Equinox Gold vs. Eldorado Gold: Which Gold Miner is Shining Brighter?

Core Viewpoint - Equinox Gold Corp. (EQX) and Eldorado Gold Corporation (EGO) are mid-tier diversified gold producers in Canada, with favorable gold prices currently above $3,300 per ounce despite a decline from April 2025 highs, making them relevant for investors in the precious metals sector [1][2]. Equinox Gold (EQX) - EQX has evolved into a diversified, growth-focused gold producer with a target of over one million ounces of annual production through expansions [4]. - The company operates five mines and has three expansion projects expected to add approximately 300,000 ounces of annual production in the coming years [4]. - The Greenstone mine is ramping up production, targeting 196,000 tons per day and expected to produce around 390,000 ounces annually at full capacity [5]. - EQX's recent business combination with Calibre Mining Corp. positions it as the second-largest gold producer in Canada, with a combined annual production of over 1.2 million ounces [6][7]. - The company ended Q1 with $173 million in unrestricted cash and $65 million in an undrawn credit facility, generating $73.3 million in cash flow from operations [8]. - However, EQX's all-in-sustaining costs (AISC) increased to $2,065 per ounce, reflecting operational cost inflation and challenges at the Greenstone mine [10][11]. - EQX expects $35 million in mine suspension costs from the Los Filos mine in Q2 but anticipates cost reductions with rising production in late 2025 [11]. Eldorado Gold (EGO) - EGO operates four mines across Turkey, Canada, and Greece, with a strong asset portfolio supporting long-term demand [12][13]. - The Skouries project in Greece is expected to be a key growth driver, with first production anticipated in Q1 2026 and an average output of 140,000 ounces of gold and 67 million pounds of copper annually over 20 years [14]. - EGO aims to increase annual gold production to 660,000-720,000 ounces by 2027, representing a 33% growth from 2024 [16]. - As of March 31, 2025, EGO had $978 million in cash and $241 million in available credit, with a long-term debt-to-capitalization ratio of around 19% [17]. - EGO's stock has gained 37.7% year-to-date, outperforming EQX's 17.1% increase [18]. Price Performance and Valuation - EQX is trading at a forward 12-month earnings multiple of 7.83, which is a 40.6% discount to the industry average of 13.19 [20]. - EGO's stock is trading at a forward earnings multiple of 9.86, below the industry average [21]. - The Zacks Consensus Estimate for EQX's 2025 sales and EPS implies a year-over-year rise of 53.2% and 135%, respectively, while EGO's estimates suggest growth of 19.3% and 10.8% [25][26]. Investment Outlook - Both EQX and EGO are positioned to benefit from the bullish gold market, but EQX's higher operational costs may pose risks [27]. - EGO's rising earnings estimates and lower leverage suggest it may offer better investment prospects in the current market environment [27].