Zijin Mining 2899

[winston]

vested

Zijin acquires another mine

Zijin Mining (2899) has acquired 84% of Anhui Jinsha Molybdenuma for 5.91 billion yuan (HK$6.41 billion).

Jinsha Molybdenum holds the exploration right of the Shapinggou molybdenum and polymetallic mine in Jinzhai County, Anhui Province, China.

The Shapinggou molybdenum mine is a world-class, super-large porphyry molybdenum and polymetallic deposit, yet to be developed.

It owns 2.46 million tonnes of retained molybdenum resources, among which, the resources under the exploration right are 2.34 million tonnes, grading at 0.143 percent on average, according to Zijin.

Meanwhile, the mining company plans to repurchase A shares through centralized price bidding for the employee stock ownership scheme or share incentive.

The total amount of funds for the proposed repurchase is between 250 and 500 million yuan at a price not exceeding 8.5 yuan per share.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... other-mine

[winston]

vested

ZIJIN MINING 3Q NP Drops 13.2% to RMB4.037B

2022/10/24

ZIJIN MINING (02899.HK) announced the report for the third quarter ended September.

According to the China Accounting Standards for Business Enterprises, the operating income was RMB71.734 billion, an annual increase of 21.4%.

It recorded a net profit attributable to shareholders of RMB4.037 billion, down 13.2%. EPS was RMB15.5 cents.

Dividend History
Announce Date Event Particular
2022/08/14 Interim No Dividend
2022/04/11 Quarter 1 No Dividend
2022/03/20 Final D:RMB 0.2000(equivalent to HKD 0.2325993)
2021/10/15 Quarter 3 No Dividend

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... 220994/all

[winston]

AVZ vs Zijin: the fight for the world’s biggest lithium deposit

Two companies are at odds over rights to a 15 per cent stake in a massive mine in central Africa

by Jevans Nyabiage

Zijin reportedly paid US$33.4 million for the Cominière share, well above AVZ’s counter-offer of US$15 million.

While AVZ is based in Australia, its top shareholders, including Yibin Tianyi Lithium Industry, CATH, and Huayou International Mining, are Chinese.

Source: SCMP

https://www.scmp.com/news/china/diploma ... 6f49dd3e9b

[winston]

vested

Zijin Mining in $4.4b foray

by Arita Peng

Zijin Mining (2899) is to take a 20 percent stake in Zhaojin Mining Industry (1818) for HK$4.4 billion.

The deal involves the purchase of 654 million H-shares.

Zijin subsidiary Gold Mountains will buy the stake currently owned by Shanghai Yuyuan Tourist Mart by way of block trade.

Tycoon Guo Guangchang's Fosun International (0656) is the largest shareholder of Shanghai Yuyuan.

Gold Mountains will become the second-largest shareholder of Zhaojin Mining once the transaction is completed.

At present, Fosun's Yuyuan, Shanghai Laomiao and Shanghai Fosun together, hold a 25.46 percent stake in Zhaojin while Shandong Zhaojin - with the government of Zhaoyuan City as the actual controller - is the largest shareholder. Funds for the acquisition will be self-financed by Zijin.

The company said the acquisition will increase its gold reserves and further enhance its position in the industry.

Source: The Standard

https://www.thestandard.com.hk/section- ... 4.4b-foray

[winston]

not vested

ZIJIN MINING(2899)

Analysis：

ZiJin Mining (2899.HK) is principally engaged in the exploration, mining, production, smelting and sales of gold and other metals.

For the third quarter ended 30 September 2022, the company`s revenue amounted to RMB 71.7 billion, increasing 21.4% YoY.

Net profit amounted to RMB 5.3 billion, decreasing 6.5% YoY.

The company recently released a profit forecast, saying that the company has benefited from the increase i n the output of various minerals, coupled with the YoY increase in the sales price of mineral gold and mineral zinc, it is estimated that the revenue in 2022 is around RMB 270 billion, and the net profit attributable to shareholders is around RMB 20 billion, increasing 27.6% YoY.

In addition, we expect that the demand for various metals will increase after China removing epidemic prevention policies, and the price will rise accordingly, which will benefit the company`s revenue.

Strategy：
Buy-in Price: $12.76, Target Price: $14.00, Cut Loss Price: $11.90

Source: Phillips

[winston]

not vested

Zijin Mining (2899 HK)
2022: Results In Line

Zijin reported 2022 earnings of Rmb20,042m (+27.9% yoy), largely in line with market
expectations.

