Summary of Zijin Mining Conference Call Company Overview - **Company**: Zijin Mining - **Date**: August 27, 2025 Key Financial Performance - **Revenue**: 167.7 billion RMB, up 11% year-on-year [2][5] - **Net Profit**: 28.6 billion RMB, a significant increase of 55% year-on-year [2][5] - **Net Profit Attributable to Shareholders**: 23.3 billion RMB, up 54% year-on-year [2][5] - **EBITDA**: 42.2 billion RMB, a 43% increase year-on-year [5] - **Operating Cash Flow**: 28.8 billion RMB, up 40% year-on-year [5] - **Total Assets**: 440 billion RMB, with net assets of 142 billion RMB [6] Cost Management - **Copper Costs**: Effective control with gross margins of 65% for copper concentrate, 53.5% for motor copper, and 46.8% for electrolytic copper [2][7] - **Gold Costs**: Slight increase due to the consolidation of the Ghana project, but overall profitability remains strong [2][7] - **Future Cost Outlook**: Anticipated decrease in costs for Q3 and Q4 2025, aiming to keep copper cost increase within 5% to 8% year-on-year [10] Production and Resource Development - **Copper Production**: 570,000 tons in H1 2025, a 9% increase year-on-year [4] - **Gold Production**: 41 tons, a 16% increase year-on-year [4] - **Resource Expansion**: Over 2 million tons of new copper resources and nearly 100 tons of new gold resources added [4] - **Acquisitions**: Completed acquisition of Ghana's Akim gold mine and signed agreement for Kazakhstan's Akin mine [4] Strategic Initiatives - **Dividends**: Mid-year dividend of 0.22 RMB per share, totaling 5.85 billion RMB, the highest in company history [2][9] - **Market Capitalization**: Surpassed 600 billion RMB, nearing the 100 billion USD target [2][10] - **Lithium Project Adjustments**: Slowed development pace to focus on cost reduction and long-term competitiveness [2][11][12] - **Establishment of Rare Metals Company**: To integrate tungsten, molybdenum, and tin businesses for improved management and operational efficiency [3][14] Future Outlook - **Copper Production Guidance**: Adjusted annual guidance for Kamoa Copper Mine to 370,000 to 420,000 tons due to seismic impacts [2][25][27] - **Gold Acquisition Strategy**: Plans to exceed 50 tons of overseas gold production in 2026, with potential adjustments in acquisition strategies [17] - **Investment Returns**: Significant increase in investment income driven by asset disposals and commodity hedging [18] Additional Insights - **Environmental and Regulatory Challenges**: Ongoing complexities in the approval processes for new projects, particularly for the Giant Dragon Phase III [30] - **Focus on Small Metals**: Continued emphasis on small metals like molybdenum and tungsten, which contribute significantly to profitability [42] - **Silver Production**: Anticipated production of 450 tons for the year, with a focus on improving efficiency in resource utilization [40] This summary encapsulates the key points from the conference call, highlighting Zijin Mining's financial performance, strategic initiatives, production updates, and future outlook.

Investment Rating - The investment rating for the company is "Outperform the Market" [3][5][35] Core Views - The company reported a revenue of 167.71 billion yuan for the first half of the year, a year-on-year increase of 11.50%, and a net profit attributable to shareholders of 23.29 billion yuan, up 54.41% year-on-year. The second quarter saw a revenue of 88.78 billion yuan, a year-on-year increase of 17.38% and a quarter-on-quarter increase of 12.49% [1][9] - The company plans to implement a mid-term dividend, distributing 2.2 yuan per 10 shares, totaling approximately 5.847 billion yuan, which accounts for 25.10% of the net profit attributable to shareholders for the first half of the year [2][25] - The strategic move to spin off the overseas gold segment into Zijin Gold International is expected to enhance the company's valuation and facilitate rapid expansion of its overseas gold business [2][30] Financial Performance - The company achieved a net cash flow from operating activities of 28.83 billion yuan, a year-on-year increase of 41.00% [9] - The core mineral product output for the first half of the year included gold production of 41.19 tons, a year-on-year increase of 16.3%, and copper production of 566,900 tons, a year-on-year increase of 9.3% [1][13] - The unit operating cost for gold was 261.97 yuan per gram, up 15.41% year-on-year, while the unit cost for copper was 24,256 yuan per ton, up 8.21% year-on-year [2][16] Earnings Forecast - The company has adjusted its earnings forecast for 2025-2027, expecting revenues of 365.1 billion, 381.7 billion, and 400.5 billion yuan, with year-on-year growth rates of 20.2%, 4.5%, and 4.9% respectively. The net profit attributable to shareholders is projected to be 46.06 billion, 52.66 billion, and 58.48 billion yuan, with growth rates of 43.7%, 14.3%, and 11.1% respectively [3][35]

