Key Takeaways:
CMOC Group forecast first-half net profit of as much as RMB 16.5 billion ($2.3 billion), a 90% surge from a year earlier on higher copper and gold output.
"The significant increase was driven by higher sales volumes and selling prices of copper products, a marked surge in molybdenum and tungsten prices, and the consolidation of our gold-mining business in Brazil," CMOC said in a filing to the Hong Kong stock exchange.
Net profit attributable to shareholders for the six months ended June is expected to reach RMB 15.5 billion to RMB 16.5 billion, representing year-on-year growth of 78.8% to 90.3%. Excluding non-recurring gains and losses, net profit is forecast at RMB 15 billion to RMB 16 billion, up 71.9% to 83.4% from a year earlier. The company did not disclose revenue or earnings per share figures in the preliminary profit alert.
CMOC, one of the world's largest producers of copper and cobalt, has benefited from a sustained rally in industrial metals as supply constraints and strong demand from the energy transition sector pushed prices higher. The company's molybdenum and tungsten operations also posted sharp price gains compared with the same period last year, while its Brazilian gold assets — consolidated following the 2024 acquisition — contributed incremental production and revenue.
The profit alert comes as JPMorgan said the China materials sector is likely to issue more positive profit alerts, with the bank expressing a preference for copper and gold stocks. CMOC shares traded 0.6% lower on July 10, the most recent trading session, with short selling accounting for 8.4% of turnover. The company previously declared a final dividend of RMB 0.2860 per share for the prior fiscal year, equivalent to approximately HKD 0.32643.
The guidance raise shows CMOC's diversified commodity portfolio is delivering across multiple metal cycles. Investors will watch for the full interim report, expected in August, for segment-level margins and production guidance for the second half.
This article is for informational purposes only and does not constitute investment advice.
