Equinox Gold Corp. closed the sale of its Brazil assets – the Aurizona Mine, RDM Mine and Bahia Complex – to a subsidiary of the CMOC Group for up to $1.015 billion in cash and a contingent payment of up to $115 million due in 2027. The transaction generated $900 million in immediate cash proceeds before closing adjustments.
The proceeds were used to repay a $500 million term loan, a $300 million Sprott loan, and a payment on the company’s revolving credit facility. As a result, senior debt fell to roughly $580 million and net debt dropped to about $150 million, a reduction from the roughly $1.5 billion of debt that Equinox carried before the sale. The deleveraging cuts interest expense and expands financial flexibility for future projects.
The divestiture marks a strategic pivot toward higher‑quality North American assets. Brazil operations had all‑in sustaining costs above $2,000 per ounce, whereas Equinox’s Canadian mines target an all‑in sustaining cost of $1,800–$1,900 per ounce. By exiting the higher‑cost Brazil portfolio, the company can focus on assets that deliver stronger margins and lower operating risk.
Equinox now guides 2026 production at 700,000–800,000 ounces, a slight decline from the 922,827 ounces produced in 2025 but aligned with the company’s focus on quality. The company also projects a 450,000–550,000‑ounce increase from its development pipeline, and management expects an 80% rise in Canadian production as assets such as Valentine and Greenstone ramp up.
CEO Darren Hall said the sale “strengthens our balance sheet and allows us to focus on operational excellence in our core North American portfolio.” EVP of Capital Markets Ryan King added that the transaction “positions Equinox for a potential rerating as we deliver higher‑margin production and disciplined capital allocation.”
Analysts have noted the sale as a positive development, citing the company’s improved debt profile and shift to lower‑cost assets as key drivers of future growth potential.
The transaction underscores Equinox Gold’s commitment to deleveraging and organic expansion, positioning the company for a more sustainable growth trajectory in the coming years.
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