Equinox Gold Corp.

Management’s Discussion and AnalysisFor the three months and year ended December 31, 2023

OPERATIONS

Mesquite Gold Mine, California, USA

Mesquite is an open pit, run-of-mine (“ROM”) heap leach gold mine located in Imperial County, California, approximately 200 miles south of Castle Mountain. Mesquite has been in production since 1986 and was acquired by Equinox Gold in Q4 2018.

(1)Cash costs, sustaining capital, AISC, AISC contribution margin, mine-site free cash flow, cash costs per oz sold and AISC per oz sold are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.

In Q4 2023, ounces produced were 6% lower at a 27% lower AISC per oz sold compared to Q4 2022. For the year ended December 31, 2023, ounces produced were 29% lower at a 3% lower AISC per oz sold compared to 2022. In Q4 2023, ounces sold were 13% lower and the average realized gold price was 15% higher compared to Q4 2022. For the year ended December 31, 2023, ounces sold were 31% lower and the average realized gold price was 10% higher compared to 2022.

Production was lower in the three months and year ended December 31, 2023 compared to the same periods in 2022 due to a smaller pit approach to reduce waste stripping and a longer leach cycle for some of the ore being placed. In 2022, the majority of ounces were placed in Q2 2022, allowing time for ounces to be recovered in the second half of 2022, whereas in 2023 the majority of ounces were placed in the latter half of the year, which means some of the ounces placed in 2023 will be produced in Q1 2024.

Mining during the Quarter resulted in fewer total tonnes moved, reflecting the relative position in the mining sequence with mining the bottom of the Don Juan and Vista East pits and pre-stripping commencing for mining of the Ginger deposit. The strip ratios for the three months and year ended December 31, 2023 were 2.10 and 2.01, respectively, compared to 11.26 and 3.85 for the same periods in 2022.

Management’s Discussion and AnalysisFor the three months and year ended December 31, 2023

Mining unit costs were higher in the three months and year ended December 31, 2023 compared to the same periods in 2022 reflecting the impact of a lower strip ratio in Q4 2023 as ore hauls are longer than waste hauls, offset partially by 10% lower diesel prices. Total process costs were higher in the three months and year ended December 31, 2023 compared to the same periods in 2022 due to higher cyanide and lime prices, although, cyanide prices peaked in Q1 2023 and have trended lower through December 31, 2023. Additionally, more lime was consumed in Q4 2023 than in 2022 as the volume of ore stacked was 222% higher compared to Q4 2022. Processing unit costs were lower in the three months and year ended December 31, 2023 compared to the same periods in 2022, as more ore tonnes were processed. G&A unit costs were lower in the three months and year ended December 31, 2023 compared to the same periods in 2022 due to an increase in tonnes stacked.

AISC per oz sold decreased in Q4 2023 compared to Q4 2022 despite 13% fewer ounces sold as sustaining capital was minimal in Q4 2023. AISC per oz sold decreased for the year ended December 31, 2023 compared to the same period in 2022 due to lower levels of capitalized stripping.

Sustaining capital expenditures for the three months and year ended December 31, 2023 were $0.1 million and $10.7 million, respectively, primarily related to capitalized stripping. Non-sustaining expenditures for the three months and year ended December 31, 2023 were $5.9 million and $17.2 million, respectively, primarily related to lease payments for haul trucks, capitalized stripping in the Ginger pit that commenced in Q4 2023, and exploration costs.

For production, Mesquite achieved 2023 Guidance, with production of 87,753 ounces compared to production guidance of 80,000 to 90,000 ounces of gold. Mesquite’s costs were lower than 2023 Guidance, with cash costs of $1,105 per oz compared to guidance of $1,345 to $1,410 per oz and AISC of $1,251 per oz compared to guidance of $1,415 to $1,480 per oz, driven by additional ore mined due to positive reconciliations and a change in the mine plan which provided access to additional ore and commencement of mining the Ginger pit in Q4 2023.

