On December 15, China Molybdenum Co., Ltd. announced that its subsidiary had signed an agreement with Canadian gold mining listed company EQX (Equinox Gold Corp.) on December 14 to acquire two subsidiaries of EQX for US$1.015 billion (equivalent to RMB 7.154 billion), obtaining 100% equity in four operating gold mines - Aurizona Gold Mine, RDM Gold Mine, and Bahia Integrated Mining Area (including two gold mines).

According to the announcement, the above-mentioned assets contain a total gold resource of 5.013 million ounces with an average grade of 1.88g/t, and gold reserves of 3.873 million ounces with an average grade of 1.45g/t.

Specifically, the Aurizona gold mine is located near the town of Godofredo Viana in Maranhão State, northeastern Brazil, less than 3 kilometers from the Atlantic Ocean estuary. Mining operations at the gold mine are mainly concentrated in the Piaba open pit and the Tatajuba satellite open-pit deposit. In 2025, the gold production of this mine is expected to be 70,000 to 90,000 ounces. In addition, the company's pre-feasibility study report from September 2021 shows that there are more resources distributed in the Piaba underground mine and other satellite open-pit mines. These resources can nearly double the service life of the gold mine to 11 years, and after full development, the expected peak annual output can exceed 160,000 ounces.

The RDM gold mine is located in Minas Gerais State, Brazil, approximately 560 kilometers north of Belo Horizonte, the capital of the state. In 2025, the gold production of the RDM gold mine is expected to be 50,000 to 60,000 ounces.

The Bahia Integrated Mining Area includes the Fazenda Gold Mine and the Santa Luz Gold Mine, both located in the Maria Preta mining district of Bahia State, Brazil, with a distance of only 55 kilometers between them. Among them, the Fazenda Gold Mine has been in operation for nearly 40 years, and the cumulative gold output has exceeded 3.3 million ounces so far. In January 2025, EQX released the updated mineral reserve and resource estimation report and a new technical report for the Fazenda Gold Mine. The data shows that the mine's service life can be extended to 2033, and it has the potential to increase production and further extend the service life. In 2025, the gold production guidance for the Bahia Integrated Mining Area is 125,000 to 145,000 ounces.

China Molybdenum Co., Ltd. stated that Brazil is rich in gold mine resources and has relatively stable geopolitics. After the completion of this transaction, the company's annual gold output is expected to reach 8 tons. This transaction is in line with the company's investment and acquisition strategic plan focusing on copper and gold, and will help further enhance the company's resource reserves.

This acquisition is another key move in CMOC's journey to deploy gold mine resources and optimize its diversified product layout. With the gold industry showing strong momentum, in June this year, CMOC completed the acquisition of the Cangrejos Project in Ecuador, officially sounding the clarion call to enter the gold mining industry.

Kaigehaus Gold Mine is located in El Oro Province in southwestern Ecuador, at an altitude of approximately 1,100 meters. Based on the pre-feasibility study report of 2023, the mine has a retained resource of 1.376 billion tons, with an average gold grade of 0.46g/t and an inherent gold metal content of 638 tons; the reserves are 659 million tons, with an average gold grade of 0.55g/t and an inherent gold metal content of 359 tons, and the expected lifespan is 26 years. This is a porphyry-type mine, boasting advantages such as large reserves, shallow burial depth, full open-pit mining, and a low stripping ratio, with certain room for improvement in resource reserves in the future. According to the preliminary plan of China Molybdenum Co., Ltd., the project is scheduled to start production in 2028, with an annual output of approximately 11.5 tons of gold.

With the output of the Kaige Haus Gold Mine after it goes into production, plus the four gold mines acquired this time, it is expected that the annual gold output of China Molybdenum Co., Ltd. will exceed 20 tons in 2028.

The four gold mines acquired this time and the Kagahoose Gold Mine are all located on the South American continent. Liu Jianfeng, Chairman of China Molybdenum Co., Ltd., said: "South America is rich in resources such as gold and copper, and its geopolitics is relatively stable. The company has many years of experience in construction, development and operation in South America, which is conducive to exerting synergistic effects." He also stated that the company is optimistic about the long-term market prospects of gold assets. This transaction is a major measure for the company to implement the "copper-gold dual-pillar" mergers and acquisitions strategy.

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