Upward revisions in Equinox Gold’s price target reflect analyst optimism around robust free cash flow forecasts, operational improvements from ramping cornerstone mines, and valuation discounts versus peers, leading to an increased consensus price target from CA$12.73 to CA$13.62.
Analyst Commentary
- Bullish analysts cite C$3.0 billion in forecast free cash flows through 2027, even without production from Los Filos, as a driver for valuation upside.
- The ramp-up of cornerstone mines is expected to significantly improve operational metrics and support cash flow growth.
- Equinox Gold currently trades at a discount to peers on net asset value and especially on free cash flow multiples, offering potential for re-rating.
- Multiple analysts have raised price targets in response to improved operational outlook and financial forecasts.
- Some bearish analysts have made modest downward revisions, likely reflecting near-term uncertainties or project-specific risks.
What's in the News
- Valentine Gold Mine in Newfoundland & Labrador expected to produce 175,000–200,000 oz gold annually for 12 years; current reserves at 2.7M oz, with significant resource and exploration upside across a 32-km mineralized trend.
- FY2025 consolidated production guidance set at 785,000–915,000 ounces.
- Castle Mountain Mine Phase Two Project accepted into the U.S. FAST-41 permitting program, potentially accelerating permitting timelines with process completion targeted for December 2026.
- El Limon Mine Complex in Nicaragua reports highest-grade gold mineralization to date; new 630,000 oz inferred resource at Talavera, with ongoing drill program targeting expansion and delineation.
- Darren Hall appointed CEO, bringing over 40 years of mining experience and a strong track record of production growth and capital discipline following Equinox Gold's merger with Calibre Mining.
Valuation Changes
Summary of Valuation Changes for Equinox Gold
- The Consensus Analyst Price Target has risen from CA$12.73 to CA$13.62.
- The Future P/E for Equinox Gold has significantly risen from 7.31x to 14.54x.
- The Consensus Revenue Growth forecasts for Equinox Gold has significantly fallen from 31.2% per annum to 23.5% per annum.
Disclaimer
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