Thank you for standing by. This is the conference operator. Welcome to the Equinox Gold Corporate Update and First Quarter Results Conference Call and Webcast. 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. [Operator Instructions] I would now like to turn the conference over to Rhylin Bailie, Vice President, Investor Relations for Equinox Gold. Please go ahead.

Thank you very much operator. Thank you very much for joining us today. We will of course be making a number of forward-looking statements in today's presentation so please take a moment to visit our continuous disclosure documents on our Web site, on SEDAR and on EDGAR. I will now turn the conference over to Ross, our Chairman to discuss the results of the ATM and take you through the presentation.

Thank you very much Rhylin and welcome ladies and gentlemen to this call. I really first of all want to start by apologizing for doing this on a Friday afternoon just before a Canadian long weekend. This is normally what happens when a company wants to deliver bad news. But nothing could be further from the truth for Equinox Gold. We had a great quarter. We are just hitting on all cylinders. And I just want to make that front and center for everybody, the reason we're doing this today is to accommodate our accounts. We took about a month or two longer to close our Leagold deal than we had expected and this -- put them right up against the wire to get the consolidation done. Tremendous amount of accounting to be done and changes that were required, a lot of scrutiny, a lot of review. And they asked us to go to the very last day before they had to file the quarterly statements and that was today. So we accommodated that won't happen again. I acknowledge it's a rotten time to be doing this for everybody and by Tuesday morning when we reopen, some people will have forgotten that we've put out such good results and they'll be moving on to whatever is going on next week. What is good about it is that we are ending the week on a very high note for gold. And all the reasons we did the Leagold merger and has had such rapid growth in our gold production or gold reserves is because of our conviction that we are in a secular gold market, gold bull market. And I think all events that have happened in the last -- really the last two years, but particularly the last month or…

Great, thank you, Ross. It's Christian here. Just want to take one second to say acknowledge actually our long-term and existing and a new shareholders to support through this period of growth and buying into and believing in us in the vision, and also say thanks to the team and the workforce because it's been a really challenging time and I would never imagine going through a merger and managing putting two companies together in a COVID world pandemic and really exceptional performance of people roll up their sleeves and actually working very closely together. So I will walk you through the couple of slides here on the operating results, we had a very good and strong first quarter, we're very pleased with it. Both production and costs were ahead of plan. And please remember that there's only 20 days of the Leagold assets included in our results. So I'll sort of highlight those as we go through. From a health and safety perspective, we had a good result. From an operating result perspective, we had about 90,000 ounces of gold produced, on a full three month basis, we would have done almost 150,000 ounces, if you had full three months of the four Leagold assets included. So, a real step change over the last few years. And again, on the cost front as Ross mentioned, $968 an ounce all in sustaining costs was below that initial guidance range that we gave out and we're seeing the benefits of FX savings and some cost savings and good cost control in this environment and traditionally the first or first and second quarters tend to be a little bit higher than the last quarter or two of the year. So we're really pleased to see that at the beginning of the year.…

Sure. Operator, can you please remind people how to ask the questions.

[Operator Instructions]

So we do have a few questions from online. So I'll start with those while people line up on the phone line. I'm going to combine two questions. They're both talking about how we're managing the COVID virus. So the U.S. and Brazil and so sort of responded differently than some of the other countries around the world. What are our plans to mitigate the spread of the virus in the two countries and how do we think it will affect operations as 2020 unfolds?

Attie, do you want to comment on that, and I can add comment as well.

Okay. Christian, thanks. If you look at the two countries, we started up pretty early, COVID prevention program by introducing preventative measures at our gates. This included the normal, heat screening, the handwashing, the social distancing, which we started long before it was promulgated in these countries. We have advanced on that further with activities that came from methodologist, where we get information on what's the best practices in the world at the moment and we introducing all of that. Things like the risk group screening from the mine, and to make sure that they don't enter the mine areas.

I was just going to add that we've also looked at various rotations and people's travel and obviously limited that and try to limit the impacts and introducing any kind of new potential transfer of this virus in any areas that we're working in and working very closely with the local community as well to dialogue with them and get their assistance.

Operator, can you please take a question from online?

Our next question comes from Kerry Smith with Haywood Securities.

