8 Cheap Gold Stocks To Buy According to Hedge Funds

05. Equinox Gold Corp. (NYSE:EQX)

Number of Hedge Fund Holders: 17

Forward P/E Ratio as of September 29: 5.72

Equinox Gold Corp. (NYSE:EQX) is a Vancouver-based mining company involved in the exploration, acquisition, development, and operation of mineral properties throughout the Americas. The company focuses on gold and silver deposits, holding interests in mining properties across the United States, Mexico, Brazil, and Canada. Established in 2007, Equinox Gold Corp. (NYSE:EQX) was previously known as Trek Mining Inc. before changing its name in December 2017.

The stock has gained attention from hedge funds, with 17 hedge funds holding positions as of Q2 2024, up from 12 in the previous quarter. The company’s recent Q2 2024 earnings call highlights its operational resilience and solid financial performance despite challenges. Equinox Gold Corp. (NYSE:EQX) reported quarterly revenue of $269.43 million, slightly below expectations, but maintained a robust production of over 122,000 ounces of gold during the quarter. However, the company faced a minor setback, reporting an adjusted net loss of $6 million, equivalent to a loss of $0.01 per share.

One of the key developments in Q2 2024 was Equinox Gold Corp. (NYSE:EQX) acquisition of the remaining 40% ownership of its Greenstone mine, which is expected to be a significant catalyst for future growth. This acquisition consolidates ownership, enhances cash flows, and positions Greenstone as one of Canada’s largest open-pit gold mines, with substantial high-grade reserves. Equinox produced 16,000 ounces of gold at Greenstone in June, and production continued to ramp up with nearly 20,000 ounces produced in July. The company expects the mine to achieve commercial production by the end of Q3 2024.

Despite a temporary suspension of operations at its Fazenda mine in Brazil due to a safety incident, the company has continued to make progress in its overall production targets. Additionally, Equinox Gold Corp. (NYSE:EQX) ongoing expansion projects, such as the Castle Mountain Phase Two, are expected to enhance the company’s production profile over the long term.

Financially, Equinox Gold Corp. (NYSE:EQX) ended Q2 2024 with a solid cash flow from operations of $45 million and EBITDA of $510 million. The company’s recent corporate financing activities, including a $500 million term loan and a $299 million equity financing, demonstrate its robust capital management and strategic positioning to fund future growth initiatives.