$EQX

Equinox Gold to See Mixed Valuation Implications From Orla Mining Acquisition, RBC Says

Equinox Gold's (EQX) planned acquisition of Orla Mining (ORLA) has mixed valuation implications, including an estimated 5% dilution to net asset value per unit, RBC Capital Markets said in a Monday note.The complementary free cash flow profile is the deal's "most positive valuation" item, with Orla providing near-term free cash flow and Equinox Gold's pipeline driving upside on the longer term, RBC said.The deal is also projected to be accretive to certain metrics such as production per share and cash flow per share over 2027 through 2030, the brokerage added.Equinox Gold and Orla Mining's pro forma valuation at current spot prices is "fair" compared with peers, but high torque to gold could be a risk to this valuation, the investment firm noted.RBC cut its price target on Equinox Gold to $14 from $17, with an outperform rating.Price: $10.64, Change: $-0.15, Percent Change: -1.40%

Equinox Gold Price Target Lowered to US$14 at RBC

RBC Capital Markets lowered its price target on Equinox Gold (EQX.TO, EQX) to US$14 from US$17 on Monday.Analyst Josh Wolfson maintained an Outperform rating on shares of the Canadian mining company.On May 13, Equinox announced its acquisition of Orla Mining (OLA.TO) in a US$5.1 Billion cash and stock transaction."As compared to our positive first impressions of the transaction, our views are now more balanced - we see mixed valuation implications, while high growth is maintained at a now larger scale," Wolfson said in a note to clients."At spot, EQX-OLA pro forma valuation is fair versus a narrow new comparable group; however, the company's high torque to gold can materially change this conclusion," the analyst said."We reduce our target... as a result of lower estimates and modestly lower target multiples to reflect integration uncertainty," Wolfson said.

Equinox Gold Agrees To Acquire Orla Mining To Form Combined Gold Producer

Equinox Gold (EQX) said Wednesday it agreed to acquire Orla Mining (ORLA) to create a combined North American gold producer.Under the arrangement, target shareholders will receive one Equinox common share and a nominal cash payment of $0.0001 for each share held, the company said.The combined entity is projected to have an implied market capitalization of roughly $18.5 billion and generate about 1.1 million ounces of annual gold production, Equinox Gold said.Existing Equinox investors will own about 67% of the new organization while former Orla shareholders will hold the remaining 33% stake upon the expected Q3 closing, it said.Shares of Orla Mining were up 3% in Wednesday premarket activity.

Earnings Flash (EQX) Equinox Gold Reports Q1 Revs From Continuing Ops US$861.6M; Adjusted Net Income From All Ops $234.0M or $0.30 per share