Luoyang Molybdenum Co. reported record Q1 profits and announced the acquisition of Lumina Gold Corp. to expand its resource portfolio into gold mining.

Target Company Overview

Luoyang Molybdenum Co., Ltd. (Luoyang Moly) has recently reported a remarkable performance for the first quarter, achieving a net profit of CNY 3.946 billion, which reflects a 90.47% year-over-year increase. The company recorded a total revenue of CNY 46.006 billion, with the basic earnings per share reaching CNY 0.18, marking an 80% growth compared to the previous year. During this period, Luoyang Moly produced 170,574 tons of copper, surpassing previous records with a 15.65% increase. Additionally, cobalt production amounted to 30,414 tons, while molybdenum and tungsten reached 3,341 tons and 1,993 tons, respectively.

Industry Overview in China

The metals and mining industry in China is experiencing a significant transformation, driven by technological advancements and increasing demand for various minerals. China's copper production, as part of the sector, has been bolstered by increasing prices and an anticipation of high demand domestically and internationally. The copper market in March saw prices approach USD 10,000 per ton, reflecting strong market dynamics fueled by global economic recovery and infrastructure investments.

Cobalt, often produced as a byproduct of copper, has also seen a significant rise in value, with prices soaring roughly 50% since the beginning of the year. The