CMOC Group: Record Profits Amid Divergence Between Production and Sales

Although tungsten prices declined slightly in Q2, the average APT price for the first half of this year stood at RMB 1.03 million per ton—up a staggering 364% year-on-year. However, for integrated enterprises like CMOC, changes in tungsten prices typically lag by one quarter in terms of earnings impact; thus, revenue and gross margin for CMOC’s tungsten segment are expected to decline noticeably in Q3. In addition to soaring tungsten prices, cobalt prices also rose significantly in H1. The company produced 65,300 tonnes of cobalt in H1, up 6.93% year-on-year—but sold only 5,727 tonnes, a sharp drop of 87.6%. Meanwhile, gross margin surged from 61.83% to 83.16%. This was primarily due to the Democratic Republic of the Congo’s (DRC) introduction of a cobalt export quota system starting last October: mining continued at full pace, but CMOC could not ship its cobalt out—leaving it piled up in warehouses. As a result, cobalt-related revenue fell by 45%. Cobalt inventory reached 168,400 tonnes by end-H1, up 54.75% from the beginning of the year—exacerbating market supply shortages. Consequently, the average cobalt metal price in H1 hit USD 25.56 per pound, up 94.22% year-on-year. Starting from Q2, the DRC has gradually relaxed export quotas. Assuming cobalt prices remain stable through H2, CMOC stands to reap massive potential profits from its 168,400-tonne cobalt inventory. Of course, cobalt prices may not hold, and such a huge inventory cannot be liquidated all at once—the DRC is merely easing quotas, not lifting them entirely. Thus, if quotas remain restrictive, prices may hold—but volumes won’t rise; if quotas are substantially relaxed, volumes will surge—but prices will likely fall. Cobalt and tungsten truly are fraternal twins: one is trapped in storage, unable to sell, pushing prices up; the other sees surging prices that suppress sales volume. What truly anchors CMOC’s core business remains copper and gold. The gold segment generated RMB 3.017 billion in revenue, with a gross margin of 41.12%—the first financial report since the consolidation on January 23 of four Brazilian gold mines. In H1, gold output totaled 100,400 troy ounces (~3.1 tonnes). As previously analyzed in detail, CMOC acquired gold assets in Brazil and Ecuador; by 2029, its gold production capacity is projected to exceed 20 tonnes—constituting its second growth pillar. This trajectory has now begun delivering tangible results. In H1 2026, the average spot gold price stood at USD 4,713 per ounce—up 57.15% year-on-year. Spot gold surged from USD 4,330 to USD 5,600 per ounce, remaining around USD 4,000 per ounce at end-June. Gold’s price surge has been widely discussed online—driven by factors including USD depreciation trades, central bank gold purchases, rate-cut expectations, escalating U.S.-Iran tensions, soaring oil prices, and inflation concerns. Under such elevated gold prices, CMOC’s 41.12% gross margin is actually modest—likely reflecting integration costs and underutilized capacity at newly acquired mines, resulting in one-off cost pressures. The company targets over 20 tonnes of annual gold output by 2029; H1 output was just 3.1 tonnes, with full-year guidance set at 6–8 tonnes—still far off target. Nevertheless, CMOC’s dual-pillar strategy centered on copper and gold has officially taken root: together, copper and gold accounted for 72% of mine-site revenue.

CMOC Group Explodes Again: Profits Surpass RMB 20 Billion, Riding the Commodity Cycle to the Brim

Surging volumes and prices, coupled with falling operating costs, propelled CMOC’s earnings to a record high for the fourth consecutive year. On January 15, 2026, CMOC Group (603993.SH) issued its 2025 earnings preview: net profit attributable to shareholders is expected to increase by RMB 20–20.8 billion, representing year-on-year growth of 47.8%–53.71%; non-recurring net profit is forecast at RMB 20.4–21.2 billion, up 55.50%–61.60% year-on-year. This means CMOC’s 2025 performance has again set a new historical high—marking its fourth straight year of record earnings since 2022—underscoring the extraordinary strength of the non-ferrous metals cycle. (Wind data) As of February 3, 2026, CMOC’s market capitalization approached RMB 500 billion, commanding a lofty valuation—25x static P/E. (App: FENG YUN Market Value) Three key drivers explain CMOC’s record 2025 earnings: higher output, higher prices, and lower operating costs. First, output: In H1, CMOC exceeded its 2024 annual production guidance across all major products—copper, cobalt, molybdenum, tungsten, niobium, and phosphate fertilizer. (2024 Annual Report: 2025 Production Guidance) (2025 Semi-Annual Report: Actual H1 Output) In the first three quarters of 2025, CMOC’s copper output reached 543,000 tonnes—up 14.14% year-on-year; cobalt output totaled 88,000 tonnes, up 3.84%. (2025 Third-Quarter Report) Second, pricing: Copper prices rose even more sharply—LME copper prices surged 39.3%–42.34%, with further gains continuing into 2026. (Wind data) Key drivers included: tightening global copper mine supply (multiple large-scale mines cutting output or halting operations), regional supply-demand imbalances triggered by the U.S. Section 232 copper investigation, enhanced financial attributes driven by Fed rate cuts, and robust demand from new-energy sectors. In short: supply contraction, rising demand, and monetary dilution. Third, operating costs: Financial data clearly shows that in the first three quarters of 2025, CMOC’s operating revenue declined 2.36% year-on-year, yet non-recurring net profit attributable to shareholders jumped 98%. A critical factor was a 13.2% year-on-year reduction in operating costs—amounting to RMB 15.75 billion less than the prior-year period. (Third-quarter earnings summary) Of course, revenue should be disaggregated more precisely between mining operations and mineral trading. According to H1 2025 data, the overall 7.8% revenue decline stemmed mainly from a 11.4% drop in low-margin mineral trading revenue; in contrast, high-margin mining operations revenue actually rose 25.6%.

China’s CMOC Sees Earnings Soar on Copper Rally and More Output

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CMOC Group reported a 68% surge in net income for the first nine months, driven by soaring copper prices and increased production volumes. The miner also expanded into aluminum and iron ore trading while benefiting from higher molybdenum and tungsten prices.

bloomberg

2026-10-23

China’s CMOC Sees Earnings Soar on Copper Rally and More Output

China’s CMOC Sees Earnings Soar on Copper Rally and More Output

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