2024-05-28 18:01:46 ET
Summary
- Equinox Gold reported a 9% decline in Q1 gold production because of lower grades and throughput at various mines, offset by a better quarter at Mesquite and RDM.
- However, the bigger news was that EQX has acquired the other 40% of Greenstone it didn't already own in Canada, giving it full ownership of a high-margin open-pit gold mine.
- In this update we'll dig into the Q1 results, recent developments, and where the stock's updated low-risk buy zone lies.
The Q1 earnings season for the VanEck Gold Miners ETF ( GDX ) is finally over and one of the more recent companies to report its results was Equinox Gold ( EQX ). Unfortunately, its Q1 results were below my expectations with all-in sustaining cost margins plunging below 6% and production coming in at just ~16% of its guidance midpoint even if production was back-end weighted with Greenstone ramping up. That said, this is a transformational year for the company as it brings a new high-margin gold mine online in Canada, and this asset is even more transformational now that Equinox has gained full ownership after buying out OMF's stake.
In this update we'll dig into the Q1 results, recent developments, and where the stock's updated low-risk buy zone lies:
Greenstone Gold Pour - Company Video
Read the full article on Seeking Alpha
For further details see:
Equinox Gold: Million-Ounce Producer Status In Sight