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Equinox Gold Stock Trading Cheaper Than Industry: Should You Buy Now?
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Key Takeaways
EQX trades at a 51.2% discount to its industry average and below key peer valuations.
EQX is expanding production capacity and acquiring Calibre to boost output past 1.2 million ounces annually.
Despite high costs and Los Filos suspension, EQX expects lower AISC in H2 with improved cash flow.
Equinox Gold Corp.'s(EQX - Free Report) stock looks attractive from a valuation perspective. EQX is currently trading at a forward price/earnings of 6.54X, a roughly 51.2% discount to the Zacks Mining – Gold industry’s average of 13.4X. EQX is trading at a discount to its peers, B2Gold Corp. (BTG - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and IAMGOLD Corporation (IAG - Free Report) . Equinox Gold, B2Gold, Eldorado Gold and IAMGOLD have a Value Score of A, each.
EQX’s P/E F12M Vs. Industry, BTG, EGO and IAG
Image Source: Zacks Investment Research
Technical indicators show that EQX stock broke out above its 50-day simple moving average (SMA) on May 30, 2025. It is also currently trading above the 200-day SMA. The 50-day SMA continues to read higher than the 200-day SMA following a golden crossover on Jan. 29, 2025, indicating a bullish trend.
EQX Trades Above 50-Day SMA
Image Source: Zacks Investment Research
Equinox Gold’s cheap valuation should lure investors seeking value. But is the time right to buy EQX’s shares based on its attractive valuation? Let’s delve deeper.
Equinox Gold has rapidly evolved into a diversified, growth-focused gold producer. With operating mines spanning Canada, the United States and Brazil, it is targeting over one million ounces of annual production through an ambitious pipeline of expansions. It currently has five producing mines and three expansion and development projects that are expected to add roughly 300,000 ounces of annual production over the next few years.
Greenstone, which achieved commercial production last November, is ramping up toward the full production target rate of 196,000 tons per day (tpd), which is expected in the second half of 2025. Greenstone is expected to produce around 390,000 ounces of gold annually at full production. Also, an underground expansion at the Aurizona mine in Brazil will extend the mine life to 11 years and expand gold production with an average annual gold production of 137,000 ounces. The Phase 2 project at Castle Mountain in California is expected to increase production to an average of 218,000 ounces annually over a 14-year Phase 2 mine life, with further potential for expansion from exploration.
Aligning with its growth strategy, Equinox Gold, in February 2025, agreed to acquire all outstanding common shares of Calibre Mining Corp. Through this transaction, Equinox Gold will enhance its asset base with operating mines in Nicaragua and the United States, as well as earlier-stage assets in the United States. Also, the acquisition includes the Valentine Gold Mine in Newfoundland, Canada, which is expected to commence gold production in the third quarter of 2025. The deal received approval from both EQX shareholders and Calibre securityholders on May 1, 2025, and is expected to close around the end of June 2025.
The combination of Greenstone and Valentine Gold will create a Canadian gold mining powerhouse with more than 1.2 million ounces of annual production, and benefit from low-cost production growth, increased cash flow, lower operating costs and a stronger balance sheet. The combined entity, with around 23 million ounces of proven and probable gold reserves, will be well-placed to capitalize on the favorable gold price environment while deleveraging the balance sheet using strong cash flow generation.
Higher Gold Prices to Drive EQX’s Profitability
Gold prices have rallied roughly 27% this year, largely attributable to aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump that have intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump’s policies. Prices of the yellow metal catapulted to a record high of $3,500 per ounce on April 22 as the U.S. dollar tumbled amid President Trump's criticism of Federal Reserve Chair Jerome Powell and call for an immediate reduction in interest rates. Increased purchases by central banks, hopes of interest rate cuts, and geopolitical tensions are factors expected to help the yellow metal sustain the rally.
While gold prices have fallen from their April 2025 highs, they remain favorable. The yellow metal is gaining from safe-haven demand triggered by trade and geopolitical uncertainties, and is currently hovering above the $3,300 per ounce level. Higher gold prices are expected to boost EQX’s profitability and drive cash flow generation.
Equinox Gold’s Strong Financial Health Bodes Well
EQX has a strong balance sheet and generates substantial cash flows, which allows it to fund its growth projects. The company ended the first quarter with strong liquidity, including roughly $173 million in unrestricted cash and $65 million in an undrawn credit facility. It also generated cash flow from operations (before changes in non-cash working capital) of $73.3 million in the quarter. The company expects to pursue deleveraging in the second half of 2025, utilizing strong cash flow generation partly through the ramp-up of Greenstone.
