Equinox Gold makes early first pour at Valentine mine

Equinox Gold (TSX, NYSE-A: EQX) shares rose to a high last seen almost five years ago after it made its first pour at the Valentine mine located in Newfoundland, a milestone that the company says would firmly place it amongst Canada’s gold mining elites.

The first pour was achieved earlier than expected on Sept. 14, due to the process plant operating at nearly half (47%) of its nameplate since its commissioning, CEO Darren Hall said. The facility first began processing ore at the end of August and has a capacity of 2.5 million tonnes per year.

Hall adds that the mine, located about 200 km west of Gander, will ramp up to its nameplate in the second quarter of 2026 as planned.

Haywood Capital Markets analyst Jamie Spratt models average annual production of 194,000 oz. at Valentine over a 12-year life.

“Together with Greenstone [in Ontario] the two Canadian mines will represent 47% of Equinox production in 2026,” he said in a note on Monday. “The stock is catching up to peers. We expect operational execution and the increasing footprint in Canada should see EQX continue to garner a higher multiple as the ongoing ramp up of the two Canadian projects happens.”

Spratt said he expects Equinox’ company-wide all-in sustaining costs to fall by about 13% as those mines ramp up, while Equinox could potentially produce 1.23 million oz. annually by 2028 and book 65% growth. In that scenario, Equinox would rank as a top 10 global gold producer, Spratt said. 

Equinox’s shares closed Monday’s session at C$14.93 apiece, for a market capitalization of about $11.32 billion. Earlier, it hit an intraday peak of C$15.32 — the highest since 2020.

Largest in Atlantic Canada

Once fully operational, Valentine would be the largest gold mine in Atlantic Canada. It could produce between 175,000 and 200,000 oz. of gold annually for the first 12 years of its 14-year reserve life, Equinox forecasts. 

The deposit currently hosts 2.7 million oz. in proven and probable reserves grading 1.62 grams per tonne gold, contained within nearly 4 million oz of measured and indicated resources grading 1.9 grams gold. This resource base, which Equinox contemplates expanding through additional discoveries, could anchor a new gold district in central Newfoundland, the company has said.

Valentine is the second Canadian mine that Equinox has brought online within a span of two years. In November 2024, it kicked off commercial production at the larger Greenstone mine in northern Ontario, which is expected to deliver 330,000 oz. of gold during an initial 15-year life.

“Commencing production at Valentine marks the beginning of a new chapter for Equinox Gold,” stated Hall in a release. “With both Valentine and Greenstone now ramping up to capacity, the company is set to become the second largest producer of Canadian gold.”