Mei Ri Jing Ji Xin Wen·2025-04-22 12:07Core Viewpoint - Luoyang Molybdenum announced a cash acquisition of Lumina Gold for approximately CAD 581 million, reflecting a strategic move into the gold sector amid rising gold prices and a favorable market outlook for gold as a safe-haven asset [1][5][6]. Group 1: Acquisition Details - The acquisition price translates to approximately RMB 304 million, with a per-share price of CAD 1.27, representing a 41% premium over Lumina's closing price on April 17 [1][6]. - Luoyang Molybdenum has signed a subscription agreement for USD 20 million in convertible bonds to support the ongoing operations of the Cangrejos gold project [6]. - The Cangrejos project, located in Ecuador, has a resource estimate of 1.376 billion tons with an average gold grade of 0.46 g/t, containing 638 tons of gold [5][6]. Group 2: Financial Performance - Lumina Gold has reported significant net losses in recent years, with a net loss of approximately USD 33.14 million for the first three quarters of 2024, and cumulative losses of USD 7.97 million in 2020, USD 7.92 million in 2021, USD 22.24 million in 2022, and USD 17.25 million in 2023 [7]. - Luoyang Molybdenum's revenue for 2024 is projected at RMB 213.03 billion, a year-on-year increase of 14.37%, with a net profit of RMB 13.53 billion, up 64.03% [7]. Group 3: Market Context - The gold market has seen a significant rise, with COMEX gold futures surpassing USD 3,500 per ounce, reaching a peak of USD 3,509.9 per ounce on April 22 [8]. - The company expresses optimism regarding the future of the gold market, viewing it as a key area for growth and investment [5][6].