Equinox Gold announced its first-quarter 2025 financial results, reporting record gold production and revenues but posting a net loss amid operational and cost challenges. The company is advancing a merger with Calibre Mining, which has received shareholder approval and is expected to create a significant Americas-focused gold producer upon closing.
Record Production and Financial Performance
Equinox Gold achieved its highest-ever quarterly gold production in Q1 2025, producing 145,290 ounces. The company generated revenues of $423.7 million during the quarter. Despite these operational achievements, Equinox Gold reported a net loss of $75.5 million, driven by increased costs and the suspension of operations at the Los Filos mine. At quarter-end, Equinox Gold held $172.9 million in cash and reported net debt of $1.22 billion.
Pending Merger with Calibre Mining
Equinox Gold highlighted progress on its previously announced merger with Calibre Mining. The transaction has been approved by shareholders and is expected to close in the second quarter of 2025. Upon completion, the combined company will have an expanded portfolio of gold assets in the Americas, positioning it as a leading regional producer. Calibre Mining, Equinox's merger partner, reported strong Q1 2025 results with production of 71,539 ounces and an all-in sustaining cost below budget at $1,389 per ounce, supporting the combined group’s production outlook.
Operational and Financial Context
The net loss in Q1 2025 primarily stemmed from higher site operating costs and the temporary halt at Los Filos. Despite these setbacks, Equinox Gold reaffirmed its full-year 2025 production guidance. The company continues to monitor its financial position closely, focusing on managing debt and maintaining liquidity as it prepares for integration with Calibre Mining.
Analysis
Equinox Gold’s record production in Q1 2025 demonstrates strong operational capacity but was offset by rising costs and mine disruptions, leading to a quarterly net loss. The pending merger with Calibre Mining, approved by shareholders, is expected to add scale and operational diversification. Calibre’s solid cost control and production performance provide additional strength for the anticipated combined entity. However, Equinox Gold’s high net debt and recent loss underscore the need for continued financial discipline. Experts suggest that the merger could give the combined group greater production scale and operational flexibility but stress the importance of realizing targeted cost synergies to improve overall profitability.
Outlook
With the merger anticipated to close in the second quarter, Equinox Gold is positioning itself as a major Americas-focused gold producer. The combined entity is expected to benefit from a larger portfolio, diversified operations, and potentially enhanced financial resilience. Market watchers will be monitoring the successful integration of the two companies and the group’s ability to deliver on its production and cost targets throughout the year.
