William Thomson of Massif Capital presented his in-depth investment thesis on Equinox Gold (US: EQX) at Best Ideas 2022.

Thesis summary:

Equinox Gold is a mid-tier gold producer specializing in North and South American assets.

The firm has a top-tier management team that has successfully built numerous mines and a chairman/founder (single-largest shareholder) who built and ran the world’s largest publicly traded silver miner (Pan-American Silver).

The firm has a fully-funded growth pipeline that should double production by 2024, making Equinox one of the fastest-growing gold miners over that period.

The shares recently traded at 0.5x Will’s probability-weighted net asset value and at a steep discount relative to comparable peers.

audio recording

About the instructor:

Will Thomson is a Managing Partner at Massif Capital, a value-oriented investment partnership focused on global opportunities in energy, basic materials and industrials. We invest principally in businesses with long lived assets that generate predictable cash flows and require not only capital allocation acumen from management but also a keen focus on operational excellence. Our investment practice is primarily concerned with the nature of risk and value as it relates to protecting, enhancing and deploying the irreplaceable capital of our investors into a concentrated portfolio of economically productive assets.