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Equinox Gold (ASE) (TSE:EQX)
:EQX
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Equinox Gold
(NYSE MKT:EQX)72Outperform
Positive Factors
Production and Financial Performance
Equinox Gold reported Q4 production of 214koz beating BMO/consensus estimates of 205koz/199koz.
Reserve and Resource Estimates
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
Production Challenges
Production at Greenstone and Santa Luz was below expectations by 10% and 36%, respectively.
Equinox Gold (EQX) vs. S&P 500 (SPY)
Market Cap
C$4.10B
Dividend YieldN/A
Average Volume (3M)1.30M
Price to Earnings (P/E)8.1
Beta (1Y)1.36
Revenue Growth18.99%
EPS Growth297.56%
CountryCA
Employees3,692
SectorBasic Materials
Sector Strength56
IndustryMining
Share Statistics
EPS (TTM)1.11
Shares Outstanding455,395,840
10 Day Avg. Volume1,714,804
30 Day Avg. Volume1,301,064
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)N/A
Price to Sales (P/S)2.31
Price to Cash Flow (P/CF)5.10
P/FCF Ratio47.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$11.21Price Target Upside17.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Equinox Gold Business Overview & Revenue Model
Company DescriptionEquinox Gold Corp. is a Canadian mining company engaged in the exploration, development, and operation of gold mining properties. The company's primary focus is on its portfolio of gold mines and projects located in the Americas, aiming to become one of the leading gold producers in the region. Equinox Gold is committed to responsible mining practices and seeks to create long-term value for its shareholders through the efficient and sustainable management of its resources.
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 presents a mixed financial picture with strong revenue growth and improving profitability margins. The balance sheet is stable with manageable leverage, yet there is room for enhancing returns on equity. Cash flow management remains a challenge due to negative free cash flow, driven by substantial capital investments. Continued focus on optimizing cost structures and cash flow could strengthen the company’s financial position.Income Statement
The company demonstrates a solid revenue growth trajectory, with TTM revenue of $1.24 billion, a 13.7% increase from the previous year. Gross profit margin is 14.4%, slightly below industry averages, indicating room for improvement in cost management. The net profit margin has improved to 19.8%, reflecting stronger bottom-line performance, driven by increased EBIT and EBITDA margins of 9.3% and 23.3%, respectively.70
Positive
Balance Sheet
The balance sheet shows a reasonable debt-to-equity ratio of 0.46, suggesting manageable leverage levels. However, the equity ratio of 47.5% indicates a balanced but slightly lower reliance on equity financing. Return on equity (ROE) stands at 7.6%, which is moderate, suggesting the company could enhance shareholder returns.65
Positive
Cash Flow
The company has a negative free cash flow of -$204 million, highlighting significant capital expenditures impacting cash reserves. The operating cash flow to net income ratio stands at 1.02, indicating adequate cash generation to cover net income. However, the free cash flow to net income ratio is negative, reflecting challenges in maintaining positive free cash flow amid high investments.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.24B | 1.09B | 952.20M | 1.08B | 842.51M | 281.70M | Gross Profit |
| 177.98M | 322.53M | 75.50M | 215.32M | 223.62M | 83.85M | EBIT |
| 115.55M | 49.62M | 10.39M | 146.47M | 171.39M | 55.12M | EBITDA |
| 288.70M | 240.65M | 130.78M | 338.01M | 311.86M | 95.50M | Net Income Common Stockholders |
| 245.22M | 28.88M | -106.03M | 554.89M | 22.29M | -20.32M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 284.66M | 284.66M | 237.64M | 546.03M | 344.93M | 68.70M | Total Assets |
| 4.35B | 4.35B | 3.86B | 3.97B | 2.67B | 839.35M | Total Debt |
| 945.37M | 945.37M | 842.10M | 567.63M | 555.19M | 264.05M | Net Debt |
| 753.37M | 753.37M | 641.33M | 262.13M | 210.26M | 196.33M | Total Liabilities |
| 1.91B | 1.91B | 1.50B | 1.38B | 1.22B | 436.29M | Stockholders Equity |
| 2.44B | 2.44B | 2.35B | 2.59B | 1.45B | 403.06M |
| Cash Flow | Free Cash Flow | ||||
| -204.34M | -164.84M | -500.60M | -23.45M | 43.61M | -37.85M | Operating Cash Flow |
| 250.26M | 358.46M | 56.47M | 320.78M | 216.51M | 59.72M | Investing Cash Flow |
| -1.12B | -462.67M | -419.00M | -347.57M | -129.32M | -111.29M | Financing Cash Flow |
| 685.27M | 92.50M | 254.31M | -1.59M | 190.08M | 57.00M |
Equinox Gold Technical Analysis
Neutral
9.53
Price Trends
8.86
Positive
8.34
Positive
7.99
Positive
Market Momentum
0.08
Positive
45.99
Neutral
43.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EQX, the sentiment is Neutral. The current price of 9.53 is below the 20-day moving average (MA) of 9.54, above the 50-day MA of 8.86, and above the 200-day MA of 7.99, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of 43.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:EQX.
