Equinox Gold vs. Eldorado Gold: Which Gold Miner is Shining Brighter?
Equinox Gold Corp. EQX and Eldorado Gold Corporation EGO are Canada-based mid-tier diversified, growth-focused gold producers. While gold prices have fallen from their April 2025 high, they remain favorable, aided by geopolitical tensions, and are currently hovering above the $3,300 per ounce level. Against this backdrop, comparing these two gold producers is particularly relevant for investors seeking exposure to the precious metals sector.Prices of the yellow metal have rallied roughly 27% this year, largely attributable to aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump that have intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump’s policies. Gold prices shot up to a record high of $3,500 per ounce on April 22. Increased purchases by central banks and geopolitical tensions are factors expected to help the yellow metal sustain the rally. Let’s dive deep and closely compare the fundamentals of these two gold miners to determine which one is a better investment now.The Case for Equinox GoldEquinox Gold has rapidly evolved into a diversified, growth-focused gold producer. With operating mines spanning Canada, the United States and Brazil, it is targeting over one million ounces of annual production through an ambitious pipeline of expansions. It currently has five producing mines and three expansion and development projects that are expected to add roughly 300,000 ounces of annual production over the next few years. Greenstone, which achieved commercial production last November, is ramping up toward the full production target rate of 196,000 tons per day (tpd), which is expected in the second half of 2025. Greenstone is expected to produce around 390,000 ounces of gold annually at full production. Also, an underground expansion at the Aurizona mine in Brazil will extend the mine life to 11 years and expand gold production with an average annual gold production of 137,000 ounces. The Phase 2 project at Castle Mountain in California is expected to increase production to an average of 218,000 ounces annually over a 14-year Phase 2 mine life, with further potential for expansion from exploration.EQX recently closed its transformative business combination with Calibre Mining Corp., creating an Americas-focused diversified gold producer anchored by two high-quality Canadian gold mines, Greenstone and Valentine. The integrated entity will become the second-largest gold producer in Canada with Greenstone and Valentine operating at nameplate capacity. Through this combination, Equinox Gold will enhance its asset base with operating mines in Nicaragua and the United States, as well as earlier-stage assets in the United States. The Valentine Gold Mine in Newfoundland, Canada, is expected to commence gold production in the third quarter of 2025. The combination of Greenstone and Valentine Gold will create a Canadian gold mining powerhouse with more than 1.2 million ounces of annual production, and benefit from low-cost production growth, increased cash flow, lower operating costs and a stronger balance sheet. EQX has a strong balance sheet and generates substantial cash flows, which allows it to fund its growth projects. The company ended the first quarter with strong liquidity, including roughly $173 million in unrestricted cash and $65 million in an undrawn credit facility. It also generated cash flow from operations (before changes in non-cash working capital) of $73.3 million in the quarter. Despite these positives, EQX’s first-quarter results reveal a sharp uptick in all-in-sustaining costs (AISC) — a key indicator of cost efficiency in mining. AISC climbed to $2,065 per ounce, up roughly 6% from $1,950 per ounce in the year-ago quarter. Excluding the results from the Los Filos mine in Mexico, which has been indefinitely suspended after the expiry of its land access agreement, AISC still climbed 9% to $1,979 per ounce, underscoring operational cost inflation that threatens margins. This upside reflects higher unit costs in Brazil, and higher costs and unplanned maintenance due to winter challenges at the Greenstone mine in Canada. Higher operational costs, partly due to the suspension of Los Filos mine operations, may continue to act as headwinds in the second quarter. Equinox Gold expects roughly $35 million in mine suspension and care and maintenance charges at Los Filos in the second quarter. Nevertheless, there is a silver lining as the company envisions costs whittling down with rising production in the second half of 2025.The Case for Eldorado GoldEldorado operates