Zhong Guo Ji Jin Bao·2025-12-17 10:23Core Viewpoint - The surge in gold prices has prompted A-share mining companies to accelerate their global gold resource acquisitions, raising questions about whether this is a strategic move or merely chasing high prices [2][8]. Group 1: Company Actions - On December 15, Luoyang Molybdenum announced an investment of 7 billion yuan (approximately 1.01 billion USD) to acquire gold mines in Brazil, leading to a nearly 180% increase in its stock price for the year [2][6]. - Luoyang Molybdenum's acquisition includes four gold assets from Equinox Gold in Brazil, with a total gold resource of 5.013 million ounces and a reserve of 3.873 million ounces, significantly higher than the global average [4]. - Other A-share mining companies, such as Zijin Mining and Jiangxi Copper, have also made significant acquisitions, including Zijin's purchase of gold projects in Ghana and Kazakhstan [6][7]. Group 2: Market Context - The gold sector has seen a price increase of over 60% this year, with gold prices reaching record highs, prompting a competitive environment for gold resources [8]. - The current gold price is at historical highs, leading to debates among investors about the wisdom of large-scale acquisitions by mining companies [8]. - The World Gold Council has analyzed potential scenarios for the gold market in 2026, indicating that gold prices may remain stable or experience fluctuations based on economic conditions [9][10]. Group 3: Strategic Implications - Companies are focusing on long-term strategies rather than short-term price fluctuations, with Luoyang Molybdenum emphasizing the long-term market outlook for gold [8]. - The scarcity of quality gold resources is becoming more pronounced, with major gold producers experiencing declining reserve replacement rates [8]. - International capital strategies are being pursued, with companies like Shandong Gold International preparing for H-share issuance and Zijin Mining restructuring its overseas assets for potential listing [11].