Gross margin was flattish at 15.7%, and gross profit margin of mineproduced products fell to 54.3% (-4.69ppt yoy), dragged by the 8.4% yoy decline in mine-produced copper ASP.

The depreciation of renminbi is expected to continue weighing on production cost in 2023.

Mine-produced copper and gold is expected to grow by 33%/61% yoy in the next three years.

Maintain BUY. Target price: HK$15.60.

Source: UOBKH

https://research.uobkayhian.com/content ... 424e29497a

[winston]

vested

BRIEF-Zijin Mining Plans To Buy 50% Stake In Baodi Mining's JV

05 Jun 2023

June 5 (Reuters) - Xinjiang Baodi Mining Co Ltd601121.SS:

* SAYS PARTNER OF ITS MINING JV PLANS TO SELL 50% STAKE INTHE JV TO ZIJIN MINING FOR 575 MILLION YUAN ($80.82 million)

* SAYS IT PLANS TO ACQUIRE ADDITIONAL 1% STAKE IN THE MINING FIRM FOR UP TO 11.5 MILLION YUAN

* SAYS IT WILL OWN 51% STAKE IN THE MINING FIRM AND BECOME THE CONTROLLING SHAREHOLDER AFTER TRANSACTION

Source: Reuters

[winston]

not vested

ZIJIN MINING Forecasts 1H23 NP to Slide 19.2% YoY to RMB10.2B

ZIJIN MINING (02899.HK) issued a positive profit alert, announcing that the Company is expected to realise a net profit attributable to owners of the listed company of approximately RMB10.2 billion for the first half of 2023, representing a decrease of approximately 19.2% compared with the same period last year and an increase of approximately 37.6% compared with the second half of 2022.

Dividend History
Announce Date Event Particular
2023/04/27 Quarter 1 No Dividend
2023/03/26 Final D:RMB 0.2000(equivalent to HKD 0.2227444)
2022/10/21 Quarter 3 No Dividend
2022/08/14 Interim No Dividend

Source: AAStocks Financial News

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

[winston]

not vested

<Alert!>: 1H23 preliminary results, slightly below our expectation.

Earning decline for 2Q23 due to drop in copper prices despite sales volume growth, slightly below our expectation.

2H23 earnings to be flattish as copper prices are likely to be lukewarm.

Retain BUY call and earnings forecasts to be reviewed after releasing full results.

What’s New? Zijin Mining’s net profit fell by 26.9% y-o-y and 12.6% q-o-q to RMB4.8bn in 2Q23, slightly below our expectation.

Despite the mined production y-o-y increases in all metals, gold (+15.2%), copper (+13.8%), zinc (+42.8%), and silver (+12%), drop in metal prices such as copper and zinc (-11% and -35.5% y-o-y) have pressured its earnings.

Overall, the 1H23 net profit declined by 19.2% y-o-y, however, made a strong recovery of 37.6% h-o-h to RMB10.2bn.

Our take. We expect that 2H23 earnings will be flattish as copper prices are likely to be lukewarm in near-term due to sluggish economic activities in China.

Despite weak copper prices, sales volume growth in copper and gold will support its earnings.

We expect copper prices will rebound in the end of the year backed by consistent demand growth in the energy transition and EV sector and China’s stimulus measures.

Retain BUY call at solid earnings delivery, backed by sales volume growth despite weak metal prices and earnings forecasts to be reviewed after releasing full results

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=14937

[winston]

not vested

Zijin Mining Group (2899 HK / 601899 CH) - Growth momentum to pick up in 2H23

Summary (2899 HK): Zijin Mining (Zijin) is a comprehensive mining conglomerate, primarily engaged in gold, copper and lithium production with rich resources.

It is ranked as the global top 10 gold and copper producer.

The company is one of the lowest cost producers in China and globally.

Despite Zijin’s 1H23 preliminary results coming in lower than market expectations, earnings momentum is expected to increase going into 2H23, driven by metals price recovery and sequential volume growth.

Copper is a major policy beneficiary and remains a key earnings driver for Zijin.

The stock is trading at 11.3x forward price-to-earnings (P/E), which is below historical average level.

Our fair value estimate of HKD17.50 is based on discounted cash flow (DCF) methodology.

Our fair value estimate implies 13x forward P/E, which is at historical average level.

Source: OCBC