Christian, have you seen much cost pressure at the site from the extra measures you've had to implement for the COVID program? Obviously, it costs more money, it's probably slowing your productivity a little bit and just wondering if you are seeing a noticeable increasing cost because of that, or if it's either not that big of an increase or it's being offset by the FX?

Yes, I mean, Attie please add a comment after but I'll have a first go with that. Basically, we are seeing small amounts of sales increases, we certainly are looking for extra sort of, -- there might be extra cost because of rotations and shifts and people and covering off all the sanitary and hygiene measures that we have in place. I think we're being more than offset at the moment by FX and costs like diesel going down very significantly. It's a little early to know because I think we're seeing in Mexico and Brazil, certainly the virus spread has been increasing, but the U.S. is probably a little more stable where we are anyways. And at the moment, I would say it's been minor or limited in the sense. And the other side of it, maybe Kerry to think about is working capital, we probably put a little extra money into having extra stockpiles and supplies at various sites, although, that'll translate into cash in due course as well. So I call the impact so far pretty minimal.

Okay. And maybe a second question if I could. Ross was saying in his introductory remarks that the Board approved the Santa Luz restart today at the Board Meeting. Do you have a rough timing for us in terms of when you would expect to start construction?

Yes. I think we want to officially, get into construction sort of in the second half of this year, maybe early second half of this year. We're still finishing off all the final bits of engineering and that to prepare ourselves. And in this current COVID environment, we don't want to rush into it either. We want to sort of build up the project team in that. So as I indicated earlier, I think certainly second half of this year is a good starting point.

And then I think you said production in late 2021, early 2022, correct?

Exactly. Once we actually pin that date, then we can give you the exact timing on that, but it's give or take 12 months to build process once you get going.

Our next question comes from Andrew Weekly with SmithWeekly Research.

Can anyone speak to what types of assets are being sought through the M&A activity going forward, I know you can't give much detail for strategic reasons, but a few hints as to what is being considered? Why are we are still in the lower valuations for potential growth deals?

Sure. Thank you very much Andy. It's hard to be specific, we try to be opportunistic. We want to add value and that's very much easier said than done. We certainly got that with our two deals that we've done. We did our Mesquite purchase at the bottom of the gold market that year when we were able to acquire that as a startup company from a distressed seller. And we then of course, combined with Leagold on terms that I think we'll all agree are good terms. We could be looking at acquiring another operating company, if combination made sense, although I can say we have absolutely nothing in our horizon right now, mostly because we've spent the last couple of months integrating the Leagold deal that's to happen successfully. And I'd say that's pretty much behind us now and it has gone successfully, We could look at potentially even a development play if we thought it was going to be a really great long-term asset for us. So, I think the two criteria that I would personally push for us are number one, value and number two, you're looking for an asset that's at least as good as anything we've already got. And those are rare, they're hard to come by. They're hard to get wrapped up, particularly in a bull market, like we're seeing right now. But they are out there. And if we can pull them in off, we'll do it. And if we can't, we are very content with our existing internal growth pipeline, we will simply execute that plan, which will lead us to great things as well.

And we continue to be focused on the Americas.

Yes, very well. I appreciate that Ross and Christian. I certainly agree that too, Leagold deal and Mesquite's, fantastic. Christian, can you speak a little bit more about Mesquite? I know you've mentioned it just a moment ago. Can you speak to Mesquite area potential? What does management see as mine life expansion that could be had at Mesquite through exploration? And does it believe that the trend at Mesquite provides sound economic reason to remain in the district?

I'm just going to make one comment. I'm going to actually let Scott speak a little bit to that. But basically, when we bought it, we knew we had a certain amount of ounces in the ground and a certain like mine life that was limited. In the year or so since then, we've really been able to develop both the near pit and waste dumping or old mineralized dump material into mine life extension, very materially and very profitably, and it's already been about 60% of our production last year. And Scott continues to identify more plus think about the bigger, longer term upside across the highway into the east of our property and there's definitely potential there. We'll wait for drilling permits in that area. But Scott, I don't know if you want to comment on anything that's near nearby.

