Equinox Gold CEO Signals Buyback Priority Over Dividend Hikes After $1.3B Debt Wipeout
February 23, 2026 · by Fintool Agent
Equinox Gold CEO Darren Hall told investors at the BMO 35th Global Metals, Mining & Critical Minerals Conference that share buybacks will take priority over dividend increases as the Canadian gold producer deploys its newfound financial firepower.
"I lean more towards the share buyback than a dividend increase," Hall said during a fireside chat at the conference in Hollywood, Florida. "Through the course of the journey with Equinox, we've diluted our shareholders by issuing stock to allow for the M&A. Now to be able to buy that back at a discount as we look forward to the future and seeing our current share price at 20 odd, going to 30 and then to 40—it's like now is the time."
The stock surged 6.2% to $17.85 on Monday, hitting a fresh 52-week high of $18.19 intraday—more than triple its 52-week low of $5.59.
Balance Sheet Transformation Unlocks Capital Returns
The capital return pivot comes after what Hall described as a "transformational year" that saw Equinox slash net debt by over $1.3 billion in just seven months.
"We closed the transaction with Calibre in June, at the end of June, we had just over $1.4 billion in net debt. At the end of January, we had less than $100 million in net debt," Hall revealed. "That's a significant level of de-leveraging."
The rapid debt reduction was fueled by the $1.015 billion sale of Equinox's Brazil operations, which closed January 23, 2026.
| Metric | Q2 2025 | Q3 2025 | Q4 2025 | Jan 2026 |
|---|---|---|---|---|
| Net Debt | $1.66B* | $1.54B* | $1.27B* | $75M |
| Total Debt | $2.09B* | $1.94B* | $1.84B* | $515M |
*Values retrieved from S&P Global
Just five days before the BMO conference, Equinox announced its inaugural quarterly dividend of $0.015 per share—the company's first-ever cash return to shareholders—alongside approval for a normal course issuer bid allowing repurchases of up to 5% of outstanding shares.
Ask Fintool AI AgentGreenstone Hits Operational Stride
Hall provided an upbeat operational update on Greenstone, Equinox's flagship Canadian asset that had previously faced ramp-up challenges.
"For the first time since it's been operating, we had 30 consecutive days above nameplate in December," Hall said of the Ontario mine, calling it "a significant milestone given the journey that Greenstone's been on."
The CEO revealed the mill has demonstrated throughput exceeding nameplate capacity of 27,000 tonnes per day, with individual days reaching 30,000+ tonnes. The high-pressure grinding rolls (HPGRs) have shown capability up to 34,000 tonnes per day.
"As we look to the future and we earn the right, and we start looking at 2027, 2028, and 2029, I think we'll continually chase the ace and drive that throughput up," Hall added.
| Greenstone Metric | Current Status |
|---|---|
| Nameplate Capacity | 27,000 tonnes/day |
| December Performance | 30 consecutive days above nameplate |
| Demonstrated Upside | 30,000+ tonnes/day |
| HPGR Capacity | 34,000 tonnes/day |
| 2026 Plan | 9.5M tonnes at 1 g/t |
Capital investments of $130-160 million are planned for 2026, including shear keys for the tailings dam and a new trommel at the front end to handle tramp material from mining through old underground workings.
Valentine Ramp-Up Weathers First Canadian Winter
Equinox's newest mine, Valentine in Newfoundland, achieved commercial production in November 2025—ahead of schedule after first ore in late August.
"In Q4, we did 89% of nameplate capacity, which is an outstanding ramp-up," Hall reported. The mine faced its first winter test in January, dropping to 70% of nameplate, but February operations rebounded to 110%.
"There will be dips and weaves along the way, but what we are seeing is the commitment of the team to systematically address those issues," Hall said, reaffirming confidence in reaching nameplate capacity before Q2 2026.
The Phase 2 expansion—twinning the ball mill to increase capacity from 2.5 million to 4.8-4.9 million tonnes annually—will be detailed in an updated technical report at the end of Q1 2026.
Self-Funded Growth Pipeline
Hall emphasized that all organic growth projects will be funded from operating cash flow, a marked departure from the company's historically debt-funded expansion approach.
"By the time we get to a Castle Mountain investment decision, which will be in H1 of 2027, we will absolutely be fully funded from the checkbook to do that," Hall stated. "We will not develop a property without being fully funded in advance with a management discretion level of overrun associated with it as well."
Castle Mountain in California is advancing through the FAST-41 federal permitting process, with a record of decision expected in December 2026, followed by county and state permitting in Q1 2027.
At Los Filos in Mexico—which holds 16 million ounces across all resource categories—Hall disclosed significant progress on community relations.
"We have fully ratified agreements in place with 2 of the 3 communities. We're now having very constructive discussions with the third community as well... I think we're as close as we've ever been to having a positive outcome with that third community," he said.
Ask Fintool AI AgentGold Price Tailwind Creates "First World Problem"
With gold trading near $5,160 per ounce—up 75% year-over-year—and Equinox guiding for 700,000-800,000 ounces in 2026, the company faces what Hall called a "first world problem" in capital allocation.
| 2026 Guidance | Range |
|---|---|
| Gold Production | 700,000-800,000 oz |
| Cash Costs | $1,425-$1,525/oz |
| AISC | $1,775-$1,875/oz |
| Growth Capital | $325-$375M |
However, Hall cautioned that the elevated gold price carries risk.
"Gold price is great for us on the revenue end, but it's also the single largest risk in our business," he warned. "We need 99% of our organization to be spending money like it's their own, making intelligent decisions. If we start to hear, 'Well, we can because,' and it's a function of gold price, then we've really got to question why are we making those investment decisions."
Exploration Upside Across the Portfolio
Hall described Equinox as "an exploration company backed by $5 billion worth of revenue," highlighting untapped potential across the portfolio.
At Greenstone, no material exploration has been conducted since Equinox acquired the asset, with 80 kilometers of contiguous mineral concession extending west through significant operating districts.
Valentine recently announced a significant new AI-supported gold discovery 8 kilometers northwest of the mill, which is not yet included in the resource base.
When pressed on the highest exploration potential across the portfolio, Hall pointed to Los Filos as "the sleeping giant."
"If you look at the enormity of what can exist with Los Filos, I think it's significant. You think of where it's valued in our portfolio from an NAV perspective, it's the lowest," he said.
What to Watch
Near-term catalysts:
- Q1 2026 updated technical reports for both Valentine (Phase 2) and Greenstone
- Q1 2026 earnings (full-quarter Valentine contribution)
- March 26 inaugural dividend payment
Medium-term:
- December 2026 Castle Mountain record of decision
- Los Filos third community agreement
- H1 2027 Castle Mountain investment decision
Ask Fintool AI AgentRelated Companies: Equinox Gold · Newmont · Agnico Eagle · Kinross Gold · Gold Fields · Alamos Gold · B2gold