Core Viewpoint - Zijin Mining has demonstrated strong profitability, leading to a significant increase in net profit and a focus on market capitalization management, as evidenced by its recent financial performance and strategic initiatives [1][3][10]. Financial Performance - Zijin Mining reported a 54.41% increase in net profit to 23.3 billion yuan for the first half of the year, with total revenue growing by 11.5% [1][3]. - The company anticipates net profits of 21.1 billion yuan and 32.1 billion yuan for 2023 and 2024, respectively, with potential for profits to exceed 40 billion yuan this year [1][7]. - The total profit, including minority interests and taxes, reached nearly 35 billion yuan in the first half of the year [3]. Product Performance - Gold and copper are the primary revenue sources, contributing 49.1% and 27.8% to sales, respectively, with gold prices reaching a historical high of 3,500 USD/ounce [3][4]. - Copper production increased by 9% to 570,000 tons, while gold production rose by 16% to 41 tons [3][4]. - The gross profit margin for gold improved to 72.59%, while copper's margin decreased to 65.03% due to rising costs [4]. Market Capitalization Management - The company has initiated a market capitalization management system, with the chairman taking on a leading role, and has executed a 1 billion yuan stock buyback plan [1][10]. - Zijin Mining's stock prices have surged, with A-shares and H-shares increasing by over 51% and 78%, respectively, in 2023 [1][12]. - Despite strong performance, the company's valuation remains lower than that of its peers, such as Southern Copper and Freeport-McMoRan [9][12]. Production Adjustments - The company has adjusted its production expectations for the Kamoa-Kakula copper project in the Democratic Republic of Congo due to geological issues, reducing the annual output forecast [5]. - Zijin Mining is also revising its lithium production targets in response to low lithium carbonate prices, focusing on cost reduction measures [6]. Market Context - The overall market for copper and gold has remained strong, with prices stabilizing at high levels, contributing to Zijin Mining's continued profitability [7][12]. - The broader market for non-ferrous metals has seen significant growth, with the sector's annual increase reaching 46.19% [12].

事件：公司发布2025年半年报：25H1公司营业收入 1677.1 亿元，同比+11.5%；归母净利232.9亿元，同 比+54.4%；扣非后归母净利216.2亿元，同比+40.1%，其中2025Q2公司营业收入 887.8亿元，同比 +17.4%，同比+48.8%，环比+12.5%；归母净利131.3亿元，同比+48.8%，环比+29.1%；扣非后归母净利 117.4 亿元，同比+27.5%，环比+18.8%。公司拟实施 2025年中期每股分红 0.22元（含税），分红总额 58.5 亿元，股息率 1.13%。 经营韧性凸显，2025Q2 业绩再创新高： 1）产量：25H1公司实现矿产铜57万吨/同比+9%，矿产金41吨/同比+16%，矿产锌（铅）20万吨/同 比-10%；25Q2公司矿产铜/金/锌产量分别为28万吨/22 吨/9 万吨，环比-3%/+16%/+4%。卡莫阿-卡库拉 铜矿的卡库拉矿段接连发生多次矿震，致使卡库拉矿段东区大面积被淹，井下采矿作业暂停，恢复时间 尚不确定；受本次淹井事件影响，该项目全年产量计划将从 52-58万吨下调为37-42万吨，公司2025年矿 产铜权益产量将相应减少4.4 ...

