Core Insights - Equinox Gold Corp. (EQX) achieved a record gold production of 145,290 ounces in Q1, marking a 30% increase from 111,725 ounces in the same quarter last year, driven by the ramp-up at Greenstone [1][6] - For the full year 2025, EQX expects consolidated gold production between 785,000 and 915,000 ounces, excluding the suspended Los Filos mine and the Valentine mine, which is set to start production in Q3 2025 [2][6] - The company anticipates improved production in the second half of 2025 despite current milling grades and throughput at Greenstone being below expectations [2] Company Performance - EQX's year-to-date stock performance has increased by 16.1%, while the Zacks Mining – Gold industry has risen by 56.6% [5] - The forward 12-month earnings multiple for EQX is 7.78, which is approximately 42.5% lower than the industry average of 13.52 [7] - The Zacks Consensus Estimate indicates a significant year-over-year earnings rise of 135% for 2025 and 123.4% for 2026, although EPS estimates have been trending lower over the past 60 days [8]

Core Insights - Equinox Gold Corp. has completed its merger with Calibre Mining Corp., forming a diversified gold producer focused on the Americas, with significant operations in Canada [1][7] - The combined entity will be the second-largest gold producer in Canada, with a production capacity exceeding 1.2 million ounces annually from its Greenstone and Valentine mines [3][7] Company Overview - The merger enhances Equinox Gold's asset base, adding operating mines in Nicaragua and the United States, along with earlier-stage projects in the U.S. [2] - The Valentine Gold Mine in Newfoundland is projected to begin production in Q3 2025 [2] Production and Financial Outlook - The integrated company will benefit from low-cost production growth, increased cash flow, and a stronger balance sheet, supported by approximately 23 million ounces of proven and probable gold reserves [3][7] - The Zacks Consensus Estimate indicates a significant year-over-year earnings increase of 135% for 2025 and 123.4% for 2026, although EPS estimates have been trending lower recently [8] Valuation Metrics - Equinox Gold is currently trading at a forward 12-month earnings multiple of 6.31, which is about 55.2% lower than the industry average of 14.08 [11] - The company holds a Value Score of B, indicating potential undervaluation relative to its peers [11] Industry Context - The merger reflects a broader trend of consolidation in the gold mining sector, with notable transactions such as Newmont Corporation's acquisition of Newcrest Mining and Gold Fields Limited's acquisition of Osisko Mining [4][5] - These consolidations aim to create stronger portfolios and enhance operational efficiencies within favorable mining jurisdictions [4][5]

Core Viewpoint - Equinox Gold Corp. has successfully completed the acquisition of Calibre Mining Corp., creating a diversified gold producer focused on the Americas with significant growth potential [1][2]. Company Overview - The merger has resulted in a company with a portfolio of mines across five countries, highlighted by two major Canadian gold mines: Greenstone Gold Mine in Ontario and Valentine Gold Mine in Newfoundland & Labrador [2]. - Valentine Gold Mine is nearing completion, with first gold production expected by the end of Q3 2025 [2]. - With both Greenstone and Valentine operating at full capacity, Equinox Gold is positioned to become the second largest gold producer in Canada [2]. Leadership Changes - The Board of Directors of Equinox Gold has seen new appointments from Calibre, including Blayne Johnson, Doug Forster, Omaya Elguindi, and Mike Vint, while retaining several existing directors [4]. - The leadership team will include Greg Smith as CEO, Darren Hall as President and COO, and Peter Hardie as CFO [4]. Strategic Importance - The merger is described as transformative, combining the strengths of both companies to enhance production capabilities and long-term value for shareholders [5]. - Equinox Gold plans to delist Calibre shares from the Toronto Stock Exchange and cease its public reporting requirements [5]. Shareholder Information - Calibre shareholders will automatically receive Equinox Gold shares in their trading accounts within two weeks of the merger closing [6]. - Shareholders with physical certificates must submit a Letter of Transmittal to receive their Equinox Gold shares [6]. Advisory Roles - BMO Capital Markets and GenCap Mining Advisory served as financial advisors to Equinox Gold, while multiple firms provided advisory services to Calibre [7].