Yes, sure. I see it kind of threefold. With our most recent resource and reserves update there earlier this week. The new resource estimate stated exclusive shows 430,000 ounces at M&I, these are exclusive reserves. So these form an immediate exploration target, looking to convert these resources to reserves and incorporate that into mine plan. So obviously, bringing those ounces, adding ounces to bring forward production faster is a guiding principle, guiding philosophy. So that's one-prong. There is the dump material, which is proven to be a fantastic value and big success. We are focused on that currently testing another 40 million short tons that are identified on site working quite hard on that we've drilled 35,000 meters so far this year. And then, thirdly, for the upside is the bigger picture. And there is Rainbow, which represents several hundred thousand ounces of resource sitting there with expansion potential and a little bit slower to permit to some of these exploration targets. So when they're outside of the immediate mine footprint, but there certainly is a significant boost that potential unlock in time.

Okay. Well, Scott, thank you for that. And just one other question, gentlemen and ladies there have appreciate the time. Can you speak briefly to the diesel procurement practices in place and does management see an opportunity to secure additional diesel fuel reserves due to lower prices and uncertainties?

Yes. I mean, we've seen -- we were budgeting. I think California diesel, it was closer to $3 in the high twos, late last year and we've seen current prices more in the $1.8 per gallon type range, so we're seeing almost a 30% benefit there. Interestingly, in my former life, when we owned Mesquite, we did do save 50% of the year's cost we actually hedged out and that's something we're certainly looking at the moment. And we've certainly looking at our fuel suppliers and seeing what we can put in place that has a little bit more longevity to it and secure some of that fuel at a very attractive price at well below budgets right now.

Okay. Very well. Thank you to you all. Keep up the efforts and stay well.

We've got quite a few questions from online, all are talking about the same thing. So I'm going to package them into a few different versions. So someone noticed that we've run through ourselves as the premier American gold producer. So I know you already touched on this Christian, but do we intend to stay in the Americas and we'll be considering expanding into other hotspots. And on the back of that I'm going to parcel in, do we think there's any risk of nationalization of the projects in Brazil given the markets we can?

Yes. I'll start on this and Christian could add anything he wants. Yes, we really like being in the Americas, their jurisdictions we know very well, they've been very successful for us and for many, many other companies, specifically Mexico, Brazil and North America. We see nothing whatsoever in talk or in even fact, even in reasonable whoever that suggests there's ever going to be a nationalization those days are long past and we just think that's absolutely impossible in this day and age. There could be pressure to increase their tax take, I think that's possibly going to happen everywhere in the world. And that's just kind of a normal battle between producers of wealth like mining companies and consumers of wealth like governments. And there's the rational governments that realize that they can't go to the bowl if they do they kill everything and nobody gets anything. So we have always valiant, we will continue that in the periods to come, I think. But, never say never on jurisdiction. We certainly like being in the Americas. But, if there was a great value opportunity just about anywhere we might look at it. I'd like to say, we'll never go outside the Americas you never know. But for the moment, it's not in our plan.

I just echo Ross's comment on there, particularly on Brazil. I've had conversations directly with the mines ministry over the last few years. And interestingly, that topic of nationalization came up and they felt a bit aggrieved by that comment. They're a very developed mining country that's very mining friendly, and they see themselves as very much being at the forefront of mining globally and it's just not something that's done there.

Thank you. So a shareholder in Germany would like to know that if we're planning to sell any assets that we currently have on our portfolio and then a shareholder in the U.K., would like to know, would we consider selling the entire company is the right offer came along from Barrick or anyone?

Yes. I can address that too. The answer to the question of whether we would sell to anybody. Well, of course, never say never once again. But Equinox Gold has been built to be an acquire or not a seller. We are planning to be in this business for a very long time, we'd like to build ourselves as a household name in the gold business and become one of the world's best gold producers with the best reputation for growth and quality and finance and management and everything else. That's our ambition. And it's not simple to set us ourselves up for sale to someone else. What was the German question?

Someone else want to know, we were considering to sell any of our assets?

Ever we selling any of our assets Christian?

Yes. I mean, I think we'll go through that natural process of, as we continue to grow and optimistically sort of enhance the portfolio with larger, longer life. higher quality type assets along the way. We naturally probably won't want to manage some of the smaller assets in the long-term. And I think it's a natural progression of the portfolio. And so, I won't say again, never say never, but we would consider the smaller end of things potentially selling along the way.

