Citi Cautions on Commodity Risks Amid Copper Surge, Unusual Crude Oil and Gold Movements

【SMM News Flash】PengXin Resources (600490) announced on January 30 that it expects to achieve a net profit attributable to the owners of the parent company of 210 million yuan to 290 million yuan in 2025, turning a profit on a YoY basis. The main reasons for the expected profit were an increase in the production of mined gold, copper cathode, and sulphuric acid, along with a YoY rise in selling prices during the reporting period; additionally, cobalt hydroxide prices rebounded, with the reversal of impairment losses on cobalt hydroxide and the completion of sales of some products.

【SMM News Flash】Glencore, one of the world's largest mining and commodity trading groups, is expected to prioritize the development of its copper production operations in the Democratic Republic of the Congo (DRC) in 2026 and adjust its production plans accordingly. As export restrictions continue to weigh on the country's cobalt exports, this move by Glencore underscores how market control and the global energy transition are reshaping mining strategies in Africa. The company stated that it has issued production guidance for the coming year but has not yet provided a cobalt production forecast due to high uncertainty. Although the company continues to mine cobalt in the DRC, exports remain restricted due to a quota system implemented by the Congolese government to manage supply surplus and stabilize prices.