2 1 Shi Ji Jing Ji Bao Dao·2025-12-15 12:26Core Viewpoint - Luoyang Molybdenum plans to acquire 100% equity of two subsidiaries of EQX for $1.015 billion, gaining full ownership of four gold mines in Brazil, which is expected to significantly enhance the company's performance in the coming years [2][6]. Financial Performance - The two subsidiaries involved in the acquisition reported a combined revenue of over 4.1 billion yuan and a net profit of 1.013 billion yuan in the first nine months of this year, indicating a scale comparable to a medium-sized mining company [2][6]. - The acquisition is projected to contribute an additional revenue of 5.5 billion yuan and a net profit of 1.35 billion yuan to Luoyang Molybdenum in 2026, based on annualized estimates from the subsidiaries' performance [11]. Mining Assets - The acquired gold assets include Aurizona and RDM gold mines, along with Fazenda and Santa Luz mines, totaling 5.013 million ounces of gold resources with an average grade of 1.88 g/t [7][8]. - The average grade of the acquired gold mines is higher than the global average of 1.06 g/t, suggesting a favorable resource quality for long-term mining [8]. Strategic Importance - Brazil is a key area for Luoyang Molybdenum's overseas resource layout, with significant revenue expected from the region, projected to exceed 6.5 billion yuan in 2024 [4]. - The acquisition is expected to create synergies with existing assets in Ecuador and Brazil, enhancing the company's gold segment and regional resource collaboration [2]. Future Growth - The company has several growth projects lined up, including the KFM Phase II project expected to be operational by 2027 and the Cangrejos gold mine in Ecuador anticipated to start production before 2029 [2][12]. - With the completion of the acquisition, Luoyang Molybdenum's annual gold production is expected to reach approximately 20 tons, positioning it among the top domestic gold mining companies [9].