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]

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]

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。 ...

高盛发布研报称，维持对洛阳钼业（603993）(03993)的"买入"评级，目标价从10.8港元升至19港元。洛 阳钼业按中国会计准则计算第三季纯利同比增长96%至56.1亿元人民币，首三季经常性净利润为141亿 元人民币，胜预期，并相当于该行全年预测的约75%及市场预期的约82%。 因应首三季表现及该行对铜价的最新预测，该行将洛钼2025至2027年经常性盈利预测上调8%至32%， 同时将2028至2030年铜产量预测上调30%至100万吨，预期铜价上升及钴价复苏将推动洛钼2025至2026 年经常性利润年均复合增长率达38%，加上2028年实现100万吨铜产量及Cangrejos金铜项目投产的预 期，将驱动2028至2029年盈利增长。 ...

Group 1 - Goldman Sachs maintains a "Buy" rating for Luoyang Molybdenum (03993), raising the target price from HKD 10.8 to HKD 19 [1] - Luoyang Molybdenum's Q3 net profit increased by 96% year-on-year to RMB 5.61 billion, with the first three quarters' recurring net profit reaching RMB 14.1 billion, exceeding expectations [1] - The recurring profit forecast for Luoyang Molybdenum for 2025 to 2027 has been raised by 8% to 32%, and the copper production forecast for 2028 to 2030 has been increased by 30% to 1 million tons [1] Group 2 - The expected rise in copper prices and recovery in cobalt prices will drive a compound annual growth rate of 38% in recurring profits for Luoyang Molybdenum from 2025 to 2026 [1] - The anticipated production of 1 million tons of copper by 2028 and the launch of the Cangrejos gold-copper project are expected to drive profit growth from 2028 to 2029 [1]

Core Viewpoint - Goldman Sachs reports that Luoyang Molybdenum (603993)(3993.HK) achieved a 96% year-on-year increase in net profit for the third quarter, exceeding expectations for the first three quarters [1] Financial Performance - The net profit for the first three quarters surpassed expectations, prompting Goldman Sachs to revise its earnings forecasts for Luoyang Molybdenum for 2025 to 2027 [1] - The forecast for copper production from 2028 to 2030 has been significantly increased [1] Market Drivers - The anticipated rise in copper prices and recovery in cobalt prices are expected to drive profit growth for Luoyang Molybdenum in the coming years [1] - The commencement of production at the Cangrejos gold-copper project is also expected to further enhance profitability [1] Investment Rating - Goldman Sachs maintains a "Buy" rating for Luoyang Molybdenum and has raised the target price to HKD 19 [1]