The Globe and Mail reports in its Thursday, Jan. 8, edition that National Bank Financial analyst Mohamed Sidibe has reiterated his "outperform" recommendation for Equinox Gold. The Globe's David Leeder writes in the Eye On Equities column that Mr. Sidibe, however, gave his share target a $2 trim to $26. Analysts on average target the shares at $22.07. Mr. Sidibe expects Equinox Gold's $1.02-billion divestiture of its Brazilian portfolio to a subsidiary of CMOC Group to "allow for a sooner-than-expected conversation over capital return to shareholders and a smoother path toward advancing future expansion/development projects at Valentine, Castle Mountain and Los Filos." Mr. Sidibe says in a note: "Assuming a close in Q1/26, we now model the receipt of $900-million in Q1/26 which will be used to reduce debt by the same amount. We view Equinox exiting Q1/26 with a net cash position of $456-million. The reduction in interest expense and interest paid further improve our cash flow metrics and the lower leverage profile will allow the company to now open the door to capital return to shareholders sooner than previously expected. ... Equinox continues to showcase an attractive FCF yield of 13 per cent."
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