Understanding the Market | MCC Rises Over 7% as Copper Mine Supply Disturbances Reoccur; Company Shows Positive Progress in Copper Mine Development
China Metallurgical Group's stock price rose over 7%, reaching HKD 2.36, with a trading volume of HKD 118 million. Due to a landslide incident at Freeport McMoRan's Indonesian subsidiary Grasberg mine, global copper prices surged significantly, exacerbating supply chain concerns. The company's copper mining development in Pakistan and Afghanistan is progressing positively, expected to yield substantial net profits. CITIC Securities pointed out that copper mining development is likely to be revalued, with copper prices entering an upward cycle influenced by supply-demand gaps and expectations of interest rate cuts by the Federal Reserve
According to Zhitong Finance APP, China Metallurgical Group Corporation (01618) rose over 7%, with a current increase of 7.27%, trading at HKD 2.36, with a transaction volume of HKD 118 million.
On the news front, a fatal landslide accident recently occurred at Freeport McMoRan's Indonesian subsidiary Grasberg mine, driving global copper prices sharply higher and raising supply chain concerns. This second-largest copper mine in the world has suspended production due to the accident, and the company has invoked force majeure clauses, expecting copper-gold production to plummet by 35% by 2026. According to Caitong Securities, China Metallurgical Group Corporation's Pakistan Sia Dike copper mine has a copper resource of 3.78 million tons, with all relevant approval procedures in Pakistan applied for and basically approved in the first half of 2025, while domestic approval procedures are ongoing. The company will continue to advance various preliminary work for project development; the Aynak copper mine in Afghanistan is one of the world's large copper deposits that have been explored but not yet developed, with an overall resource amount of 12.36 million tons.
CITIC Construction Investment Securities' recent research report pointed out that the company's copper mine development progress is positive and is expected to be revalued. Copper metal prices are likely to enter an upward cycle, influenced by long-term supply-demand gaps and short-term expectations of interest rate cuts by the Federal Reserve. The valuation of several overseas operating mines held by the company is expected to be revalued. The preliminary work for the restart of the Aynak copper mine in Afghanistan is progressing positively, with supporting hydropower stations entering the construction phase, and the reserves of the purchased Pakistan Sia Dike copper mine project have increased through exploration, with preliminary work actively advancing. Both copper mines are expected to bring substantial net profits
