Zheng Quan Shi Bao Wang·2026-01-20 04:32Core Viewpoint - The issuance of zero-coupon convertible bonds by Luoyang Molybdenum Co., Ltd. is a strategic move to optimize capital structure and enhance financing channels amid a recovering Hong Kong stock market [1] Group 1: Convertible Bond Issuance - Luoyang Molybdenum successfully issued a total of $1.2 billion in one-year zero-coupon convertible bonds, which is a significant step in the capital market [1] - The initial conversion price is set at HKD 28.03 per share, representing a premium of approximately 28.7% over the closing price on the signing date and 26.17% over the average closing price of the last five trading days [1] - If all bonds are converted at the initial price, it will result in the issuance of 334 million new shares, accounting for about 1.54% of the expanded total share capital [1] - The net proceeds from the bond issuance, estimated at approximately $1.1875 billion after deducting expenses, will be used for overseas resource project expansions and general corporate purposes [1] Group 2: Resource Expansion and Production - Luoyang Molybdenum has been expanding its resource reserves, including the acquisition of the Ecuador KGHM gold mine for $1.015 billion, which includes cash payments and contingent payments based on sales [2] - The acquired assets contain a total gold resource of 5.013 million ounces with an average grade of 1.88 g/t, and gold reserves of 3.873 million ounces with an average grade of 1.45 g/t [2] - Following the completion of the acquisition, the company's annual gold production is expected to exceed 20 tons, with an additional 8 tons from the Brazilian assets acquired [2][3] Group 3: Financial Performance - Luoyang Molybdenum forecasts a net profit attributable to shareholders of between 20 billion and 20.8 billion yuan for 2025, an increase of 6.468 billion to 7.268 billion yuan year-on-year, representing a growth of 47.8% to 53.71% [3] - The company also expects a non-GAAP net profit of 20.4 billion to 21.2 billion yuan, reflecting an increase of 7.281 billion to 8.081 billion yuan year-on-year, or a growth of 55.5% to 61.6% [3] - In 2025, copper production reached 741,100 tons, exceeding the target by 18%, with the fourth quarter production nearing 200,000 tons [3][4] Group 4: Other Product Performance - Other product outputs also exceeded expectations, with cobalt production at 117,500 tons (107% completion), molybdenum at 13,900 tons (103%), tungsten at 7,114 tons (102%), niobium at 10,300 tons (103%), and phosphate fertilizer at 1.21 million tons (105%) [4] - The physical trade volume reached 4.774 million tons, achieving 112% of the target [4] - The chairman of Luoyang Molybdenum stated that the bond issuance will enhance operational capital flexibility and lower financing costs, providing strong support for the company's overall strategy [4]