Equinox gold, comparing current valuation vs 1 year agoToday, the stock price is around $8.6 CAD/$6.95 USD, the spot gold price is around $1800. The USD/CAD is 1.23.
One year ago, EQX was $15 CAD/$11.31 USD, spot gold price also almost at $1800. USD/CAD was 1.36
In summary, the gold price is flat, futures curve I am not quite sure if the same but most likely similar. Interest rates on 10 year government bonds are 75bps higher than a year ago.
A year ago, there also were several interruptions at los filos and other mines either due to covid19 restrictions or blockade. These kind of interruptions are not new.
Interestingly, in June, we can observe a 10bps decline in US 10 year government bonds, a slight decline in USD/CAD, both which could be considered tailwinds for EQX $CAD price. The gold price decline along with los filos temporary halt have been the obvious headwind. Going forward, one could reasonably expect that a resolution will be established at Los Filos, most likely within the next quarter, which could be a catalyst for a rebound. Ideally such an event would be combined to additional positive news at other operating mines and/or project and gold prices creeping towards the $2000 level. All this *could* lead to EQX going back to similar valuations seen a year ago during the second half of the year 2021.
Note however that given current market circumstances, there could be significant overshoot or undershoot to this scenario.