Summary of Luoyang Molybdenum Co. Conference Call Company Overview - **Company**: Luoyang Molybdenum Co. (洛阳钼业) - **Industry**: Mining and Metals, specifically focusing on copper and cobalt production Key Points Production and Financial Performance - **Copper Production**: - Total copper production reached 543,000 tons in the first three quarters, a year-on-year increase of 14.1% driven by contributions from TFM and KFM [2][3] - Third-quarter copper production was 190,000 tons, a quarter-on-quarter increase of 3.7% [3] - **Cobalt Production**: - Cobalt production for the first three quarters was 88,000 tons, up 3.8% year-on-year, despite a quarter-on-quarter decline due to export bans from the Democratic Republic of Congo [2][5] - Cobalt product gross margin improved by 27 percentage points to 63.5% due to price increases [2][5] - **Net Profit**: - Net profit attributable to shareholders reached 14.3 billion yuan, exceeding the total for the previous year, with a year-on-year growth of 72.6% [3][7] - **Trade Business**: - Total physical trade volume was 3.33 million tons with a gross margin exceeding 2% [2][6] ESG Performance - **ESG Ratings**: - Maintained an MSCI rating of AA for three consecutive years and improved to a 3A rating from Wind [2][4][8] - Announced plans for peak carbon emissions by 2030 and carbon neutrality by 2050, with carbon intensity below the industry average by 93% [2][8] Future Plans and Projects - **KFM Phase II Project**: - Expected to commence production in 2027, adding a processing capacity of 7.26 million tons per year and an additional 100,000 tons of copper [2][9][10] - **Ecuador Odin Gold Mine**: - Acquisition completed in June 2025, with preparations proceeding as planned [3][10] - **Organizational Changes**: - Focus on organizational transformation to enhance management efficiency and capitalize on rising commodity prices [2][9] Financial Management - **Debt and Cash Flow**: - Total liabilities slightly decreased, with a stable asset-liability structure; cash flow from operating activities saw a slight decline due to reduced trade cash flow and increased inventory [3][7][15] - **Cost Management**: - C3 costs decreased year-on-year, with expectations for further reductions before the KFM Phase II project begins [28] Market Challenges - **Congo Export Quotas**: - The company is managing cobalt production under the new quota system, which has led to inventory being classified as stock rather than sales costs [23][24] - **Electricity Supply Issues**: - Addressing electricity shortages through investments in hydroelectric and solar projects to mitigate impacts on future copper production [27] Additional Insights - **Stock Management**: - The company has strategies in place for managing unsold inventory due to government-imposed shortages, viewing cobalt as a long-term valuable asset [24][22] - **Incentive Programs**: - Implemented an H-share incentive plan to support strategic initiatives and align interests among key personnel [3][26] This summary encapsulates the essential information from the conference call, highlighting the company's performance, strategic initiatives, and market challenges.

Group 1 - The core transaction on October 27 involved a block trade of 10 million shares of Luoyang Molybdenum Co., Ltd., with a transaction value of 173 million yuan and a price of 17.29 yuan per share [1][2] - In the last three months, Luoyang Molybdenum has recorded a total of five block trades, amounting to a cumulative transaction value of 341 million yuan [1] - The closing price of Luoyang Molybdenum on the same day was 17.29 yuan, reflecting a 3.04% increase, with a daily turnover rate of 2.28% and a total trading volume of 6.924 billion yuan [1] Group 2 - The latest margin financing balance for Luoyang Molybdenum is 3.375 billion yuan, which has increased by 205 million yuan over the past five days, representing a growth of 6.47% [2] - Luoyang Molybdenum was established on December 22, 1999, with a registered capital of 4.2788620352 billion yuan [2]

