Ge Long Hui·2026-01-27 08:36Core Viewpoint - Jefferies reports that Luoyang Molybdenum announced the acquisition of Equinox Gold's gold asset portfolio in Brazil for up to $1 billion, and the transaction has been completed [1] Group 1: Acquisition Details - The acquisition price is approximately $1 billion, with an implied gold price of about $3,320 per ounce, compared to the current gold price exceeding $5,000 and the year-to-date average price above $4,500 [1] - Management views gold as a new business pillar alongside copper, expecting reasonable returns from this acquisition [1] Group 2: Long-term Production Goals - Jefferies estimates that once fully operational, the gold production from the Brazil and Ecuador projects will reach 20 tons annually [1] - Without considering further expansions or acquisitions, gold is projected to account for 5% to 6% of Luoyang Molybdenum's gross profit by 2026, increasing to over 10% by 2030 [1] - The management's preliminary goal is to double gold production by 2030, primarily through mergers and acquisitions [1] Group 3: Stock Ratings - Jefferies sets a target price of HKD 25.9 for Luoyang Molybdenum's H-shares and CNY 26.7 for its A-shares, both with a "Buy" rating [1]