four mines — Kisladag and Efemcukuru in Turkiye, the Lamaque Complex in Canada, and Olympias in Greece. Kisladag, Efemcukuru and Lamaque are gold mines, whereas Olympias is a polymetallic operation producing three concentrates bearing gold, lead-silver and zinc.The company’s long-term demand prospects are supported by its long-life, high-quality asset portfolio and presence in solid mining jurisdictions. Its financial position helps it invest in growth projects. It has a solid pipeline of strategic growth projects – Skouries, Kisladag, Lamaque Complex and Olympias.EGO is advancing its copper-gold development project, Skouries, in Greece. Skouries is a high-grade gold-copper porphyry deposit and is expected to be a key driver of Eldorado’s growth story. First production is expected in the first quarter of 2026, with commercial production anticipated to start in mid-2026. On completion, the project is expected to produce an average of 140,000 ounces of gold and 67 million pounds of copper annually over its 20-year mine life. The company’s development projects also include Perama Hill, a wholly-owned gold-silver project in Greece.Kisladag is a low-grade, bulk-tonnage, open-pit operation that uses heap leaching for gold recovery. EGO has completed commissioning the fine-ore agglomeration circuit and upgraded materials handling systems. Kisladag has the scope to increase throughput and recoveries. Studies are in progress for geometallurgical understanding of future mining phases and optimizing the crushing and leach circuits. The company is also focused on increasing productivity at the Lamaque Complex. Lamaque has a large resource base and exploration upside from nearby targets. At Olympias, productivity improvement initiatives are underway, supporting plant expansion to 650ktpa from 500ktpa by 2027.Eldorado Gold is set to take its annual gold production to 660,000-720,000 ounces in 2027, suggesting 33% growth from 2024. The gold production target for 2025 has been pegged at 460,000-500,000 ounces. Copper production is expected to start in 2026 and reach 70 million pounds by 2027.Eldorado Gold’s solid financial position is supporting growth initiatives. As of March 31, 2025, Eldorado Gold had significant liquidity, including $978 million in cash and $241 million in available credit. The company’s long-term debt-to-capitalization is around 19%, lower than EQX’s 27.4%. This will support its ongoing investments in growth. Like Equinox Gold, EGO does not currently pay a dividend.Price Performance and Valuation of EQX & EGOYear to date, Equinox Gold stock has gained 17.1%, while Eldorado Gold stock has rallied 37.7% compared with the Zacks Mining – Gold industry’s increase of 52.9%. Image Source: Zacks Investment ResearchEquinox Gold is currently trading at a forward 12-month earnings multiple of 7.83. This represents a roughly 40.6% discount when stacked up with the industry average of 13.19X. Image Source: Zacks Investment ResearchEldorado Gold is trading at a premium to Equinox Gold. The EGO stock is currently trading at a forward 12-month earnings multiple of 9.86, below the industry. Image Source: Zacks Investment ResearchHow Does Zacks Consensus Estimate Compare for EQX & EGO?The Zacks Consensus Estimate for EQX’s 2025 sales and EPS implies a year-over-year rise of 53.2% and 135%, respectively. The EPS estimates for 2025 have been trending lower over the past 60 days. Image Source: Zacks Investment ResearchThe consensus estimate for EGO’s 2025 sales and EPS implies year-over-year growth of 19.3% and 10.8%, respectively. The EPS estimates for 2025 have been trending northward over the past 60 days. Image Source: Zacks Investment Research(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)EQX & EGO: Which is a Better Pick?Both Equinox Gold and Eldorado Gold are well-placed to capitalize on the bullish gold market. Both remain focused on executing development projects and have solid financial health. However, EQX’s higher operational costs warrant caution. EGO’s rising earnings estimates also suggest that it may offer better investment prospects in the current market environment. EGO’s lower leverage also indicates lesser financial risks. Investors seeking exposure to the gold mining space may find Eldorado Gold to be the better choice at this time.EQX currently carries a Zacks Rank #5 (Strong Sell), whereas EGO carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eldorado Gold Corporation (EGO): Free Stock Analysis Report Equinox Gold Corp. (EQX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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