Group 1 - The core issue faced by the company is operational challenges at the Kamoa-Kakula copper mine, attributed to inadequate mining method adaptability and management integration problems [1] - The Kamoa-Kakula copper mine, located in the Democratic Republic of Congo, is the company's largest copper mine, with a projected copper production of 194,700 tons in 2024 [1] - The company's annual production target for the Kamoa-Kakula mine has been revised down from 520,000-580,000 tons to 370,000-420,000 tons due to multiple seismic events affecting operations [1] Group 2 - In the first half of the year, the company reported operating revenue of 167.71 billion yuan, a year-on-year increase of 11.50%, and a net profit of 23.29 billion yuan, a significant year-on-year growth of 54.41% [2] - The increase in performance is attributed to the upward fluctuations in international gold and copper prices, with the gross profit margin for mineral products rising by 3 percentage points to 60.23% [2] - The company achieved a mineral gold production of 41 tons, a year-on-year increase of 16%, and copper production of 570,000 tons, a year-on-year increase of 9% [2]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][35]. Core Views - The company's revenue for the first half of the year reached 167.71 billion yuan, a year-on-year increase of 11.50%, while the net profit attributable to shareholders was 23.29 billion yuan, up 54.41% year-on-year. The significant growth in gold production and prices contributed to this performance [1][9]. - The company plans to spin off its overseas gold mining assets into a separate entity, which is expected to enhance its valuation and facilitate rapid expansion in overseas gold operations [2][30]. Summary by Sections Financial Performance - In Q2 2025, the company achieved revenue of 88.78 billion yuan, a year-on-year increase of 17.38% and a quarter-on-quarter increase of 12.49%. The net profit attributable to shareholders was 13.13 billion yuan, up 48.75% year-on-year and 29.10% quarter-on-quarter [1][9]. - The company’s core mineral product output for the first half of the year included 41.19 tons of gold (up 16.3% year-on-year) and 566,900 tons of copper (up 9.3% year-on-year) [1][13]. Cost Management - The unit operating cost for gold was 261.97 yuan per gram, an increase of 15.41% year-on-year. The company is focused on strict cost control and enhancing management efficiency [2][16]. Dividend Policy - The company plans to distribute a mid-term cash dividend of 2.2 yuan per 10 shares (tax included), totaling approximately 5.847 billion yuan, which accounts for 25.10% of the net profit attributable to shareholders for the first half of the year [2][25]. Strategic Initiatives - The spin-off of the overseas gold segment is a significant strategic move, expected to create a dedicated platform for overseas gold operations and lead to a revaluation of the company's overall business structure [2][30]. - The company is actively pursuing international expansion and diversification into new energy materials, aiming to position itself among the top global mining enterprises [3][35]. Financial Forecast - The company’s revenue projections for 2025-2027 are 365.1 billion yuan, 381.7 billion yuan, and 400.5 billion yuan, with corresponding net profits of 46.06 billion yuan, 52.66 billion yuan, and 58.48 billion yuan [3][36].

Group 1 - The operation of the Kamoa-Kakula copper mine project is facing challenges due to inadequate mining method adaptability and management integration issues [2] - The Kamoa-Kakula copper mine, located in the Democratic Republic of Congo, is the core copper mine of the company, with a planned copper production of 194,700 tons in 2024, making it the largest copper mine for the company [2] - The annual production target for the project has been revised down from 520,000-580,000 tons to 370,000-420,000 tons due to multiple seismic events affecting the mining operations [2] Group 2 - In the first half of the year, the company achieved operating revenue of 167.71 billion yuan, a year-on-year increase of 11.50%, and a net profit of 23.29 billion yuan, a significant year-on-year growth of 54.41% [3] - The increase in performance is attributed to the price benefits from the fluctuations in international gold and copper prices, with a gross margin for mineral products increasing by 3 percentage points to 60.23% [3] - The production of mineral gold reached 41 tons, an increase of 16% year-on-year; mineral copper production was 570,000 tons, up 9% year-on-year; and mineral silver production was 224 tons, a 6% increase year-on-year [3]

Group 1 - The operation of the Kamoa-Kakula copper mine project is facing challenges due to inadequate mining method adaptability and management integration issues [1] - The Kamoa-Kakula copper mine, located in the Democratic Republic of Congo, is the core copper mine for the company, with a projected copper output of 194,700 tons in 2024 [1] - The annual production target for the project has been revised down from 520,000-580,000 tons to 370,000-420,000 tons, which will also reduce the company's copper equity production in 2025 by 44,000-93,000 tons [1] Group 2 - In the first half of the year, the company achieved operating revenue of 167.71 billion yuan, a year-on-year increase of 11.50%, and a net profit of 23.29 billion yuan, a significant year-on-year growth of 54.41% [2] - The increase in performance is attributed to the price benefits from the fluctuations in international gold and copper prices, with a gross profit margin of 60.23%, up 3 percentage points year-on-year [2] - The production of mineral gold reached 41 tons, an increase of 16% year-on-year; mineral copper production was 570,000 tons, up 9% year-on-year; and mineral silver production was 224 tons, a 6% increase year-on-year [2]

