On the evening of December 17, both Luoyang Molybdenum and Evolution Mining Limited (hereinafter referred to as "Evolution") issued an announcement confirming the completion of the transaction for the sale of 80% interest in Northparkes Mines copper and gold Mine (hereinafter referred to as "NPM") for US $756 million.
As the first overseas asset of Luoyang Molybdenum industry, in 10 years, Luoyang Molybdenum Industry through the purchase of NPM to sell, not only completed the asset handling, the value of the A stock market rose from less than 10 billion yuan to 100 billion yuan, and the enterprise grew from a small county to an international resource company, but also reflected the changes of The Times: Based on China's industrialization needs and the development law of "going out" to acquire high-quality mines, Chinese mining enterprises have grown from small to large, from weak to strong, and from ignorant to mature.
When the 10-year "story" of Luoyang Molybdenum Industry and NPM came to an end, the external situation had changed dramatically: Chinese mining companies, including Luoyang Molybdenum Industry, had to explore more high-quality mines in non-Western countries under the background of profound adjustment of the geopolitical pattern and ESG becoming a rigid indicator.
The sale of NPM will bring a net income of $252 million to Luoyang Molybdenum, further strengthening its cash reserves. As of September 30, the company held Rmb31.1bn in cash and cash equivalents. Huge cash reserves in hand, Luoyang Molybdenum industry's next asset layout deserves the attention of the industry.
