Zijin Mining 2899

[winston]

vested

Zijin Mining plans DunAn splurge

Zijin Mining Group (2899) has proposed acquiring four assets held by DunAn Group for 7.68 billion yuan (HK$9.12 billion).

It said in a filing yesterday that it will buy a full stake in Zhejiang Jinshi Mining, which owns a 70 percent interest in Lakkor Tso Salt Lake Lithium Mine Project in Gerze County, Ngari, Tibet for 4.9 billion yuan from DunAn.

The mine is one of the few large-scale and high-quality lithium salt lake deposits in China, with large recoverable resources, a low magnesium-to-lithium ratio and relatively good quality, Zijin said.

It will also spend 710 million yuan on equity interests of some Rushan series enterprises held by DunAn and its subsidiaries, and 1.4 billion yuan on acquiring 260 million A shares of Anhui Jiangnan Chemical Industry, the filing showed.

The miner plans to purchase 89 million A shares of Zhejiang DunAn Artificial Environment held by DunAn for 652 million yuan as well. The total amount represented 10.81 percent of its net assets in 2021 and the fund for the acquisition will be self-financed, the firm said.

Source: The Standard

https://www.thestandard.com.hk/section- ... An-splurge

[winston]

vested

CICC Raises ZIJIN MINING (02899.HK) TP to $17.8 on Record QoQ Profit, May See Robust Growth

2022/04/13

ZIJIN MINING (02899.HK) posted in-line 1Q22 results, with turnover rising 36.35% YoY to RMB64.771 billion.

Its net profit attributable to the owner reached RMB6.124 billion, up 143.88% YoY and 40.12% QoQ.

The quarterly profit set an all-time high as the company achieved an auspicious start.

Overall, CICC maintained its forecast and Outperform rating on ZIJIN MINING, raising its H-share price by 9% to $17.8.

ZIJIN MINING shall ride on possible copper, gold and zinc capacity release over 2019-22.

2020-21 would be the year for ZIJIN MINING's project construction, while 2022 would be the crucial uphill period for its key mines.

CICC assumed the copper and gold interest production volume to grow 11% and 10% over 2022-23, leading to robust growth for the company's results.

Source: AAStocks Financial News

[winston]

vested

ZIJIN MINING(2899)

Analysis:-

The company recently signed the "Cooperation Agreement" with Dunan Group, etc.

The company plans to invest 7.682 billion yuan to acquire four asset packages of Dunan Group, including the acquisition of 70% equity of Tibet Alila Guocuo Salt Lake Lithium Mine for 4.897 billion yuan.

On March 20, the company's first lithium mine project, the Argentine 3Q Salt Lake Lithium Construction Project, held a groundbreaking ceremony.

The first phase of the project plans to produce 20,000 tons of battery-grade lithium carbonate per year. It is expected to be completed and put into operation by the end of 2023.

In 2022Q1, the company achieved a net investment income of 730 million yuan, which was mainly due to the confirmation of investment income from associates and joint ventures, including the substantial increase in the profits of Kamoa Copper, Tibet Yulong Copper, and Fujian Makeng Mining, and the net profit attributable to the parent. 6.124 billion yuan, a year-on-year increase of 144%.

The company's reserves of gold, copper and other metal resources are at the forefront of the world, and the company is actively expanding opportunities for new energy minerals, and its net profit will usher in rapid growth.

Strategy：
Buy-in Price: $8.90, Target Price: $12.00, Cut Loss Price: $7.20

Source: Phillips

[winston]

vested

ZIJIN MINING 1H22 Gold/ Copper Production Vol. Grow 23%/ 71%

ZIJIN MINING (02899.HK) announced that, over the first half of 2022, the production volume of mine-produced gold amounted to 27 tonnes, an upsurge of 23% compared to that in the corresponding period of the previous year.

The production volume of mine-produced copper increased by 71% to 410,000 tonnes.

Related News: G Sachs Axes ZIJIN MINING (02899.HK) TP to $16, Rating Kept CL Buy

Source: AAStocks Financial News

[winston]

vested

Zijin Mining (2899 HK / 601899 CH): Volume growth a buffer to volatile metal prices [BUY, TP HK$12.60 / BUY, TP RMB11.80]

Revise down FY22F/FY23F estimates after inputting lower copper and gold price forecasts

Strong sales volume growth to weather earnings decline

Continuous acquisitions focused on lithium to enhance growth potential; operations to commence in 2023

Reduce TPs but retain BUY call for both A and H-share

Source: DBS

[winston]

vested

ZIJIN MINING(2899)

Analysis：

The company recently signed the "Cooperation Agreement" with Dunan Group, etc.

