Worth having a look at the relative value creation between EQX and AKI.
When CFE spun out AKI it had an EV roughly twice EQX. Now EQX has an EV roughly three times AKI. EQX is leading the way in value creation with two 100% owned projects. EQX's Mayoko property has a target that is 4 times as big as AKI. More importantly EQX is managed by genuine project developers who are working to build a project not trying to repackage and sell a project.
On this basis EQX will continue to add more value (relative to AKI).
The 20% interest now seems a great move as a first step in putting the projects together. My guess is EQX management will have an idea of relative valuation before they put them together (5 times? 10 times?). They are well positioned for when CFE's 25% interest comes out of escrow in January as CFE will be immediately looking to flog it off.
EQX Price at posting:
$2.45 Sentiment: Buy Disclosure: Held
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