Equinox Gold (EQX) to Sell Brazil Assets, Stifel Keeps Buy Rating

Core Viewpoint - Equinox Gold Corp. is divesting its Brazilian assets for $1.015 billion to focus on becoming a North American gold producer with a stronger financial position and improved asset portfolio [1][2]. Group 1: Transaction Details - Equinox Gold Corp. has entered into an agreement to sell its 100% interest in the Aurizona Mine, RDM Mine, and Bahia Complex in Brazil for $1.015 billion [1]. - The transaction is expected to close in the first quarter of 2026 [1]. Group 2: Strategic Implications - The sale is seen as a crucial step for Equinox Gold to enhance its balance sheet and financial stability, allowing the company to focus on longer-life, lower-cost assets in tier-one jurisdictions [2]. - The divestment will help accelerate balance sheet deleveraging, potentially supporting future shareholder returns [4]. Group 3: Market Analysis - Stifel has reaffirmed a Buy rating on Equinox Gold with a price target of C$24, noting that the deal values the Brazilian assets at approximately 0.6 times risk-adjusted net asset value [3]. - The sale is expected to secure about 3 to 3.5 years of future net cash flow from what is considered the company's lowest margin operating region [3].