Providing investors with a balanced perspective, Massif Capital

Massif Capital Research

Providing investors with a balanced perspective

Massif Capital

Research focused on providing investors with a balanced perspective on the environmental and economic realities of achieving a carbon-neutral economy for businesses within the Energy, Basic Materials and Industrial industries.

The Massif Capital Real Asset Strategy is a global long/short equity strategy built around bottom-up stock picking. We are focused on creating a portfolio of businesses from within the Energy, Basic Materials and Industrial sectors that balance the environmental and economic realities of achieving a carbon-neutral economy.

Cross Asset Strategy

<ul><li>During the third quarter of 2025, the Massif Capital Real Assets Strategy returned 36.1% net of fees, bringing our YTD returns to 41.5% net of fees.</li><li>Gross-of-fees gains from the long book were 35.9% and short book gains were 0.73%.</li><li>The Real Assets strategy has now been running for 27 quarters, and this was our best quarter to date, bringing our since-inception annualized net-of-fees returns to 14.6%.</li></ul>

During the third quarter of 2025, the Massif Capital Real Assets Strategy returned 36.1% net of fees, bringing our YTD returns to 41.5% net of fees.Gross-of-fees gains from the long book were 35.9% and short book gains were 0.73%.The Real Assets strategy has now been running for 27 quarters, and this was our best quarter to date, bringing our since-inception annualized net-of-fees returns to 14.6%.

Equity Bottom-Up

Lundin Mining Corporation is a diversified base metals mining company with operations in Chile, Portugal, Sweden, Spain and the United States, producing copper, zinc, lead and nickel. The Company holds interest in the Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo and a cobalt refinery located in Kokkola, Finland.

<ul>
<li>As we demonstrated in part one of this two-part report on Lundin Mining (LUN), the company has undergone a transformative five-year period that has positioned the company well for the future.</li>
<li>Two critical variables will determine how bright that future is: the first is execution and balance sheet management, two operational variables that are essentially a function of management decisions.</li>
<li>The second variable is copper prices, a factor that is wholly outside management’s control. Of the two, we believe the former is not only more important for investors but also easier to underwrite.</li>
</ul>


As we demonstrated in part one of this two-part report on Lundin Mining (LUN), the company has undergone a transformative five-year period that has positioned the company well for the future.
Two critical variables will determine how bright that future is: the first is execution and balance sheet management, two operational variables that are essentially a function of management decisions.
The second variable is copper prices, a factor that is wholly outside management’s control. Of the two, we believe the former is not only more important for investors but also easier to underwrite.


The Transformation of Lundin Mining (Part 2): Building the Next Copper Major

<ul><li>In the history of mining corporate strategy, few companies have executed a more comprehensive and successful transformation than Lundin Mining between 2020 and 2024.</li><li>Under the sequential leadership of CEO Peter Rockandel and his successor, Jack Lundin, the company has orchestrated a methodical repositioning from an unfocused, geographically diversified base metals producer into a concentrated, copper-dominant miner with world-class greenfield growth prospects.</li><li>This transformation, achieved through the sale of non-core assets, a doubling down on the pursuit of operational excellence, and over four billion dollars in strategic capital allocation decisions, represents a masterclass in corporate strategy within the cyclical and capital-intensive mining industry.</li></ul>

In the history of mining corporate strategy, few companies have executed a more comprehensive and successful transformation than Lundin Mining between 2020 and 2024.Under the sequential leadership of CEO Peter Rockandel and his successor, Jack Lundin, the company has orchestrated a methodical repositioning from an unfocused, geographically diversified base metals producer into a concentrated, copper-dominant miner with world-class greenfield growth prospects.This transformation, achieved through the sale of non-core assets, a doubling down on the pursuit of operational excellence, and over four billion dollars in strategic capital allocation decisions, represents a masterclass in corporate strategy within the cyclical and capital-intensive mining industry.

The Transformation of Lundin Mining: A Five Year Capital Allocation Masterclass (2020-2024)

Macroeconomics

<h3>This Week's Key Take Aways</h3><ul><li>Volatility suggests markets are not concerned about…anything.</li><li>Crude has a down month.</li><li>Industrials have had a great 8 months, will it continue?</li><li>Renewable investment growth continues, everywhere but the US.</li><li>The market has pre-priced in cuts; will it subdue the economic impact?</li></ul>

This Week's Key Take AwaysVolatility suggests markets are not concerned about…anything.Crude has a down month.Industrials have had a great 8 months, will it continue?Renewable investment growth continues, everywhere but the US.The market has pre-priced in cuts; will it subdue the economic impact?

Real Asset Chartbook Week #19: Volatility Is Low, Crude Is Down, and Industrials Are on a Roll

Commodities

Copper is a chemical element with symbol Cu (from Latin: cuprum) and atomic number 29. It is a soft, malleable and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a reddish-orange color. It is used as a conductor of heat and electricity, as a building material and as a constituent of various metal alloys, such as Sterling silver used in jewelry, cupronickel used to make marine hardware and coins and constantan used in strain gauges and thermocouples for temperature measurement.

<h3><strong>This Week's Key Take Aways</strong></h3>
<ul>
<li>Lithium stock run may already be out of steam</li>
<li>Like Oil, the Natural Gas markets appear well supplied and are showing near-term weakness.</li>
<li>No love for North American lumber</li>
<li>Copper continues to have us on edge, love the long-term story, but we have got to survive the short and medium term to get there.</li>
<li>Renewable tax credit qualification has a new physical work standard; the race is on to build.</li>
</ul>

This Week's Key Take Aways

Lithium stock run may already be out of steam
Like Oil, the Natural Gas markets appear well supplied and are showing near-term weakness.
No love for North American lumber
Copper continues to have us on edge, love the long-term story, but we have got to survive the short and medium term to get there.
Renewable tax credit qualification has a new physical work standard; the race is on to build.


Real Asset Chartbook Week #18: Lithium Blinks, Gas Slips, Copper Stalls—Who Survives the Grind?

Research focused on providing investors with a balanced perspective on the environmental and economic realities of achieving a carbon-neutral economy for businesses within the Energy, Basic Materials and Industrial industries