Di Yi Cai Jing·2025-12-15 10:57Core Viewpoint - Luoyang Molybdenum plans to acquire four gold mines in Brazil for $1 billion, aligning with its strategy focused on copper and gold investments, which is expected to enhance its resource reserves and financial performance [1][2]. Group 1: Acquisition Details - The acquisition involves a total consideration of $1.015 billion for 100% equity in four gold mines owned by Equinox Gold, including Aurizona, RDM, and Bahia [2]. - The payment structure consists of a $900 million upfront payment and up to $115 million contingent payment based on gold sales in the first operational year post-acquisition [2]. - The transaction is expected to be completed by Q1 2026, pending regulatory approvals from Brazilian antitrust authorities and Chinese regulatory bodies [2]. Group 2: Financial Performance - For the first three quarters of 2025, the company reported revenue of 145.485 billion yuan, a year-on-year decrease of 5.99%, while net profit attributable to shareholders was 14.280 billion yuan, an increase of 72.61% [3]. - In Q3 2025, revenue was 50.713 billion yuan, down 2.36% year-on-year but up 3.99% quarter-on-quarter, with net profit reaching 5.608 billion yuan, reflecting a 96.40% year-on-year increase [3]. - The profit growth is attributed to rising product prices and increased copper production and sales [3]. Group 3: Market Context and Strategic Implications - The mining industry is cyclical, and the company emphasizes the importance of accurately grasping market cycles for expansion [3]. - Some industry experts express concerns about the timing of the acquisition, suggesting it may be at a market peak, which could pose risks of "buying at high points" [4][5]. - The acquisition is seen as a strategic move to diversify the company's asset portfolio, particularly as it transitions towards becoming a more diversified mining group [5].