Zijin Mining 2899

[winston]

not vested

Zijin Mining (2899 HK)

Copper Prices Rebound On Tight Supply; Acquisition Of Julong Copper To Support Long-term Expansion

Zijin announced the acquisition (50.1% equity stake) of the largest greenfield copper mine in China for Rmb3.88b.

Phase 1 is expected to be completed by end-21, with output of 165k tpa copper and 6.2k tpa molybdenum.

We think the acquisition was made to support long-term expansion, but we see little material impact from it on Zijin's operations in the near term.

Copper prices have rallied with market concerns over supply tightness, given the production disruption at the South African mines.

Maintain BUY and raise target price to HK$4.05.

Source: UOBKH

https://research.uobkayhian.com/content ... 7062fcad43

[winston]

not vested

Zijin Mining (2899 HK)
Riding On Rising Copper And Gold Prices

Copper prices have rebounded 45% from the trough in March amid potential pandemic related supply disruptions while demand has started to recover.

Gold has been in a steady uptrend since Mar 20 and prices are now at the highest since 2011.

We expect the loose monetary policy with liquidity constantly injected into the market, coupled
with a weakened US$, would continue to boost gold prices.

Zijin is the key beneficiary of the copper recovery and a bullish gold market.

Re-iterate BUY and raise target price to HK$5.70.

Source: UOBKH

https://research.uobkayhian.com/content ... 4137db8688

[winston]

not vested

ZIJIN MINING(2899)

Analysis：

After years of mergers and acquisitions and expansion, Zijin Mining has now become a large multinational mining group focusing on the exploration and development of metal mineral resources such as gold, copper, and zinc.

As of 2019, the company`s reserves of gold resources are 1886.67 tons, accounting for 14% of the domestic total; the reserves of copper resources are 57.254 million tons, accounting for 50% of the domestic total; both are the largest in domestic scale.

In addition, the company will enter a period of rapid production release in the next few years. It is expected that copper production in 2022 will nearly double on the basis of 2019, gold production will increase by nearly 50%, and there is still broad room for expansion.

It is estimated that Zijin`s mineral copper production is expected to exceed 1 million tons/year in the long-term, becoming the world`s top five mineral copper and top ten mining gold companies.

Strategy：
Buy-in Price: $5.20, Target Price: $6.30, Cut Loss Price: $4.50

Source: Phillips

[winston]

not vested

Zijin Mining (2899 HK)
1H20: Results Beat Expectation; The Best Is Yet To Come

Zijin Mining reported a 30.6% yoy hike in net profit to Rmb2.4b in 1H20, boosted by strong performances from gold and copper.

We have seen smooth operations amid the COVID-19 outbreak; mined gold/copper ASPs (+27.5%/6%yoy) and output (+7.1%/34.8%yoy) expanded during the period.

Looking ahead, production expansion will be sustained for the next 2-3 years, supported by the restructuring and M&As.

Maintain BUY and raise target price to HK$6.60 on higher earnings forecasts.

Source: UOBKH

https://research.uobkayhian.com/content ... 33d199ef08

[winston]

not vested

What’s New

2Q20 results above our expectations; record-high quarterly results

Strong results supported by copper/gold sales volume growth and higher gold prices

Brighter outlook for 2H20 backed by strong metal prices; revised up FY20F EPS

Raise TPs for A-/H-shares to RMB6.4/HK$5.9; maintain HOLD call for A-share and BUY call for H-share

Source: DBS

https://researchwise.dbsvresearch.com/R ... giagkfhgbh

[winston]

not vested

ZIJIN MINING(2899)

Analysis：

After years of mergers and acquisitions and expansion, Zijin Mining has now become a large multinational mining group focusing on the exploration and development of metal mineral resources such as gold, copper, and zinc.

As of 2019, the company's reserves of gold resources are 1886.67 tons, accounting for 14% of the domestic total; the reserves of copper resources are 57.254 million tons, accounting for 50% of the domestic total; both are the largest in domestic scale.

In addition, the company will enter a period of rapid production release in the next few years.

It is expected that copper production in 2022 will nearly double on the basis of 2019, gold production will increase by nearly 50%, and there is still broad room for expansion.

It is estimated that Zijin's mineral copper production is expected to exceed 1 million tons/year in the long-term, becoming the world's top five mineral copper and top ten mining gold companies.

Strategy：
Buy-in Price: $5.10, Target Price: $6.30, Cut Loss Price: $4.40

Source: Phillips

[winston]

not vested

Zijin Mining (2899 HK)
Riding On Copper Recovery; Promising Long-Term Prospects

Copper prices have rallied to a two-year high, driven by improving demand in China and mounting concerns over supply disruption, particularly in Chile.

We expect Zijin Mining to achieve its plans to ramp up metals production with positive upside from its Kamoa-Kakula projects and domestic copper projects.

We believe Zijin is the key beneficiary of the copper recovery and a bullish gold market.

Zijin is our top pick in the metals universe.

Re-iterate BUY and target price of HK$6.60.

Source: UOBKH

https://research.uobkayhian.com/content ... d2c7fcc9b0

[winston]

not vested

ZIJIN MINING(2899)

Analysis：

Zijin Mining has achieved leapfrog development in recent years.

It has achieved a qualitative leap through the acquisition of overseas mines and its resource reserves and output have been greatly increased.

It is currently the largest and most abundant gold, copper, lead and zinc production in China.

In 2021, Zijin`s three major copper mine projects, the Kamoa Copper Mine, the Julong Copper Mine, and the Timok Copper and Gold Mine will be put into operation one after another.

The total increase in copper production capacity is close to 500,000 tons, and the company`s copper production capacity is expected to be close to 100.

With a level of about 10,000 tons, it ranks among the top copper mining companies in the world.

Strategy：
Buy-in Price: $4.70, Target Price: $6.00, Cut Loss Price: $4.00

Source: Phillips

[winston]

not vested

ZIJIN MINING(2899)

Analysis：

Zijin Mining's 2020Q3 revenue reported to 47.3 billion yuan, a yoy increase of 37%, and a qoq increase of 0.66%;

Net profit attributable to the parent company was 2.151 billion yuan, a yoy increase of 86.65%, which was the highest single-quarter profit of the company in recent years.

Zijin Mining has achieved leapfrog development in recent years. It has achieved a qualitative leap through the acquisition of overseas mines, and its resource reserves and output have been greatly increased.

It is currently the largest and most abundant gold, copper, lead and zinc production in China. enterprise.

In 2021, Zijin's three major copper mine projects, the Kamoa Copper Mine, the Julong Copper Mine, and the Timok Copper and Gold Mine will be put into operation one after another.

The total increase in copper production capacity is close to 500,000 tons, and the company's copper production capacity is expected to be close to 100 With a level of about 10,000 tons, it ranks among the top copper mining companies in the world.

Strategy：
Buy-in Price: $5.40, Target Price: $6.60, Cut Loss Price: $4.65

Source: Phillips

[winston]

not vested

What’s New

3Q20 earnings beat our initial expectation by a big margin supported by P & Q growth

Ample growth potential supported by M&As

Copper’s profitability stands out on positive sector outlook

Raise TP to HK$6.1 and retain BUY call for H-share; raise TP to RMB6.6 and retain HOLD call for A-share

Source: DBS

https://researchwise.dbsvresearch.com/R ... hjhikfhgbh