This article first appeared on GuruFocus .
CMOC Group has outlined further potential upside from its push into precious metals following a roughly $1 billion agreement to acquire the Brazilian operations of Equinox Gold Corp ( EQX ). According to an exchange filing on Monday, CMOC will take full ownership of Leagold LatAm Holdings BV and Luna Gold Corp., entities that control several mines and deposits in Brazil. The transaction is structured with $900 million in cash payable to Equinox, alongside a contingent payment of up to $115 million one year after closing, suggesting a deal design that balances immediate scale with longer-term performance considerations.
The move appears to align with CMOC's broader growth trajectory across global metals markets. The Chinese miner overtook Glencore as the world's largest cobalt producer in 2023 and continues to benefit from strong pricing across copper markets, where it also holds significant assets. Earlier this year, CMOC indicated that mergers and acquisitions in copper, gold and minor metals would be a strategic priority, and this transaction may reinforce that direction. Chairman Liu Jianfeng said the deal reflects the company's conviction in gold and could support long-term growth while strengthening CMOC's presence in South America.
If completed, the acquisition would give CMOC full ownership of the Aurizona, RDM, Fazenda and Santa Luz mines, which together produce about 8 tons of gold annually, based on company disclosures. Total output could potentially rise to more than 20 tons once a mine in Ecuador begins operations. The transaction is expected to close in the first quarter of next year. CMOC shares rose as much as 3.4% in Hong Kong on Monday and have more than doubled since the end of June, amid a broader backdrop in which gold has climbed by almost two-thirds this year and copper has advanced more than 30%, both reaching record highs.
