3/4/2021

speaker
Conference Operator

Thank you for standing by. This is the conference operator. Welcome to the Equinox Gold Fourth Quarter and Fiscal 2020 Financial Results and Corporate Update 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. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. If you are participating through the webcast, you can submit a question in writing by using the text box in the lower left corner of the webcast frame. I would now like to turn the conference over to Relynn Bailey, Vice President, Investor Relations for Equinox Gold. Please go ahead.

speaker
Relynn Bailey
Vice President, Investor Relations

Thank you, Anastasia, and thank you, everybody, for joining us today for the Q4 call. We will, of course, be making a number of forward-looking statements today, so please do take the time to visit our website and to visit our continuous disclosure documents on CEDAR and on EDGAR. I'm now going to turn the conference call over to our CEO, Christian Mitao, for opening remarks.

speaker
Christian Mitao
Chief Executive Officer

Great. Thanks, Roland, and welcome, everyone, today. Just looking at slide number three and running through this past year, we had a heck of a busy year and lots on the go. Strong finish to the year and a good performance on the health and safety front with the very good mine integration and work on the safety front during a very taxing year when COVID was a key impact on the business. And we tested over 15,000 people for COVID during the year, and our workforce is only just under 6,000 people, so multiple tests per person on average. And I think we've done an excellent job, so kudos to the mines for managing through that difficult year. We had the highest production quarter to date and good cost performance, so we're pleased with the end of the year as we go into a big investment year this year. We had very good solid cash generation, and Peter will talk about that in a few slides here. So good end to the year. When we turn over to slide number four, busy on the development and corporate highlights front. Development was extremely busy during the year with Castle Mountain Phase I going into production and then hitting commercial production. in the fourth quarter. The feasibility study for Castle Mountain was ongoing, and we've been optimizing that and ready for release in the next few weeks, so keep an eye open for that coming out. The Los Felos feasibility study update is also underway and is a little bit behind. It'll come out during quarter two, during the mid part of quarter two, so just behind Castle Mountain phase two. We're expecting some good results from that in terms of reserve and resource expansion. And in addition to that, we've finished off the underground drilling at Arizona, and there's a PFS study underway, which we expect to give out to the market in the second half of this year. So lots on that front, lots of new information, some exciting additions coming to both reserves and resources. So a big year on that front. We also saw a nice increase last year in the reserves and resources at Mesquite, and kudos to Scott and the team who did a great job of basically increasing reserves and resources substantially there. And also really pleased with Mesquite's performance overall. We've owned it for just over a couple of years, just over two years now. Paid just over $150 million for it, and we've generated free cash flow of almost $140 million. So almost repaid that purchase price within two years' time. So excellent performance. Also, the Santa Luz feasibility was released with strong results. Really good high-return project, $100 million of capital. Construction started, and we're now about 25% complete. We've also appointed Sally Eyre to the board, so welcome to her this past year as well. We integrated the Leah Gold merger. The teams are now in one office in Vancouver. And we also announced the premier gold acquisition, so very busy on the corporate development front as well. So I'll pass over to Peter to walk you through the financials on the next couple of slides.

Disclaimer

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