2025-07-11 01:13Summary of Luoyang Molybdenum Co. Conference Call Industry Overview - The U.S. has imposed a 25% tariff on copper, exceeding market expectations, with limited impact on demand and supply but affecting global logistics [2][4] - If Chile receives exemptions or tariffs are implemented in phases, copper prices may rebound, presenting buying opportunities during price dips [2][4] Company Performance - Luoyang Molybdenum has become the largest cobalt producer globally, with a projected 38% of global production in 2024 and 50% from the Democratic Republic of Congo [2][5] - The company’s tungsten inventory was sold out by Q2, potentially impacting Q3 profits, but H1 profits have already matched the previous year's total [2][5] - Copper production growth is leading among global copper mining companies, with an expected annual compound growth rate of approximately 9% over the next five years, primarily driven by TFM mine expansion and KFM project contributions [2][6][11] Project Developments - The KFM project has exceeded expectations, with annual production capacity increased to over 200,000 tons, benefiting from shared infrastructure with TFM [2][9] - The company acquired an Ecuadorian gold mine with reserves of 638 tons, expected to produce 11.6 tons of gold annually starting in 2028, with a design life exceeding 20 years [2][10] Future Projections - Luoyang Molybdenum aims to expand copper production capacity to 800,000 to 1,000,000 tons by 2028, with significant contributions from TFM and KFM projects [2][6][11] - The company’s copper production forecast is conservative, with potential for further increases if copper prices rise to favorable levels [2][7] Financial Sensitivity - A rise of 5,000 RMB/ton in copper prices could increase profits by approximately 1.3 billion RMB, while a 30,000 RMB/ton increase in cobalt prices could add 600-700 million RMB to net profits [3][12] - The company's profit center is estimated at around 15.6 billion RMB under baseline assumptions [3][12] Resource Comparison - As of 2023, Luoyang Molybdenum has a resource volume of 27 million tons, significantly lower than leading global companies like Codelco and BHP, but comparable to some large mining firms [2][8]