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Investments in Associates | 12 Months Ended
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Dec. 31, 2023
Disclosure of associates [abstract] |
Investments in Associates | INVESTMENTS IN ASSOCIATES Details of the Company’s investments in associates as at December 31, 2023 and 2022 are as follows:
Associate | Principal activity |  | Principal place of business |  | Ownership interest (%)
|  |  |  |  | 2023 |  | 2022
Sandbox(1) | Royalties |  | Americas and Europe |  | 20.3 |  |  | 34.4 |
i-80 Gold(2) | Production |  | USA |  | — |  |  | 25.3 |
(1)There is no quoted fair value for the Company’s investment in Sandbox at December 31, 2023 and 2022 as Sandbox is not publicly listed. (2)The quoted fair value of the Company’s investment in i-80 Gold at December 31, 2022 was $169.9 million based on the quoted market price of the underlying shares of C$3.78 per share, which is a Level 1 fair value measurement. The following table summarizes the changes in the carrying amounts of the Company’s investments in associates during the years ended December 31, 2023 and 2022:
| Note |  | i-80 Gold |  | Sandbox |  | Total
Balance – December 31, 2021 |  |  | $ | 125,313 |  |  | $ | — |  |  | $ | 125,313 |
Received as consideration in Sandbox Transaction | 5(b), 10(a) |  | — |  |  | 28,356 |  |  | 28,356 |
Additional shares acquired | 10(a) |  | — |  |  | 3,343 |  |  | 3,343 |
Share of net loss |  |  | (5,446) |  |  | (732) |  |  | (6,178) |
Balance – December 31, 2022 |  |  | 119,867 |  |  | 30,967 |  |  | 150,834 |
Dilution gain |  |  | 953 |  |  | — |  |  | 953 |
Share of net loss |  |  | (15,761) |  |  | (1,704) |  |  | (17,465) |
Sale of partial interest | 10(b) |  | (20,053) |  |  | — |  |  | (20,053) |
Reclassification of retained interest to marketable securities | 10(b) |  | (85,006) |  |  | — |  |  | (85,006) |
Balance – December 31, 2023 |  |  | $ | — |  |  | $ | 29,263 |  |  | $ | 29,263 |
(a)Sandbox As consideration for the assets sold to Sandbox on June 28, 2022, the Company received 51.9 million common shares of Sandbox, representing a 35% interest in Sandbox, with a total fair value of $28.4 million (note 5(b)). Sandbox is a mining royalty corporation with royalty assets primarily located in the Americas and Europe. Concurrent with the Sandbox Transaction, the Company participated in Sandbox’s private placement financing, purchasing 6.2 million common shares of Sandbox at C$0.70 per share, for a total investment of $3.3 million. At December 31, 2023, the Company held a 20.3% equity interest in Sandbox (2022 – 34.4%). (b)Sale of partial interest in i-80 Gold and reclassification of retained interest On March 31, 2023 (the “Closing Date”), the Company completed the sale of a portion of its interest in i-80 Gold through a private placement sale of 11.6 million units at a price of C$2.76 per unit, with each unit consisting of one common share of i-80 Gold held by the Company and one-half of an i-80 Gold common share purchase warrant, for gross proceeds of $23.6 million. Each whole warrant entitles the holder to acquire one common share of i-80 Gold held by the Company at a price of C$3.45 per share for a period of 12 months from the Closing Date. Of the gross proceeds of $23.6 million, $20.5 million was allocated to the common shares sold and $3.1 million was allocated to the warrants issued. 10. INVESTMENTS IN ASSOCIATES (CONTINUED) (b)Sale of partial interest in i-80 Gold and reclassification of retained interest (continued) On disposition of the 11.6 million common shares of i-80 Gold, the Company’s interest in i-80 Gold was reduced to 19.95%. As a result, the Company determined it no longer had significant influence over i-80 Gold and accordingly discontinued the use of the equity method to account for its investment. The carrying amount of the Company’s retained interest in i-80 Gold was reclassified from investment in associate to marketable securities measured at FVOCI. The Company recognized a gain of $34.5 million in other income (expense) for the year ended December 31, 2023 on the sale of its partial interest and the reclassification of its investment in i-80 Gold, calculated as the difference between the fair value of the retained interest of $119.9 million plus proceeds from disposition allocated to the common shares sold of $20.5 million, less transaction costs of $0.8 million, and the carrying amount of the Company’s investment in i-80 Gold of $105.1 million on the date of disposition. The fair value of the retained interest was determined based on the quoted market price of i-80 Gold common shares on the date of disposition of the partial interest. The amount of proceeds allocated to the warrants issued represents the fair value of the warrants, determined using the Black-Scholes option pricing model, on the Closing Date. The warrants are accounted for as derivative liabilities measured at FVTPL with changes in fair value recognized in net income or loss (note 16(b)). Summarized financial information in respect of the Company’s associates as at and for the year ended December 31, 2023 and 2022 is set out below. The summarized financial information is based on amounts included in the most recent available consolidated financial statements prepared in accordance with IFRS as of September 30, 2023 and 2022, respectively, for Sandbox and September 30, 2022 for i-80 Gold, and for adjustments made by the Company in applying the equity method, including fair value adjustments on acquisition of interests in the associates.