There was no exploration drilling completed at Mesquite during the Quarter. Drilling in 2023 totaled 6,888 metres (“m”) of reverse circulation (“RC”) drilling and was completed in Q1 2023, including 5,339 m at the Ginger deposit and 1,550 m at the Rainbow deposit. Both drill programs included infill and growth-focused step-out components. Other exploration activities include on-going geological mapping of the main open pits to further enhance the geological model. Exploration expenditures at Mesquite for the three months and year ended December 31, 2023 were $0.5 million and $2.6 million, respectively.

Outlook

In 2024, mining at Mesquite will be focused on waste stripping the Ginger pit, which is expected to deliver the majority of ounces in early 2025. Efforts to establish additional Mineral Reserves through exploration and resource drilling are expected to continue and the Company will also continue the permitting required to enable mine life extensions beyond 2024. An additional area that may be mined is the rehandling of the remainder of the Old Vista Pad material that will be re-stacked and leached on the current heap leach pad.

Mesquite production guidance for 2024 is 75,000 to 85,000 ounces of gold, with approximately 65% of production expected in the first half of the year. Costs guidance for 2024 is cash costs of $1,345 to $1,445 per oz and AISC of $1,410 to $1,510 per oz. Budgeted sustaining expenditures of $5 million primarily relate to processing equipment. Budgeted non-sustaining expenditures of $82 million primarily relate to capitalized waste stripping of the Ginger pit.

Management’s Discussion and AnalysisFor the three months and year ended December 31, 2023

Castle Mountain Gold Mine, California, USA

Castle Mountain is an open-pit heap leach gold mine located in San Bernardino County, California, approximately 200 miles north of Mesquite. Under a previous owner, Castle Mountain produced more than 1.3 million ounces of gold from 1992 to 2004, when production ceased due to low gold prices. Equinox Gold acquired Castle Mountain in December 2017 and commenced Phase 1 operations in Q4 2020. In 2021, Equinox Gold completed a feasibility study for a Phase 2 expansion that is expected to increase average production to more than 200,000 ounces of gold annually. In March 2022, the Company applied to amend existing permits to accommodate the Phase 2 expansion, as described in Development Projects.

(1)Cash costs, sustaining capital, AISC, AISC contribution margin, mine-site free cash flow, cash costs per oz sold and AISC per oz sold are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.

In Q4 2023, ounces produced were 2% lower at a 86% higher AISC per oz sold compared to Q4 2022. For the year ended December 31, 2023, ounces produced were 10% lower at a 12% higher AISC per oz sold compared to the same period in 2022. In Q4 2023, ounces sold were 2% lower and the average realized gold price was 16% higher compared to Q4 2022. For the year ended December 31, 2023, ounces sold were 10% lower and the average realized gold price was 9% higher compared to the same period in 2022.

Production was lower in the three months and year ended December 31, 2023 compared to the same periods in 2022 as the result of lower feed grades, the proportion of material being crushed and temporary issues with leach pad chemistry. Crushing and agglomeration was achieved for 49%of ore processed in Q4 2023 and 58% for the year ended December 31, 2023. To increase crusher throughput, in 2024 the Company plans to move the crusher plant closer to the leach pad, trucking the ore to that higher elevation, and plans to reorient conveyors to improve flexibility, reduce bottlenecks, and increase run time.

Management’s Discussion and AnalysisFor the three months and year ended December 31, 2023

Mining unit costs were higher in Q4 2023 compared to Q4 2022, reflecting higher mining contractor rates. Process unit costs were higher in the three months and year ended December 31, 2023 compared to the same periods in 2022 as crush and agglomeration processing only commenced at the end of Q2 2022; run-of-mine (“ROM”) does not include the cost of crushing and agglomerating the ore and is therefore a lower unit cost per tonne. Additionally, the proportion of material crushed increased compared to the prior year.

Cash costs per oz sold were higher in the three months and year ended December 31, 2023 compared to the same periods in 2022, driven by an increase in total process costs as more ore tonnes were stacked using the higher cost crush and agglomeration process. AISC per oz sold increased for the three months and year ended December 31, 2023 compared to the same periods in 2022 due to the increases in mining and processing costs described above. Cash costs and AISC per oz sold in Q4 2023 were also affected by a $3.4 million ($562 per oz sold) write-down of inventories to net realizable value (“NRV”), driven by an adjustment in the number of recoverable ounces in heap leach inventory as a result of a revised density estimate of ore stacked on the leach pad.

