10:36 AM EDT, 10/17/2024 (MT Newswires) -- Equinox Gold ( EQX ) has kept its Outperform rating and C$12 price target at National Bank of Canada, according to a note released Thursday.

National Bank noted Equinox recently provided an update for the Greenstone gold mine in Ontario, with the management noting its focus on ramping up both mining rates and plant throughput during the fourth quarter as the mine continues to progress toward design capacity.

"Overall, we continue to see great potential for the asset, but the very near term results are proving mixed, which we believe could weigh on the share price performance of the stock," the bank said.

According to National, its Outperform rating on Equinox is based on the company's reduced geopolitical risk and improved consolidated cost structure with the recent deal to own 100% of the Greenstone mine. By the bank's estimates, Greenstone, once ramped up, should be a significant generator of free cash flow in subsequent years and is located in one of the top 15 jurisdictions for mining in the world, according to the annual Fraser Institute mining survey. National derives its C$12.00 target price for Equinox from a 100% weighted 4.50x NTM EV/EBITDA target multiple, which implies a 0.95x P/NAV multiple

Equinox's share price fell near 8% at last look to $7.45 on the TSX.

Price: 7.43, Change: -0.64, Percent Change: -7.93