7 Most Undervalued Canadian Stocks To Buy According To Analysts

05. Equinox Gold Corp. (NYSE:EQX)

Upside Potential: 28%

Forward Price to Earnings (P/E) Ratio: 5.86 

Number of Hedge Fund Holders: 17

Equinox Gold Corp. (NYSE:EQX) is a Canadian mining company focused on exploring, acquiring, developing, and operating gold and silver properties in the Americas. With a diversified portfolio spanning California in the U.S., Guerrero State in Mexico, several states in Brazil, and Ontario, Canada, the company has established a strong presence in the mining industry. Equinox Gold Corp. (NYSE:EQX) stock is worth considering for inclusion in the list of undervalued Canadian stocks due to its expansive asset base, strategic operational initiatives, and sound financial performance.

In Q2 2024, Equinox Gold Corp. (NYSE:EQX) demonstrated steady production with a focus on enhancing efficiency and cost management across its properties. The company produced over 122,000 ounces of gold in the second quarter and sold approximately 115,000 ounces, generating revenue of $269 million. This performance was driven by the initial production at its flagship Greenstone mine in Ontario, where the company recently acquired full ownership, consolidating its interest from 60% to 100%. This acquisition is expected to bolster Equinox Gold Corp. (NYSE:EQX) future cash flow and EBITDA, positioning the Greenstone mine as one of the largest and highest-grade open-pit gold mines in Canada.

Operationally, the company managed an average cash cost per ounce sold of $1,747 and an all-in sustaining cost (AISC) of $2,041 for Q2. Although these costs were higher than the same period last year due to temporary operational disruptions at the Fazenda mine in Brazil and geotechnical issues at the Piaba pit in Arizona, Equinox has undertaken mitigation measures and resumed production in affected areas. With operations now stabilizing and Greenstone’s production ramping up, the company is on track to reduce costs and achieve its revised guidance of producing between 655,000 and 750,000 ounces of gold for 2024.

From a financial standpoint, Equinox Gold Corp. (NYSE:EQX) reported $45 million in operating cash flow, highlighting its ability to generate solid cash flows despite increased costs. The company’s adjusted EBITDA for the quarter stood at $51 million, which remained consistent with Q1 2024. Equinox also undertook strategic financing activities, including a $500 million term loan and a $299 million equity financing, to support the Greenstone acquisition and strengthen its balance sheet.

With its robust production outlook, improved cost management, and strategic acquisitions, Equinox Gold Corp. (NYSE:EQX) is well-positioned for long-term growth, making it an attractive undervalued Canadian stock for investors seeking exposure to the mining sector.