Sustaining capital expenditures for the three months and year ended December 31, 2023 were $2.9 million and $3.2 million, respectively. Non-sustaining expenditures for the three months and year ended December 31, 2023 were $1.3 million and $8.8 million, respectively, primarily related to Phase 2 permitting and engineering.

For production, Castle Mountain did not achieve 2023 Guidance, with production of 20,837 ounces compared to production guidance of 25,000 to 30,000 ounces of gold, partly because the crusher did not achieve the anticipated throughput levels and therefore the overall recovery improvements expected by crushing the ore were not fully realized. Castle Mountain did achieve 2023 Guidance for costs with cash costs of $1,531 per oz compared to guidance of $1,765 to $1,850 per oz and AISC of $1,899 per oz compared to guidance of $1,865 to $1,950 per oz.

Exploration drilling at Castle Mountain during the Quarter included 10,933 m of RC drilling, bringing the total to 19,374 m for the year. The 2023 infill drill program was primarily designed to increase drilling density within the South Overburden and JSLA dumps to better support mining of the mineralized material. One small, in-situ target named ‘Green and Gold’ was tested, with 937 m of RC drilling as part of the program. A surface exploration program of geological mapping and channel sampling is expected to continue into 2024, with the primary goal to sample previously identified mineralization exposed on surface so those data can be used in future Mineral Resource estimation. Exploration expenditures at Castle Mountain for the three months and year ended December 31, 2023 were $2.1 million and $4.0 million, respectively.

Outlook

Castle Mountain production guidance for 2024 is 30,000 to 35,000 ounces of gold, with cash costs of $2,045 to $2,145 per oz and AISC of $2,125 to $2,200 per oz.

Costs at Castle Mountain are expected to remain elevated as a result of modifications to the crushing and agglomerating circuit to improve ore permeability and gold production. Budgeted sustaining expenditures at Castle Mountain in 2024 include $3 million of sustaining capital for a variety of equipment upgrades. The Company is advancing plans for a Phase 2 expansion at Castle Mountain, as discussed in the Development Projects section. Budgeted non-sustaining expenditures of $4 million include engineering and permitting work.

Production and cost guidance for the Castle Mountain Mine is subject to change pending completion of an internal evaluation of the Phase 1 operation. The mine is currently operating as a small “phase 1” project designed to process mineralized material deposited in the open pits during prior mining operations while permitting and engineering for the Phase 2 expansion to more than 200,000 ounces of gold production per year is being advanced. As this permitting process is expected to continue into fiscal 2026, the Company is evaluating the Phase 1 operation to ensure appropriate allocation and preservation of capital, which could result in reduced operations-related activities and gold production from Castle Mountain Phase 1 through the permitting period.

Management’s Discussion and AnalysisFor the three months and year ended December 31, 2023

Los Filos Gold Mine, Guerrero, Mexico

Los Filos is located in Guerrero State, Mexico, and commenced production in 2008. Mining operations in 2023 involved three open pits (Los Filos, Bermejal and Guadalupe) and two underground mines (Los Filos and Bermejal). In February 2023, operations at Bermejal underground were suspended to defer development capital while the Company advances plans to improve productivity and reduce costs. Crushed and ROM ore from the various deposits is processed by heap leaching.

(1)Cash costs, sustaining capital, AISC, AISC contribution margin, mine-site free cash flow, cash costs per oz sold, and AISC per oz sold are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.

In Q4 2023, ounces produced were 6% higher at a 35% higher AISC per oz sold compared to Q4 2022. For the year ended December 31, 2023, ounces produced were 19% higher at a 10% lower AISC per oz sold compared to the comparative period in 2022. In Q4 2023, ounces sold were in line with Q4 2022 and the average realized gold price was 14% higher compared to Q4 2022. For the year ended December 31, 2023, ounces sold were 19% higher and the average realized gold price was 8% higher compared to the comparative period in 2022.

Production increased in the three months and year ended December 31, 2023 compared to the same periods in 2022 due to an increase in ore mined in the first nine months of the year compared to the prior year.

