China Molybdenum Sets Ambitious Copper Production Goals and Commits to Strong Dividend Payouts
In a recent discussion, executives from China Molybdenum outlined the company’s future plans, focusing on copper production, dividend payouts, and ongoing development strategies. China Molybdenum is on a clear path to significantly increase its copper production over the next five years, aiming to achieve an annual output of 800,000 to 1,000,000 tons by 2028. This goal is part of the company’s broader strategy to position itself among the top global mining companies.
Currently, China Molybdenum has a production capacity of 450,000 tons of copper per year at the TFM mine in the Congo and 150,000 tons at the KFM mine. In the first half of this year, KFM maintained high production levels, and the TFM mixed ore project successfully met production standards, with a total of 313,800 tons of copper produced. The company is accelerating development in the western area of TFM and deep mining at KFM to support its ambitious production targets.
On the financial front, China Molybdenum remains committed to providing substantial returns to its investors. In 2024, the company distributed dividends amounting to CNY 1.5425 (approximately $0.21 USD) per 10 shares, with a total payout of around CNY 3.3 billion (approximately $460 million USD), reflecting a cash dividend ratio of approximately 40%. Over the next three years, the company plans to maintain this commitment by distributing cash dividends each year exceeding 40% of net profit attributable to shareholders, ensuring sustainable value creation.
Looking ahead to the fourth quarter of 2024, China Molybdenum will continue to focus on improving quality, reducing costs, and enhancing efficiency across its operations. Key sectors such as copper-cobalt, molybdenum-tungsten, and niobium-phosphorus will undergo process optimization and technical improvements to further boost quality and efficiency. The company also plans to expedite the development of the Pumpi mine in TFM's western area and deepen mining activities at KFM.
Regarding market dynamics, China Molybdenum currently has no plans for share buybacks despite stock market fluctuations influenced by various factors. Instead, the company remains focused on its core operations and growth strategies.
China Molybdenum’s primary exports include cathode copper and cobalt hydroxide, with these products primarily shipped through the IXM trading network to downstream smelters and producers in the new energy supply chain. The company’s molybdenum, tungsten, niobium, and iron products follow a combination of direct sales and distribution models, leveraging both IXM's global sales network and domestic sales teams to maximize profits. Phosphorus products are produced and sold locally within Brazil, with fertilizer mixers creating customized blends for end-users.
