Zijin Mining 2899

[winston]

not vested

Zijin earnings lose sheen as gold falls

First-half net earnings at Fujian- based gold producer Zijin Mining (2899) plunged 20 percent to 2.4 billion yuan (HK$2.93 billion) year on year due to declining prices.

The price of gold has dropped from US$1,920 (HK$14,976) an ounce last year to US$1,597.41 at the end of June, the firm said.

Its gross profit margin shrank to 26.02 percent, from 36.22 percent , in the same period last year. Operating revenue rose 34.4 percent to 21 billion yuan and sales totaled 13 billion yuan, up 38 percent.

No interim dividend was declared, but the miner is still expected to maintain a dividend payout ratio of 60 percent for the next three years, based on its average net profit from 2012 to 2014.

Zijin shares dropped 2.6 percent to HK$2.61 on Friday. NATALLIE CAI


http://www.thestandard.com.hk/news_deta ... 20813&fc=1

[winston]

not vested

ZIJIN MINING (02899) maintained OW with TP cut to HK$3.4 by HSBC

HSBC lowered its 2012-14 earnings forecasts for ZIJIN MINING (02899) by 8-9% to RMB5.6 billion, RMB5.9 billion and RMB6.9 billion respectively, citing rise in gold cost.

However, it deems the gold and copper product mix of ZIJIN MINING can have attractive growth in the long term.

ZIJIN's production cost of gold leaped 32% yearly to RMB107/gram. HSBC predicts ZIJIN's gold output to reach 40 tons in 2015.

ZIJIN was maintained Overweight with target cut to HK$3.4 from HK$3.7.

Source: AAStocks Financial News

[winston]

not vested

ZIJIN MINING (02899.HK) remains Deutsche's top pick; gold price to hit US$2000 in 1H2013

Deutsche Bank expects gold price to hit US$2000/oz in the first half of 2013.

ZIJIN MINING (02899.HK) remains Deutsche Bank's top pick in the sector with target price $3.56, hinting 18% upside potential.

Despite pressure on production growth and costs, ZIJIN MINING has a strong balance sheet with dividend yield of 3.2%, compared with 2.6% of industry average.


Source: AAStocks Financial News

[winston]

not vested

ZIJIN MINING (02899.HK) upgraded to Buy with TP lifted by 29% to $3.6 by UBS

ZIJIN MINING (02899.HK) completed the acquisition of Australia-based Norton Gold Fields (NGF) at the end of August, said UBS, who expects production of NGF in the financial years of 2012-14 will maintain at 150,000 oz.

UBS predicts the NGF can contribute to 3-7% of gross profit of Norton Gold Fields(NGF) for the financial years of 2012-14.

It raised its 2012-14 earnings per share forecasts for ZIJIN MINING by 5%. 27.1% and 38% respectively.

ZIJIN MINING was upgraded to Buy from Neutral with target lifted by 29% to $3.6 from $2.8.


Source: AAStocks Financial News

[winston]

not vested

ZIJIN MINING (02899.HK) kept CL-Buy with TP hiked to $4.05 on higher gold price forecast - GS

Goldman Sachs expects the upswing in gold price will last throughout 2015.

To reflect monetary easing and low interest rate, the broker hiked gold price forecast for 2013-15 by 6%/8%/21% to US$1,811/1,884/1,922 per ounce, believing that gold stocks will continue to outperform gold price.

Goldman Sachs raised ZIJIN MINING (02899.HK)'s H-share target price from $3.8 to $4.05 with CL-Buy rating.

ZHAOJIN MINING (01818.HK) is kept Neutral with target price hiked from $13.1 to $13.83. (y)


Source: AAStocks Financial News

[winston]

not vested

ZIJIN MINING (02899.HK) expects gold output to rise 5% YoY to 300,000 tons in 2012

ZIJIN MINING (02899.HK)'s gold mining is expected to rise 4.8% year-on-year to 300,000 tons in 2012, said vice chairman Lan Fu Sheng, who projected gold production to hold steady next year, as production of the company's largest gold mine declined.

The output of Zijin Mountain may fall down in 2013 as resources have started to be used up with less than 100 tons of reserves at present, Lan said, expecting ramp-up to be seen in 2015.

Source: AAStocks Financial News

[winston]

Zijin Mining in bid to boost revenue

Zijin Mining Group (2899) will invest up to 1.5 billion yuan (HK$1.87 billion) in wealth management products in a bid to boost revenue.

The firm will buy guaranteed and risk-controllable financial products, with the investment term of each product not exceeding six months.

It will make the investment until December 31 this year. The investment capital can be used accumulatively within the period, but the total amount will not be allowed to exceed 50 percent of net asset value of the company, Zijin said in a filing to the bourse yesterday.

As of September 30, the firm had cash on hand of 5.7 billion yuan.

The gold miner stressed the investment will not affect its daily operation or core business development.

But Castor Pang Wai-sun, Core-Pacific Yamaichi head of research, said the move means the firm is lacking ways to effectively use its capital.


Source: The Standard HK

[winston]

not vested

ZIJIN MINING (02899.HK) rated OW by HSBC
2013-02-01

HSBC lowered its 2012 gold price forecast by 5% to US$1,760 and raised copper price forecast by 7% to US$8,000.

ZIJIN MINING (02899.HK) is a top pick of HSBC after considering the mentioned adjustments as the company's profit is very sensitive to gold and copper prices.

ZHAOJIN MINING (01818.HK) was rated Overweight, with target price cut by 9% to $14.94.

Source; AAStocks Financial News

[winston]

not vested

ZIJIN MINING (02899.HK) targets at $3.54; Norton's profit warning to pose limited impact - Deutsche
2013-02-01

Deutsche noted in a report that although ZIJIN MINING (02899.HK)'s subsidiary Norton Gold's output reading in December was disappointing, the proportion accounted for barely more than 1% of the valuation in Zijin, and the impact will be very mild.

The prospect in 2013 is still optimistic, said Deutsche, which rated it Buy with target $3.54.

Source: AAStocks Financial News

[winston]

Gold holds up but miner sees profits fall

Zijin Mining Group (2899) said net profit fell last year, the first time it had posted a loss since its 2003 Hong Kong listing.

Declining sales price of non-gold products, loss in smelting entities and rising production costs led to a net profit of 5.19 billion yuan (HK$6.44 billion) last year, down 9.02 percent from a year earlier, China's largest gold miner said yesterday.

Earnings per share hit 23.8 fen from 26.2 fen.

"Except gold, prices of other products fell [last year]," the Fujian- based firm said.

Zijin is involved in mining gold, copper, lead, zinc, iron, silver and other natural resources.

Overall, sales reached 48.47 billion yuan, up 21.90 percent. But operating profit contracted by around 10 percent to 8.63 billion yuan.

During the January-June period, Zijin's net profit slumped 20 percent as global metal prices fell due to weak demand.

Global consumption of metals slowed significantly in the second quarter mainly due to China's economic slowdown.

The mainland consumes around 40 percent of the world's base metals.

Zijin closed at HK$2.69, down 3.9 percent, even though the profit numbers were issued after the market had closed.

http://www.thestandard.com.hk/news_deta ... 30219&fc=2