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Equinox Gold (EQX) to Sell Brazil Assets, Stifel Keeps Buy Rating

Equinox Gold Corp. (NYSEAMERICAN:EQX) is one of the 13 Best Gold Mining Companies to Invest In Now. On December 14, Equinox Gold Corp. (NYSEAMERICAN:EQX) announced that it has entered into an agreement to divest its 100% interest in the Aurizona Mine, RDM Mine, and the Bahia Complex in Brazil for $1.015 billion to a subsidiary of the CMOC Group. The transaction is expected to close in the first quarter of 2026.

According to the report, Equinox Gold Corp. (NYSEAMERICAN:EQX) sees this sale as an important move towards becoming a gold producer focused in North America, supported by strong cash flow and a tier-one growth profile. The company plans to use the proceeds to significantly improve its balance sheet and strengthen its financial position. The deal will also allow Equinox Gold Corp. (NYSEAMERICAN:EQX) to focus on longer-life, lower-cost assets in tier-one jurisdictions.

On December 15, Stifel reaffirmed its Buy rating on Equinox Gold Corp. (NYSEAMERICAN:EQX) with a C$24 price target. The firm noted that the deal values the Brazil assets at about 0.6 times risk-adjusted net asset value based on its estimates. Stifel also believes that the sale effectively locks in about 3 to 3.5 years of future net cash flow from what the firm sees as the company’s lowest margin operating region.

According to Stifel, the deal offers two main advantages. It helps Equinox Gold Corp. (NYSEAMERICAN:EQX) accelerate balance sheet deleveraging that could support future shareholder returns and an improved asset portfolio by removing the highest cost region while increasing exposure to Tier 1 jurisdictions.

Equinox Gold Corp. (NYSEAMERICAN:EQX) is a Canadian mining company that operates gold mines in the Americas.

While we acknowledge the potential of EQX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EQX and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 14 Best Large Cap Stocks to Invest In Now and 14 Most Promising Fintech Stocks to Invest In.

Disclosure: None. This article is originally published at Insider Monkey.

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