Higher Costs May Strain EQX’s Margins
EQX’s first-quarter results reveal a sharp uptick in all-in-sustaining costs (AISC) — a key indicator of cost efficiency in mining. AISC climbed to $2,065 per ounce, up roughly 6% from $1,950 per ounce in the year-ago quarter. Excluding the results from the Los Filos mine in Mexico, which has been indefinitely suspended after the expiry of its land access agreement, AISC still climbed 9% to $1,979 per ounce, underscoring operational cost inflation that threatens margins. This upside reflects higher unit costs in Brazil, and higher costs and unplanned maintenance due to winter challenges at the Greenstone mine in Canada.
Higher operational costs, partly due to the suspension of Los Filos mine operations, may continue to act as headwinds in the second quarter. Equinox Gold expects roughly $35 million in mine suspension and care and maintenance charges at Los Filos in the second quarter. Nevertheless, there is a silver lining as the company envisions costs whittling down with rising production in the second half of 2025.
Equinox Gold Stock Outperforms S&P 500
Thanks to the rally in gold prices, EQX’s shares have racked up a gain of 36% over the past year, underperforming the industry’s 51.7% increase but topping the S&P 500’s rise of 11.2%. Among its peers, B2Gold, Eldorado Gold and IAMGOLD have rallied 39.1%, 43.2% and 105.9%, respectively, over the same period.
EQX’s One-year Price Performance
Image Source: Zacks Investment Research
What EQX’s Earnings Estimates Indicate
Earnings estimates for EQX have been revised downward over the past 30 days. The Zacks Consensus Estimate for 2025 and 2026 has been revised lower over the same time frame.
The Zacks Consensus Estimate for EQX’s 2025 and 2026 earnings implies a year-over-year rise of 230% and 106%, respectively.
Image Source: Zacks Investment Research
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Final Thoughts: Hold Onto EQX Stock
With a strong expansion roadmap and an accretive merger on deck, EQX is positioning itself as a high-growth gold player. Higher gold prices and the ramp-up of Greenstone are expected to boost its profitability and drive cash flow generation. Despite EQX’s attractive valuation, its high costs warrant caution. Cost pressures may linger into the second quarter, but the second half of 2025 promises improved unit costs and operational discipline. Therefore, holding onto this Zacks Rank #3 (Hold) stock will be prudent for investors to capture the upside from production expansion and merger synergies.
Image: Bigstock
Equinox Gold Stock Trading Cheaper Than Industry: Should You Buy Now?
Key Takeaways
Equinox Gold Corp.'s (EQX - Free Report) stock looks attractive from a valuation perspective. EQX is currently trading at a forward price/earnings of 6.54X, a roughly 51.2% discount to the Zacks Mining – Gold industry’s average of 13.4X. EQX is trading at a discount to its peers, B2Gold Corp. (BTG - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and IAMGOLD Corporation (IAG - Free Report) . Equinox Gold, B2Gold, Eldorado Gold and IAMGOLD have a Value Score of A, each.
EQX’s P/E F12M Vs. Industry, BTG, EGO and IAG
Technical indicators show that EQX stock broke out above its 50-day simple moving average (SMA) on May 30, 2025. It is also currently trading above the 200-day SMA. The 50-day SMA continues to read higher than the 200-day SMA following a golden crossover on Jan. 29, 2025, indicating a bullish trend.
EQX Trades Above 50-Day SMA
Equinox Gold’s cheap valuation should lure investors seeking value. But is the time right to buy EQX’s shares based on its attractive valuation? Let’s delve deeper.
Expansion Actions, Calibre Merger Underpin EQX’s Growth
Equinox Gold has rapidly evolved into a diversified, growth-focused gold producer. With operating mines spanning Canada, the United States and Brazil, it is targeting over one million ounces of annual production through an ambitious pipeline of expansions. It currently has five producing mines and three expansion and development projects that are expected to add roughly 300,000 ounces of annual production over the next few years.
Greenstone, which achieved commercial production last November, is ramping up toward the full production target rate of 196,000 tons per day (tpd), which is expected in the second half of 2025. Greenstone is expected to produce around 390,000 ounces of gold annually at full production. Also, an underground expansion at the Aurizona mine in Brazil will extend the mine life to 11 years and expand gold production with an average annual gold production of 137,000 ounces. The Phase 2 project at Castle Mountain in California is expected to increase production to an average of 218,000 ounces annually over a 14-year Phase 2 mine life, with further potential for expansion from exploration.