Management’s Discussion and AnalysisFor the three months and year ended December 31, 2023

Notwithstanding the increase in production in 2023, recovery and gold production for the year was impacted by solution management issues and some ore that had a high copper content. Stacked ounces are normally substantially recovered within the first 60 days of leaching. However, ore with a high copper content requires a higher concentration of cyanide to leach the gold and has a longer recovery period. The recovery curve for the affected ounces was extended, resulting in the build-up of work-in-process inventory during Q2 2023; however, recovery of ounces built up in inventory accelerated during the latter half of 2023 and continues into 2024.

Open pit mining unit costs in the three months and year ended December 31, 2023 increased compared to the same periods in 2022 due to the increased length of hauls due to mining deeper in the pits, as well as increased maintenance activity as the mine implemented a program to catch up on maintenance backlogs. Underground mining unit costs in Q4 2023 were lower compared to Q4 2022 due to ongoing optimization efforts. Underground mining unit costs for the year ended December 31, 2023 were higher compared to the same period in 2022 due to demobilization costs incurred for the temporary suspension of mining and development activities at the Bermejal underground in February 2023. Processing unit costs increased for the three months and year ended December 31, 2023 compared to the same periods in 2022 due to fewer ore tonnes being placed in Q4 2023, while total processing costs in 2023 increased due to stacking higher ore volumes and using additional reagents to improve recoveries in the second half of 2023.

For Q4 2023, AISC per oz sold was higher than Q4 2022 due to mine sequencing, with Q4 2022 having a higher proportion of ore tonnes and ounces placed, resulting in lower average unit costs. Cash costs were also negatively impacted by a strengthening of the MXN compared to the USD. Additionally, Q4 2023 sustaining spend was higher than Q4 2022 due to both timing and increased spend in 2023 partially related to stripping of a pushback in the Los Filos open pit. AISC per oz sold was lower for the year ended December 31, 2023 compared to the same period in 2022 primarily due to the increase in ounces produced in 2023. For the year ended December 31, 2023, AISC was impacted by a $16.4 million ($104 per oz sold) write-down of inventories to NRV incurred in Q1 2023 through Q3 2023, driven by the impact of continued elevated costs and lower gold grades associated with the Los Filos uncrushed ore leach pad. By comparison, for the year ended December 31, 2022, AISC was impacted by a $43.1 million ($326 per oz sold) write-down of inventories to NRV, respectively, driven by the higher average strip ratio, lower-than-expected ore grade from Guadalupe open pit and inflationary pressures on consumables.

Sustaining capital expenditures for the three months and year ended December 31, 2023 were $16.1 million and $33.8 million, respectively, primarily related to Guadalupe and Los Filos open pit capitalized stripping and Los Filos underground development. Non-sustaining expenditures for the three months and year ended December 31, 2023 were $0.2 million and $0.7 million.

For production, Los Filos was marginally under 2023 Guidance, with production of 159,071 ounces of gold compared to production guidance of 160,000 to 180,000 ounces. For costs, Los Filos was marginally over 2023 Guidance with cash costs of $1,655 per oz compared to guidance of $1,460 to $1,620 per oz and AISC of $1,890 per oz compared to guidance of $1,680 to $1,865 per oz. The 2023 Guidance considered a MXN:USD foreign exchange rate of 19.00:1, whereas the average rate for 2023 was 17.7:1, resulting in a 7% negative impact on spend denominated in MXN.

Exploration drilling at Los Filos was carried out during Q4 2023 as planned and included 4,022 m of infill core drilling. The 2023 program focused on the Los Filos open pit area and specifically on the potential conversion of inferred resource material within the short-term mine plan. In addition to the drill program, a major core re-logging exercise was on-going and an additional 19,996 m of previously unsampled historical core was sampled. Exploration expenditures at Los Filos for the three months and year ended December 31, 2023 were $1.4 million and $3.3 million, respectively.

Outlook

Los Filos production guidance for 2024 is 155,000 to 175,000 ounces of gold, with cash costs of $1,785 to $1,885 per oz and AISC of $2,090 to $2,190 per oz.

