HK Stock Market Move | CMOC Group Limited (03993) rose more than 4%. The company recently completed the acquisition of a gold mine in Brazil. The gold business will synergize with the existing copper and cobalt businesses.

CMOC Group Limited (03993) rose more than 4%, rising 4.09% to HK$22.9 as of the time of writing, with a turnover of HK$2.37 billion. On the news front, JP Morgan released a research report stating that CMOC Group Limited recently completed the acquisition of a gold mine in Brazil for a transaction price of US$1.015 billion. The mine has reserves of 3.87 million ounces with an average grade of 1.45 grams per ton. Management plans to contribute 6-8 tons of gold production by 2026 and increase annual production to 20 tons by 2030. The bank believes that after the completion of the acquisition of the Brazilian gold mine, the gold business will synergize with the existing copper-cobalt business, combined with copper production capacity expansion and cost optimization, profit expectations for 2026-2027 have been raised by 27%-30%, with the potential to achieve over 50% profit growth for a consecutive year. The bank further noted that the company's copper production guidance for 2026 is 760-820 thousand tons, with growth coming from process optimization and technological upgrades at the TFM and KFM mines. The KFM Phase II project is expected to commence production in 2027, adding approximately 100,000 tons of copper production capacity annually. The copper production target for 2028 is 800-1,000 thousand tons (baseline of 800 thousand tons), with the TFM Phase III project (currently undergoing feasibility study) expected to bring additional increments. By lowering bulk material procurement prices in 2026, maintaining a globally leading level of capital expenditure and operating cost levels, further optimizing copper business unit costs will be achieved.