Aligning with its growth strategy, Equinox Gold, in February 2025, agreed to acquire all outstanding common shares of Calibre Mining Corp. Through this transaction, Equinox Gold will enhance its asset base with operating mines in Nicaragua and the United States, as well as earlier-stage assets in the United States. Also, the acquisition includes the Valentine Gold Mine in Newfoundland, Canada, which is expected to commence gold production in the third quarter of 2025. The deal received approval from both EQX shareholders and Calibre securityholders on May 1, 2025, and is expected to close around the end of June 2025.
The combination of Greenstone and Valentine Gold will create a Canadian gold mining powerhouse with more than 1.2 million ounces of annual production, and benefit from low-cost production growth, increased cash flow, lower operating costs and a stronger balance sheet. The combined entity, with around 23 million ounces of proven and probable gold reserves, will be well-placed to capitalize on the favorable gold price environment while deleveraging the balance sheet using strong cash flow generation.
Higher Gold Prices to Drive EQX’s Profitability
Gold prices have rallied roughly 27% this year, largely attributable to aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump that have intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump’s policies. Prices of the yellow metal catapulted to a record high of $3,500 per ounce on April 22 as the U.S. dollar tumbled amid President Trump's criticism of Federal Reserve Chair Jerome Powell and call for an immediate reduction in interest rates. Increased purchases by central banks, hopes of interest rate cuts, and geopolitical tensions are factors expected to help the yellow metal sustain the rally.
While gold prices have fallen from their April 2025 highs, they remain favorable. The yellow metal is gaining from safe-haven demand triggered by trade and geopolitical uncertainties, and is currently hovering above the $3,300 per ounce level. Higher gold prices are expected to boost EQX’s profitability and drive cash flow generation.
Equinox Gold’s Strong Financial Health Bodes Well
EQX has a strong balance sheet and generates substantial cash flows, which allows it to fund its growth projects. The company ended the first quarter with strong liquidity, including roughly $173 million in unrestricted cash and $65 million in an undrawn credit facility. It also generated cash flow from operations (before changes in non-cash working capital) of $73.3 million in the quarter. The company expects to pursue deleveraging in the second half of 2025, utilizing strong cash flow generation partly through the ramp-up of Greenstone.
Higher Costs May Strain EQX’s Margins
EQX’s first-quarter results reveal a sharp uptick in all-in-sustaining costs (AISC) — a key indicator of cost efficiency in mining. AISC climbed to $2,065 per ounce, up roughly 6% from $1,950 per ounce in the year-ago quarter. Excluding the results from the Los Filos mine in Mexico, which has been indefinitely suspended after the expiry of its land access agreement, AISC still climbed 9% to $1,979 per ounce, underscoring operational cost inflation that threatens margins. This upside reflects higher unit costs in Brazil, and higher costs and unplanned maintenance due to winter challenges at the Greenstone mine in Canada.
Higher operational costs, partly due to the suspension of Los Filos mine operations, may continue to act as headwinds in the second quarter. Equinox Gold expects roughly $35 million in mine suspension and care and maintenance charges at Los Filos in the second quarter. Nevertheless, there is a silver lining as the company envisions costs whittling down with rising production in the second half of 2025.
Equinox Gold Stock Outperforms S&P 500
Thanks to the rally in gold prices, EQX’s shares have racked up a gain of 36% over the past year, underperforming the industry’s 51.7% increase but topping the S&P 500’s rise of 11.2%. Among its peers, B2Gold, Eldorado Gold and IAMGOLD have rallied 39.1%, 43.2% and 105.9%, respectively, over the same period.
EQX’s One-year Price Performance
What EQX’s Earnings Estimates Indicate
Earnings estimates for EQX have been revised downward over the past 30 days. The Zacks Consensus Estimate for 2025 and 2026 has been revised lower over the same time frame.
The Zacks Consensus Estimate for EQX’s 2025 and 2026 earnings implies a year-over-year rise of 230% and 106%, respectively.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Final Thoughts: Hold Onto EQX Stock
With a strong expansion roadmap and an accretive merger on deck, EQX is positioning itself as a high-growth gold player. Higher gold prices and the ramp-up of Greenstone are expected to boost its profitability and drive cash flow generation. Despite EQX’s attractive valuation, its high costs warrant caution. Cost pressures may linger into the second quarter, but the second half of 2025 promises improved unit costs and operational discipline. Therefore, holding onto this Zacks Rank #3 (Hold) stock will be prudent for investors to capture the upside from production expansion and merger synergies.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.