Achieving sustainable growth through continuous improvement at Equinox Gold

In today’s highly competitive business environment, companies must constantly evolve to maintain their edge. Equinox Gold, a leading gold producer with operations across the Americas, has embraced this challenge head-on through its commitment to continuous improvement. By focusing on optimizing operations, efficiency, and engaging employees at all levels, the company has positioned itself as a leader in its industry.

Leading the way in sustainable mining

Equinox Gold is a leading growth-focused gold producer with a robust portfolio of six operating mines across the Americas, including Brazil, Mexico, Canada, and the United States. Headquartered in Vancouver, Canada, the company is recognized for its commitment to sustainable mining practices, operational excellence, and creating value for shareholders while having a positive impact on local communities and the environment.

The company is focused on maximizing shareholder value by advancing a pipeline of expansion projects. It pursues operational excellence through disciplined project execution and continuous improvement initiatives, such as the Asset Optimization Program, which has significantly enhanced efficiency, employee engagement, and cost performance across its portfolio.

The project’s background

The Asset Optimization Program (AOP) was launched in 2023 with strong backing from the chairman, the board of directors, and the executive leadership team. This company-wide initiative aims to align top-down corporate goals with bottom-up employee engagement. The AOP empowers employees at every site and level of the organization to share ideas, lead initiatives, and take ownership of improvements. Since its inception, over 300 initiatives have been completed, resulting in significant efficiency gains and cost savings.

“Our AOP program had a very simple goal in mind: to make continuous improvement part of our culture.” – Marcelo Coelho, VP Continuous Improvement

One of the key features of the AOP is the “Award Our People”, which recognizes and rewards the best improvement initiatives quarterly, fostering healthy competition and a culture of recognition across the company.

Objectives for sustainable success

The AOP was built around clear, measurable objectives, each designed to drive lasting, impactful success. The objectives are the following:

• Engage 100% of sites and departments in identifying and implementing improvement initiatives.
• Deliver sustained operational and financial improvements aligned with corporate strategic goals.
• Improve throughput, cost structure, and capital efficiency across operations.
• Empower employees to lead change and recognize their contributions annually.
• Embed continuous improvement into annual planning and performance cycles.

By focusing on execution, engagement, and recognition, the AOP aimed to create a high-performance culture that would deliver measurable business value.

Key actions that drove real results

The AOP was implemented through a carefully structured approach that combined top-down leadership direction with bottom-up employee engagement. The project was rolled out using an enterprise-wide approach:

Leadership alignment

The AOP was launched with full backing from the chairman, board of directors, and Executive Team. The program was structured across three levels (strategic, tactical, and operational), ensuring that leadership at each level drove alignment and accountability. The leadership team used the PDCA (Plan-Do-Check-Act) cycle to regularly review performance, ensuring continuous monitoring and adaptation of strategies. Through this cycle, initiatives were reviewed and adjusted based on real-time data and outcomes, guaranteeing that each project, whether incremental or beyond budget, aligned with the company’s strategic goals.

Figure 1 – PDCA cycle

Standardized process

A structured four-step process was implemented to involve employees at all levels, ensuring their active participation from idea generation through to the execution of initiatives. This process fostered ownership and accelerated the idea-to-execution timeline.

Figure 2 – Representation of the four-step process implemented

Annual planning cycle

A structured calendar guided each site through initiative planning, validation, execution, and review. This process ensured that continuous improvement initiatives were integrated into the company’s annual planning and operational priorities.

Hands-on support

Continuous improvement coaches provided training, helped establish governance, and supported on-the-ground implementation.

Recognition and feedback

The AOP’s final events recognized top-performing teams and individuals, reinforcing a culture of recognition and knowledge-sharing across sites. This approach boosted engagement and fostered a sense of achievement within the teams.

AOP (Award Our People)

Recognizing teams and individuals who demonstrated leadership in continuous improvement. This program, in particular, created 1,000+ problem solvers.

“We have seen collaboration like never before across countries, departments, and levels.” – Jorge Mottecy, VP Supply Chain

AOP competition

Bringing sites together to share results, success stories, and best practices.

“Vira a chave”

Celebrating individuals for their approach and problem-solving results.

Figure 3 – Employee recognition

Transformative results: Delivering tangible value and sustainable growth

The AOP has delivered substantial financial and cultural results, achieving not only significant cost savings but also fostering a lasting shift towards continuous improvement across the organization. Key achievements include:

Financial impact

By driving process improvements, the company achieved $51.4 million in savings in 2023 and $77.3 million in 2024, surpassing targets through enhanced equipment reliability and supply chain optimization.

Employee engagement

Over 400 employees were directly involved in identifying, planning, or leading initiatives, with more than 40 teams recognized for their contributions during AOP events, promoting a culture of collaboration and shared success.

Production efficiency

By increasing mill availability and improving gold recovery rates, the company achieved a higher overall production output, driving efficiency across operations.

Capital efficiency

Through optimized capital allocation and a focus on reducing project overruns, the company successfully ensured that projects were delivered on time, within budget, and with greater financial efficiency.

Supply chain improvements

By streamlining procurement processes, the company reduced lead times and inventory carrying costs, while also negotiating more favorable contracts with suppliers.

AOP’s evolution and future

The AOP has not only exceeded its financial goals but also set a new benchmark for operational excellence within Equinox Gold. By the end of 2024, the program had already delivered over $130 million in savings, representing around 10% of the company’s operational expenses. Looking ahead to 2025, the focus will be on expanding and refining improvement initiatives across all sites, ensuring that the continuous improvement culture becomes even more deeply ingrained in the company’s operations.

“This journey has been transformative for our company. Every milestone has been a testament of our commitment and the perseverance of our people.” – Bill Mertinich, SVP USA

Equinox Gold’s success with the AOP demonstrates the power of strong leadership, employee engagement, and structured recognition in driving both financial results and cultural transformation. As the program continues to grow, it positions Equinox Gold to maintain its momentum and ensure sustainable growth in the years to come.

Building a legacy of excellence: The ongoing journey of transformation

By aligning leadership, empowering employees, and fostering a culture of recognition, Equinox Gold has created a dynamic environment where innovation thrives and business objectives are consistently exceeded.

This is just the beginning of our continuous improvement journey. The sky is the limit for our teams.” – Angela Vasconcelos, VP Finance Brazil

The award won is a fitting recognition of the company’s achievements, reflecting the significant impact of the AOP on both its bottom line and organizational culture. As Equinox Gold continues to expand and innovate, the principles of continuous improvement will remain at the heart of its operations, ensuring the company’s sustained growth and leadership in the mining industry.