Equinox Gold (EQX) AI Stock Analysis

• Market Cap: $4.33B
• Dividend Yield: N/A
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.44
• Revenue Growth: 60.05%
• EPS Growth: N/A
• Country: CA
• Employees: 3,692
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Gold
• EPS (TTM): -0.24
• Shares Outstanding: 456,106,400
• 10 Day Avg. Volume: 1,586,655
• 30 Day Avg. Volume: 1,803,509
• PEG Ratio: -1.78
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 355.54
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 8.70
• Enterprise Value/Ebitda: 2.78
• 1Y Price Target: $12.35
• Price Target Upside: 30.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: C$11.00 ▲(15.79%Upside)

Equinox Gold scores well due to its strong financial performance and positive technical indicators, indicating a solid foundation and potential for growth. The strategic merger and record production levels contribute positively, though challenges like the Los Filos suspension and nonrecurring financial charges pose risks.

Positive Factors

Debt Reduction

The company ended the year with $240M in cash, and debt was reduced by $180M in Q4.

Financial Performance

Equinox Gold reported Q4 production of 214koz beating BMO/consensus estimates of 205koz/199koz.

Resource Expansion

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

Operational Challenges

Production at Santa Luz and, to a lesser extent, Greenstone, was below forecast, but was more than offset by a strong quarter at other operations.

Production Shortfall

Production at Greenstone and Santa Luz was below expectations by 10% and 36%, respectively.

Equinox Gold Business Overview & Revenue Model

Company Description

Equinox 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 Money

Equinox Gold makes money primarily through the extraction and sale of gold from its mining operations. The company's key revenue streams include the sale of gold bullion and gold concentrates. Equinox Gold's earnings are significantly influenced by the market price of gold, as well as its ability to manage operational costs and maximize production efficiency. The company may also generate additional revenue through joint ventures or partnerships with other mining companies, as well as from the occasional sale of non-core assets or royalties. Strategic acquisitions and the development of new mining projects contribute to the company's growth and revenue potential.

Equinox Gold Financial Statement Overview

Summary

Equinox Gold demonstrates robust financial health with strong revenue growth and profitability. However, challenges such as declining gross profit and fluctuating net income exist. The company has a stable balance sheet with manageable leverage and a positive shift in cash flow management.

Income Statement

Equinox Gold's income statement shows strong financial performance with a healthy TTM gross profit margin of 26.7% and a robust net profit margin of 18.1%. The revenue growth rate from 2024 to TTM is 12.0%, indicating positive revenue trajectory, although the gross profit has decreased compared to 2024. The EBIT and EBITDA margins stand at 14.6% and 27.8% respectively, reflecting effective operational efficiency. However, the net income has decreased compared to 2024, suggesting some volatility in profitability.

Balance Sheet

The balance sheet reveals a stable financial position with an improving debt-to-equity ratio of 0.42 in TTM, indicating manageable leverage. The return on equity (ROE) is a strong 9.2%, showing efficient use of equity to generate profits. The equity ratio is 49.8%, demonstrating a balanced capital structure. However, the decrease in stockholders' equity from 2024 points towards potential risks in maintaining equity levels.

