EQX's Gold Production Jumps: Will the Momentum Continue Into H2?

Equinox Gold Corp.’s EQX standout operational metric in the first quarter has been gold production volumes, which reached 145,290 ounces, a first-quarter record and robust increase from 111,725 ounces in the prior-year quarter. This strong performance marked a 30% year-over-year gain, driven by the production ramp-up at Greenstone. Building on this momentum, EQX expects production to rise in the subsequent quarters of 2025. 

Reflecting the recently completed business combination with Calibre Mining Corp. and slower-than-planned ramp-up at Greenstone, EQX expects pro forma consolidated gold production of 785,000-915,000 ounces for full-year 2025. The guidance excludes the Los Filos mine in Mexico, which has been indefinitely suspended, and production from Calibre’s Valentine mine, which is expected to commence gold production in the third quarter of 2025. Although milling grades and throughput at Greenstone have been below expectations, the company sees a quarter-over-quarter improvement, with stronger production expected in the second half of 2025. The challenge now lies in maintaining or accelerating the production momentum seen in the first quarter through the second half.

Among its peers, B2Gold Corp. BTG recorded a consolidated gold production of 192,752 ounces in the March quarter, declining roughly 10% year over year. However, the figure was higher than B2Gold’s expectation. B2Gold remains on track to meet total gold production expectations of 970,000-1,075,000 ounces for 2025.

Agnico Eagle Mines Limited’s AEM payable gold production was 873,794 ounces in the first quarter, falling from 878,652 ounces in the prior-year quarter. Agnico Eagle remains on track to meet its 2025 production targets.  Agnico Eagle continues to see gold production of around 3.3 million to 3.5 million ounces for this year.

EQX’s Price Performance, Valuation & Estimates

Equinox Gold has gained 16.1% year to date against the Zacks Mining – Gold industry’s rise of 56.6%.

From a valuation standpoint, EQX is currently trading at a forward 12-month earnings multiple of 7.78, a roughly 42.5% discount to the industry average of 13.52X. It carries a Value Score of B.

The Zacks Consensus Estimate for EQX’s 2025 and 2026 earnings implies a year-over-year rise of 135% and 123.4%, respectively. The EPS estimates for 2025 and 2026 have been trending lower over the past 60 days.

EQX stock currently carries a Zacks Rank #5 (Strong Sell). 

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This article originally published on Zacks Investment Research (zacks.com).

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