The company plans to invest 7.682 billion yuan to acquire four asset packages of Dunan Group, including the acquisition of 70% equity of Tibet Alila Guocuo Salt Lake Lithium Mine for 4.897 billion yuan.

On March 20, the company`s first lithium mine project, the Argentine 3Q Salt Lake Lithium Construction Project, held a groundbreaking ceremony.

The first phase of the project plans to produce 20,000 tons of battery-grade lithium carbonate per year. It is expected to be completed and put into operation by the end of 2023.

In 2022Q1, the company achieved a net investment income of 730 million yuan, which was mainly due to the confirmation of investment income from associates and joint ventures, including the substantial increase in the profits of Kamoa Copper, Tibet Yulong Copper, and Fujian Makeng Mining, and the net profit attributable to the parent. 6.124 billion yuan, a year-on-year increase of 144%.

The company`s reserves of gold, copper and other metal resources are at the forefront of the world, and the company is actively expanding opportunities for new energy minerals, and its net profit will usher in rapid growth.

Strategy：
Buy-in Price: $8.80, Target Price: $12.00, Cut Loss Price: $6.80

Source: Phillips

[winston]

vested

Zijin Mining profit soars 90pc in first half

Zijin Mining (2899) recorded 89.95 percent growth of interim net profit from 6.65 billion yuan (HK$7.73 billion) to 12.63 billion yuan as of June due to the continuous progress and expansion of its mining projects.

For the six months ended June, 82 percent of the company's operating income was derived from customers in the mainland, and 59 percent of the company's assets were located in mainland China.

The growth is mainly due to the construction of key projects that have been accelerating in the first half, such as the copper mine projects in Congo and the gold mine projects in Australia.

There will be no interim dividend.

Source: The Standard

https://www.thestandard.com.hk/section- ... first-half

[winston]

Zijin Mining (2899 HK)
1H22: In Line With Expectations; Copper Production Volume Up 71% yoy

Zijin’s 1H22 earnings increased 90% to Rmb12,630m (+90% yoy), representing 56.8% of
the full-year earnings forecast.

Earnings growth was supported by the 70.5%/22.8% yoy growth of its copper and gold production output and 263.1% yoy growth in investment income.

Zijin’s gross margin remained resilient at 17.1% (+2.6ppt).

Signs of copper and gold prices bottoming out should support the eventual valuation recovery of the company.

Maintain BUY. Target price: HK$14.80.

Source: UOBKH

https://research.uobkayhian.com/content ... bb182672f4

[winston]

Zijin Mining (2899 HK/601899 CH): <Results Analysis> Record quarterly earnings in 2Q22, negative impact from lower metal prices largely priced in [BUY, TP HK$12.60/BUY, TP RMB11.80]

Stellar results in 2Q22 driven by sales volume growth and metal prices hikes, in line with our expectation

Expect 3Q22 earnings to head lower q o q due to the drop in metal prices

Long term growth outlook intact supported by demand for copper and lithium

Retain BUY call and unchanged HK$12.6 TP, decline in metal prices largely priced in

Source: DBS

[winston]

vested

ZIJIN MINING(2899)

Analysis：
The company recently signed the "Cooperation Agreement" with Dunan Group, etc.

The company plans to invest 7.682 billion yuan to acquire four asset packages of Dunan Group, including the acquisition of 70% equity of Tibet Alila Guocuo Salt Lake Lithium Mine for 4.897 billion yuan.

On March 20, the company`s first lithium mine project, the Argentine 3Q Salt Lake Lithium Construction Project, held a groundbreaking ceremony.

The first phase of the project plans to produce 20,000 tons of battery-grade lithium carbonate per year. It is expected to be completed and put into operation by the end of 2023.

In 2022Q1, the company achieved a net investment income of 730 million yuan, which was mainly due to the confirmation of investment income from associates and joint ventures, including the substantial increase in the profits of Kamoa Copper, Tibet Yulong Copper, and Fujian Makeng Mining, and the net profit attributable to the parent. 6.124 billion yuan, a year-on-year increase of 144%.

The company`s reserves of gold, copper and other metal resources are at the forefront of the world, and the company is actively expanding opportunities for new energy minerals, and its net profit will usher in rapid growth.

Strategy：
Buy-in Price: $8.08, Target Price: $11.00, Cut Loss Price: $6.50

Source: Phillips