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Equinox Gold (TSE:EQX)
TSX:EQX
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Equinox Gold
(TSX:EQX)
72Outperform
Positive Factors
Earnings Performance
Equinox Gold reported Q4 production of 214koz beating BMO/consensus estimates of 205koz/199koz.
Financial Health
The company ended the year with $240M in cash, and debt was reduced by $180M in Q4.
Reserve Increase
The updated reserve and resource estimate for the Fazenda mine in Brazil increased reserves by 142%, successfully extending its reserve life through 2033.
Negative Factors
Guidance Reduction
Lowering 2024 guidance reflects a slower-than-anticipated ramp up.
Production Shortfall
Production at Greenstone and Santa Luz was below expectations by 10% and 36%, respectively.
Equinox Gold (EQX) vs. S&P 500 (SPY)
Market Cap
$4.33B
Dividend YieldN/A
Average Volume (3M)1.52M
Price to Earnings (P/E)10.6
Beta (1Y)1.63
Revenue Growth41.78%
EPS Growth619.60%
CountryCA
Employees3,692
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)0.90
Shares Outstanding456,062,870
10 Day Avg. Volume1,682,302
30 Day Avg. Volume1,515,031
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)1.92
Price to Cash Flow (P/CF)2.90
P/FCF Ratio4.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$11.34Price Target Upside19.36% Upside
Rating ConsensusHold
Number of Analyst Covering5
Equinox Gold Business Overview & Revenue Model
Company DescriptionEquinox Gold Corp. engages in the operation, acquisition, exploration, and development of mineral properties. The company primarily explores for gold and silver deposits. Its properties include the Aurizona gold mine located in Maranhão State; the RDM gold mine located in Minas Gerais State; and Fazenda gold mine and the Santa Luz gold mine located in Bahia State, Brazil. The company also hold interests in the Mesquite gold mine and the Castle Mountain property situated in California, the United States; and the Los Filos Gold Mine located in Guerrero State, Mexico. In addition, it holds a 60% interest in the Greenstone project located in Ontario, Canada. The company was formerly known as Trek Mining Inc. and changed its name to Equinox Gold Corp. in December 2017. Equinox Gold Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyEquinox Gold generates revenue primarily through the sale of gold produced from its mining operations. The company operates multiple gold mines across the Americas, and the revenue is directly linked to the quantity of gold produced and the prevailing market prices for gold. Additionally, Equinox Gold may engage in strategic partnerships and joint ventures to enhance its production capabilities and expand its resource base. The company also focuses on optimizing its operations to control costs and improve profitability, contributing to its overall earnings.
Equinox Gold Financial Statement Overview
Summary
Equinox Gold shows strong revenue growth and profitability, with impressive operational performance reflected in its income statement. The balance sheet is stable but reliant on debt. Cash flow is positive operationally but negative in free cash flow due to high capital expenditures.Income Statement
Equinox Gold has shown a commendable improvement in its financial performance over the years. The company's revenue growth is notable, with a significant jump from 2023 to 2024. Gross Profit Margin stands strong, indicating effective cost management. Furthermore, there has been a remarkable increase in EBIT and EBITDA margins, showcasing efficient operational performance. The Net Profit Margin also reflects a substantial improvement, which is a positive indicator of profitability. Overall, the income statement reveals a robust growth trajectory with solid profitability metrics.78
Positive
Balance Sheet
The balance sheet of Equinox Gold shows a stable financial position. The Debt-to-Equity ratio is moderately high, indicating a reliance on debt financing, which could pose risks if not managed carefully. However, the company has a strong Stockholders' Equity base, as evidenced by the improving Equity Ratio. Return on Equity has seen a positive trend, reflecting enhanced efficiency in generating returns on shareholder investments. While leverage remains a concern, the overall stability and growth in equity are commendable.70
