Equinox Gold has approved the Phase 2 expansion of its Valentine mine as its completed combination with Orla Mining creates a gold producer expected to generate approximately 1.1 million ounces on a full-year pro forma basis in 2026.
The Valentine expansion is expected to increase processing capacity to approximately 13,700 tonnes per day, equivalent to 5 million tonnes annually. Average annual gold production is expected to increase to approximately 223,000 ounces, with construction targeted for completion in late 2028.
The investment follows the July 31 completion of Equinox Gold’s combination with Orla Mining. Management described the enlarged company as North America’s new senior gold producer, with greater production, cash flow and organic growth opportunities.
Equinox’s consolidated 2026 guidance calls for production of 870,000 to 920,000 ounces of gold, reflecting a full year from the existing Equinox portfolio and five months of contribution from the acquired Orla assets. On a pro forma basis using 12 months of production from both businesses, output is expected to be approximately 1.1 million ounces.
Valentine is already showing operating improvements. Management said high-grade reconciliation improved significantly compared with Q1, while the process plant has consistently operated above nameplate capacity. Continued improvements in mining performance are supporting higher-grade mill feed.
Equinox produced 176,836 ounces of gold during Q2, including 64,656 ounces from Greenstone and 32,617 ounces from Valentine. The company sold 177,959 ounces at an average realized gold price of $4,256 per ounce.
Following completion of the merger, Equinox’s board also approved a 50% increase in the company’s quarterly dividend, citing a stronger balance sheet and growing free cash flow generation.
KEY QUOTES:
“With completion of the business combination with Orla Mining on July 31, we enter the second half of 2026 as North America’s new senior gold producer, with meaningfully greater production and cash flow, and one of the industry’s strongest organic growth profiles.”
“The Board of Directors has approved construction of the Phase 2 expansion at Valentine, reflecting our confidence in the operation and our disciplined approach to investing in high-return organic growth. The expansion is expected to increase processing capacity to approximately 13,700 tonnes per day (5.0 Mtpa) and average annual gold production to approximately 223,000 ounces, unlocking the full long-term value of this cornerstone Canadian mine. Construction is expected to be completed in late 2028.”
Darren Hall, Chief Executive Officer Of Equinox Gold
