Equinox Gold (TSX:EQX) Is Up 8.7% After Valentine Mine Drilling Finds Broad Near-Surface Gold

• In late August 2025, Equinox Gold announced a significant exploration update at its Valentine Gold Mine in Newfoundland & Labrador, highlighting new drilling success in the Frank Zone with broad-width, near-surface gold mineralization that remains open along strike and at depth.
• This discovery emphasizes the untapped growth potential within a 32-kilometre mineralized corridor and suggests feasibility for new open pit development at the site.
• We'll assess how these new exploration results at Valentine could impact Equinox Gold's long-term growth narrative and production outlook.

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Equinox Gold Investment Narrative Recap

Equinox Gold’s investment story centers on scaling gold production across diversified North and South American assets, anchored by successful mine ramp-ups and ongoing exploration. The recent Valentine exploration success could enhance long-term growth, but in the near term, the primary focus remains on Greenstone’s output consistency and resolving persistent ore grade concerns, which continue to be the key catalyst and risk, respectively. The Valentine discovery has not yet fundamentally changed these short-term drivers.

Among recent announcements, the Greenstone Gold Mine’s early-July production update stands out, confirming output of 51,274 ounces for the quarter and guiding toward 400,000 ounces annually. This aligns with analyst views that Greenstone’s operational performance is pivotal to Equinox Gold’s revenue growth and margin expansion, making it the benchmark for immediate shareholder sentiment as Valentine’s exploration progresses.

However, investors should be aware that ongoing ore grade challenges at Greenstone may still weigh on near-term earnings and...

Read the full narrative on Equinox Gold (it's free!)

Equinox Gold's outlook anticipates $4.3 billion in revenue and $1.4 billion in earnings by 2028. This scenario assumes annual revenue growth of 31.2% and a $1.42 billion increase in earnings from the current level of -$23.1 million.

Uncover how Equinox Gold's forecasts yield a CA$12.73 fair value, a 13% downside to its current price.

Exploring Other Perspectives

Eleven fair value estimates from the Simply Wall St Community range from CA$4.50 to CA$17.03 per share. While most see potential upside, ore grade volatility at Greenstone continues to shape differing outlooks for Equinox Gold’s financial performance.

Explore 11 other fair value estimates on Equinox Gold - why the stock might be worth less than half the current price!

Build Your Own Equinox Gold Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Equinox Gold research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Equinox Gold research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Equinox Gold's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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