Equinox Gold: 2025 gold production forecasted at 785,000 oz to 915,000 oz

Equinox Gold: 2025 gold production forecasted at 785,000 oz to 915,000 oz

Equinox Gold Corp. (EQX) has released its first-quarter results, revealing a significant increase in all-in-sustaining costs (AISC) and providing insights into its 2025 gold production forecast. The company expects to produce between 785,000 and 915,000 ounces of gold in 2025, with a focus on cost efficiency and operational improvements.

First-Quarter Results and Cost Inflation

Equinox Gold's AISC climbed to $2,065 per ounce in the first quarter of 2025, up 6% from the prior year. This increase was driven by higher unit costs in Brazil and unplanned maintenance at the Greenstone mine in Canada. The suspension of Los Filos mine operations in Mexico also contributed to higher costs. Despite these challenges, the company's revenue soared by 76% due to a 38% increase in realized gold prices and a 27% surge in ounces sold [1].

Operational Challenges and Cost Relief

The suspension of Los Filos mine operations is expected to result in $35 million in mine suspension and care and maintenance charges in the second quarter. However, Equinox Gold anticipates a reduction in costs with increased production in the second half of 2025. The company also expects cost synergies from its merger with Calibre Mining Corp. to contribute to its path towards cost efficiency [1].

Peer Comparisons and Industry Trends

Among its peers, B2Gold Corp. (BTG) also faced cost inflation pressure in the first quarter, with AISC rising by 14%. Agnico Eagle Mines Limited (AEM) saw a 0.6% decline in AISC due to deferred sustaining capital expenditures but projects an increase for the remainder of 2025 [1].

Valuation and Stock Performance

From a valuation standpoint, Equinox Gold is trading at a forward 12-month earnings multiple of 6.51, a 52.2% discount to the industry average of 13.62X. The Zacks Consensus Estimate for EQX's 2025 and 2026 earnings implies a year-over-year rise of 230% and 106%, respectively. However, EPS estimates for 2025 and 2026 have been trending lower over the past 30 days [1].

Gold Price and Market Outlook

Gold prices fell by nearly 1% on Friday as a stronger-than-expected US jobs report alleviated economic concerns. Spot gold traded at just under $3,330 an ounce, down from earlier highs of $3,375.37. Analysts expect the Federal Reserve to stay on hold until September, with just one more rate cut in view by December. This could benefit gold, which yields no interest [3].

Analyst Opinions on Gold Mining Stocks

Analysts at JP Morgan and Jefferies Financial Group predict gold prices to reach USD$4,100 per ounce in 2026, suggesting value in gold mining shares. Goldman Sachs also points to central banks driving the gold bull market by buying around 80 metric tons monthly, helping push gold to record highs [4].

Conclusion

Equinox Gold's 2025 gold production forecast of 785,000 to 915,000 ounces reflects the company's focus on cost efficiency and operational improvements. While the first quarter saw increased operational costs, Equinox Gold expects these to be mitigated by rising production and merger synergies. The gold market's outlook remains favorable, with analysts predicting significant price increases and value in mining stocks.

References

[1] https://www.nasdaq.com/articles/eqxs-aisc-spike-signals-pressure-h2-offers-path-cost-relief
[2] https://www.marketbeat.com/instant-alerts/equinox-gold-fy2025-eps-reduced-by-national-bank-financial-2025-06-09/
[3] https://www.mining.com/gold-price-fades-on-upbeat-us-jobs-report/
[4] https://mugglehead.com/gold-mining-share-prices-could-be-due-for-a-favourable-market-correction/