Group 1 - The non-ferrous metal sector showed significant gains, with the non-ferrous metal leader ETF (159876) reaching a peak increase of 2.96% during the day and closing up 2.39%, reflecting strong bullish sentiment and increased trading volume [1][3] - Among the constituent stocks, Xiamen Tungsten and Huayu Mining hit the daily limit, while Jiangxi Copper rose over 6%, and Western Superconducting increased by more than 5% [1][3] - The performance of the non-ferrous metal sector is robust, with 21 out of 23 disclosed third-quarter reports showing profits, and 16 companies reporting year-on-year net profit growth [3] Group 2 - The U.S. September CPI data came in lower than expected, supporting the Federal Reserve's potential interest rate cuts, which may positively impact industrial metal prices [4][6] - Despite weaker seasonal demand, supply disruptions and low inventory levels are providing price support for industrial metals [4] - The non-ferrous metal sector is characterized by varying degrees of market conditions and drivers, suggesting a diversified investment approach through the non-ferrous metal leader ETF (159876) could be beneficial [6]

进一步统计，近3个月内该股累计发生5笔大宗交易，合计成交金额为3.41亿元。该股近5个交易日累计 上涨14.43%，主力资金合计净流入11.52亿元。 炒股就看金麒麟分析师研报，权威，专业，及时，全面，助您挖掘潜力主题机会！ 10月27日，洛阳钼业收涨3.04%，收盘价为17.29元，发生1笔大宗交易，合计成交量1000万股，成交金 额1.73亿元。 责任编辑：小浪快报 第1笔成交价格为17.29元，成交1,000.00万股，成交金额17,290.00万元，溢价率为0.00%，买方营业部为 中信证券股份有限公司总部(非营业场所)，卖方营业部为中信证券股份有限公司深圳滨海大道证券营业 部。 ...

Core Viewpoint - Citigroup's report indicates that Luoyang Molybdenum's net profit for the first three quarters of this year increased by 73% year-on-year to 14.3 billion yuan, achieving 72% and 84% of Citigroup and market's full-year forecasts respectively [1] Financial Performance - The recurring net profit and EBIT for the first three quarters were 14.5 billion yuan and 24.5 billion yuan, reflecting year-on-year increases of 70% and 33% [1] - The estimated EBIT for the third quarter reached 9 billion yuan, showing year-on-year and quarter-on-quarter growth of 46% and 2% respectively, surpassing Citigroup's expectations, primarily due to higher copper production and sales [1] Future Projections - The net profit forecasts for 2025 to 2027 have been raised by 19.5%, 36.6%, and 19.6% to 19.8 billion yuan, 25.2 billion yuan, and 27 billion yuan respectively [1] - The target price for H-shares has been increased from 13.4 HKD to 20.6 HKD, and for A-shares from 12.6 CNY to 19 CNY, while maintaining a "Buy" rating [1]

Core Viewpoint - Citigroup's report indicates that Luoyang Molybdenum's net profit for the first three quarters of this year increased by 73% year-on-year to 14.3 billion yuan, achieving 72% and 84% of Citigroup and market's full-year forecasts respectively [1] Financial Performance - The recurring net profit and EBIT for the first three quarters were 14.5 billion yuan and 24.5 billion yuan, reflecting year-on-year increases of 70% and 33% [1] - The estimated EBIT for the third quarter reached 9 billion yuan, showing year-on-year and quarter-on-quarter growth of 46% and 2% respectively, surpassing Citigroup's expectations, primarily due to higher copper production and sales [1] Future Projections - Citigroup has raised its net profit forecasts for 2025 to 2027 by 19.5%, 36.6%, and 19.6% respectively, projecting profits of 19.8 billion yuan, 25.2 billion yuan, and 27 billion yuan [1] Target Price Adjustments - The target price for H-shares has been increased from 13.4 HKD to 20.6 HKD, while the target price for A-shares has been raised from 12.6 yuan to 19 yuan, maintaining a "Buy" rating [1]