Valuation and Market Position - Equinox Gold Corp. (EQX) is currently trading at a forward price/earnings ratio of 6.54X, which represents a 51.2% discount to the Zacks Mining – Gold industry's average of 13.4X [1][5] - EQX's valuation is lower than key peers such as B2Gold Corp. (BTG), Eldorado Gold Corporation (EGO), and IAMGOLD Corporation (IAG), all of which have a Value Score of A [1][5] Technical Indicators - EQX stock broke out above its 50-day simple moving average (SMA) on May 30, 2025, and is currently trading above the 200-day SMA, indicating a bullish trend [2][3] Production Expansion and Growth Strategy - Equinox Gold is expanding production capacity and acquiring Calibre Mining Corp. to boost output beyond 1.2 million ounces annually [5][10] - The company has five producing mines and three expansion projects expected to add approximately 300,000 ounces of annual production in the coming years [8] - Greenstone mine is ramping up towards a full production target of 196,000 tons per day, expected to produce around 390,000 ounces of gold annually at full capacity [9] - The acquisition of Calibre includes the Valentine Gold Mine, which is anticipated to start production in Q3 2025, further enhancing EQX's asset base [10][11] Financial Performance and Cash Flow - EQX ended the first quarter with approximately $173 million in unrestricted cash and $65 million in an undrawn credit facility, indicating strong liquidity [15] - The company generated cash flow from operations of $73.3 million in the first quarter, supporting its growth projects [15] Gold Price Impact - Gold prices have increased by roughly 27% this year, driven by global trade tensions and central bank purchases, which are expected to enhance EQX's profitability [12][14] - Despite a decline from April 2025 highs, gold prices remain favorable, hovering above $3,300 per ounce, which is anticipated to boost EQX's cash flow generation [14] Cost Challenges - EQX's all-in-sustaining costs (AISC) rose to $2,065 per ounce, a 6% increase from the previous year, indicating operational cost inflation [16] - The suspension of operations at the Los Filos mine is expected to contribute to ongoing cost pressures, with approximately $35 million in charges anticipated in Q2 2025 [17] Stock Performance - EQX shares have gained 36% over the past year, underperforming the industry average of 51.7% but outperforming the S&P 500's rise of 11.2% [18] Earnings Estimates - Earnings estimates for EQX have been revised downward recently, but the Zacks Consensus Estimate for 2025 and 2026 implies year-over-year increases of 230% and 106%, respectively [21] Conclusion - With a strong expansion roadmap and an upcoming merger, EQX is positioned for growth, although high costs may pose challenges in the near term [22]

