Saturday, July 5, 2025

Latest

Equinox Gold: The Analyst First Impression Of The Premier Gold Mines Transaction

Earlier this week, Equinox Gold Corp (TSX: EQX) announced the acquisition of Premier Gold Mines (TSX: PG). Each Premier shareholder will receive 0.1967 shares of Equinox Gold for each share held of Premier, which is the weighted 10-day volume-weighted average closing price.

Premier will also spin off its US-focused gold production and development company i-80 Gold Corp, while Equinox Gold will conduct a $75 million equity financing, fully underwritten by their Chairman, Ross Beaty.

Equinox Gold currently has ten analysts covering the company with a weighted 12-month price target of C$22.83. One analyst has a strong buy rating. The majority, eight, have buy ratings, and one analyst has a hold rating.

Here are the most recent analyst changes on Equinox Gold:

  • National Bank of Canada cuts to sector perform from outperform, raises target price to C$18 from C$20.25
  • TD Securities cuts target price to C$24 from C$27

Firstly, lets look at a note issued by Canaccord on Premier Gold Mines. Tom Gallo, Canaccord’s analyst, downgraded their 12-month price target to C$3.40 from C$4.75 but reiterated their buy rating on the company. Gallo says, “We believe this transaction leaves Premier with a more focused vehicle that should allow it to advance its development properties while still having a cash flowing asset in South Arturo.”

Below you can see his asset net asset value (NAV) breakdown for Premier Gold.

Onto Canaccord’s coverage on Equinox Gold, Dalton Baretto kept their 12-month price target at C$22.50 and reiterated their buy rating.

Baretto says that they view this transaction as a positive for Equinox for multiple reasons. First, he says that this deal is “fully aligned with the stated strategy of being a million-ounce producer focused on the Americas.” The deal adds a producing asset in Mercedes that is good for ~50,000 ounces per annum, and adds 50% of a green-field project in Hardrock.

The second positive about this deal is that there is no premium, and that Equinox will hold a 30% interest in the i-80 asset spin-off. The last positive Baretto says about this deal is that this is NAV-accretive. They believe that Hardrock was an undervalued asset within Premier Gold’s portfolio.

Stifel GMP’s analyst Ian Parkinson also believes that this deal makes perfect sense, echoing that the Hardrock asset fits well with Equinox Gold’s strategy.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Torex Gold Acquires Reyna Silver For CASH!

Dundee Acquires Adriatic Metals: The Balkan Growth Strategy

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

Organigram Sees Canaccord Raise Price Target To $3.25 After Earnings

On January 11th, Organigram Holdings (TSX: OGI) issued its second fiscal quarter of 2022. The...

Thursday, January 13, 2022, 03:48:00 PM

BMO Lowers Lundin Mining Price Target Following Further Strikes

Over the weekend, Lundin Mining (TSX: LUN) announced that they would be suspending guidance for...

Monday, October 19, 2020, 02:59:56 PM

BMO: Netflix Is Now “Growth At A Reasonable Price”

The earnings season has started off with a bang as Netflix (Nasdaq: NFLX) closed its...

Wednesday, April 20, 2022, 04:45:47 PM

BMO Lowers Revenue Forecast For OceanaGold Following COVID Outbreak

OceanaGold Corp (TSX: OGC) provided a corporate update to their investors on August 27. Included...

Sunday, August 30, 2020, 01:43:00 PM

Trulieve Cannabis: Analyst Q1 Consensus Estimates

Trulieve Cannabis (CSE: TRUL) announced that they will be reporting their first quarter financials before...

Wednesday, May 12, 2021, 04:01:00 PM