Luoyang Molybdenum Co. releases future action blueprint: goals, pathways, and methodology

Recently, Luoyang Molybdenum Co., Ltd. announced its 2025 performance report.

During the reporting period, Luoyang Molybdenum achieved operating revenue of 206.68B yuan; net profit attributable to shareholders of 20.34B yuan, a year-on-year increase of 50.30%; net profit attributable to shareholders after deducting non-recurring gains and losses of 20.41B yuan, a year-on-year increase of 55.56%.

After setting new historical records for five consecutive years, what are Luoyang Molybdenum’s future goals? What does it aim to do? How will it do it?

In Luoyang Molybdenum’s annual report, the company provided a public answer to these questions through the board of directors’ letter titled “Creating a New Era for Luoyang Molybdenum.”

Luoyang Molybdenum explicitly clarified its new goal for the first time: to strive to become a globally leading, distinctive world-class mining company. Behind the phrase “distinctive” is a profound understanding of the mining industry, which is that competition is about price, and price is about cost.

Based on this, Luoyang Molybdenum first explained the “622 Model,” which is also its “methodology”: 60% of cost advantage is determined by resource endowment, with strategic acquisitions defining the company’s lifeline and DNA; 20% depends on project planning and construction level to achieve optimal full lifecycle costs; the remaining 20% is determined by daily operational management capabilities—namely, leveraging China’s comparative advantages to realize “Chinese efficiency” through lean management and empowering globally.

Furthermore, on the external strategic level, Luoyang Molybdenum will adhere to the “Copper-Gold Co-Dance” strategy; internally, it will build a “platform-based organization.” In this regard, Luoyang Molybdenum explains: it aims to develop a complete platform capability across nine aspects—security assurance, community governance, public relations, power supply, supply chain, informatization, automation and intelligence, technology, finance, and human resources.

“We are not simply pursuing linear expansion but are undertaking thorough self-revolution and comprehensive capability upgrades,” Luoyang Molybdenum stated in the board letter.

In summary, this can be regarded as Luoyang Molybdenum’s future “action blueprint,” but more importantly, it reflects a deep understanding and reflection on the mining industry.