Zijin Mining 2899

[winston]

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Risks, downturn hurt Zijin Mining

by Himo Liu

Zijin Mining's (2899) net profit for the first half of 2023 fell by 18.4 percent yearly to 10.3 billion yuan (HK$11.1 billion).

For the six months ended June 30, the company had operating income of 150.3 billion yuan, representing a year-on-year increase of 13.5 percent.

The company linked the decline in profit to heightened global geopolitical risks and an economic recovery that did not meet expectations.

Except for gold, the prices of metals like copper and zinc had downward pressure, leading to cost control and growth challenges for non-ferrous metal mining companies worldwide.

The cyclical retreat of copper and zinc prices led to a decrease in profit of 1.56 billion yuan.

The production capacity of the company's main mineral products steadily increased.

The company's production volume of mine-produced copper was 490,000 tonnes, a yearly increase of 14.2 percent; gold was 32 tonnes, up 19.6 percent; zinc was 240,000 tonnes, up 5 percent; and silver was 490,000 tonnes, up 10.9 percent.

By June 30, Zijin's total assets was 326.6 billion yuan, and the net assets was 98.9 billion yuan.

Source: The Standard

https://www.thestandard.com.hk/section- ... jin-Mining

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ZIJIN MINING (02899.HK) Plans to Invest at Least USD3.5B on Expanding Operations at Serbian Mine

ZIJIN MINING (02899.HK) is making plans to expand its copper mine in eastern Serbia, at a cost of several billion USD.

The group invested US$678 million in the development of the Cukaru Peki copper and gold mine about two years ago.

Branko Rakocevic, the top Serbian official at the mine, said the group hopes to increase the depth of the mine to nearly 2 kilometres from the current depth of a few hundred metres, and that it will need to spend US$3.5 billion to US$3.8 billion more on additional infrastructure due to the huge ore and gold reserves.

Related News: G Sachs Slashes ZIJIN MINING (02899.HK) TP to $18, Kept It on CL Buy

Cukaru Peki's lower zone, at a depth of more than 460 metres, is estimated to contain 2.2 million tonnes of copper, which is more than the upper zone, although the lower zone also contains relatively little gold.

Rakocevic added that the upper zone's reserves are likely to have all been mined by 2034, so mining at greater depths could begin in 7 to 10 years.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

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Zijin Mining earns record 21.1b yuan

by June Chen

Profit was up by 5.38 percent to 21.12 billion yuan (HK$22.85 billion) last year.

Revenue also rose 8.54 percent year-on-year to 293.4 billion yuan last year.

During the reporting period, the company's mines produced 1.01 million tons of copper, an increase of 11.13 percent versus 2022.

Source: The Standard

https://www.thestandard.com.hk/section- ... 21.1b-yuan

[winston]

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Zijin Mining (2899 HK)
2023: In Line; Cost Pressure To Moderate In 2024

Zijin reported 2023 earnings of Rmb21,119.4m (+5.4% yoy), representing 96%/91 of consensus’/our earnings estimates, in line with expectations.

Mining entities’ gross margin declined to 49.1% (-5.2ppt), and the increase in product ASP was offset by a steeper spike in mining costs.

Management strives to maintain production costs at 2023’s level while the expected Fed rate cut in 2H24 continues to support metal prices.

Maintain BUY. Target price: HK$18.10.

Source: UOBKH

https://research.uobkayhian.com/content ... 326ef1d780

[winston]

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<Result Analysis>: 4Q23 results below expectation, but 1Q24 earnings should improve.
4Q23 results below expectation due to lower sales volume and ASP in copper than expected and higher G&A expense.

2024 earnings to improve supported by production growth and metal price increase.

Retain our BUY call for A/H-share and TP under review.

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=18791

[winston]

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<Research Report>BofAS Lifts ZIJIN MINING (02899.HK) TP to $17 on Focus on Cost Control

2024/03/26

BofA Securities held a meeting with ZIJIN MINING (02899.HK)'s president and key management team, BofA Securities issued a research report saying.

The management mentioned that cost control will be the key task for 2024 as the average industry cost of copper and gold increased by 10-20% YoY in 2023.

The Company will suppress the cost growth in China by using renewable energy, while the oversea cost will keep increasing due to the high energy price and declining copper mine grades.

Overall, the Company targets broadly flattish cost growth in 2024.

