Equinox promotes former Calibre executive to CEO

[Redator]

Equinox Gold (TSX: EQX; NYSE-A: EQX) promoted chief operating officer Darren Hall to the post of CEO to replace founding shareholder Greg Smith, who is stepping down.

Hall, a 40-year industry veteran, served as Calibre Mining’s (TSX: CXB) CEO from 2021 until its acquisition by Equinox. The C$2.56 billion ($1.83 billion) transaction closed last month, turning Equinox into Canada’s second-largest gold producer after Agnico-Eagle Mines (NYSE, TSX: AEM). The management change is effective immediately.

David Schummer, Calibre’s former operations chief, will take up the same role at Equinox, according to a statement issued Tuesday. Schummer has over 35 years of mining industry experience working in the US, Canada, Peru, Indonesia, West Africa and the Middle East, including 22 years at Newmont (TSX: NGT; NYSE: NEM).

“We view the announcement as positive for Equinox shares, given Darren’s successful track record and execution in prior ventures, and expect investors to be incrementally more constructive on the transition,” Scotia Capital mining analyst Ovais Habib said in a note. The stock “relies heavily on the execution of Equinox’s Canadian assets over the near term.”

Boosted production

As Calibre’s CEO, Hall significantly boosted production and lowered costs, delivering free cash flow and transforming the miner into a high-performing multi-asset gold producer. He previously ran operations at both Kirkland Lake Gold and Newmarket Gold and earlier spent nearly three decades with Newmont in a series of progressively senior roles. 

In a note Tuesday, BMO Capital Markets analyst Kevin O’Halloran called him “a proven operator.”

Hall inherits a Canadian mining powerhouse with operations in the US, Brazil, Nicaragua, Mexico and Canada. Both its Canadian mines are low-cost assets – Equinox’s Greenstone property in Ontario and Calibre’s Valentine mine in Newfoundland and Labrador.

Greenstone, one of the country’s largest open-pit mines, achieved commercial production in November. Valentine, meanwhile, is nearing construction completion, with first gold pour targeted for the end of this quarter.

“This leadership transition marks Equinox Gold’s evolution from a high-growth consolidator to a top-tier global gold producer, anchored by Greenstone and Valentine, both high-quality, long-life assets,” Hall said.

“Our focus will be on disciplined execution, operational excellence, and delivering consistent, reliable performance as we enter this next phase of growth and optimization, building on the solid foundations Greg and his team have established.”

Potential divestment

Under the new CEO’s leadership, Equinox will probably look at “optimizing its asset portfolio by divesting of potentially non-core assets in Latin America or elsewhere,” Scotia’s Habib said.

Greenstone and Valentine are expected to represent almost half of Equinox’s 2026 estimated gold output and all of its production growth this year and next, the analyst added. 

With Calibre in the fold, Equinox has seven production complexes and five expansion or development projects.

Chairman Ross Beaty said in June that the company would streamline operations, but stopped short of naming divestments.

Vancouver-based Equinox last month cut its full-year production outlook while boosting its cost guidance to reflect a slower-than-expected ramp-up at Greenstone and lower output in the US and Brazil.

Pro forma 2025 gold production is now expected at 785,000-915,000 oz., Equinox said June 11, about 10% less than the previous combined guidance would have been. Total cash costs this year will be $1,400-1,500 per oz., including $1,460-$1,560 for the Equinox mines alone – 34% higher than the company’s previous target.

Smith, who helped to create Equinox in 2017, was appointed CEO in 2022. His “leadership and strategic vision have been instrumental in growing the company from concept into the multi-asset, multi-billion-dollar gold producer it is today,” Beaty said in the statement.

Equinox rose 0.3% to C$8.87 in Toronto Tuesday afternoon, giving the company a market capitalization of about C$6.7 billion. The stock has traded between C$6.18 and C$10.35 in the past year.