Positive
Cash Flow
Equinox Gold's cash flow statement presents a mixed picture. Operating cash flow has consistently grown, indicating improved operational cash generation. However, Free Cash Flow remains negative, primarily due to high capital expenditures, which could be a potential risk if not controlled. The Operating Cash Flow to Net Income ratio suggests that the company is generating sufficient cash relative to its net income. Despite negative Free Cash Flow, the company's ability to sustain positive operating cash flow is a reassuring sign.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.51B | 1.09B | 952.20M | 1.08B | 842.51M | Gross Profit |
| 523.95M | 108.98M | 75.50M | 215.32M | 223.62M | EBIT |
| 237.96M | 49.62M | 10.39M | 146.47M | 171.39M | EBITDA |
| 460.58M | 291.09M | 131.53M | 338.01M | 232.51M | Net Income Common Stockholders |
| 339.29M | 28.88M | -106.03M | 554.89M | 22.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 245.47M | 284.66M | 237.64M | 546.03M | 344.93M | Total Assets |
| 6.71B | 4.35B | 3.86B | 3.97B | 2.67B | Total Debt |
| 1.35B | 945.37M | 842.10M | 567.63M | 555.19M | Net Debt |
| 1.11B | 753.37M | 641.33M | 262.13M | 210.26M | Total Liabilities |
| 3.32B | 1.91B | 1.50B | 1.38B | 1.22B | Stockholders Equity |
| 3.40B | 2.44B | 2.35B | 2.59B | 1.45B |
| Cash Flow | Free Cash Flow | |||
| -39.89M | -164.84M | -500.60M | -23.45M | 43.61M | Operating Cash Flow |
| 372.18M | 358.46M | 56.47M | 320.78M | 216.51M | Investing Cash Flow |
| -1.11B | -462.67M | -419.00M | -347.57M | -129.32M | Financing Cash Flow |
| 792.48M | 92.50M | 254.31M | -1.59M | 190.08M |
Equinox Gold Technical Analysis
Positive
9.50
Price Trends
9.51
Negative
8.76
Positive
8.25
Positive
Market Momentum
-0.17
Positive
52.52
Neutral
56.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EQX, the sentiment is Positive. The current price of 9.5 is above the 20-day moving average (MA) of 9.48, below the 50-day MA of 9.51, and above the 200-day MA of 8.25, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 56.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EQX.
Equinox Gold Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Performance Comparison
TSE:EQX
Equinox Gold
9.50
1.44
17.87%
EGO
Eldorado Gold
19.40
4.30
28.48%
IAG
IAMGOLD
7.29
3.72
104.20%
NGD
New Gold
3.59
1.83
103.98%
BTG
B2Gold
3.41
0.84
32.68%
AGI
Alamos Gold
29.38
14.47
97.05%
Equinox Gold Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -2.06% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements, including record gold production, improved financial performance, and successful ramp-up at Greenstone. However, these positives were offset by operational challenges, high costs at certain mines, and unresolved community agreements affecting Los Filos, creating a balanced outlook.Highlights
Record Gold Production
Equinox Gold Corp. achieved record annual gold production of approximately 622,000 ounces and sales of 623,000 ounces in 2024.
Lowest Quarterly Cash Costs
The company reported the lowest quarterly cash cost of $1,458 per ounce in Q4 2024.
Greenstone Mine Milestone
Greenstone mine achieved commercial production in November 2024, contributing significantly to Q4 performance with production of 53,022 ounces and an all-in sustaining cost of $1,141 per ounce.
Financial Performance Improvement
Q4 2024 saw a revenue increase to $575 million, driven by higher gold prices and increased ounces sold, resulting in an EBITDA of $185 million, significantly up from Q3 2024 and Q4 2023.
Improved Environmental and Safety Performance
Significant improvement in environmental incident frequency rate and a 13% increase in S&P Global Corporate Sustainability Assessment score.
Strong Cash Flow and Debt Reduction
Cash flow from operations before changes in non-cash working capital was $213 million, and the company retired $180 million in debt in 2024.
Lowlights
Fatality at Fazenda Mine
The company reported a regrettable fatality during the year at the Fazenda mine.