|  | Sandbox |  | i-80 Gold
At December 31 |  | 2023 |  | 2022 |  | 2022
Cash and cash equivalents |  | $ | 6,034 |  |  | $ | 3,811 |  |  | $ | 75,987 |
Other current assets |  | 315 |  |  | 2,804 |  |  | 34,555 |
Non-current assets |  | 69,756 |  |  | 71,993 |  |  | 567,403 |
Total assets |  | 76,105 |  |  | 78,608 |  |  | 677,945 |
Current liabilities |  | 414 |  |  | 86 |  |  | 48,837 |
Non-current liabilities |  | 16,039 |  |  | 15,975 |  |  | 232,455 |
Total liabilities |  | 16,453 |  |  | 16,061 |  |  | 281,292 |
Net assets (100%) |  | $ | 59,652 |  |  | $ | 62,547 |  |  | $ | 396,653 |
Equinox Gold’s share of net assets(1) |  | $ | 20,531 |  |  | $ | 21,528 |  |  | $ | 100,319 |
Adjustments to Equinox Gold’s share of net assets |  | 8,732 |  |  | 9,439 |  |  | 19,548 |
Carrying amount |  | $ | 29,263 |  |  | $ | 30,967 |  |  | $ | 119,867 |
(1)At December 31, 2023, t he Company’s share of net assets of Sandbox is based on its 34.4% equity interest in Sandbox as of September 30, 2023 (2022 – 34.4% equity interest as of September 30, 2022). 10. INVESTMENTS IN ASSOCIATES (CONTINUED)
|  | Sandbox |  | i-80 Gold
Years ended December 31 |  | 2023 |  | 2022 |  | 2022
Revenue |  | $ | 1,845 |  |  | $ | 532 |  |  | $ | 25,311 |
Operating expense |  | (4,620) |  |  | (640) |  |  | (75,517) |
Loss from operations |  | (2,775) |  |  | (108) |  |  | (50,206) |
Other (expense) income |  | (819) |  |  | (788) |  |  | 10,752 |
Income tax recovery (expense) |  | 696 |  |  | (1,232) |  |  | 17,920 |
Net loss from continuing operations (100%) |  | (2,898) |  |  | (2,128) |  |  | (21,534) |
Net income from discontinued operations (100%) |  | — |  |  | — |  |  | 49 |
Net loss and total comprehensive loss (100%) |  | $ | (2,898) |  |  | $ | (2,128) |  |  | $ | (21,485) |
Equinox gold’s share of net loss and total comprehensive loss(1) |  | $ | (997) |  |  | $ | (732) |  |  | $ | (5,446) |
Adjustments to Equinox Gold’s share of net loss and total comprehensive loss |  | (707) |  |  | — |  |  | — |
Equinox Gold’s share of net loss and total comprehensive loss |  | $ | (1,704) |  |  | $ | (732) |  |  | $ | (5,446) |
(1)The Company’s share of net loss and total comprehensive loss of Sandbox for the twelve months ended September 30, 2023 is based on its 34.4% equity interest in Sandbox during such period (2022 – 34.4%).

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- Definition The disclosure of investments accounted for using the equity method. [Refer: Investments accounted for using equity method] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2023-01-01 -Paragraph 10 -Subparagraph e -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2023-en-r&anchor=para_10_e&doctype=Standard -URIDate 2023-03-23 + Details
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