Cash Flow

Equinox Gold's cash flow statement shows resilience with TTM free cash flow turning positive at $7.66 million, compared to negative in 2024, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 1.33, suggesting strong cash-generating efficiency relative to net income. The free cash flow to net income ratio also indicates solid performance. Despite previous years of negative free cash flow, the positive shift in TTM highlights enhanced cash flow management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.70B	1.51B	1.09B	952.20M	1.08B	842.51M
	Gross Profit
453.10M	523.95M	108.98M	75.50M	215.32M	223.62M
	EBIT
247.47M	237.96M	49.62M	10.39M	146.47M	171.39M
	EBITDA
471.94M	948.08M	291.09M	131.53M	338.01M	232.51M
	Net Income Common Stockholders
306.56M	339.29M	28.88M	-106.03M	554.89M	22.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
178.26M	245.47M	284.66M	237.64M	546.03M	344.93M
	Total Assets
6.67B	6.71B	4.35B	3.86B	3.97B	2.67B
	Total Debt
1.39B	1.41B	945.37M	842.10M	567.63M	555.19M
	Net Debt
1.22B	1.17B	753.37M	641.33M	262.13M	210.26M
	Total Liabilities
3.35B	3.32B	1.91B	1.50B	1.38B	1.22B
	Stockholders Equity
3.32B	3.40B	2.44B	2.35B	2.59B	1.45B
Cash Flow		Free Cash Flow
7.66M	-39.89M	-164.84M	-500.60M	-23.45M	43.61M
	Operating Cash Flow
408.76M	372.18M	358.46M	56.47M	320.78M	216.51M
	Investing Cash Flow
-1.14B	-1.11B	-462.67M	-419.00M	-347.57M	-129.32M
	Financing Cash Flow
778.00M	792.48M	92.50M	254.31M	-1.59M	190.08M

Equinox Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 9.07, above the 50-day MA of 9.20, and above the 200-day MA of 8.57, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 75.41 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQX	73 Outperform	$4.33B	11.31	8.27%	―	60.05%	―
Sector *	51 Neutral	$2.02B	-1.14	-21.36%	3.64%	2.88%	-30.57%
NGD		$3.81B	28.50	14.62%	―	―	―
OCANF		$3.39B	11.71	16.21%	0.62%	―	―
WDO	78 Outperform	C$2.95B	15.71	34.73%	―	80.44%	3757.72%
CXB	76 Outperform	C$2.84B	31.77	6.74%	―	20.03%	-46.48%
TORXF		$2.92B	22.29	8.12%	―	―	―

Equinox Gold Corporate Events

Equinox Gold Reports Record Q1 Production and Strategic Merger Plans

Equinox Gold reported a record first-quarter production of over 145,000 ounces of gold, with expectations for increased production throughout the year. The company is advancing its operations at the Greenstone mine and is on track to complete a merger with Calibre Mining, which will create a diversified gold producer with enhanced cash flow and growth potential. Despite a net loss of $75.5 million, the company maintains a strong operational cash flow and is strategically positioned for long-term value creation.

Equinox Gold Shareholders Approve Merger with Calibre Mining

Equinox Gold Corp. announced that its shareholders have approved a business combination with Calibre Mining Corp., along with other resolutions at their annual and special meeting. This transaction, pending regulatory and court approvals, is expected to close by the end of Q2 2025, potentially enhancing Equinox Gold’s market position and operational scale in the gold mining sector.

Equinox Gold to Release Q1 2025 Financial Results

Equinox Gold Corp. is set to release its unaudited financial and operating results for the first quarter of 2025 on May 7, 2025, after market close. The announcement will be followed by a conference call and webcast on May 8, 2025, to discuss the results, which could provide insights into the company’s operational performance and market positioning.

Equinox Gold and Calibre Mining Amend Merger Agreement, Set New Shareholder Meeting Dates

Equinox Gold and Calibre Mining have amended their arrangement agreement for a proposed business combination, offering Calibre shareholders 0.35 Equinox shares per Calibre share. This merger aims to create a major gold producer capable of producing over 1.2 million ounces of gold annually, positioning the combined entity as the second largest gold producer in Canada and among the top 15 globally. The shareholder meetings for both companies have been adjourned to May 1, 2025, to allow more time for voting on the transaction, which has received strong preliminary support from Equinox shareholders.

Equinox Gold Receives Positive Recommendations for Calibre Mining Merger

Equinox Gold has announced that independent proxy advisory firms ISS and Glass Lewis have recommended shareholders to vote in favor of its business combination with Calibre Mining. This merger aims to create a leading gold producer in the Americas with an annual production potential of over 1.2 million ounces and substantial free cash flow. The combined entity is expected to benefit from increased production, a strong growth profile, and significant revaluation potential, enhancing shareholder value.

Equinox Gold Suspends Los Filos Mine Operations Amid Land Access Dispute

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.