Equinox Gold (TSX: EQX) (NYSE: EQX) has approved a $436-million expansion of its Valentine gold mine in central Newfoundland, Canada, which will lift planned production as the company pursues growth following its merger with Orla Mining.
Stage 2 of the expansion will increase processing capacity to about 13,700 tonnes per day and raise average annual gold production to approximately 223,000 ounces. The total budget includes a $54-million contingency, while Equinox’s updated 2026 guidance allocates $50 million to $60 million in growth capital for the project. Construction is expected to be completed in late 2028.
“Our focus is clear: achieve operational excellence, allocate capital with discipline and successfully execute our organic growth pipeline, creating long-term shareholder value as North America’s new senior gold producer,” CEO Darren Hall said in a news release.
New asset
The investment follows Equinox’s merger with Orla Mining in late July, creating Canada’s second-largest gold producer with expected annual output of 1.1 million ounces. It signals the company’s intention to grow production from one of its newest Canadian assets while strengthening its position among North America’s largest gold miners.
Equinox on Wednesday released second-quarter results, reporting gold production of 176,836 oz. and revenue of $769.8 million. It now expects to produce between 870,000-920,000 oz. at an all-in sustaining cost (AISC) of US$1,900-US$2,000 per oz., compared with a previous target of 700,000-800,000 oz. at an AISC of US$1,775-US$1,875 per ounce. The updated range reflects the year-to-date performance of its mines, as well as the impact of higher fuel prices.
Valentine, which entered commercial production in late 2025, is expected to become a larger contributor to the company’s production profile as the expansion advances over the next two years.
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