High Costs at Los Filos and Aurizona
Los Filos had an all-in sustaining cost of $2,051 per ounce in Q4 2024, and Aurizona reported an all-in sustaining cost of $2,229 per ounce.
Los Filos Community Agreement Uncertainty
Despite progress, one community out of three has not signed the necessary agreement for the mine's future, causing operational uncertainty and no guidance provided for 2025.
Operational Challenges at Various Mines
Aurizona faced geotechnical issues, and Santa Luz had recovery challenges with all-in sustaining costs of $2,224 per ounce for the year.
Company Guidance
During the fourth quarter of 2024, Equinox Gold Corp. reported a record quarterly gold production of approximately 214,000 ounces and sales of about 218,000 ounces, marking the highest quarterly output in the company's history. The cash cost per ounce sold was $1,458, with an all-in sustaining cost of $1,652 per ounce. For the full year, Equinox achieved record annual gold production of approximately 622,000 ounces and sales of 623,000 ounces, with cash costs of $1,598 per ounce and all-in sustaining costs of $1,870 per ounce. The company anticipates 2025 production to increase to between 635,000 and 750,000 ounces, with projected cash costs ranging from $1,075 to $1,175 per ounce and all-in sustaining costs between $1,455 and $1,550 per ounce. Despite a fatality at their Fazenda mine, Equinox reported a total recordable injury frequency rate of 2.21, surpassing their safety target for the year. The company also improved its environmental incident frequency rate and increased its S&P Global Corporate Sustainability Assessment score by more than 13% compared to the previous year.Equinox Gold Corporate Events
Business Operations and Strategy
Equinox Gold Suspends Los Filos Mine Operations Amid Land Access Dispute
Negative
Apr 1, 2025
Equinox Gold has indefinitely suspended operations at its Los Filos Mine in Guerrero, Mexico, due to the expiration of its land access agreement with the Carrizalillo community. Despite reaching agreements with two other local communities, the lack of consensus with Carrizalillo has led to the exclusion of Los Filos production from the company’s 2025 guidance, impacting its operational strategy and stakeholder expectations.
M&A TransactionsBusiness Operations and Strategy
Equinox Gold and Calibre Mining Merge to Form Leading Gold Producer
Positive
Feb 24, 2025
Equinox Gold Corp. has entered into a definitive arrangement agreement with Calibre Mining Corp. to merge and form a major Americas-focused gold producer. The new entity, retaining the Equinox Gold name, is set to become the second largest gold producer in Canada, with significant production capabilities and a robust asset base. The merger is expected to enhance Equinox’s market presence, with a projected gold output of over 1.2 million ounces annually, bolstered by high-quality Canadian mines and a promising pipeline for growth. The combined company’s market capitalization is estimated at C$7.7 billion, with strategic leadership from renowned industry figures.
Business Operations and StrategyFinancial Disclosures
Equinox Gold Achieves Record 2024 Results with New Production Milestones
Positive
Feb 20, 2025
Equinox Gold has reported record results for 2024, with the sale of 623,579 ounces of gold generating $1.5 billion in revenue and $430 million in operating cash flow. The company achieved these results through the commencement of production at its new Greenstone Mine, which produced over 111,700 ounces of gold. Looking ahead, Equinox Gold aims to increase production to between 635,000 and 750,000 ounces in 2025, subject to agreements with local communities near its Los Filos Mine. The company is also advancing other projects and focusing on debt reduction amid favorable gold prices.
Business Operations and StrategyRegulatory Filings and Compliance
Equinox Gold Files Updated Technical Report for Fazenda Mine
Positive
Feb 1, 2025
Equinox Gold has filed a National Instrument 43-101 Technical Report for its Fazenda Mine in Brazil, updating the Mineral Reserve and Mineral Resource estimates. This filing underscores Equinox Gold’s commitment to transparency and growth, potentially strengthening its industry position and impacting stakeholders by providing updated data on its mineral assets.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.