2025 net profit increased by 50.30% year-on-year! Luoyang Molybdenum's position among the world's top ten copper miners is further solidified.

On March 27, the 2025 annual performance report released by Luoyang Molybdenum Co., Ltd. shows that the company’s operating revenue was RMB 206.684 billion, holding the two-trillion-yuan threshold for two consecutive years; attributable net profit reached RMB 20.339 billion, up 50.30% year over year, achieving strong results for five consecutive years; operating net cash flow reached the second-highest level in history, at RMB 20.843 billion; total assets first surpassed RMB 200 billion, reaching RMB 200.932 billion, up 18.03% year over year.

Especially in the fourth quarter, the company achieved operating revenue of RMB 61.198 billion, attributable net profit of RMB 6.059 billion, copper production of nearly 200,000 tons, and all of these set new historical highs for a single quarter.

In 2025, the company’s main line was an organizational upgrade. It formed a “specialized, international, and youthful” team, executed precision-based operations, and, together with higher prices for major products and strong momentum in production and sales, drove its performance to an even higher peak. Specifically—

Operational quality continued to improve. At the mine segment, operating revenue reached RMB 77.713 billion, accounting for 38% of total operating revenue, and the “copper-containing” volume increased by about 7 percentage points compared with 2024. Of this, revenue from copper products was RMB 55.096 billion, accounting for 27% of total operating revenue and 71% of mine-segment operating revenue. The two “copper-containing” volume indicators both grew by about 7 percentage points year over year.

This was driven by the continued potential-挖潜 efforts at TFM and KFM—two world-class copper mines—leveraging the existing six production lines. During the reporting period, the company produced 741,100 tons of copper, setting a new record and strengthening its position as one of the top ten copper producers globally. Based on the midpoint of the production guidance, completion was 118%, and year over year it still maintained a two-digit growth of 13.99%. Sales were 730,200 tons, up 5.90% year over year. Coupled with price increases, copper operating revenue grew 31.63% year over year.

Other product output also exceeded expectations: niobium production hit a new record, reaching 10,348 tons, with a completion rate of 103%; phosphate fertilizer output was 1.2135 million tons, completion rate 106%; cobalt production was 117,500 tons, completion rate 107%; molybdenum production was 13,906 tons, completion rate 103%; tungsten production was 7,114 tons, completion rate 102%. In addition, the company achieved physical trading volume of 4.71 million tons, completion rate 111%; IXM (a wholly-owned subsidiary of Luoyang Molybdenum, Acoesn) recorded a gross margin of 2.11% under international accounting standards, reaching the highest level in recent years.

The effectiveness of “cost reduction and efficiency improvement” stood out again. The company’s full-year operating cost was RMB 157.229 billion, down 11.56% year over year. In 2025, mines worldwide carried out “keywords” such as innovation, technical upgrades, and process optimization, and practiced the “precision-based operations” philosophy. In the fourth quarter, TFM’s total copper leaching and smelting recovery rate, equipment utilization rate, and raw ore treatment volume all surpassed the calendar progress. KFM built an ore characteristics database and ore blending models, with grinding production efficiency increasing by more than thirty percent year over year. Luoyang Molybdenum Brazil’s niobium plate’s two concentrators improved their recovery rate by about two percentage points versus the previous year, also hitting a historical high. In the domestic Shangfanggou molybdenum mine, recovery rates for Sandaozhuang molybdenum and tungsten increased by 3.24 and 2.65, 3.17 percentage points respectively year over year, likewise setting historical highs.

Focusing on “multiple product types, multiple countries, multiple stages,” in 2025 the company built a “copper + gold” dual-pillar pattern, and added gold resources last year. Together with the greenfield gold mine in Ecuador and four gold mines in Brazil under operation, by 2029 the company will have 20 tons of annual gold production capacity in South America. The Ecuador gold mines are expected to start production in 2029, and land acquisition and power-supply assurance work is progressing rapidly; the first two months of Brazilian gold mines have achieved overproduction, with annual gold output of 6–8 tons this year. Aiming for copper production of 8–10 million tons in 2028, it will build the KFM phase-two project, which is expected to add 1.0 million tons of annual copper production capacity after it starts production in 2027. TFM’s proven and related resources potential for mineral deposits will accelerate phase-three construction preparations. In addition, the company completed the issuance of a $1.2 billion 1-year zero-coupon convertible bond, broadening financing channels to support strategic implementation.

With performance growth, the company has always practiced high-standard ESG concepts. During the reporting period, ESG governance was further improved with progress on digitalization initiatives; environmental performance led globally. The carbon emission intensity of copper products is lower than that of mining companies worldwide in the top 70% of its global peers. The share of renewable energy and water recycling increased further versus 2024, to 38% and 89%, respectively; the total global economic contribution was RMB 182.420 billion, and global community investment was RMB 0.488 billion.

2026 is a critical year for the company to comprehensively implement its new development strategy and push platform-based operations and precision management deeper. The company will further build a platform-oriented organization: the global supply chain center will lead the way, improving coordination efficiency and cost competitiveness; relying on the “622” model, supplemented by cross-border mine management experience and standardized business processes, to enhance the global control and management system. Around the “copper-gold dual pillars,” the company will further convert resource advantages into capacity and production advantages, and continue to look for high-quality targets. With the goal of “a globally leading world-class mining company with a distinctive, standalone approach,” the company will continue to deepen its efforts in the mining sector.

Edited by / Li Xi, Ma Wanxie

First review / Xi Xiaoqian

Reviewed by / Zhang Lihua

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