2024-03-12 10:30:25 ET
Summary
- Equinox Gold Corp.'s Q4 and FY2023 results showed a 3% and 6% increase in annual gold production, respectively, but fell short of its guidance midpoint.
- Unfortunately, Los Filos is expected to have another disappointing year in 2024, and overall costs are expected to be up year-over-year and likely to land closer to $1,700/oz.
- On a positive note, the recent gold price strength is a huge upgrade for Equinox Gold as it improves the company's margins and offsets its higher unit costs.
- In this update we'll dig into Equinox Gold Corp.'s Q4/FY2023 results, recent developments, and where the stock's updated ideal buy zone lies:
It's been a rollercoaster ride of a year for investors in the Gold Miners Index ( GDX ), with the index finding itself down ~17% for the year before what's been an impressive recovery in March. And while the Q4/FY2023 results didn't do much to improve industry-wide sentiment given the higher costs, Q1 is shaping up to be a lot better, especially with the gold price looking like it could average $2,050/oz or better for Q1 2024 (+$150/oz vs. Q1 2023 levels).
One name that should see an outsized benefit from the recent gold price strength is Equinox Gold Corp. ( EQX ). It is one of the highest-cost producers sector-wide, giving it superior leverage to its peers....
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For further details see:
Equinox Gold: Margin Recovery On Deck