Shang Hai Zheng Quan Bao·2026-01-25 18:50Core Viewpoint - Luoyang Molybdenum's acquisition of Brazilian gold mining assets for up to $1.015 billion is expected to enhance its gold production capacity significantly, with an estimated output of 6 to 8 tons in 2026, contributing to the company's resource reserves and profitability [2][3][4]. Group 1: Acquisition Details - The acquisition was completed on January 23, 2026, just 40 days after the signing on December 15, 2025, demonstrating the efficiency of Luoyang Molybdenum in cross-border mining mergers [2][3]. - The acquired Brazilian gold mines have a total gold resource of 5.013 million ounces and a gold reserve of 3.873 million ounces, with an average grade of 1.88 grams per ton [4]. - The company anticipates that the Brazilian and Ecuadorian gold mines will collectively yield over 20 tons of gold annually, with a goal of significant growth in production capacity by 2030 [4][5]. Group 2: Cost Control and Efficiency - Post-acquisition, the company sees potential for cost reduction and efficiency improvements in various operational areas, leveraging China's supply chain advantages [4][5]. - The acquisition is expected to provide a short investment payback period and strong economic benefits due to the large resource base and mature processing technology [3][4]. Group 3: Market Outlook and Strategy - Luoyang Molybdenum remains optimistic about future gold prices and plans to maintain a "copper and gold" strategy, focusing on both metals rather than prioritizing one over the other [5][7]. - The company issued $1.2 billion in convertible bonds to secure funding for future acquisitions, aiming to strengthen its resource acquisition capabilities and ensure long-term stability in its gold business [6][7]. - The company achieved a copper production of 741,149 tons in 2025, a 9,000-ton increase from 2024, and aims for a copper output of 760,000 to 820,000 tons in 2026 [7][8].