Equinox Gold (EQX.TO)

Owns shares and has recommend buying in the past. Recent Northern Ontario expansion not in favor with investors. However, weakness is share price presenting a good buying opportunity. Balance sheet will be strained by recent M&A - but new assets are expected to pay off. 

It is now completing financing which gives it full ownership of a key asset, Lion Mine, which will lower the average cost of production and is in a good jurisdiction. It will be worth 60% of the value of the whole company. The stock is down because of a miss on market expectations and a decrease in production but we can expect more production in the second half. The first gold should be poured this month at the Greenstone mine. National Bank is rating it a buy because their holdings are low risk, being in Ontario. With the rising gold price, gold stocks have a chance to run up.

As the new project comes on line this should bring the operating costs down. With its higher costs this gives it more leverage to increasing gold prices.

Their Greenstone project is planned to start up middle this year, and it's on time and on budget. However, the gold stocks haven't risen along with the price of gold. In the last 40 years, the gold price has risen 34% during an easing cycle following the last rate hike of the tightening cycle. If we are entering an easing cycle, the gold price will hit $2,500. EQX has great exposure to the price of gold.

Highly leveraged to the price of gold. Generally, stock is very cheap. Would recommend a small position. Buy on share price weakness. Company is high quality overall. 

Underperformed because of operational difficulty in existing deposits and because of current large build in Ontario. Ontario and Quebec have an abysmal record for being on time or on budget. He thinks they'll make it and then the stock will rerate substantially. No dividend.

Market concern for hard rock project in Ontario.
History or development in Ontario is bad.
Market worried about project cost blowout.
Current projects are on time, and within cost estimates.
Political worries in Mexico appear to have been resolved. 

It has benefited from better gold prices and its large Greenstone Project is on budget and time for completion next year. There is a major exploration and feasibility study coming out in the next few months. It is a show me story.

Trapped in a base for most of 2022. Now breaking out, and that's being tested. As long as it successfully holds around $6, you're good to go. If it breaks for a number of days, get out. If it bounces from $6 and lasts a few days, he'd rather buy around $6.20 than buy today and watch it break. Not a bad-looking chart for a trade.

The Greenstone project in Ontario is its flagstone project and so far is on time and budget. It should be up and running by mid 2024.

Prospects are hinging on hard rock deposits in Ontario. Past projects not completed on time. Believes the company will be able to complete on time and on budget. If so, the stock will get a rerating. Team is led by Ross Beatty who he has done business with for many years. They have a graest track record.

He is bullish on gold but considers Equinox a hold. It is trading at a discount to the Book Value of $14 per share.

On an uptrend over the last 6 months but especially the past month. You can buy a partial position today and watch it for a while for a possible second position. Expect shares to come back down in the next month or two.

EPS of $0.027 beat estimates of ($0.044) and revenues of $352.16M missed expectations of $361.39M. 
The stock rose as better-than-expected adjusted EBITDA helped to lift the name and as its guidance for CAPEX was less than expected. 
Management noted this was its strong quarter of production at the lowest costs for the year. 
Significant progress was made at its mines and it is well-funded to complete construction at Greenstone for the first half of 2024. 
The results largely looked strong, but the name has not held up as well as the underlying price of gold and the company's debt levels are quite high. We would consider it to be OK at current levels, although its high leverage does present some level of concern for us. 
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