China's Mining Giant Soars with $7B South American Gold Deal; Jiangxi Copper and Zijin Mining Also Expand

Gold price surges have ignited a wave of mining M&A!

On December 15, mining giant CMOC Group Limited (603993.SH) opened strong, rising over 4% before paring gains. It closed at CNY 17.93 per share, up 1.99%, with a market cap exceeding CNY 380 billion. Benefiting from soaring precious metal prices, CMOC’s stock has surged nearly 180% year-to-date.

The company announced plans to acquire a 100% stake in three Brazilian gold mines from Canada’s Equinox Gold (TSX: EQX, NYSE-A: EQX) for USD 1.015 billion (~CNY 7 billion). The assets include the Aurizona, RDM, and Bahia complexes (Fazenda and Santa Luz mines). The deal includes a USD 900 million upfront payment and up to USD 115 million in contingent payments tied to post-acquisition gold sales. Closing is expected in Q1 2026, pending approvals from Brazilian antitrust and Chinese regulators.

Equinox Gold will refocus on North American operations post-sale. The Toronto- and NYSE-listed firm holds multiple producing mines and expansion projects across the Americas.

The three mines hold combined gold resources of 5.013 million ounces (avg. grade: 1.88 g/t) and reserves of 3.873 million ounces (avg. grade: 1.45 g/t). Their 2024 output is projected at 247,300 ounces, with 2025 guidance of 250,000–270,000 ounces.

Despite a 5.99% YoY revenue drop to CNY 145.485 billion in Q1–Q3, CMOC’s net profit surged 72.61% YoY to CNY 14.28 billion, driven by higher metal prices and increased copper output. Q3 net profit alone jumped 96.40% YoY to CNY 5.608 billion.

However, cobalt sales plummeted due to DR Congo’s export restrictions. Guosen Securities noted CMOC’s 2024 cobalt quota of 32,000 tons, with rising prices offsetting volume declines.

**Gold Rush: Mining Titans Expand Portfolios** With COMEX gold up 65% YTD and SHFE gold gaining 58.14%, miners are aggressively acquiring gold assets: - On December 12, Jiangxi Copper Company Limited (600362.SH) raised its bid for SolGold to GBP 842 million, targeting Ecuador’s Cascabel project (12.2M tons copper, 30.5M oz gold, 102M oz silver resources). - On October 14, Shenghe Resources (600711.SH) agreed to buy Canada’s Loncor for CAD 261 million (~CNY 1.35 billion) for the Adumbi gold project in DR Congo. - On October 12, Zijin Mining Group Company Limited (601899.SH/02899.HK) completed its acquisition of Kazakhstan’s Raygorodok gold mine via subsidiary ZIJIN GOLD INTL (02259.HK). - Earlier, in April, Zijin bought Newmont’s Akyem mine in Ghana for CNY 7.256 billion.

How do you view this global gold acquisition spree?

*(Disclaimer: Content is for reference only and not investment advice.)*