Core Viewpoint - Equinox Gold Corp. has updated its 2025 gold production and cost guidance, reflecting the business combination with Calibre Mining Corp. and slower-than-expected ramp-up at the Greenstone Gold Mine, projecting a pro forma production of 785,000 to 915,000 ounces of gold with total cash costs between $1,400 and $1,500 per ounce and all-in sustaining costs between $1,800 and $1,900 per ounce [2][3][5]. Production and Cost Guidance - The pro forma full-year 2025 production is expected to be between 785,000 and 915,000 ounces of gold, with total cash costs of $1,400 to $1,500 per ounce and all-in sustaining costs of $1,800 to $1,900 per ounce [2][3]. - Greenstone Gold Mine's revised production guidance is set at 220,000 to 260,000 ounces of gold due to slower ramp-up and operational challenges [3][4]. - For Q2 2025, Equinox Gold anticipates consolidated production of 135,000 to 145,000 ounces, including 45,000 to 50,000 ounces from Greenstone [3]. Individual Mine Contributions - Greenstone: 220,000 - 260,000 ounces, TCC of $1,275 - $1,375, AISC of $1,700 - $1,800, Growth Capital of $80 - $85 million, Exploration of $2 - $3 million [4][6]. - Brazil: 250,000 - 270,000 ounces, TCC of $1,725 - $1,825, AISC of $2,275 - $2,375, Growth Capital of $35 - $40 million, Exploration of $21 - $24 million [4][6]. - Mesquite: 85,000 - 95,000 ounces, TCC of $1,200 - $1,300, AISC of $1,800 - $1,900, Growth Capital of $10 - $15 million, Exploration of $2 - $3 million [4][6]. - Nicaragua: 200,000 - 250,000 ounces, TCC of $1,200 - $1,300, AISC of $1,400 - $1,500, Growth Capital of $60 - $70 million, Exploration of $25 - $30 million [4][6]. - Pan: 30,000 - 40,000 ounces, TCC of $1,600 - $1,700, AISC of $1,600, Growth Capital of $5 - $10 million, Exploration of $5 - $10 million [4][6]. Comparison with Previous Guidance - The original guidance for Greenstone was 300,000 - 350,000 ounces, TCC of $790 - $890, and AISC of $1,045 - $1,145, indicating a significant downward revision [7]. - Consolidated original guidance projected 635,000 - 750,000 ounces, TCC of $1,075 - $1,175, and AISC of $1,455 - $1,550, which has also been adjusted downwards [7]. Future Outlook - The company is focusing on improving operational performance at Greenstone, with a 25% increase in mining rates observed in May 2025 compared to Q1 2025 [3]. - Construction and commissioning at the Valentine Gold Mine are on schedule, with first gold expected by the end of Q3 2025 [3].

Core Insights - Equinox Gold Corp. (EQX) reported a significant increase in all-in-sustaining costs (AISC) to $2,065 per ounce, a rise of approximately 6% from $1,950 per ounce in the same quarter last year, despite a 76% increase in revenues driven by a 38% rise in realized gold prices and a 27% increase in ounces sold [1][7] Financial Performance - Revenues surged by 76% due to higher gold prices and increased sales volume [1] - AISC excluding the Los Filos mine, which is indefinitely suspended, increased by 9% to $1,979 per ounce, indicating ongoing operational cost inflation [2] - The company anticipates around $35 million in charges related to the suspension and maintenance of the Los Filos mine in the second quarter [3] Operational Challenges - Higher operational costs are attributed to the suspension of the Los Filos mine and unplanned maintenance at the Greenstone mine in Canada, which faced winter challenges [2][3] - The company expects to achieve cost efficiency through increased production in the second half of 2025 and synergies from the merger with Calibre Mining Corp. [3] Industry Comparison - B2Gold Corp. (BTG) reported AISC of $1,533 per ounce, reflecting a 14% increase year-over-year due to cost inflation across all sites [4] - Agnico Eagle Mines Limited (AEM) experienced a slight decline in AISC by 0.6% in the first quarter, but forecasts an increase for the remainder of 2025 [5] Valuation Metrics - EQX is currently trading at a forward 12-month earnings multiple of 6.51, which is approximately 52.2% lower than the industry average of 13.62 [9] - The Zacks Consensus Estimate projects a year-over-year earnings increase of 230% for 2025 and 106% for 2026, although EPS estimates have been trending lower recently [10]

Group 1 - The article discusses the investment philosophy that "a rising tide lifts all boats," particularly in the gold mining sector, suggesting that even underperforming mining companies should benefit from overall market trends [1] - The focus is on identifying undervalued stocks with a balance of risk and reward, emphasizing that the best investment ideas are often the simplest and contrarian approaches may yield better results [1]

