Copper product prices and volumes are rising simultaneously, in addition to cost reduction and efficiency improvements. Luoyang Molybdenum aims to achieve a net profit of over 20 billion yuan by 2025.

Source: Securities Daily Online

By our reporter Xiao Yanqing

On the evening of March 27, Luoyang Luanchuan Mo Group Co., Ltd. (hereinafter referred to as “Luoyang Mo”) disclosed its 2025 annual report, showing that in 2025 the company achieved operating revenue of RMB 206.684 billion. Net profit attributable to shareholders of the listed company was RMB 20.339 billion, up 50.3% year over year. Net profit increased from RMB 5.106 billion in 2021 to more than RMB 20 billion in 2025, setting a record high for five consecutive years.

Regarding the sustained growth in performance, a relevant executive of Luoyang Mo told reporters from Securities Daily that, on the one hand, the company relies on world-class mine resources; through efficient construction and production operations, it converts resource advantages into volume and efficiency advantages, and it also benefits from the copper price rising cycle, thereby improving performance. On the other hand, the company continuously advances organizational upgrading, building an international, younger, and professional management team, implementing refined operations, and significantly lowering operating costs.

Higher volume and higher prices for copper products

Luoyang Mo mainly engages in mining and processing businesses such as mining, beneficiation, and smelting of nonferrous metal mines, as well as metal trading. It is a globally leading producer of copper, cobalt, molybdenum, tungsten, and niobium, and also a leading producer of phosphate fertilizer in Brazil. At the same time, its metal trading business ranks among the global top tier.

As one of the world’s top ten copper producers, its copper production and sales volume and price have a significant impact on its operating performance.

In terms of production and sales volume, Luoyang Mo has continued to tap potential and improve efficiency and output at two world-class copper mines, TFM and KFM in the DRC, by leveraging its existing six production lines. During the reporting period, the company produced 741.1 thousand tonnes of copper, reaching a new high; copper sales were 730.2 thousand tonnes, up 5.9% year over year. Driven by the rise in copper prices, operating revenue from copper products was RMB 55.096 billion, up 31.63%.

Xiao Changkang, an analyst from the Shanghai SteelLink Copper Business Department, said in an interview with reporters from Securities Daily: “In 2025, the copper price trend was strong. Although it was affected by tariffs and the market price once fell to a low within the year, the market price rebounded quickly. After that, prices returned to an upward channel, and until the fourth quarter, prices once again showed a strong performance, with prices setting a new historical high.”

Affected by the upward copper price, in the fourth quarter of last year, Luoyang Mo achieved operating revenue of RMB 61.198 billion, net profit attributable to shareholders of the listed company of RMB 6.059 billion, copper output of nearly 200 thousand tonnes, and all of these set new record highs for a single quarter.

Regarding copper supply and demand in 2025, Xiao Changkang analyzed and said: “On the demand side, there was steady improvement. The incremental demand for copper from emerging sectors such as power grids and the new energy market is considerable, keeping domestic copper consumption in positive growth. On the global side, the supply situation for copper concentrate is clearly tight. Coupled with the ramp-up of China’s copper smelting capacity, global copper concentrate has entered a stage of supply-demand imbalance and mismatch, providing an underlying driving force for copper prices to rise.”

Cost reduction and efficiency improvement yield significant results

Luoyang Mo’s cost reduction and efficiency improvement achieved remarkable results in 2025. Full-year operating costs were RMB 157.229 billion, down 11.56% year over year.

Specifically, in 2025, Luoyang Mo’s subsidiary mining areas, around innovation-driven initiatives, technological transformation, and process optimization, deeply implemented refined operations and comprehensively improved production efficiency and resource value.

Among them, at the TFM mine in the DRC, in the fourth quarter, the recovery rate for copper ore beneficiation and smelting, equipment operating rate, and raw ore treatment volume all exceeded the calendar progress. At the KFM mine, it built an ore characteristic database and a ore-blending model; the milling table efficiency improved by more than 30% year over year. In Brazil’s niobium segment, the recovery rates of the two concentrator plants improved by about two percentage points compared with the previous year, reaching a historical high. Domestically, at the Shangfanggou molybdenum mine and the Sandaodzhung molybdenum and tungsten recovery operations, the recovery rates improved by 3.24 and 2.65, 3.17 percentage points, respectively, year over year, also reaching historical highs.

The above-mentioned executive of Luoyang Mo said that the company is building a platform-based organization, replicating global management experience to overseas projects such as Brazil and Ecuador to support the implementation of its global strategy.

Around the global strategic layout of “multiple products, multiple countries, and multiple phases,” in 2025 Luoyang Mo will treat gold resources as a key expansion direction. In June 2025, Luoyang Mo completed the acquisition of the Odin mine in Ecuador. In December 2025, the company announced that it would acquire 100% of the equity interests in four operating gold mines in Brazil for USD 1.015 billion, and the closing was completed in January 2026.

In 2026, Luoyang Mo will push platform-based operations and refined management further; around the “copper and gold at the two ends” strategy, it will further convert resource advantages into capacity and output advantages, continue to look for high-quality targets, and keep moving forward with deep cultivation in the mining industry.

(Editor: Qiao Chuan chuan)