Zijin Mining 2899

[winston]

not vested

Zijin Mining sees 140pc rise in profit

by Victor Zhong

Copper and gold producer Zijin Mining (2899) expects its annual net profit to rise around 140 percent in 2021.

In an announcement to the Hong Kong bourse, the firm said net profit for the year 2021 to grow by 9.09 billion yuan (HK$11.14 billion), or 139.67 percent, to around 15.6 billion yuan year-on-year.

Excluding one-off items, the profit was estimated to jump by 8.18 billion yuan or 129.36 percent to nearly 12.5 billion yuan over the same period.

The profit jump came in after the production volumes of major mineral products advanced last year.

Mine-produced gold rose 17.28 percent to 47.5 tonnes, mine-produced copper enjoyed a 28.92 percent increase to 584,000 tonnes, mine-produced zinc (lead) climbed 14.81 percent to 434,000 tonnes and mine-produced silver edged up 3.34 percent to 309 tonnes. Production volume of iron ore went up by 9.71 percent to 4.25 million tonnes last year.

The selling prices of mine-produced copper, mine-produced zinc, mine-produced silver and iron ore increased, while that of mine-produced gold declined from a year ago, it said.

Production volume targets for this year include 60 tonnes of gold, 860,000 tonnes of copper, 480,000 tonnes of zinc (lead), 310 tonnes of silver, and 3,200,000 tonnes of iron ore, the company said.

Source: The Standard

https://www.thestandard.com.hk/section- ... -in-profit

[winston]

not vested

ZIJIN MINING(2899)

Analysis：

Zijin Mining Group (2899) currently operates over 30 major mining projects with current operation across 12 overseas countries and 14 provinces (regions) in the PRC.

It has over 2,300 tonnes of gold resource reserves, maintaining as one of the top 10 major gold corporations in the world.

Additionally, it has over 62 million tonnes of copper resource reserves, ranking around 10th among major global copper corporations.

It also owns more than 10 million tonnes of zinc resource reserves and over 9.500 tonnes of silver resource reserves (including associated reserves).

The Group recently announced the completion of acquisition of Neo Lithium Corp, the core asset of which is the Tres Quebradas Salar lithium brine lake project (the “3Q Project”) located in Catamarca Province in the northwestern part of Argentina.

The Project is rich in resources, high-grade, low-impurity, and has the potential to further expand its production capacity and the conditions to be developed into a world-class, large-scale brine lake production base. (I do not hold the above stock).

Strategy：
Buy-in Price: $9.90, Target Price: $11.00, Cut Loss Price: $9.40

Source: Phillips

[winston]

not vested

Zijin pumps US$380m into lithium plant

China's Zijin Mining (2899) will invest US$380 million (HK$2.95 billion) to construct a lithium carbonate plant in Argentina via local subsidiary Liex.

Zijin had last year purchased Canada's Neo Lithium, which operates the Tres Quebradas project.

Argentina, which sits within South America's so-called "lithium triangle" along with Chile and Bolivia, is according to US Geological Survey data the world's fourth-largest producer of the battery metal, behind Australia, Chile and China.

The global lithium price has shot up over the past 12 months on expectations of a boom in demand to make the batteries needed to power a shift to electric vehicles.

The investment was announced after a meeting between Argentine officials and executives of Zijin, Liex and Neo Lithium. "For the Tres Quebradas project, the plant is scheduled to start construction this year and to commence production by the end of 2023," an Argentinian statement said.

In other mining activity, Chinese mineral exploration company MMG (1208) said the Las Bambas copper mine in Peru has been forced to progressively cut operations due to a new blockade on public roads by local communities opposing operations.

The operational halt was expected to continue for about two more weeks.

Source: Reuters

[winston]

not vested

ZIJIN MINING(2899)

Analysis：
Kamoa Copper S.A., being a joint investment among Zijin Mining Group（02899）, Ivanhoe Mines Ltd. of Canada and the government of the Democratic Republic of the Congo, has announced a de-bottlenecking plan for the Kamoa-Kakula Copper Mine to increase the combined design processing capacity of the Phase 1 and Phase 2 concentrator plants to 9.2 million tonnes of ore per year (Mtpa), up from 7.6 Mtpa.

The annual copper output will exceed 450,000 tonnes, positioning Kamoa-Kakula as the world`s fourth largest copper producer.

The Phase 1, 3.8-Mtpa concentrator plant of Kamoa-Kakula began producing copper concentrates in late May 2021, and has been successfully operating for more than eight months.

The Phase 1 concentrate or currently is running at a throughput that is in excess of its design capacity by more than 22%.

Phase 2, 3.8-Mtpa concentrator plant almost is complete with early-stage commissioning activities now underway.

The de-bottlenecking plan will make full use of the existing facilities of the Phase 1 and Phase 2, and is expected to cost approximately USD50 million to modify certain pipes and equipment under continuous production.