Core Viewpoint - The recent U.S.-China trade deal has led to a dip in gold prices from historic highs, yet gold stocks remain a strong hedge against market volatility, benefiting from the commodity's peak [1]. Gold Stocks Overview - Several gold stocks have been recognized on the Zacks Rank 1 (Strong Buy) list, indicating their strong performance amid the commodity's historic peak [2]. Company Analysis: Agnico Eagle Mines (AEM) - Agnico Eagle Mines operates one of Canada's largest gold mines and has seen a 10% dip in stock price, which is considered an intriguing buying opportunity as the stock has increased over 30% year-to-date and 100% over the last three years [4][5]. - The company is projected to produce over 3 million ounces of gold in 2024, with gold reserves totaling 1.27 million tons [5]. Company Analysis: Equinox Gold (EQX) - Equinox Gold is trading at $6 per share, with a favorable risk-to-reward profile due to its growth potential in gold, copper, and silver mining [7]. - The company expects high double-digit growth, trading at 6X forward earnings and under 2X sales, with EPS projected to increase by 400% in fiscal 2025 and another 24% in FY26 [8]. Company Analysis: Harmony Gold (HMY) - Harmony Gold, South Africa's largest gold miner, has seen its stock triple in the last three years, with a year-to-date increase of over 70% despite an 11% drop in May [9][10]. - The company achieved a record operating free cash flow of $579 million in Q1 and provided a record interim dividend payout of $78 million, with a current annual dividend yield of 1.36% [12]. Investment Opportunity - The current market conditions present a "buy the dip" opportunity for these highly ranked gold stocks, which are expected to benefit from the historic surge in gold prices despite improved U.S. trade relations bringing more market stability [13].

Core Insights - Equinox Gold reported its highest first-quarter production in history, producing over 145,000 ounces of gold, with expectations for increased production each quarter throughout the year [2][3] - The company is advancing towards closing a merger with Calibre Mining, which will create a diversified gold producer focused on the Americas, anchored by two long-life Canadian gold mines [3] Operational Highlights - Gold production for Q1 2025 was 145,290 ounces, while gold sold was 147,920 ounces at an average realized price of $2,858 per ounce [7][16] - Total cash costs were $1,769 per ounce, and all-in sustaining costs (AISC) were $2,065 per ounce [7][16] - The company reported two lost-time injuries and a total recordable injury frequency rate of 1.95 for the rolling 12-month period [7] Financial Performance - Cash flow from operations before changes in non-cash working capital was $73.3 million, with a net loss of $75.5 million or $0.17 per share [5][24] - Revenue for Q1 2025 was $423.7 million, a 76% increase compared to Q1 2024, driven by a 38% increase in the realized gold price and a 27% increase in gold ounces sold [20][21] - Adjusted EBITDA for Q1 2025 was $137.9 million, significantly higher than $52.2 million in Q1 2024 [25][48] Corporate Developments - The company entered into a definitive arrangement agreement for a business combination with Calibre Mining, which is expected to close in Q2 2025 [8][13] - Equinox Gold shareholders voted in favor of the Calibre transaction, authorizing the issuance of up to 296,838,303 shares [13] - The company has suspended operations at Los Filos due to unresolved land access agreements, impacting its production guidance for 2025 [12][27] Guidance and Future Outlook - The company provided 2025 production guidance of 635,000 to 750,000 ounces of gold at cash costs of $1,075 to $1,175 per ounce and AISC of $1,455 to $1,550 per ounce [12] - Sustaining and non-sustaining expenditure guidance for 2025 is set at $412 million, with $310 million for sustaining expenditures and $102 million for non-sustaining expenditures [12]

Management's Discussion and Analysis For the three months ended March 31, 2025 (Expressed in United States Dollars, unless otherwise stated) Management's Discussion and Analysis For the three months ended March 31, 2025 This Management's Discussion and Analysis ("MD&A") of the financial position and results of operations for Equinox Gold Corp. (the "Company" or "Equinox Gold") should be read in conjunction with the audited consolidated financial statements of the Company as at and for the year ended Decembe ...