Q: EQX looks to be lagging peers but operations may be improving…opportunity or value trap? Thanks
5i Research Answer:
Performance has relatively lagged to peers. Outlook is extremely strong across both EPS and revenue for the next few years and valuation remains attractive at 11.5x forward earnings. The recent purchase for 100% acuqisition of the 'Greenstone mine' could contribute positively here. There are risks due to the high debt but we are comfortable adding some here given the cheap valuation and strong estimated outlook.