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EQX and Calibre Merger Closes: Will This Spark a New Growth Chapter?
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Key Takeaways
EQX has completed its merger with Calibre, creating a diversified gold producer across the Americas.
The merger centers on Greenstone and Valentine, positioning EQX as Canada's second-largest gold producer.
Equinox Gold aims to boost output, cash flow, and balance sheet strength with 23M oz in gold reserves.
Equinox Gold Corp. (EQX - Free Report) has closed its transformative business combination with Calibre Mining Corp., creating an Americas-focused diversified gold producer anchored by two high-quality Canadian gold mines, Greenstone and Valentine. The integrated entity will become the second-largest gold producer in Canada with Greenstone and Valentine operating at nameplate capacity.
Through this combination, 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. The Valentine Gold Mine in Newfoundland, Canada, is expected to commence gold production in the third quarter of 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.
This move echoes a broader wave of consolidation in the gold mining industry. Other notable transactions include Newmont Corporation’s (NEM - Free Report) purchase of Newcrest Mining Limited in 2023. The acquisition of Newcrest has created an industry-leading portfolio with a multi-decade gold and copper production profile in the most favorable mining jurisdictions globally. The combination of Newmont and Newcrest is expected to deliver significant value for its shareholders and generate meaningful synergies. Newmont has achieved $500 million in annual run-rate synergies, following the buyout.
Also, Gold Fields Limited (GFI - Free Report) acquired Osisko Mining in 2024. This move is in sync with Gold Fields’ goal to strengthen its portfolio through investments in high-quality and long-life assets. The acquisition enables Gold Fields to expand its presence in Quebec, a Tier 1 mining jurisdiction. It will allow the company to use its expertise in greenfields exploration, project development and underground mining.
EQX’s Price Performance, Valuation & Estimates
Equinox Gold has gained 24.1% year to date against the Zacks Mining – Gold industry’s rise of 55.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, EQX is currently trading at a forward 12-month earnings multiple of 6.31, a roughly 55.2% discount to the industry average of 14.08X. It carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EQX’s 2025 and 2026 earnings implies a year-over-year rise of 135% and 123.4%, respectively. The EPS estimates for 2025 and 2026 have been trending lower over the past 60 days.
Image Source: Zacks Investment Research
EQX stock currently carries a Zacks Rank #5 (Strong Sell).
Image: Bigstock
EQX and Calibre Merger Closes: Will This Spark a New Growth Chapter?
Key Takeaways
Equinox Gold Corp. (EQX - Free Report) has closed its transformative business combination with Calibre Mining Corp., creating an Americas-focused diversified gold producer anchored by two high-quality Canadian gold mines, Greenstone and Valentine. The integrated entity will become the second-largest gold producer in Canada with Greenstone and Valentine operating at nameplate capacity.
Through this combination, 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. The Valentine Gold Mine in Newfoundland, Canada, is expected to commence gold production in the third quarter of 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.
This move echoes a broader wave of consolidation in the gold mining industry. Other notable transactions include Newmont Corporation’s (NEM - Free Report) purchase of Newcrest Mining Limited in 2023. The acquisition of Newcrest has created an industry-leading portfolio with a multi-decade gold and copper production profile in the most favorable mining jurisdictions globally. The combination of Newmont and Newcrest is expected to deliver significant value for its shareholders and generate meaningful synergies. Newmont has achieved $500 million in annual run-rate synergies, following the buyout.
Also, Gold Fields Limited (GFI - Free Report) acquired Osisko Mining in 2024. This move is in sync with Gold Fields’ goal to strengthen its portfolio through investments in high-quality and long-life assets. The acquisition enables Gold Fields to expand its presence in Quebec, a Tier 1 mining jurisdiction. It will allow the company to use its expertise in greenfields exploration, project development and underground mining.
EQX’s Price Performance, Valuation & Estimates
Equinox Gold has gained 24.1% year to date against the Zacks Mining – Gold industry’s rise of 55.4%.
From a valuation standpoint, EQX is currently trading at a forward 12-month earnings multiple of 6.31, a roughly 55.2% discount to the industry average of 14.08X. It carries a Value Score of B.
The Zacks Consensus Estimate for EQX’s 2025 and 2026 earnings implies a year-over-year rise of 135% and 123.4%, respectively. The EPS estimates for 2025 and 2026 have been trending lower over the past 60 days.
EQX stock currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.