CMOC: Copper, Cobalt, and Niobium Production Up YoY in Q1, Plans to Produce 600,000-660,000 mt of Copper Metal in 2025

CMOC released an announcement on its operational performance for January-March 2025 on the evening of April 8. During the period, the company seized favorable market opportunities and made every effort to stabilize and increase production. The production of its main products, including copper, refined cobalt, and niobium, increased by 15.65%, 20.68%, and 4.39% YoY, respectively. Benefiting from the YoY rise in selling prices of all products, the company's key operating indicators exceeded expectations, achieving a strong start to the year.

CMOC stated that 2025 is a critical year for achieving strategic goals and high-quality development. The company will continue to accelerate expansion projects to maximize resource utilization value, laying a solid foundation for new breakthroughs.

CMOC's previously released 2024 annual report showed that the company's revenue exceeded 200 billion yuan for the first time, reaching 213.029 billion yuan, up 14.37% YoY. Net profit attributable to shareholders surpassed 10 billion yuan for the first time, reaching 13.532 billion yuan, up 64.03% YoY. Adjusted net profit attributable to shareholders was 13.119 billion yuan, up 110.48% YoY. Earnings per share were 0.63 yuan, up 65.79% YoY.

CMOC's annual report revealed that in 2024, the production of its main products, including copper, refined cobalt, niobium, and phosphate fertiliser, hit record highs. Among them, annual copper production reached 650,200 mt, up 55% YoY, making CMOC one of the top 10 global copper producers for the first time. According to institutional estimates, CMOC accounted for nearly 60% of the global incremental mine copper production in 2024. In other mineral products, CMOC produced 114,200 mt of refined cobalt, 10,024 mt of niobium, 1.18 million mt of phosphate fertiliser, 8,288 mt of tungsten, and 15,396 mt of molybdenum in 2024, maintaining its leading position in the industry.

CMOC also announced its 2025 operational plan in its 2024 interim report. According to the guidance on the production of major products and physical trade volume in the mining and trade business segments for 2025, the company plans to produce 600,000-660,000 mt of copper, 100,000-120,000 mt of refined cobalt, and 12,000-15,000 mt of molybdenum.

Huafu Securities released a research report on April 2, giving CMOC a "Buy" rating. The reasons for the rating include: 1) Volume: Record-high production of major products in 2024, with major construction projects reaching full production and meeting standards; 2) Price: Copper prices hit a record high in 2024; 3) Profit: The refined cobalt segment achieved volume discount, and profits are expected to grow positively in 2025. Risk warnings: Copper, refined cobalt, and molybdenum prices may fall short of expectations, and overseas policy changes pose risks.

Tianfeng Securities released a research report on March 28, giving CMOC a "Buy" rating. The reasons for the rating include: 1) Record-high production of major products such as copper and refined cobalt, with earnings exceeding expectations; 2) Record-high production of major products such as copper and refined cobalt, with earnings exceeding expectations; 3) Full completion of production plans, with the molybdenum, tungsten, niobium, and phosphate fertiliser segments showing strong momentum; 4) A new round of copper capacity expansion plans is underway, with significant long-term growth potential. Risk warnings: Price fluctuations of major products; geopolitical and policy risks; exchange rate risks; safety, environmental protection, and natural disaster risks; subjective nature of estimates.