Related News: CICC Expects US CPI May Rebound to 4%+ YoY by End Yr; Resonance of Copper, Oil, Gold Cycles to Start

BofA Securities raised its 2024 and 2025 EPS forecasts for ZIJIN MINING by 1-2%, and lifted its target price to $17 from $16, with rating at Buy, taking into account 2023 results and the latest business guidance, believing that ZIJIN MINING will be one of its top pick in 2024, BofA Securities said.

Source: AAstocks.com

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

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<Research>UBS: ZIJIN MINING 1Q24 Results In Line; Copper, Gold Unit Costs Improve but Gold Output/ Sales Fall QoQ

UBS released a research report on ZIJIN MINING (02899.HK), which had announced yesterday (22nd) a net profit of RMB6.261 billion for 1Q24, reaching 24.6% of the broker's full-year forecast of RMB25.422 billion and 22.7% of the street consensus of RMB27.521 billion.

UBS maintained its TP on the company at $18 and rating Buy.

According to the report, ZIJIN's average selling price (ASP) for copper in mines rose 4% QoQ, better than the London Metal Exchange (LME)'s 3% QoQ increase, while the mined copper unit cost got well controlled, down 12% QoQ.

Copper sales volumes lifted 7,700 tons QoQ, thanks to the resumption of work at the Porgera gold mine.

Related News: BofAS: ZIJIN MINING 1Q24 Results in Line; Strong Copper/ Gold Price Momentum Expected to Continue

Based on published ASPs, unit costs and sales volumes, copper was expected to contribute an additional RMB1.3 billion in gross profit compared to the previous quarter.

As for gold, ZIJIN's ASP hiked 9% QoQ, outshining the 4% QoQ rise in the London gold price, while unit cost of gold in production decreased by 12% QoQ.

Souce: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

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<Research>BofAS: ZIJIN MINING 1Q24 Results in Line; Strong Copper/ Gold Price Momentum Expected to Continue

ZIJIN MINING (02899.HK) 's 1Q24 results were in line with expectations, BofA Securities issued a research report saying.

Net profit after tax amounted to RMB6.3 billion, up 15% YoY and up 26% QoQ, in line with the full-year forecasts of BofA Securities/ the market of 22%/ 23%, respectively.

Revenue was RMB75 billion, down 0.2% YoY, and up 9% QoQ.

Overall gross profit was RMB11.2 billion, up 6% YoY, and up 3% QoQ.

Looking ahead, BofA Securities expected spot copper and gold prices to increase by 14% from their average prices in 1Q24, and believed that ZIJIN MINING's strong earnings momentum will continue in 2Q24.

Copper/ gold prices will hike by 1% each, leading to a 1.1%/ 0.7% increase in ZIJIN MINING's net profit after tax for 2024, according to BofA Securities' forecast model.

BofA Securities kept rating at Buy on ZIJIN MINING, with a target price of $21.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

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<Results>ZIJIN MINING (02899.HK) 1Q NP RMB6.261B, Hiking 15.1% YoY

ZIJIN MINING (02899.HK) announced its first quarterly results for the three months ended March.

Operating revenue was RMB74.777 billion, a slight decrease of 0.2% YoY and an increase of 9% QoQ, in accordance with China Accounting Standards.

Net profit attributable to shareholders amounted to RMB6.261 billion, hiking 15.1% YoY and 26% QoQ. EPS was RMB23.8 cents.

During the quarter, the production volumes of mine-produced gold and mine-produced copper both elevated by 5%.

The overall gross profit margin of mining entities was 54.5%, an increase of 0.97 ppts.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

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<Research>Jefferies Hikes ZIJIN MINING (02899.HK) TP to $19.3; 1Q Results Solid w/ Effective Cost Control

ZIJIN MINING (02899.HK) management is confident that its full-year sales growth of 10% this year will translate into even stronger momentum in the quarters ahead, according to a research note from Jefferies.

The highlight of the company's 1Q24 results is its effective cost-control measures, which see the average costs of mining gold and copper fall 7% and 12% QoQ, respectively, and brought ZIJIN bigger profits during the upward price cycle.

The broker therefore raised its target price for ZIJIN from $18.8 to $19.3, maintaining a Buy rating.

Jefferies also forecast ZIJIN's sales to continue to grow.

In particular, copper mining will increase from 877 tons in 2022 to 960/ 1,010/ 1,165 tons in 2023-2025 respectively, while gold mining will increase from 56 tons in 2022 to 72/ 78/ 90 tons in 2023-2025 respectively.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN