Equinox Gold Corp (EQX)

Equinox Gold Corp. (EQX.TO): A Comprehensive Overview

Company Profile:

Background: Equinox Gold Corp. is a Canadian-based company engaged in gold and silver exploration, production, expansion of its existing assets, and development. It was established in June 2018 through an arrangement agreement between Leagold Mining Corporation, Equinox Minerals Limited, and Ross Beaty.

Business Areas:

• Gold and silver extraction and production
• Acquisition, exploration, and mining development

Management Team:

• Cristian Milau (Executive Chair & Interim President & COO)
• Greg Smith (Chief Financial Officer)
• Michael Oliveira (SVP & COO)
• Michelle Ash (Chief Legal Officer and Corporate Secretary)
• Jensen Waterfall, CFA (VP Investor & Strategic Development)

Products:

Core Product: Gold

• 657,561 ounces in 2021, 682,466 ounces expected in 2022

Secondary Product: Silver:

• 367,487 ounces produced in 2021

Market Share:

Global: Equinox Gold Corp. is not among the largest producers globally but holds a small portion of global market share.

**U.S.: **Equinox' impact in the US market is minimal due to its primary mines being located in Brazil, Mexico & USA

Performance Comparison:

Equinox offers competitive products in terms of gold purity. However, its size restricts the company's market influence compared to larger producers.

Total Addressable Market:

The global gold mining market was valued over USD 207,680.59 million in 2022 and is projected to expand at 4.7% CAGR to reach 271,812.09 billion by 2030. The U.S. gold production market, amounting to approximately 200 tonnes in 2021, contributes a small share to global production.

Financial Performance

Revenue and Net Income:

• Revenue for Q2 2023 reached 337 million USD, increasing Y-O-Y
• Net income in Q1 was 36.84 million CAD

Profitability & Growth:

• Profit margin in Q3 2022 stood at 33%, exceeding the 15.89% in the same period last year.

Cash Flow & Debt:

• Healthy Cash flow from operation for Q2, 22: 212.27 Million CAD
• The Company is in good financial health with low debt levels

Dividends:

Dividend Yield & Payout:

• Currently does not pay dividends

Growth Trajectory

Equinox has shown steady growth in production and revenue, and has been actively exploring expansion and acquisition opportunities. The company expects further production increases in coming years.

Market Landscape

** Industry Overview:** The gold and silver mining industry faces challenges due to fluctuating commodity prices, environmental considerations, safety issues, and geopolitical risks.

Industry Dynamics: Equinox is adapting through exploration of new reserves, expansion, and technological innovation, such as automation.

Competitors

• Newmont Corporation (NEM),
• Barrick Gold Corporation (ABX), -Kinross Gold Corporation (KGC), -Goldcorp Inc.

Market shares:

| | Market Cap (Bil USD) | 1 year return (%)| | | Market Cap ( Bil USD) | |---|---|---|---|---|---|---| 1 year Return (%) |NEM | 36 | -2.06 | KCG| 8.29 | 12.13
| ABX|32.4 | 8.46 | GCG | 12.69 | -11.67

Potential Opportunities

• Acquisition opportunities
• New market entry -Technological advancements

Challenges

• Metal price fluctuation
  -Geo political instability

Recent acquisitions (past 3 years)

1. Santa Luz Mine (Brazil), Acquired in 10/ 26/ 2023 for approximately $360 Million CAD. Acquisition increased Equinox Gold's gold and silver production.

AI based Rating

Equinox has a promising outlook due to its consistent financial performance, expansion strategies and strong operational efficiency. On an AI based scale 1-10 for fundamentals, Equinox receives 7.

Sources & Disclaimer

This report utilized information from:

• Equinox Gold's website (https://equinoxgold.com) -SEC Filings
• Bloomberg

This information should not be solely used for financial decision making.

Additional Notes

This report was generated in October of 2023 and does reflect only information available up until this time.