Budgeted sustaining expenditures at Los Filos of $50 million in 2024 include $15 million for Bermejal open pit development, $8 million for Los Filos open pit development, $5 million for Guadalupe open pit development, $3 million for Los Filos North underground development, $7 million for processing equipment and $5 million for exploration. There were no non-sustaining expenditures budgeted for Los Filos in 2024.

Currently, Los Filos operates as an open pit and underground mining operation with all ore being processed on a heap leach facility. To ensure the long-term viability of the mine and maximize the value of the gold endowment at Los Filos, a CIL plant is needed to increase gold recovery from higher-grade ore from both underground and open pit deposits.

Cost and production guidance for Los Filos is subject to the successful execution of new social and land access agreements with local community stakeholders and landowners. These new agreements are necessary to help ensure the long-term economic and investment viability of the mine, including the addition of a new 10,000 tpd CIL processing plant. If the Company is unable to satisfactorily complete these agreements, the Company will re-evaluate the current operation and may elect to suspend operations, indefinitely or until such time as new agreements are in place. Accordingly, Los Filos production and cost guidance for 2024 is subject to change.

Management’s Discussion and AnalysisFor the three months and year ended December 31, 2023

Aurizona Gold Mine, Maranhão, Brazil

Aurizona is an open pit gold mine located in northeastern Brazil. Aurizona commenced production in July 2019 and mining is currently from the Piaba and Piaba East open pits with ore being processed in a CIL process plant. The Company is advancing permitting, exploration and studies related to an expansion that is expected to extend the mine life and increase annual gold production with development of an underground mine and satellite open pit deposits that would operate concurrently with the existing open pit mine.

(1)Cash costs, sustaining capital, AISC, AISC contribution margin, mine-site free cash flow, cash costs per oz sold and AISC per oz sold are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.

In Q4 2023, ounces produced were 1% higher at a 4% lower AISC per oz sold compared to Q4 2022. For the year ended December 31, 2023, ounces produced were 18% higher at a 4% lower AISC per oz sold compared to the same period in 2022. In Q4 2023, ounces sold were 1% higher and the average realized gold price was 13% higher compared to Q4 2022. For the year ended December 31, 2023, ounces sold were 17% higher and the average realized gold price was 8% higher compared to the same period in 2022.

Production was higher in the three months and year ended December 31, 2023 compared to the same periods in 2022 due to increased ore processed and better access to higher-grade ore benches of the main pit during the year. An additional mining contractor was engaged in 2023 to increase waste stripping and improve ore access for the primary mine contractor.

Mining unit costs were higher in the three months and year ended December 31, 2023 compared to the same periods in 2022 primarily due to the impact of a contract renewal with the current mining contractor. In addition, a second contractor with smaller trucks was engaged in 2023 to maintain waste movement during the rainy season, which also increased average mining unit costs. Processing unit costs were lower in the three months and year ended December 31, 2023 compared to the same periods in 2022 reflecting higher volumes of ore processed in 2023.

Management’s Discussion and AnalysisFor the three months and year ended December 31, 2023

AISC per oz sold was lower in the three months and year ended December 31, 2023 compared to the same periods in 2022, reflecting higher gold production, offset partially by higher cash costs per oz sold, which were affected by a strengthening of the BRL compared to the USD. Cash costs per oz sold were higher in the three months and year ended December 31, 2023 compared to the same periods in 2022 due to the impact of mining deeper with longer hauls in the Piaba pit.

Sustaining capital expenditures for the three months and year ended December 31, 2023 were $11.6 million and $41.6 million, respectively, primarily related to capitalized stripping and construction of a new tailings storage facility (“TSF”). Non-sustaining expenditures for the three months and year ended December 31, 2023 were $3.5 million and $8.3 million, respectively, primarily related to engineering studies for the portal and decline for underground development and drilling.

For production, Aurizona achieved 2023 Guidance, with production of 120,626 ounces compared to production guidance of 120,000 to 130,000 ounces of gold. For costs, Aurizona achieved 2023 Guidance with cash costs of $1,068 per oz compared to guidance of $1,065 to $1,130 per oz and AISC of $1,440 per oz compared to guidance of $1,410 to $1,500 per oz.

