Equinox Gold (TSX, NYSE: EQX) increased third-quarter gold production by 34% following its merger with Orla Mining, as stronger Canadian operations helped the company advance towards its annual output target.
The company reported production of 237,019 oz in the September quarter, up from 176,836 oz in the previous three months. The results included two months of output from the Musselwhite mine in Canada and Camino Rojo in Mexico. Gold sales rose 39.6% to 248,484 oz from 177,959 oz.
“The third quarter was transformational,” Equinox president Jason Simpson said. “We completed our combination with Orla, bringing together a portfolio of assets positioned to generate significant free cash flow and long-term value for shareholders.”
The merger, finished in late July, created a larger North American producer anchored by three Canadian gold mines and a pipeline of development projects. Equinox expects the combined company to produce 1.1 million oz annually, with growth potential exceeding 1.9 million oz.
Canadian growth
Equinox produced 611,483 oz in the first nine months of 2026, leaving it on track to meet its full-year guidance of 870,000 to 920,000 oz, the company said. Achieving that target would require fourth-quarter output of about 258,500 to 308,500 oz, above the September quarter’s total.
“Our combined Canadian operations delivered solid production in Q3, led by strong performance at Musselwhite and steady improvements at Valentine and Greenstone,” Simpson said.
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At Valentine, the average gold grade of material fed to the mill exceeded 1.8 grams per tonne during the quarter, reflecting improvements in mining operations. Equinox expects both Valentine and Greenstone to deliver stronger production through the remainder of 2026 and into 2027.
Nevada expansion
The company also advanced its South Railroad gold project in Nevada, securing a federal record of decision and final federal permits while beginning early construction work.
A 2026 feasibility study completed by Orla outlined average annual production of 130,000 oz during the first five years at all-in sustaining costs of about $1,500 per oz. The project is expected to produce more than 100,000 oz annually over an initial 10-year mine life.
First gold production at South Railroad is scheduled for 2028, adding another potential source of output as Equinox works to expand its North American portfolio.
The company’s near-term challenge is to translate its enlarged asset base into higher production, with operational improvements at Valentine and Greenstone critical to meeting its 2026 targets.