Why Equinox Gold (TSX:EQX) Is Up 6.5% After Unveiling Record High-Grade Gold at El Limon

• In late July 2025, Equinox Gold announced initial results from its 100,000-metre diamond drilling campaign at the El Limon Mine Complex in Nicaragua, reporting the highest-grade gold mineralization ever discovered at the property and extending known mineralization into new areas, including the vicinity of the historic Talavera mine.
• This update also included the delineation of a new inferred mineral resource containing 630,000 ounces of gold, highlighting substantial opportunities for resource growth and potential future production at El Limon.
• We'll explore how the discovery of high-grade gold mineralization at El Limon impacts Equinox Gold's investment outlook and resource expansion potential.

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Equinox Gold Investment Narrative Recap

Equinox Gold’s long-term investment thesis relies on the company’s ability to unlock value from a growing portfolio of low-cost gold assets, manage operational costs, and execute on resource expansion. The recent high-grade discoveries at El Limon are promising and could support resource growth, yet the company’s most pressing short-term catalyst remains the full ramp-up at Greenstone, while risks around Los Filos’ land access and cost pressures remain largely unchanged for now.

The July 2025 update on El Limon’s 100,000-metre drilling campaign revealed new high-grade zones and a 630,000-ounce inferred resource at Talavera, underscoring management’s ongoing focus on pipeline expansion and exploration. These results add further depth to Equinox’s resource base, but the key driver for near-term earnings continues to be progress at Greenstone.

But with recent production interruptions at Los Filos and ongoing negotiations with local communities, investors should also be mindful of...

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

Equinox Gold's outlook anticipates $5.2 billion in revenue and $2.1 billion in earnings by 2028. This is based on a 45.6% annual revenue growth rate and a $1.79 billion earnings increase from current earnings of $306.6 million.

Uncover how Equinox Gold's forecasts yield a CA$11.01 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Seven Community-sourced fair value estimates for Equinox Gold range widely from CA$4.50 to CA$54.23 per share. While many in the Simply Wall St Community see significant upside, caution persists as operational hurdles at key sites may affect the company’s ability to realise its resource potential.

Explore 7 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 5 key rewards and 2 important warning signs 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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