EQ EQX Equinox Gold Corp. Loading... : Bullish and Bearish Analyst Opinions

The most recent numbers we saw out of the mining companies, they reflected on average like $4,100 gold, $4,200 gold. Gold's 5200 today. They're incredibly cash flow positive... guess what the miners are doing? They're buying back stock. Because miners are modeling their businesses on lower gold prices, current spot prices will result in massive earnings surprises. Furthermore, using this excess cash flow to buy back shares creates a constant bid under the stock, driving EPS growth and multiple expansion. LONG. The combination of extreme earnings leverage to the gold price and aggressive share buybacks provides a strong fundamental tailwind for miners. A sudden collapse in the spot price of gold or operational/geopolitical failures at specific mine sites.