Exploration drilling activities continued through to the end of 2023, with the primary focus being resource delineation of the western extension of the Tatajuba deposit, as well as continued testing of high potential regional targets. A total of 3,756 m of core drilling was completed during the Quarter at and proximal to the Tatajuba deposit, bringing the totals for the year to 3,616 m of RC drilling and 4,014 of core drilling. Regional exploration during the Quarter included a total of 2,605 m of core drilling, bringing the total for the year to 3,729 m of core and 1,996 m of RC drilling. Exploration expenditures at Aurizona for the three months and year ended December 31, 2023 were $3.5 million and $6.0 million, respectively.

Outlook

Aurizona production guidance for 2024 is 110,000 to 120,000 ounces of gold, with cash costs of $1,070 to $1,170 per oz and AISC of $1,575 to $1,675 per oz.

Budgeted sustaining expenditures at Aurizona of $58 million in 2024 include $35 million in capitalized stripping and $16 million for TSF expansion. Budgeted non-sustaining expenditures at Aurizona of $11 million in 2024 primarily relate to underground infrastructure and development.

The Company is advancing plans for an expansion at Aurizona, as discussed in the Development Projects section.

Management’s Discussion and AnalysisFor the three months and year ended December 31, 2023

Fazenda Gold Mine, Bahia, Brazil

Fazenda is located in Bahia State, Brazil and has been in operation since 1984. Fazenda is primarily an underground operation complemented with production from several small open pits.

(1)Cash costs, sustaining capital, AISC, AISC contribution margin, mine-site free cash flow, cash costs per oz sold, and AISC per oz sold are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.

In Q4 2023, ounces produced were 13% lower at a 58% higher AISC per oz sold compared to Q4 2022. For the year ended December 31, 2023, ounces produced were 1% higher at a 19% higher AISC per oz sold compared to the same period in 2022. In Q4 2023, ounces sold were 14% lower and the average realized gold price was 15% higher compared to Q4 2022. For the year ended December 31, 2023, ounces sold were 1% higher and the average realized gold price was 9% higher compared to the same period in 2022.

Production was lower in Q4 2023 compared to Q4 2022 mainly due to lower grades from open pit mining driven by mine sequencing, as well as processing fewer tonnes at lower recoveries. Production was higher for the year ended December 31, 2023 compared to the same period in 2022 primarily due to an increase in the average underground gold grade.

Management’s Discussion and AnalysisFor the three months and year ended December 31, 2023

Open pit mining unit costs were higher in the three months and year ended December 31, 2023 compared to the same periods in 2022 due to an annual contract adjustment with the mining contractor. Underground mining unit costs were higher in Q4 2023 compared to Q4 2022 as a result of increased equipment rentals which were used to increase ore tonnes mined and mitigate the impact of having less ore volume coming from open pit sources. Underground mining unit costs were higher in the year ended December 31, 2023 compared to the same period in 2022 due to fewer underground tonnes mined, resulting in an increase in fixed costs on a per unit basis. Processing unit costs were higher in the three months and year ended December 31, 2023 compared to the same periods in 2022, primarily due to maintenance and labour cost increases.

AISC per oz sold was higher in Q4 2023 compared to Q4 2022 primarily due to timing of capital expenditures related to underground development and capitalized stripping. AISC per oz sold was higher for the year ended December 31, 2023 compared to the same period in 2022 primarily due to higher cash cost per oz sold, which was driven by higher mining unit costs, as well as a strengthening of the BRL compared to the USD.

Sustaining capital expenditures for the three months and year ended December 31, 2023 were $5.5 million and $12.2 million, respectively, primarily related to underground development and capitalized stripping. Non-sustaining expenditures for the three months and year ended December 31, 2023 were $2.8 million and $10.9 million, respectively, primarily related to exploration drilling.

Fazenda’s production was higher than 2023 Guidance, with production of 66,375 ounces of gold compared to guidance of 60,000 to 65,000 ounces of gold. Fazenda did not achieve 2023 Guidance for costs, with cash costs of $1,230 per oz compared to guidance of $1,170 to $1,210 per oz and AISC of $1,448 per oz compared to guidance of $1,390 to $1,430 per oz.

