Cara Community GSM: Equinox Gold 12-2020

Equinox Gold (NYSE: EQX) (EQX.TO) reviewed 12-04-2020

Market Cap:       $2.436 Billion (USD)        Share Price:        $10.10 (USD)

Shares outstanding: 241,249,679; Diluted: 244,066,116

Cash:     $310.7 M (USD) as of 30 Sept 2020

Debt:     $232.4 M (USD) as of 30 Sept 2020

Credit facility: $400 Million ($180 Million drawn).

Current operations: Yes

Insiders: 16.8%                  234 institutions own approx. 45%.


CEO: Christian Milau       HQs: Vancouver, BC, Canada

Operates seven mines in the US (Mesquite and Castle Mountain), Mexico (Los Filos), and Brazil (Aurizona, Fazenda, RDM, Pilar, with Santa Luz to start 1Q2022)

Q3 Highlights:

  • Produced 124,867 oz. gold.
  • Net income of $11.8 Million or $0.05 per share on revenue of $244.45 Million.
  • Adjusted income $39.3 Million or $0.16 per share.
  • AISC (stated) $1035, cash costs $866 per ounce.
  • Repaid $200 Million of revolving credit facility.
  • Castle Mountain (California) Phase 1 complete and achieved the first gold pour on 15 Oct.
  • All mines operating with exception of Los Filos (Mexico) due to a community blockade as of 3 Sept.
  • The company withdrew 2020 guidance due to the stoppage at Los Filos. Otherwise, total production was estimated to be 425,000-465,000 oz /Gold for 2020.

Bottom Line:

  • Led by the inimitable Ross Beaty, Chairman, Equinox Gold is, over the long run, as close to a sure payoff to Gold investors as one can get. Need I say more?
  • No personal holding, but that is my omission.
  • The current price ($10.10 USD) is about right for a +33% gain in the next 4-6 months.

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