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

MT Newswires Live06-08 23:07

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

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