Market Overview - On October 27, the industrial metals sector rose by 2.27% compared to the previous trading day, with Huayu Mining leading the gains [1] - The Shanghai Composite Index closed at 3996.94, up 1.18%, while the Shenzhen Component Index closed at 13489.4, up 1.51% [1] Top Performers in Industrial Metals - Huayu Mining (601020) closed at 28.74, up 6.52%, with a trading volume of 467,700 shares and a transaction value of 1.319 billion [1] - Jiangxi Copper (600362) closed at 41.53, up 6.24%, with a trading volume of 968,300 shares and a transaction value of 3.974 billion [1] - Zhi'an Technology (300328) closed at 16.77, up 4.81%, with a trading volume of 570,800 shares and a transaction value of 941 million [1] Underperformers in Industrial Metals - Minfa Aluminum (002578) closed at 3.53, down 5.11%, with a trading volume of 603,400 shares and a transaction value of 214 million [2] - Jinhui Co. (603132) closed at 13.48, down 4.26%, with a trading volume of 101,500 shares and a transaction value of 137 million [2] - Yuguang Gold Lead (600531) closed at 12.25, down 4.22%, with a trading volume of 946,800 shares and a transaction value of 1.164 billion [2] Capital Flow Analysis - The industrial metals sector saw a net inflow of 432 million from institutional investors, while retail investors experienced a net outflow of 820 million [2] - Notable net inflows from institutional investors included Jiangxi Copper with 433 million and Luoyang Jiyie with 213 million [3] - Retail investors showed significant outflows in stocks like Jiangxi Copper and Zinc Industry Co., indicating a shift in investor sentiment [3]

Core Viewpoint - The current copper-to-gold ratio is at a historically low level, indicating potential for copper price increases following a rise in gold prices. The market sentiment remains bullish due to structural supply shortages anticipated in the copper market [6][5]. Group 1: Market Performance - On October 24, the copper futures market saw a net inflow of 3.871 billion yuan, with significant positions being built up, leading to a total capital scale of 46.059 billion yuan in copper futures, making it the second-largest commodity futures after gold [1][3]. - As of October 24, the domestic copper futures main contract closed at 87,660 yuan/ton, while the Shanghai spot electrolytic copper price surpassed 86,500 yuan/ton, and the London Metal Exchange (LME) copper price approached 11,000 USD/ton [3][4]. - The copper price surge has led to strong performance in the listed companies within the non-ferrous sector, with notable increases in stock prices, such as a 99.36% rise for Tongling Nonferrous Metals and a 178.76% rise for Luoyang Molybdenum [4]. Group 2: Supply and Demand Dynamics - The copper market is entering a structural tightness cycle, with predictions of a 150,000-ton supply shortage by 2026, marking the first such occurrence in three years. This is attributed to insufficient capital expenditure in global copper mining and declining ore grades [6][7]. - Demand for copper is shifting from traditional industrial uses to technology and energy sectors, driven by global energy transitions and advancements in AI, which are expected to elevate copper's strategic importance [6][7]. - The Grasberg copper mine in Indonesia, the second-largest globally, has faced production cuts due to safety incidents, further exacerbating supply constraints [3][7].

该行指，第三季钴销量达5,000吨，较市场预期高，对比第二季为2,200吨。此外，有效税率由第二季的 37%大幅降第三季的27%，意味期内税务支出较上季减少9亿元。 智通财经APP获悉，瑞银发布研报称，洛阳钼业(03993)表现胜预期，预期投资者将有正面反应，现予目 标价20.5港元及"买入"评级。洛阳钼业今年首三季归属股东净利润达143亿元人民币(下同)，同比增长 73%，已达市场全年预期的87%，以及该行预期的80%。单计第三季，净利润为56亿元，同比增长 96%，按季增长19%，较市场预期高约10亿元。 ...

该行指，第三季钴销量达5,000吨，较市场预期高，对比第二季为2,200吨。此外，有效税率由第二季的 37%大幅降第三季的27%，意味期内税务支出较上季减少9亿元。 瑞银发布研报称，洛阳钼业（603993）(03993)表现胜预期，预期投资者将有正面反应，现予目标价20.5 港元及"买入"评级。洛阳钼业今年首三季归属股东净利润达143亿元人民币(下同)，同比增长73%，已达 市场全年预期的87%，以及该行预期的80%。单计第三季，净利润为56亿元，同比增长96%，按季增长 19%，较市场预期高约10亿元。 ...