China Molybdenum plans up to $342m in guarantees

China Molybdenum Co., Ltd. (CMOC) has announced plans to provide guarantees to its wholly-owned subsidiaries, with the total amount not exceeding RMB 2.45 billion (approximately $342 million USD). The decision was approved at the company's 2023 annual shareholders' meeting on June 7, 2024. As of the announcement date, CMOC has no overdue guarantees. The announcement notes that some of the subsidiaries receiving these guarantees have asset-liability ratios exceeding 70%, and the total amount of external guarantees accounts for 30.05% of the company's latest audited net assets. Investors are advised to pay attention to related risks. The guarantees are for subsidiaries including IXM SA, and various sales and trading arms of the company.