EQX's Solid Cash Base Fuels Project Progress: Can It Sustain the Pace?

Equinox Gold Corp. EQX boasts a strong balance sheet and generates substantial cash flows, underscoring a healthy financial footing to support its key development projects. The company ended the first quarter with strong liquidity, including roughly $173 million in unrestricted cash and $65 million in an undrawn credit facility. It also generated cash flow from operations (before changes in non-cash working capital) of $73.3 million in the quarter. EQX expects to pursue deleveraging in the second half of 2025, utilizing strong cash flow generation partly through the ramp-up of Greenstone, a cornerstone asset.

The cash strength underpins major development initiatives, specifically the full-capacity build-out of the Greenstone mine. Greenstone achieved commercial production last November and is expected to produce around 390,000 ounces of gold annually at full production. Following the recent completion of the transformative business combination with Calibre Mining Corp, the integrated entity will now benefit from low-cost production growth, increased cash flow, lower operating costs and a stronger balance sheet. 

Among its peers, B2Gold Corp. BTG also exited the first quarter with a strong financial position and liquidity. B2Gold had cash and cash equivalents of $330 million at the end of the first quarter. B2Gold also had $800 million remaining for future drawdowns under its revolving credit facility.  

Eldorado Gold Corporation’s EGO solid financial position is supporting its growth initiatives. As of March 31, 2025, Eldorado Gold had significant liquidity, including $978 million in cash and $241 million in available credit. Eldorado Gold’s robust liquidity of around $1.2 billion provides it with ample financial flexibility.

EQX’s Price Performance, Valuation & Estimates

Equinox Gold has gained 17.7% year to date against the Zacks Mining – Gold industry’s rise of 52.7%.

From a valuation standpoint, EQX is currently trading at a forward 12-month earnings multiple of 7.83, a roughly 40.5% discount to the industry average of 13.17X. 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 down over the past 60 days.

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

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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