Core Insights - The top three companies with the highest AH premium rates are Northeast Electric (00042) at 770.97%, Hongye Futures (03678) at 252.57%, and Andeli Juice (02218) at 238.08% [1][2] - The bottom three companies with the lowest AH premium rates are CATL (03750) at -18.73%, Midea Group (00300) at 6.86%, and Heng Rui Medicine (01276) at 7.43% [1][2] - The companies with the highest deviation values are Beijing Machinery (00187) at 32.43%, Andeli Juice (02218) at 29.55%, and Fudan Zhangjiang (01349) at 29.44% [1][3] - The companies with the lowest deviation values are BYD (01211) at -84.97%, Longpan Technology (02465) at -62.46%, and GAC Group (02238) at -26.17% [1][3] AH Premium Rate Rankings - The top AH stocks by premium rate include: - Northeast Electric (00042): H-share at 0.310 HKD, A-share at 2.25 CNY, premium rate 770.97%, deviation -23.02% [2] - Hongye Futures (03678): H-share at 4.280 HKD, A-share at 12.6 CNY, premium rate 252.57%, deviation 25.11% [2] - Andeli Juice (02218): H-share at 17.780 HKD, A-share at 50.18 CNY, premium rate 238.08%, deviation 29.55% [2] - The bottom AH stocks by premium rate include: - CATL (03750): H-share at 410.200 HKD, A-share at 278.3 CNY, premium rate -18.73%, deviation 1.21% [2] - Midea Group (00300): H-share at 81.500 HKD, A-share at 72.71 CNY, premium rate 6.86%, deviation -1.78% [2] - Heng Rui Medicine (01276): H-share at 72.500 HKD, A-share at 65.03 CNY, premium rate 7.43%, deviation 11.64% [2] Deviation Value Rankings - The top AH stocks by deviation value include: - Beijing Machinery (00187): H-share at 4.950 HKD, A-share at 13.24 CNY, premium rate 220.40%, deviation 32.43% [3] - Andeli Juice (02218): H-share at 17.780 HKD, A-share at 50.18 CNY, premium rate 238.08%, deviation 29.55% [3] - Fudan Zhangjiang (01349): H-share at 3.590 HKD, A-share at 10.06 CNY, premium rate 235.65%, deviation 29.44% [3] - The bottom AH stocks by deviation value include: - BYD (01211): H-share at 115.100 HKD, A-share at 110.68 CNY, premium rate 15.18%, deviation -84.97% [3] - Longpan Technology (02465): H-share at 10.320 HKD, A-share at 14.37 CNY, premium rate 66.76%, deviation -62.46% [3] - GAC Group (02238): H-share at 3.690 HKD, A-share at 7.88 CNY, premium rate 155.83%, deviation -26.17% [3]

Core Viewpoint - Zijin Mining, the world's third-largest mining company, reported record quarterly performance but warned that geopolitical tensions and resource nationalism pose challenges to its overseas projects, with global uncertainty reaching unprecedented levels [1][3]. Financial Performance - Zijin Mining's latest financial report indicates a net profit of 28.6 billion yuan for the first half of 2025, a year-on-year increase of 55%, with attributable net profit reaching 23.3 billion yuan, up 54% [1]. - The company's revenue for the first half of the year was 167.7 billion yuan, reflecting an 11.5% year-on-year growth, and the overall gross margin for mineral products was 60.23%, an increase of 3 percentage points [4]. Production and Business Structure - The company produced 570,000 tons of copper, a 9% increase year-on-year; gold production reached 41 tons, up 16%; and silver production was 224 tons, a 6% increase [5]. - In terms of business structure, copper sales accounted for 27.8% of total revenue, with a gross margin of 38.5%, while gold sales represented 49.1% of revenue, benefiting from a significant rise in gold prices, with a gross margin of 38.6% [5]. Resource Strategy - Zijin Mining continues to implement a "exploration + acquisition" dual strategy, adding 2.049 million tons of copper resources and 888 tons of gold resources during the reporting period [5]. - The company has made strategic acquisitions, including the Akim gold mine in Ghana and the Raygorodok gold mine in Kazakhstan, enhancing its presence in West Africa and Central Asia [6]. Geopolitical Risks - The company highlighted multiple challenges facing the mining industry, including rising costs, trade disruptions, and countries seeking to protect their resources [7]. - Political, policy, and legal differences between countries, along with resource nationalism, may pose challenges to construction and production operations [7]. Market Outlook - In the copper market, the introduction of U.S. copper tariffs, combined with low global inventories, may lead to short-term market volatility as trade flows are reshaped [10]. - For the gold market, expectations of U.S. interest rate cuts, geopolitical tensions, a weak dollar, and central bank purchases are expected to enhance gold's attractiveness [11]. - The zinc market is facing short-term pressure with a tight balance, as production increases in China but reductions are seen overseas [12]. - In the lithium market, the company warned that disruptions in supply expectations could lead to high price volatility, and the clearing of excess supply will take time [13].