Our next question comes from [Robert Sigler] [ph], a Private Investor.

Yes. Thank you very much. My question is, I was originally, I'm a U.S. investor, and I was a holder of Castle Mountain which became Equinox Gold. And part of that we received a dividend from Equinox Gold and Solaris Copper, which became Solaris Resources. And as a U.S. investor we have never received any update on what's going on. The only thing I did hear through your conference call last time we had was that the Augusta Group was involved with this company now. Is there any way that a U.S. investor like myself can get information on what's happened since Equinox gave Augusta Gold whatever deal they made, with the Augusta Group to run this company to see if there's been any new developments, as have been any private placements and things like that? And what's in the future? Thank you.

Yes. Thanks for that question. It's a good point. As we've grown, it's become a smaller proportion. We own about 30% of, of Solaris Resources, as it's called now. And basically, they have a website that you can get that information if you want to see it, it's Solaris Resources, and you'll be able to obviously contact the management there, Richard Warke and Dan Earle leading that company at this stage. And it basically does continue to progress. It acts like a basically a public company, because you can find all of its press releases and its information on the website, and also on SEDAR. So if you can use both those sources and also you can reach out to them, they are based in Vancouver in Toronto. And they are currently not publicly listed, but the intention is, when the market conditions are right, they would like to get back to the public markets. So I think keep an eye out for that. We still continue to be very excited about that as an investor and we own that 30% block and we think it will be a very valuable company one day. They have started drilling there in Ecuador. And we think it's a really interesting situation with COVID ongoing, obviously, to put a little wrinkle in the timing of getting that drilling work done. But keep an eye out on that Solaris Resources website.

Thank you very much.

Thank you, Robert. We have a question from online and it's from Saudi Arabia. So it makes sense that the question is about oil prices. So how much is economical benefiting from the low oil prices, are you considering hedging your oil prices?

That was good. I will just say on oil prices, we're particularly feeling and seeing the benefit in California where I'm going to say about 15% of our costs, give or take or are linked to the diesel price and we're seeing roughly a 30% decrease in the diesel price currently will that continue, I don't know. But at the moment, we're benefiting from it. Diesel prices probably more like 10% of our costs in other jurisdictions, it's not quite as significant. And interestingly, in both Mexico and Brazil, the diesel and oil prices tend to be more government controlled. So they don't tend to oscillate like the open markets like it does in the U.S. as much where instead of getting a 30% benefit right now, we're probably getting more like a 10% to 15% benefit on that 10% of our costs.

Yes. It's Peter here. I will also add that for operations like Mesquite in the U.S., it does take some time for the costs to reflect that because they work their way through they heap leach, and there's a recovery curve that takes a couple months there. So, and for the operations that have plants associated with them, you see the benefit of that cost quicker.

Thank you. Ross, I know you've been asked this question before at previous conferences with Lumina Gold for sale would we consider investing in Ecuador?

I think I answered that question exactly one year ago. And what I said then was, it's very hard for me to be buying and selling at the same time. It's kind of an obvious conflict. I'm going to try to maintain a pretty good reputation for avoiding those things. And I will do so with that as well. So it's very unlikely, I guess not impossible, but it's extremely unlikely. Unfortunately, it's a great deposit.

And we have one final question from online just asking about guidance. So you still have the same guidance targets for 2020?

Yes. With the guidance we said, we'd update our guidance when practical, when we have the clarity of the startup in Mexico, I mean, it's looking very much like early June or late May. And we'll basically be able to reassess our plan and update the guidance then. The other five mines so far has called minimal impact. So at the moment, it's going mostly Mexico but it is a very fluid environments. So we'll update as soon as we can there in the next month or two.

Perfect. I'll remind people that this webcast will be archived on the website for three months. And we'll also post the full transcript in a few days. So thanks very much for joining us today and I'll turn it back to Christian and Ross for closing comments.

Any more questions on the phone? No more questions on the phone. Okay. Well, I have no further comments. So thank you all for joining us and apologies again, for doing this on a Friday afternoon before a long weekend. It will not happen again.

Thanks very much, everyone.

Thank you very much. Enjoy your weekend.

This concludes today's conference call. You may disconnect your line. Thank you for participating and have a pleasant day.