Equinox Gold ( NYSE: EQX ) +3% in Friday's trading despite a downgrade to Underperform from Neutral at CIBC to reflect weaker than expected Q4 operating results and reduced FY 2023 production assumptions.
Gold mining names are trading broadly higher after the most-active Comex gold contract settled Friday above $1,900/oz for the first time since late April.
While Equinox Gold ( EQX ) "has enough liquidity to build to Greenstone project (assuming no capex escalation), if the current higher cost structure persists for the next two years, the company will need to make some choices between growth options (Castle Mountain and Los Filos expansions) and sales of non-iron ore assets in order to be able to repay its debt obligations," CIBC's analyst Anita Soni wrote.
Equinox Gold ( EQX ) said this week its full-year production came in below the company's guidance .
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Equinox Gold cut to Sell equivalent at CIBC with hard choices ahead