Proposed At-Market Merger of EQX/OLA Creates a Large Canadian Focused Producer

Research evidence excerpt

Proposed At-Market Merger of EQX/OLA Creates a Large Canadian Focused Producer

onal funding beyond our forecasts

and there can be no assurance that these funds will be available, or at an acceptable cost.

Environmental Risk – Risks assessed include water and waste recycle rates, electricity and

energy from renewables, emissions and energy intensity, scope 1 & 2 & 3 emissions, greenhouse

emission targets, reclamation and tailings targets, environmental incident counts and

environmental certifications, and preventative practices and monitoring.

Social Risk – Both national and local community support are critical to successfully building

and operating a mine. Some of the key elements to assess include workplace safety metrics,

community investment, economic value generated and distributed, procurement from local

vendors, percentage of costs spent with local suppliers and good stewardship of the local

environment.

Risks To The Price Target

The key risks to our target price include: gold, fuel, power, and water price risks; financial

risks, including risks to the cost and availability of financing; foreign exchange rate risks;

forecast risks, including capital and operating cost risks; risks related to deposit size, grade and

mineability, and risks relating to production levels, metallurgical recoveries and smelter terms;

market risks; technical risks; permitting risk; labour relations risk; risks related to the cost and

availability of equipment and consumables; environmental risk; title risk; litigation risk; surface

rights risk; access risk; and company-specific risks, including water/weather risks due to the

past droughts and wildfires in California and the elevated concern that has arisen with respect

to water consumption.

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