- Equinox Gold is one of the worst-performing miners year-to-date, down 38% vs. a 15% decline for the Gold Miners Index.
- The underperformance is likely attributed to Equinox's much higher cost-profile relative to the industry average, which offsets its peer-leading growth profile.
- Given elevated fuel costs and the inflation readings we're seeing in Brazil where Equinox has a significant portion of its production, costs are likely to remain elevated in FY2022.
- However, with the stock now down more than 50% from its highs and trading at ~0.60x P/NAV, the stock is finally approaching a low-risk buy zone.
For further details see:
Equinox Gold: Approaching A Low Risk-Buy Zone