Zheng Quan Shi Bao Wang·2025-06-26 07:43Core Viewpoint - Luoyang Molybdenum has successfully acquired Lumina Gold, gaining 100% ownership of the Cangrejos Project in Ecuador, thereby expanding its gold resource portfolio [1] Group 1: Acquisition Details - The acquisition was completed on June 24, 2025, for a total cash consideration of CAD 581 million [1] - The Cangrejos Project is located in the El Oro province of Ecuador, with a resource estimate of 1.376 billion tons and an average gold grade of 0.46 g/t, containing 638 tons of gold [1] - The mine has a projected lifespan of 26 years [1] Group 2: Strategic Importance - This acquisition marks Luoyang Molybdenum's second asset in South America, following its 2016 acquisition of niobium and phosphate operations in Brazil [2] - The company plans to leverage its extensive experience in South America to maximize synergies and implement advanced mining technologies [2] Group 3: Production and Economic Outlook - The project is expected to commence production by 2028, with an annual output of approximately 11.5 tons of gold [2] - The Cangrejos Project could increase Ecuador's gold production by nearly 50%, as the country is projected to produce 24.3 tons of gold in 2024 [2] - The all-in sustaining cost (AISC) for the mine is estimated at around USD 671 per ounce, positioning it within the lower cost quartile of global gold mines [3] Group 4: Future Prospects - The company anticipates potential increases in resource reserves based on ongoing exploration efforts [3] - The favorable infrastructure surrounding the mine, including proximity to major transport routes and water sources, is expected to enhance cost competitiveness [3] - Luoyang Molybdenum views gold as a key asset for future expansion, recognizing its dual financial and industrial attributes in the current economic landscape [3]