You already know Equinox Gold is a bloated company buying up assets in an attempt to force index funds to buy the stock. You know this because they told us. Did you know how badly that strategy is failing? Since first announcing their acquisition of Calibre Mining on February 24:
- Equinox shares have fallen from $6.80 to $5.68
- GLD has risen from US$272 to $301.22
Bad operational execution. Bad capital structure. And a surprising amount of bad jurisdictions (Los Filos in Guerrero, Mexico; Libertad and Limon in Nicaragua).
There’s no reason to own Equinox Gold. But it’s big just like they wanted – and what index funds give they can also take away. I’ll be looking to buy EQX puts if Valentine and Greenstone really hit the skids.
