Key Takeaways Newmont Corporation's (NEM) shares have surged 85.4% so far this year, thanks to the gold price rally resulting from trade and geopolitical uncertainties and its forecast-topping earnings performance underscoring its operational efficiency and the strength of its Tier 1 portfolio. NEM stock has outperformed the Zacks Mining – Gold industry's 72.2% rise and the S&P 500's increase of 9.6%. Among its gold mining peers, Barrick Mining Corporation (B) , Agnico Eagle Mines Limited (AEM) and Kinross ...

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 - Agnico Eagle Mines Limited (AEM) has experienced a significant share price increase of 35.4% over the past three months, driven by rising gold prices and strong earnings performance that exceeded forecasts [1][2]. Company Performance - AEM's performance has outpaced the Zacks Mining – Gold industry's increase of 27.9% and the S&P 500's decline of 6.9% during the same period [2]. - The company achieved a record annual gold production of 3,485,336 ounces in 2024, supported by higher output from key mines [10]. - AEM's operating cash flow surged approximately 55% year over year to $1,132 million in Q4 2024, with free cash flows reaching $570 million, an increase of around 89% year over year [13]. Financial Health - AEM maintains a strong liquidity position, having upsized its revolving credit facility to $2 billion, enhancing its available liquidity [13]. - The company reduced its net debt by $1,287 million in 2024, with net debt standing at $217 million at the end of Q4 2024 [13]. - AEM returned approximately $920 million to shareholders through dividends and repurchases last year [13]. Gold Market Dynamics - Gold prices increased by roughly 27% last year, driven by strong demand from central banks and geopolitical tensions, with prices hitting a record high of $3,220 per ounce recently [14][15]. - The weaker U.S. dollar and high tariffs are expected to sustain gold price increases, with prices already up about 20% this year [15][16]. Cost Considerations - AEM faces challenges with rising production costs, with total cash costs per ounce of gold increasing by roughly 4% year over year and all-in-sustaining costs (AISC) rising by about 7% [18]. - The company forecasts total cash costs per ounce in the range of $915 to $965 and AISC per ounce between $1,250 and $1,300 for 2025, indicating further cost increases [18]. Earnings Outlook - The Zacks Consensus Estimate for AEM's 2025 earnings has been revised upward, currently pegged at $5.18, suggesting a year-over-year growth of 22.5% [19]. - Earnings are expected to grow approximately 56.6% in the first quarter of 2025 [19]. Valuation Metrics - AEM is trading at a forward 12-month earnings multiple of 25.52X, which is about 70% higher than the peer group average of 15.01X [21].