Luoyang Molybdenum Industry terminates the first phase share repurchase plan and proposes to carry out the second phase share repurchase with 800 million yuan.

On July 13, Luoyang Molybdenum Industry issued an announcement and decided to terminate the first phase of the buyback program. Luoyang Molybdenum Industry said that the main reason for the termination of the A-share repurchase plan (Phase I) was that after the board of directors examined and approved the A-share buyback plan (Phase I), the company implemented the buyback in stages in accordance with the repurchase rules and capital situation. Up to now, the company has repurchased a total of 48.513287 million shares, a difference of 1.486713 million shares from the lower limit of 50 million shares planned in the repurchase plan, and the actual total repurchased shares account for 97.03% of the lower limit of the repurchase plan.

The total amount of shares repurchased by the company did not reach the lower limit of the shares to be repurchased in the A-share buyback plan (phase I). The main reason is that the repurchase price limit of the A-share repurchase plan (phase I) is 4.5 yuan per share, while benefiting from the vigorous development of the new energy industry, the company's stock secondary market has performed well. Since October 2020, the company's stock price has long exceeded the upper limit of the repurchase price. Because the stock price is higher than the upper limit of the repurchase price for a long time, and the time limit of the repurchase in the relevant sensitive period, the company has less chance to implement the repurchase operation. In view of the fact that the current stock price continues to be higher than the upper limit of the repurchase price, combined with the current industry development and capital market changes and other factors, after careful study by the board of directors, it is decided to terminate the implementation of the A-share buyback program (Phase I).

Prior to this, Luoyang Molybdenum Industry issued an announcement on the first phase of A-share repurchase program on September 30, 2020, agreeing that the company should use its own funds of no more than 450 million yuan to buy back A-shares of the company at a price of no more than 4.50 yuan per share. the number of repurchased shares is not less than 50 million shares, no more than 100 million shares, accounting for 0.23% of the company's total share capital before buyback. The repurchase of inventory shares is limited to the subsequent implementation of equity incentive plans or employee stock ownership plans.

On the same day that the first phase of the repurchase program was announced, Luoyang Molybdenum Industry also announced the second phase of the repurchase plan, which intends to use its own funds of no more than 800 million yuan to buy back the company's shares at a price of no more than 8 yuan per share. The number of repurchased shares is not less than 50 million shares, no more than 100 million shares, accounting for 0.23% of the company's total share capital before the buyback. The follow-up is used for the implementation of equity incentive plan or employee stock ownership plan. If the company fails to implement the above plan, the shares repurchased by the company will be cancelled in accordance with the law.

It is reported that through continuous overseas acquisitions in recent years, Luoyang Molybdenum has become an international resource business with diversified businesses such as mineral trade, copper, cobalt, molybdenum, tungsten, niobium and phosphate rock. Since October last year, the share price of Luoyang Molybdenum Industry has fluctuated greatly. After the launch of the first phase buyback plan, the share price of Luoyang Molybdenum Industry continued to rise, with some ups and downs in the middle, but it still showed an upward trend as a whole, and the stock rose to 8.02 yuan per share at the end of February. It has fallen since then. As of July 13, Luoyang Molybdenum Industry reported 6.55 yuan per share.