This TSX gold miner saw double-digit production rise in 2021. Buy call?

 

Investors often consider gold a safe place to put their money in, especially when the market conditions are uncertain. Due to this prime reason, some even prefer to have a little exposure to gold at all times.

The global market saw soaring commodity prices, including gold, in the wake of the Ukraine crisis and inflation worries. Likewise, most of the gold-based equities also saw their price surging higher. Besides this hustle, adding a top TSX gold stock to your portfolio can help see some profit in the long run. 

Today, we will discuss a TSX gold stock that recorded production surge of 26 per cent in 2021 compared to 2020. This gold company aims to become a million-ounce gold producer and has operations across Canada, the United States, Mexico and Brazil. The company we are talking about is Equinox Gold Corp (TSX: EQX).

Equinox Gold Corp (TSX: EQX)’s Q4 revenue reached US$ 381.2 million

The growth-focused gold company reported a revenue of US$ 381.2 million in Q4 FY2021 compared to US$ 255.5 million a year ago. The company saw its earnings from mine operations more than double to US$ 99.4 million in the latest quarter when compared to US$ 45.7 million in Q3 FY2021 and slightly up from US$ 97.7 million in Q4 2020.

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Equinox Gold’s net profit increased to US$ 110.9 million in the latest quarter, up from US$ 91.2 million in the same quarter a year ago. However, its earnings per share plunged from US$ 0.38 in Q4 2020 to US$ 0.37 per share in Q4 2021.

The precious metal company saw its adjusted EBITDA at US$ 130 million in the latest quarter compared to US$ 85.3 million in 2021.

On the production front, Equinox Gold increased its gold production from 136,352 million ounces in Q4 2020 to 210,432 pounces in Q4 2021.

 

Stocks of Equinox Gold surged by 30% in 2022

Equinox Gold stock by nearly 30 per cent year-to-date (YTD) and closed at C$ 11.10 apiece on Monday, April 18. The gold stock recorded a 52-week low of C$ 6.99 (January 28) and was down by over three per cent from its 52-week high of C$ 11.49 (May 26, 2021). EQX scrip swelled by nearly 41 per cent year-over-year (YoY).

Bottomline

Equinox Gold reported that it poured the “first” gold at its new Santa Luz mine on March 30. This mine is projected to produce gold of about 100,000 ounces yearly when in operation. The company also stated that this mine included expanded potential from underground development opportunities and various exploration targets within the greenstone belt.

Investors should ideally assess the company’s financials and growth prospects and make any investment decision based on their risk-return expectations.

Also read: Why is Inomin Mines (TSXV: MINE) stock sinking after rising 319% WTD?

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.