Equinox Gold: Correction From Source

Rhea-AI Summary

Equinox Gold Corp. (TSX: EQX) (NYSE American: EQX) has issued a correction to its previously released second quarter 2024 financial and operating results. The company clarified that in connection with a new Term Loan, it had entered into gold collar contracts to deliver a total of 279,996 ounces, not 279,996 ounces per month as initially stated. This error appeared in both the news release and the company's management's discussion and analysis (MD&A) for the three and six months ended June 30, 2024.

Equinox Gold will file the corrected MD&A on SEDAR+, EDGAR, and the company's website. The correction does not affect any other information in the original news release or MD&A.

Positive

• None.

Negative

• Error in financial reporting requiring correction
• Potential confusion for investors due to misstated gold collar contract details

Insights

Financial Analyst

This correction is significant for Equinox Gold investors. The original statement of 279,996 ounces per month was a substantial overstatement, potentially misleading investors about the company's hedging strategy. The actual total of 279,996 ounces over two years is much more reasonable, representing about 15% of Equinox's expected production for that period.

This error, while promptly corrected, raises questions about the company's internal controls and financial reporting processes. Investors should scrutinize future reports carefully. However, the swift correction demonstrates transparency, which is somewhat reassuring. The actual hedging amount is more aligned with industry norms and suggests a balanced approach to risk management, potentially providing some downside protection without overly limiting upside potential in a rising gold price environment.

Legal Expert

This correction highlights the importance of accurate financial disclosures in the mining sector. While Equinox Gold acted quickly to rectify the error, such mistakes can have legal implications. The company may face increased scrutiny from regulators, particularly the SEC and Canadian securities authorities, given that this error appeared in both a press release and the MD&A.

Shareholders might question whether this constitutes a material misstatement, even if temporary. Although unlikely to result in significant legal action due to the prompt correction, it could potentially impact investor confidence. The company should review its disclosure controls and procedures to prevent similar occurrences in the future, as repeated errors could lead to more severe consequences, including potential securities law violations.

Vancouver, British Columbia--(Newsfile Corp. - August 7, 2024) - Equinox Gold Corp. (TSX: EQX) (NYSE American: EQX) ("Equinox Gold" or the "Company") announces a correction to its news release issued today at 5:13 pm PT (8:13 pm ET) entitled "Equinox Gold Reports Second Quarter 2024 Financial and Operating Results".

The news release incorrectly stated that in connection with a new Term Loan, the Company had entered into gold collar contracts to deliver 279,996 ounces per month beginning July 2024 through to June 2026. The news release should have read that the gold contracts require the delivery of a total of 279,996 ounces. This error also occurred in the Company's management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2024.

This correction does not change any other information in the news release or the MD&A.

The corrected MD&A will be filed on the Company's profile on SEDAR+ at www.sedarplus.ca, on EDGAR at www.sec.gov/edgar and on the Company's website at www.equinoxgold.com.

EQUINOX GOLD CONTACTS

Greg Smith, President & Chief Executive Officer
Rhylin Bailie, Vice President, Investor Relations
Tel: +1 604-558-0560
Email: ir@equinoxgold.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219225

FAQ

What correction did Equinox Gold (EQX) make to its Q2 2024 financial results?

Equinox Gold corrected the details of its gold collar contracts, clarifying that the total delivery is 279,996 ounces, not 279,996 ounces per month as initially stated in connection with a new Term Loan.

Where can investors find the corrected MD&A for Equinox Gold (EQX)?

The corrected MD&A will be filed on SEDAR+ (www.sedarplus.ca), EDGAR (www.sec.gov/edgar), and Equinox Gold's website (www.equinoxgold.com).

Does the correction affect other information in Equinox Gold's (EQX) Q2 2024 report?

No, the correction does not change any other information in the original news release or the MD&A for the three and six months ended June 30, 2024.

What is the time period for Equinox Gold's (EQX) gold collar contracts?

The gold collar contracts are set to begin in July 2024 and continue through to June 2026.