en.Wedoany.com Reported - Equinox Gold, following the completion of its merger with Orla Mining, released updated consolidated guidance in the first week of August alongside its Q2 2026 results, raising its full-year gold production outlook to 870,000 to 920,000 ounces and increasing growth capital expenditure to $600 million to $650 million. The company's previous guidance issued in January projected production of 700,000 to 800,000 ounces and growth capital expenditure of $325 million to $375 million, which had not yet incorporated Orla Mining's assets. The transaction, announced in May with an implied market value of $18.5 billion, positions the combined company as a new senior gold producer in North America.
Equinox Gold CEO Darren Hall stated that the company has entered the second half of 2026 as a new senior gold producer in North America, with significantly increased production and cash flow, and one of the strongest organic growth pipelines in the industry. He noted that the financial benefits of the merger will begin to be reflected from the third-quarter results, and the company will now focus on disciplined integration, operational execution, and the long-term value created by this transformative combination.
Within the new consolidated production guidance, the range of 870,000 to 920,000 ounces represents 12 months of production from Equinox's original asset portfolio plus 5 months of production from Orla's acquired assets, which include the Musselwhite mine in Canada and the Camino Rojo mine in Mexico. On a pro forma basis combining both companies for the full year, production would be approximately 1.1 million ounces.
One of the reasons for the increased growth capital expenditure is the approval of the Phase 2 expansion at the Valentine project in Canada. The project, with initial capital of $436 million, will add $50 million to $60 million to the guidance, increasing processing capacity to 13,700 tonnes per day and annual production of approximately 223,000 ounces, with construction scheduled for 2028. Hall stated that the board's approval of the Valentine Phase 2 expansion construction reflects confidence in the company's operations and a disciplined approach to investing in high-return organic growth.
The merger also supports a 50% increase in the company's quarterly dividend. Hall said this reflects the strength of the balance sheet, growing free cash flow generation, and a commitment to returning value to shareholders.
In terms of results, Equinox Gold produced 176,836 ounces of gold in Q2, selling 177,959 ounces at an average price of $4,256 per ounce, recording revenue of $769.8 million, net income of $230.6 million ($0.29 per share), and adjusted EBITDA of $358.3 million. Operating cash flow before working capital changes was $272 million, with cash costs of $1,816 per ounce and all-in sustaining costs (AISC) of $2,175 per ounce.
Mexican assets hold a significant position in the company's next phase. The Camino Rojo mine, acquired through the Orla merger and located in Zacatecas, contributes 55,000 to 65,000 ounces to second-half guidance and is the lowest-AISC mine in the portfolio, with costs ranging between $950 and $1,050 per ounce.
The Los Filos mine in Guerrero remains outside the annual forecast. The mine has been suspended since the expiration of the land access agreement with Carrizalillo in 2025. Recently, the company signed 20-year access agreements with the three communities where the mine is located—Carrizalillo, Mezcala, and Xochipala—a key step toward resuming operations, with heap leach operations to be progressively advanced. The company is evaluating a carbon-in-leach processing plant at the site, with related studies estimating the mine's gold reserves at 5.4 million ounces. Hall described Los Filos as a "world-class deposit" and stated that the new agreements represent a shared commitment to responsible operations and long-term sustainable benefits, laying the foundation for strengthening the company's long-term relationship with the communities and supporting future investment and value creation.
The 2026 guidance allocates $35 million to $40 million in growth capital expenditure for Los Filos, with a reserved budget of $105 million to $120 million for the company's project pipeline.
The merger also brings management changes: Chuck Jeannes from Orla assumes the role of Chairman-Elect, while Ross Beaty transitions to Chairman Emeritus. Beaty expressed great satisfaction in seeing this vision realized through the merger with Orla. Darren Hall will step down as CEO at the end of October, following a three-month transition with former Orla President Jason Simpson, who will succeed him. Jeannes stated that the company must enter its next phase and requires a management team dedicated to guiding the business over the long term. As of the end of July, the company had pro forma net cash of $214 million and available liquidity of $1.214 billion, providing funding support for its growth portfolio across Canada, the United States, Nicaragua, and Mexico.