It is expected that the combined processing capacity will be an increase of approximately 21% compared to the original design capacity.

Meanwhile, engineering and early works for Kamoa-Kakula`s Phase 3 expansion is also progressing quickly and is expected to commissioned in Q4 2024..

Strategy：
Buy-in Price: $11.84, Target Price: $12.78, Cut Loss Price: $10.98

Source: Phillips

[winston]

not vested

Minerals price rise lifts Zijin Mining

Zijin Mining (2899) said its 2021 net profit increased by 1.4 times year-on-year to 15.7 billion yuan (HK$19.3 billion) due to the surge in price of major mineral products. It proposed a dividend of 20 fens.

Operating income during the period jumped 31.3 percent to 225.1 billion yuan.

The output of mine-produced copper last year increased by 29 percent to 584,000 tonnes, and that of mine-produced gold grew 17 percent to 47.5 tonnes, it said in an exchange filing yesterday.

Among its main mineral products, copper prices rose 24 percent and zinc prices by 27 percent. The gold price fell slightly by 3 percent last year.

Source: The Standard

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

[winston]

not vested

ZIJIN MINING(2899)

Analysis：

Zijing Mining Group (2899) saw rapid growth in its 2021 financial results.

The Group`s main economic indicators hit a new record high again.

During the reporting period, the Group realized an operating income of RMB225.102 billion, representing an increase of 31.25% compared with the same period last year.

Net profit attributable to shareholders was RMB15.673 billion, representing an increase of 140.8%.

Overall gross profit margin was 15.44%, representing an increase of 3.53 percentage points compared with the same period last year.

The overall gross profit margin of mine-produced products (excluding refined and processed products) was 58.98%, representing an increase of 11.27 percentage points.

The Group`s diversified product portfolio comprising gold, copper, zinc and the lithium carbonate in the new energy segment offers effective protection against fluctuations of metal prices in different cycles and enhances the Group`s risk-proof capability and profitability. (I do not hold the above stock)

Strategy：
Buy-in Price: $11.40, Target Price: $12.80, Cut Loss Price: $10.60

Source: Phillips

[winston]

not vested

China/Hong Kong: Zijin Mining (2899 HK/601899 CH): Attractive inflation play with growth engines[BUY, HK$15.00]

Key beneficiary of strong gold and copper prices

Aggressive M&As and capacity expansion to drive strong output growth

Acquisition of lithium mine to enhance its growth potential; operations to commence in 2023

Upgrade A-share to BUY as we lift TP to RMB14; maintain BUY on H-share on higher TP of HK$15

Source: DBS

[winston]

not vested

JPM Rates ZIJIN MINING (02899.HK) at Overweight under Less Impact from CN Lockdown

Among Chinese and Hong Kong miners, ZIJIN MINING (02899.HK) has the least exposure to demand deterioration resulted from China's lockdown.

JPMorgan rated the stock at Overweight and maintained its target price at $15.

Most of ZIJIN MINING's copper and gold assets are located overseas.

The market had concerns over China commodities due to worsening demand under construction activity halt.

However, the broker assumed ZIJIN MINING to have stronger earnings growth momentum than cement and steel firms, backed by its copper and gold exposures.

Cement and steel names will likely track lower earnings in the coming quarter.

Source: AAStocks Financial News

[winston]

Zijin Mining Group Co Ltd (2899 HK/601899 CH): < Results Analysis> Record high quarterly results, above our expectation [BUY, TP HK$15.00 / BUY, TP: RMB14.00]

Explosive earnings growth in 1Q22 due to strong sales volume growth of mined metals

Lucrative margins thanks to high metal prices

2Q22 earnings to remain on growth path owing to volume growth and strong metal prices

Retain BUY call for H-and A share with TP of HK$15 and RMB14 respectively

Source: DBS

[winston]

vested

ZIJIN MINING Mulls Investing in About 45.9% Mongolia Copper-gold Project Stake by Stages

ZIJIN MINING (02899.HK) announced that, on 19 April 2022, the Company signed a share subscription agreement with Xanadu Mines.

The Company proposed to acquire a total of 19.9% equity interest in Xanadu Mines and 50% equity interest in Khuiten Metals, which is a subsidiary of Xanadu Mines, through phases of investment, in order to obtain approximately 45.9% interest in the Kharmagtai copper-gold project in Mongolia.

In phase 1, the Company proposed to subscribe for 139 million ordinary shares of Xanadu Mines at an issue price of AUD0.04 per share through a wholly-owned subsidiary incorporated in Singapore.

After the subscription, the Company will own 9.9% equity interest in Xanadu Mines. The total investment will be approximately AUD5.56 million (equivalent to approximately RMB26.06 million).

The Kharmagtai copper-gold project is located in the porphyry copper belt in Omnogovi Province, Mongolia, approximately 420km from Ulaanbaatar.

Source: AAStocks Financial News