During the Quarter, the Company drilled 14,553 m of core focused on mineral reserve replacement in the immediate underground mine area, bringing the year-to-date total to 53,947 m. An additional 11,270 m of RC drilling was completed by the end of Q2 2023, including 7,080 m on the Canto 2, Canto West and PPQ Gap brownfield targets and 4,190 m on the greenfield Barrocas SW target, which completed the planned surface exploration program for 2023. Exploration expenditures at Fazenda for the three months and year ended December 31, 2023 were $2.1 million and $8.7 million, respectively.

Outlook

Fazenda’s production guidance for 2024 is 65,000 to 70,000 ounces of gold, with cash costs of $1,195 to $1,295 per oz and AISC of $1,560 to $1,660 per oz.

Budgeted sustaining expenditures at Fazenda of $25 million in 2024 primarily relate to $6 million for underground development, $7 million for equipment acquisition and $5 million for exploration.

Management’s Discussion and AnalysisFor the three months and year ended December 31, 2023

RDM Gold Mine, Minas Gerais, Brazil

RDM is located in Minas Gerais State, Brazil and commenced production in early 2014 as a conventional open-pit operation.

(1)Cash costs, sustaining capital, AISC, AISC contribution margin, mine-site free cash flow, cash costs per oz sold, and AISC per oz sold are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.

In Q4 2023, ounces produced were 111% higher at a 3% lower AISC per oz sold compared to Q4 2022. For the year ended December 31, 2023, ounces produced were 64% higher at a 4% lower AISC per oz sold compared to the same period in 2022. In Q4 2023, ounces sold were 109% higher and the average realized gold price was 14% higher compared to Q4 2022. For the year ended December 31, 2023, ounces sold were 61% higher and the average realized gold price was 9% higher compared to the same period in 2022.

During Q4 2023 RDM achieved its highest quarterly gold production since Q4 2020, driven by higher grades from the mining of in-situ ore and reduced reliance on processing low-grade ore stockpiles. Production increased in Q4 2023 compared to Q4 2022 due to a delay in receiving a license to process ore from additional stockpiles in Q4 2022. Production increased for the year ended December 31, 2023 compared to 2022 as, in 2022, production was impacted by limited access to high-grade ore in the pit due to the impact of pumping water from the TSF to the open pit to comply with regulatory requirements, and the temporary suspension of operations in mid-May 2022 as the result of a delay in receipt of permits for a scheduled TSF raise.

Management’s Discussion and AnalysisFor the three months and year ended December 31, 2023

Mining unit costs were higher for Q4 2023 compared to Q4 2022 due to maintenance costs incurred with the mobile fleet. Mining unit costs were lower for the year ended December 31, 2023 compared to the prior period due to higher tonnes moved in 2023 and the impact of using a rental and owner fleet of equipment operated by company employees compared to using contract mining in 2022. Processing unit costs were higher for Q4 2023 compared to Q4 2022 due to more in-situ ore being processed, and lower for the year ended December 31, 2023 compared to the same period in 2022 mainly due to higher volumes of ore processed in 2023.

AISC per oz sold was lower for the three months and year ended December 31, 2023 compared to the same periods in 2022 primarily due to increased gold production driven by higher grades being mined as a result of the resumption of in-situ mining in 2023, offset partially by a strengthening of the BRL compared to the USD.

Sustaining capital expenditures for the three months and year ended December 31, 2023 were $3.3 million and $11.2 million, respectively, primarily related to TSF maintenance and capitalized stripping. Non-sustaining expenditures for the three months and year ended December 31, 2023 were nil.

For production, RDM achieved 2023 Guidance, with production of 52,614 ounces compared to production guidance of 50,000 to 60,000 ounces of gold. RDM’s costs were lower than 2023 Guidance with cash costs of $1,199 per oz compared to guidance of $1,460 to $1,620 per oz and AISC of $1,612 per oz compared to guidance of $1,685 to $1,870 per oz.

No exploration drilling occurred at RDM in 2023.

Outlook

RDM production guidance for 2024 is 50,000 to 60,000 ounces of gold, with cash costs of $1,260 to $1,360 per oz and AISC of $1,800 to $1,900 per oz.

