Equinox Gold trading at discount, expanding production, high growth potential

From Zacks Investment Research: 2025-06-12 08:40:00

Equinox Gold Corp. (EQX) is trading at a 51.2% discount to its industry average and below key peer valuations. Despite high costs and mine suspension, EQX expects lower AISC in the second half of the year with improved cash flow. EQX is expanding production capacity and acquiring Calibre to boost output past 1.2 million ounces annually. The company’s stock looks attractive from a valuation perspective, trading at a forward price/earnings of 6.54X.

Equinox Gold is rapidly evolving into a growth-focused gold producer with ambitious expansion projects and acquisitions. The company aims to target over one million ounces of annual production through its operating mines in Canada, the United States, and Brazil. The recent acquisition of Calibre Mining Corp. will enhance EQX’s asset base and create a Canadian gold mining powerhouse with more than 1.2 million ounces of annual production.

Gold prices have rallied roughly 27% this year, benefiting companies like Equinox Gold. Higher gold prices are expected to drive EQX’s profitability and cash flow generation. Despite higher operational costs in the first quarter, EQX remains financially strong with substantial cash flows and a plan to deleverage in the second half of the year. The company’s stock has outperformed the S&P 500 over the past year.

Although EQX’s earnings estimates have been revised downward, the Zacks Consensus Estimate for 2025 and 2026 still imply significant year-over-year growth. With a strong expansion roadmap and merger on the horizon, EQX is positioning itself as a high-growth gold player. Investors may want to hold onto this Zacks Rank #3 (Hold) stock to benefit from production expansion and merger synergies.



Read more at Zacks Investment Research: Equinox Gold Stock Trading Cheaper Than Industry: Should You Buy Now? – June 12, 2025