Mei Ri Jing Ji Xin Wen·2026-01-19 12:33Core Viewpoint - Jiangxi Copper has signed a three-year cooperation framework agreement with China Ordnance Material Group, focusing on the purchase and sale of cathode copper, crude copper, and electrolytic nickel, while also pursuing a cash acquisition of SolGold to enhance its global copper resource layout [1][3]. Group 1: Cooperation Agreement - The cooperation agreement will be effective from January 1, 2026, to December 31, 2028, covering transactions in cathode copper, crude copper, and electrolytic nickel [1]. - Expected annual transaction amounts include $600 million for overseas cathode copper, 2.5 billion RMB for Guangdong cathode copper, 600 million RMB for crude copper, and $50 million for overseas electrolytic nickel [1]. - Sales projections include 5.8 billion RMB for cathode copper, 500 million RMB for copper rods, 700 million RMB for aluminum ingots, 1.5 billion RMB for electrolytic nickel, 700 million RMB for zinc ingots, 30 million RMB for tin ingots, and 500 million RMB for precious and rare metals [1]. Group 2: Acquisition of SolGold - Jiangxi Copper announced a formal offer to acquire all issued shares of SolGold at 28 pence per share, valuing the target company at approximately £867 million [3]. - The board of SolGold has deemed the acquisition terms fair and is recommending shareholders support the deal [3]. - Jiangxi Copper has received irrevocable commitments from major shareholders, including BHP, Newmont, and Maxit Capital LP, representing about 25.7% of SolGold's shares [3]. Group 3: Industry Context - The copper industry is experiencing a shift towards consolidation among leading enterprises, with a significant reduction in processing fees for copper concentrate, impacting smelter profit margins [4]. - Jiangxi Copper's revenue figures for 2022 to 2024 are projected at 479.94 billion RMB, 521.89 billion RMB, and 520.93 billion RMB, with net profit expected to reach 6.962 billion RMB in 2024 [5]. - The company is enhancing its resource control and industry influence through strategic acquisitions and partnerships, particularly during a period of overall capacity adjustment in the industry [5].