Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 28 Mar, 25 | EQX | Buy | USD 6.95 | USD 7.4 | USD 7.9 | 10 days | 13.7% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Equinox Gold Corp. engages in the operation, acquisition, exploration, and development of mineral properties in the Americas. The company primarily explores for gold and silver deposits. It holds 100% interest in the Mesquite Gold Mine and Castle Mountain Gold Mine located in California, the United States; Los Filos Mine Complex located in Guerrero State, Mexico; Aurizona Gold Mine located in Maranhão State, Brazil; Fazenda Gold Mine and Santa Luz Gold Mine located in Bahia State, Brazil; and RDM Gold Mine located in Mina Gerais State, Brazil. 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 based in Vancouver, Canada.
The company reported adjusted EBITDA of $458.2 million, demonstrating solid profitability and effective cost management. This financial strength supports ongoing expansion and debt reduction initiatives.
Equinox Gold achieved 621,893 ounces of gold production in 2024, marking the highest annual output in the company’s history. This milestone reflects increased efficiency and the successful commencement of operations at the Greenstone Mine.
The company has yet to finalize an agreement with one of the three local communities at its Los Filos Mine in Mexico
Equinox Gold ended 2024 with net debt of $1.1 billion, which could limit financial flexibility and increase interest expenses, potentially impacting future investment and expansion plans
The primary risks facing Equinox Gold include uncertainty surrounding the resolution of community agreements at Los Filos, which could lead to indefinite suspension of operations, and high net debt of $1.1 billion, which may impact financial flexibility and increase interest costs
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 6.95 | 5.98 | 7.4 | 7.9 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Equinox Gold Achieves Record Production and Financial Performance
Equinox Gold delivered a record-breaking year in 2024, with total gold production reaching 621,893 ounces and gold sales of 623,579 ounces. The company reported its strongest quarterly production in Q4, with 213,964 ounces produced and 217,678 ounces sold at an average realized price of $2,636 per ounce. Revenue growth and operational efficiency translated into robust financial performance, with income from mine operations totaling $304.0 million for the year. The company also strengthened its production portfolio with the commencement of operations at the Greenstone Mine, contributing over 111,700 ounces of gold in its first partial year of production.
Financial Strength and Capital Allocation
Equinox Gold demonstrated solid financial discipline in 2024, with adjusted EBITDA of $458.2 million and operating cash flow before changes in working capital of $430.2 million. The company maintained strong liquidity, closing the year with $239.3 million in cash and equivalents, despite significant capital expenditures, including $151.1 million in sustaining expenditures and $283.1 million in non-sustaining expenditures. To fund its strategic acquisitions, Equinox Gold secured a $500 million term loan and completed a $299 million bought deal financing, reinforcing its ability to manage large-scale investments.
Strategic Growth Initiatives
The company made significant strides in expansion and development. In 2024, Equinox Gold consolidated 100% ownership of the Greenstone Mine through a $962.6 million acquisition, further solidifying its asset base. Development efforts included the initiation of underground portal and decline construction at Aurizona, as well as ongoing permitting and engineering for the Castle Mountain expansion. The company also streamlined operations by integrating the Fazenda and Santa Luz mines into a single operational unit, the Bahia Complex. Furthermore, successful exploration efforts led to reserve replacement through 75,175 meters of drilling and strategic mine planning updates.
Challenges at Los Filos and Operational Setbacks
Despite its successes, Equinox Gold faced operational challenges, particularly at the Los Filos Mine in Mexico. While agreements were reached with two of three local communities, one remains unresolved, putting continued operations at risk. If negotiations do not conclude successfully in the near term, the company may indefinitely suspend operations at the mine. Additionally, the company experienced a geotechnical event at the Piaba open pit in Aurizona, temporarily halting mining operations in April. This disruption required stockpiled ore processing and the acceleration of mining at the Tatajuba deposit before operations at Piaba resumed in November.
Commitment to Responsible Mining and Safety
Equinox Gold remained committed to responsible mining practices in 2024, achieving a 26% improvement in its total recordable injury frequency rate (TRIFR) and a 31% reduction in significant environmental incidents compared to 2023. Despite these improvements, the company reported ten lost-time injuries and one fatality, highlighting the need for continued safety enhancements. Philanthropic initiatives also played a role in Equinox Gold’s sustainability efforts, including the “Ride to Greenstone” fundraiser, which raised C$1.24 million for the Geraldton District Hospital and over C$200,000 for charities in Brazil and the USA.
Outlook for 2025 and Debt Reduction Plans
Equinox Gold has set a production target of 635,000 to 750,000 ounces of gold for 2025, with projected cash costs between $1,075 and $1,175 per ounce and all-in sustaining costs (AISC) between $1,455 and $1,550 per ounce. The company plans to allocate $411 million in capital expenditures, with $310 million earmarked for sustaining projects and $102 million for non-sustaining initiatives. A key priority for the year will be reducing corporate debt by leveraging increased cash flow from operations, particularly amid favorable gold price conditions.
Technical Observation (on the daily chart):
EQX's stock price is currently close to its rising trendline support levels, indicating the potential for further upward movement. The 14-day Relative Strength Index (RSI) is above the midpoint, reinforcing a positive outlook for the stock. Furthermore, the stock is trading above its 50-period simple moving average, which is expected to act as a support level in the near term as price fluctuations occur.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to Equinox Gold Corp. (NYSE: EQX) at its current market price of USD 6.95 as of March 28, 2025 (8:20 am PDT).
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Gold
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| EQX Equinox Gold Corp |
0.26 3.99% | 6.78 | 31.81 | 22.52 | 1.42 | 0.63 | 2.06 | 7.97 |
| NEM Newmont Goldcorp Corp |
0.78 1.46% | 53.81 | - | 11.61 | 4.29 | 2.48 | 4.55 | 26.44 |
| ZIJMF Zijin Mining Group Co Ltd-H |
- -% | 2.20 | 16.00 | 16.89 | 0.15 | 2.75 | 0.20 | 1.78 |
| ZIJMY Zijin Mining Group Co Ltd ADR |
0.94 2.07% | 46.34 | 15.04 | 17.39 | 0.15 | 2.83 | 0.20 | 1.78 |
| AEM Agnico Eagle Mines Limited |
3.20 2.80% | 117.50 | 42.69 | 15.65 | 5.47 | 2.04 | 5.49 | 12.90 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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