Junior Miner Unlocks Major Gold Opportunity in Atlantic Canada

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Equinox Gold Corp. (EQX:TSX; EQX:NYSE.A) has begun processing ore at its Valentine Gold Mine in Newfoundland & Labrador. The mine, a conventional crush-grind carbon-in-leach operation, is designed to process 2.5 million tonnes of ore annually. According to the company, the first gold pour is expected within the next month. Once fully operational, Valentine is projected to produce between 175,000 and 200,000 ounces of gold per year during the first 12 years of its 14-year reserve life.

The Valentine project contains Proven and Probable Reserves of 2.7 million ounces of gold grading 1.62 grams per tonne, with additional Measured and Indicated Resources of 1.3 million ounces at 1.45 g/t and Inferred Resources of 1.1 million ounces at 1.65 g/t. The mine is expected to be Equinox Gold's second-largest producing asset and the largest gold mine in Atlantic Canada.

Darren Hall, Chief Executive Officer of Equinox Gold, commented in the news release, "I am pleased to announce that our Valentine Gold Mine has begun processing ore through its 2.5-million-tonne-per-annum facility. We expect to pour first gold within the next month, marking another important milestone for Equinox Gold as we bring our second cornerstone Canadian mine into production."

The company also announced new leadership at its Greenstone Gold Mine in Ontario. Bryan Wilson has been appointed Vice President of Operations, bringing over 37 years of experience in open-pit and underground mining. He most recently led commissioning and optimization at IAMGOLD's Côté Gold Mine. Roger Souckey also joins as Director of External Relations to lead community and stakeholder engagement.

In a corporate finance update, Equinox Gold reported the full conversion of its 2020 Convertible Notes. On August 18, 2025, the company issued 21.4 million common shares at a conversion price of US$6.50 to settle the outstanding principal of US$139.2 million. The company stated that this move supports its objective to reduce overall leverage.

Strength in the Storm: Gold Market Remains Resilient

The gold sector showed resilience through August as investors responded to an uncertain global economic landscape shaped by rising debt levels, persistent inflation, and continued volatility in equity markets. In a report published on August 27 by Stockhead, Phoebe Shields highlighted the impact of gold prices on Australian markets. She reported that the ASX 200 gained 0.28%, supported by a 2.48% rise in the ASX All Ordinaries Gold Index and a 1.42% increase in the broader materials sector. Shields noted that gold's sustained pricing above US$3,300 has provided a measure of stability amid shifting U.S. monetary policy, inflation pressures, and geopolitical uncertainty. 

In a September 3 video from Market Rundown, Vince Lansing highlighted a bullish long-term view for gold despite typical short-term trading signals. "You don't want to trade this. You just want to be long it now," he said, while pulling up a shorter-term chart with Bollinger Bands. He cautioned viewers not to expect an uninterrupted rally but noted the early momentum: "This is week one. So does that mean week two, three, four, and five have to be to infinity? No, but it's starting to look like it."

Chen Lin of What is Chen Buying? What is Chen Selling? stated, "What a big jump EQX did last week. I think this is only the beginning."

He added that any potential downside may be limited in the near term, saying, "I wouldn't even be worried about the market until it gets below US$34.97." The host also pointed to high open interest in the 3,500 strike options as a possible reason for short-term consolidation. He flagged the presence of an exotic 3,500 knock-in option expiring December 31, which activates based on the London PM fix. 

Gold extended its rally to a new record above US$3,530 per ounce on September 3, according to Stockhead's Eddy Sunarto. The rise came as the broader Australian market struggled, with the ASX 200 down 0.8% at midday and all 11 sectors in decline. Tech led the drop, mirroring losses on Wall Street as U.S. bond yields pushed higher.

While equities wilted, gold emerged as a bright spot. "The yellow metal has hit a fresh record above US$3,530 an ounce, a six-day rally that's starting to look more like a statement than just a spike," Sunarto wrote. He noted that global central banks are now favoring gold over U.S. Treasuries for the first time since the 1990s, calling it "a vote of no confidence in Uncle Sam."

Analysts Assess Q2 Performance and Valuation Potential

Newsletter writer Ron Struthers noted on August 14 that if Equinox Gold breaks above technical resistance levels at US$7.50 and US$11.25, the stock may approach its 2020 highs of US$17.00.

In a separate comment on August 18, Chen Lin of What is Chen Buying? What is Chen Selling? stated, "What a big jump EQX did last week. I think this is only the beginning." Lin added, "EQX is still trading at a severe deep discount compared to other miners. I see EQX getting well into double digits, similar to my other big picks in large producers."

In a note from August 24, CFA Charles Hayes emphasized Equinox Gold's long-term potential tied to operational scale and permitting progress. "Equinox Gold's long-term value proposition lies in its ability to convert operational improvements into durable cash flow," Hayes wrote. He pointed to the FAST-41 designation for the Castle Mountain Phase 2 project, which expedites U.S. federal permitting, as well as the ratification of land access agreements near Los Filos. According to Hayes, these developments "underscore the company's focus on unlocking future production potential" and help "de-risk expansion while enhancing the company's ability to scale profitably."

In Haywood Capital Markets' Morning Brief, analyst Jamie Spratt noted that Equinox Gold's Q2 earnings per share of US$0.11 beat the consensus estimate of US$0.01. Cash flow per share came in at US$0.25, also exceeding the consensus of US$0.20. All-in sustaining costs for the quarter were US$1,915 per ounce, compared to an average realized gold price of US$2,350, resulting in an approximate margin of US$435 per ounce. Spratt highlighted that Equinox Gold was trading at 0.6 times its net asset value, while peers were averaging around 1.25 times. He suggested that execution on ramping new mines to above 1 million ounces per year, alongside cost control, could support a rerating toward peer multiples.

Canadian Cornerstones Driving Near-Term Growth

Valentine and Greenstone have been identified as cornerstone assets within Equinox Gold's diversified Americas portfolio. Greenstone, located in northern Ontario, is expected to produce approximately 240,000 ounces of gold in 2025 at all-in sustaining costs of roughly US$1,750 per ounce. It hosts 5.7 million ounces of Proven and Probable Reserves and an initial 15-year mine life.

Exploration and development work continues at both sites. Valentine's recent drilling in the Frank Zone, southwest of the Leprechaun pit, intersected near-surface mineralization including 2.43 g/t gold over 172.8 meters estimated true width. This area remains open along strike and at depth. The broader Valentine Lake Shear Zone spans 32 kilometers, with most activity to date concentrated within an 8-kilometer corridor. 

Equinox Gold's 2025 production guidance, excluding Valentine, ranges from 785,000 to 915,000 ounces at an AISC between US$1,800 and US$1,900 per ounce. With Valentine entering production and Greenstone continuing to ramp up, the company believes it has positioned itself to increase output from Canadian operations while maintaining a focus on cost control and project execution. 

Ownership and Share Structure

According to Refinitiv, 4.08% of Equinox Gold Corp. is held by management and insiders, and 0.36% is held by strategic investors. 57.80% of Equinox Gold is held by institutions.

The rest is retail. 

Equinox Gold Corp. has a market capitalization of approximately US$6.00 billion. The stock's 52-week trading range spans from a low of US$4.95 to a high of US$8.16. The CAGR is 13% over the past decade.