Equinox Gold Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $14.00B | 35.82 | 8.74% | 0.42% | 33.75% | 32.86% | |
74 Outperform | $4.24B | 10.64 | 8.12% | ― | 27.29% | ― | |
72 Outperform | C$4.10B | 8.08 | 11.62% | ― | 18.99% | 297.56% | |
72 Outperform | $4.21B | 3.64 | 29.57% | ― | ― | ― | |
68 Neutral | C$3.17B | 22.80 | 11.14% | ― | 18.32% | ― | |
54 Neutral | $4.96B | ― | -18.54% | 5.99% | -4.17% | -318.18% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% |
* Basic Materials Sector Average
Performance Comparison
TSE:EQX
Equinox Gold
9.00
2.56
39.75%
TSE:AGI
Alamos Gold
33.29
15.05
82.51%
TSE:NGD
New Gold
4.01
1.82
83.11%
TSE:IMG
IAMGOLD
7.36
3.17
75.66%
TSE:BTO
B2Gold
3.76
0.46
14.08%
TSE:ELD
Eldorado Gold
20.71
3.99
23.86%
Equinox Gold Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -1.75% | 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 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.
Equinox Gold Achieves Record Gold Production in 2024
Jan 8, 2025
Equinox Gold announced record gold production figures for the fourth quarter and the full year of 2024, with 213,960 ounces and 621,870 ounces, respectively. The company achieved significant milestones at its Greenstone mine, consolidating full ownership and commencing commercial production. This boost in production, alongside financial strategies such as reducing debt by $180 million, positions Equinox Gold for continued growth in 2025.
Equinox Gold’s Fazenda Mine Extends Life by Seven Years
Jan 7, 2025
Equinox Gold has announced a significant update to its Fazenda Mine’s Mineral Reserve and Mineral Resource estimates, extending the mine’s life by seven years to 2033. The revisions reflect a 142% increase in mineral reserves and a 418% increase in measured and indicated resources. This expansion demonstrates successful exploration efforts and suggests potential opportunities for further development and regional exploration, supporting Equinox Gold’s positioning as a leader in the gold mining industry.
Equinox Gold Reports Record Q3 2024 Results
Nov 7, 2024
Equinox Gold reported a record third quarter in 2024, achieving its highest-ever production and revenue due to the successful ramp-up of the Greenstone Mine and favorable gold prices. The company produced nearly 174,000 ounces of gold and expects strong production in the fourth quarter, aiming to utilize increased cash flow to reduce debt.
Equinox Gold’s Greenstone Mine Begins Production
Nov 7, 2024
Equinox Gold’s Greenstone Mine in Ontario has reached commercial production, marking a significant milestone after three years of construction amidst challenging conditions. The mine is expected to be one of Canada’s largest gold producers, aiming to generate 390,000 ounces annually for the first five years. With increasing throughput and recovery rates, the mine is set to bolster Equinox Gold’s production capabilities.
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.