$EQXFF : Equinox Gold at-a-Glance

Long-Term Price Case$1,500/oz. Au
Resource Base (M&I — Inclusive of Reserves)8,897,869 ozs.
Fully-Diluted Shares701,602,510
Fully-Diluted Market Cap$638,458,284
Market Cap Valuation per Resource Ounce$72
Share Price Valuation by Resources in the Ground.01 ozs. ($9.42)
Resource Valuation as a Percentage of Market Cap5%
Debt Coverage85%
Cash Flow ($1,347/oz.)$91,310,000
Future Cash Flow ($1,500/oz.)$550,000,000
Market Cap Valuation$1,797,814,432
Future Market Cap$2,002,020,525
Future Market Cap Growth214%
PMCV15 (Projected Market Cap Valuation at 15%)$2.85/sh.

There is a lot to like about Equinox Gold. Each ounce in the ground is presently valued at $72 by Market Cap. This is low and indicates that one may still buy Equinox’s ozs. of gold at a discount. On the flip side, each share is only worth $9.41 of gold, resulting chiefly from share bloat. However, the quality of the ozs. may make this value factor of marginal bearing on the fortunes of the company.

Meanwhile, the present Market Cap is valued at but 5% of the resources in the ground, which suggests Equinox is deeply undervalued. In an ideal world, relative to the value of resources in the ground at 15%, the company would sport a minimum Market Cap of $1.8B at $1,347/oz. Au. Hence, there is a sound case for Market Cap appreciation.

Future Cash Flow at higher gold prices is substantial, reducing present Debt Coverage from a very manageable 85% to the point at which it becomes enviably immaterial.

Fahy Capital Management has been a happy investor in Equinox Gold from U.S. $0.79. We maintain an initial price target of $2.85/sh.

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