Budgeted sustaining expenditures at RDM of $29 million in 2024 include $5 million for TSF costs and $22 million of equipment expenditures and rentals. Budgeted non-sustaining expenditures of $14 million in 2024 relate primarily to capitalized stripping.

Management’s Discussion and AnalysisFor the three months and year ended December 31, 2023

Santa Luz Gold Mine, Bahia, Brazil

Santa Luz is an open pit gold mine located in Bahia State, Brazil. Santa Luz poured first gold on March 30, 2022 and achieved commercial production effective October 1, 2022.

(1)Commercial production was achieved at the beginning of Q4 2022. Production in 2022 represents one full quarter of production and several months of ramp-up and commissioning.

(2)Cash costs, sustaining capital, AISC, AISC contribution margin, mine-site free cash flow, cash costs per oz sold and AISC per oz sold are non-IFRS measures. See Non-IFRS Measures and Cautionary Notes.

(3)Consolidated cash cost per oz sold and AISC per oz sold for the year ended December 31, 2022 excludes Santa Luz results while the mine was in pre-commercial production up until the achievement of commercial production at the end of Q3 2022.

(4)Revenue is reported net of silver revenue.

In Q4 2023, ounces produced were 18% lower at a 13% lower AISC per oz sold compared to Q4 2022. In Q4 2023, ounces sold were 17% lower and the average realized gold price was 16% higher compared to Q4 2022.

Production in Q4 2023 was lower than Q4 2022 due to 10% lower ore processed and 12% lower grades, offset partially by 2% higher recoveries. In Q4 2023, challenges with the elution and electrowinning circuits were encountered, which had a negative impact on ore processed and recoveries for the Quarter. Actions to remediate the challenges encountered with the elution and electrowinning circuits were being completed during and subsequent to the Quarter. Additional process optimizations are underway with the objective of increasing recoveries and throughput.

Mining unit costs were higher in Q4 2023 compared to Q4 2022 as mining contractor unit costs are higher when mining at lower volumes. Processing unit costs in Q4 2023 were higher than Q4 2022 as Santa Luz encountered issues that reduced the volume of tonnes processed and incurred additional costs to remedy the operational issues.

Management’s Discussion and AnalysisFor the three months and year ended December 31, 2023

AISC per oz sold for Q4 2023 was higher compared to Q4 2022 primarily due to lower production during the Quarter, as well as a strengthening of the BRL compared to the USD.

Sustaining capital expenditures for the three months and the year ended December 31, 2023 were $3.3 million and $7.2 million, respectively, primarily related to a TSF raise. Non-sustaining expenditures for the three months and year ended December 31, 2023 were $0.6 million and $3.0 million, respectively, primarily related to exploration.

For production, Santa Luz did not achieve 2023 Guidance, with production of 57,182 ounces compared to production guidance of 60,000 to 70,000 ounces of gold. Santa Luz did achieve 2023 Guidance for costs, with cash costs of $1,681 per oz compared to guidance of $1,535 to $1,695 per oz and AISC of $1,834 per oz compared to guidance of $1,775 to $1,950 per oz.

The 2023 surface exploration program at Santa Luz was completed in Q3 2023 and included 7,630 m of RC drilling and 2,064 m of core drilling. Drilling focused on the near-mine Mansinha South deposit and three regional targets. Ongoing exploration activities include a regional geological mapping and prospecting campaign. Exploration expenditures at Santa Luz for the three months and the year ended December 31, 2023 were $0.6 million and $3.0 million, respectively.

Outlook

The focus at Santa Luz in 2024 is on improving steady state plant throughput at design capacity to 2.5 million tonnes per year, and increasing recoveries, with the objective of achieving recoveries of 73% or more for the second half of 2024.

Santa Luz production guidance for 2024 is 70,000 to 80,000 ounces of gold, with cash costs of $1,495 to $1,595 per oz and AISC of $1,720 to $1,820 per oz.

Budgeted sustaining expenditures at Santa Luz of $17 million in 2024 relate primarily to a $7 million TSF raise. Budgeted non-sustaining expenditures of $4 million in 2024 relate primarily to exploration.