Summary of Key Points from Zijin Mining Group's Earnings Call Company Overview - **Company**: Zijin Mining Group - **Industry**: Basic Materials, specifically mining of copper and gold Core Insights 1. **Positive Earnings Performance**: Zijin reported solid earnings for 2Q25, demonstrating volume growth and profitability exceeding industry peers [2][10][26] 2. **Price Outlook**: The company maintains a positive outlook for copper and gold prices, which are critical to its profitability [2][11][27] 3. **Upcoming Spin-off**: Zijin Gold International is set to be listed soon, expected to enhance Zijin's share price as investors may increase exposure to the new listing [2][10][26] 4. **Increased Gold Contribution**: There is an anticipated higher contribution from gold, which is expected to positively impact overall profitability [2][11][27] 5. **Payout Ratio Potential**: There is a potential increase in the payout ratio, which could attract more investors [2][11][27] Financial Performance 1. **Revenue Growth**: 2Q25 revenue reached Rmb88.783 billion, a 12% QoQ increase and 17% YoY increase [6] 2. **Gross Profit Margin**: The gross profit margin improved to 22.5%, up from 20.6% in the previous quarter [6] 3. **Net Profit**: Net profit attributable to shareholders was Rmb13.125 billion, a 29% increase QoQ and 49% YoY [6] 4. **Earnings Per Share (EPS)**: EPS for 2Q25 was Rmb0.494, reflecting a 29% QoQ increase [6] 5. **Cash Flow**: Operating cash flow increased by 30% QoQ to Rmb16.302 billion [6] Cost Management 1. **Unit Cost of Gold**: The unit cost of gold increased by 8% QoQ, attributed to lower output at the La Arena project and the consolidation of the Akyem project [4] 2. **Future Cost Expectations**: Management expects a decrease in unit costs in 2H25, with full-year increases for copper and gold controlled within 5-8% [4] Production Insights 1. **Volume Guidance**: Despite a downward revision in output guidance for the Kamoa project, Zijin is on track to meet its full-year volume guidance [4] 2. **Copper Production**: The Julong Phase II project is expected to commence production before year-end, contributing to copper volume growth [4] Strategic Developments 1. **New Mining Unit**: Zijin plans to establish a new unit for rare precious metals, incorporating assets like molybdenum and tungsten [4] 2. **Environmental Approvals**: The Shapinggou moly mine has received environmental assessment approval, with construction expected to begin in 2025 [4] Valuation and Price Targets 1. **Price Target**: The revised price target for Zijin-A is Rmb26.50, based on a 1.0x P/NAV, implying a FY26E P/E of 13x and an EV/EBITDA of 9.7x [2][12] 2. **Market Capitalization**: As of August 26, 2025, Zijin's market cap is approximately $82.409 billion [5] Risks and Considerations 1. **Upside Risks**: Stronger-than-expected gold and copper prices, and volume growth could positively impact the rating and price target [13][29] 2. **Downside Risks**: Risks include potential overpayment in M&A, geopolitical risks related to overseas mines, and weaker-than-expected commodity prices [13][29] Conclusion Zijin Mining Group is positioned favorably within the mining sector, with strong earnings growth, a positive outlook for commodity prices, and strategic initiatives that could enhance shareholder value. The upcoming spin-off and potential increases in payout ratios are key catalysts for future performance.

黄金板块后市展望 20250829.docx AceCamp AI 2025-08-30 摘要 全球央行自 2022 年起大幅增持黄金，特别是中国央行，虽近期购买量 放缓，但中国黄金储备占外汇储备比例仍远低于全球平均水平，未来仍 有较大增持空间，构成金价支撑。 黄金 ETF 投资需求显著增长，尤其是在中国，投资者对黄金 ETF 的接受 度提高，且全球性 ETF 如 SPDR Gold Shares 也在持续增持，对金价 形成支撑。 2025 年黄金市场主要驱动因素是美联储降息预期和美国经济数据。鲍 威尔的鸽派言论及市场对两次降息的预期，为金价上涨提供动力。 美国经济数据如非农就业和通胀指标将影响降息可能性，若数据支持宽 松政策，美联储可能进一步降息，支撑金价上涨。 紫金矿业估值处于历史中下水平，铜业务增强，黄金业务快速增长，毛 利率提升，长期来看具有较高性价比和稳健增长潜力。 美联储可能在 2025 年下半年调整货币政策框架，为更多次降息提供理 由，同时关注美国经济数据，以把握金价上涨机会。 传统实际利率定价模型失效，需考虑央行购入量等新变量。多数央行计 划未来增持黄金，规避美元风险、对冲通胀是主要原因。 Q ...

Investment Rating - The report maintains a "Buy" rating for Zijin Mining [7] Core Views - Zijin Mining's revenue for the first half of 2025 reached 167.7 billion, a year-on-year increase of 11.5%, with a net profit attributable to shareholders of 23.3 billion, up 54.4% year-on-year [1] - The company is positioned as a global leader in copper and gold production, with significant growth in both output and profitability [5] Summary by Sections Copper Production - In H1 2025, copper production was 570,000 tons, ranking fourth globally, with a year-on-year growth of 9% [2] - The revenue from copper reached 27.3 billion, a 12.7% increase year-on-year, with a gross profit of 16.6 billion, representing a gross margin of 41.7% [2] Gold Production - Gold production in H1 2025 was 41 tons, ranking fifth globally, with a year-on-year increase of 16.3% [3] - The revenue from gold was 26.5 billion, a significant increase of 62.2% year-on-year, with a gross profit of 16.4 billion, yielding a gross margin of 41.3% [3] Exploration and Mergers - The company has made substantial progress in self-exploration, with notable discoveries in Serbia, Australia, and other regions [4] - Zijin Mining completed a significant acquisition of control over Cangge Mining, enhancing its resource portfolio and strategic positioning in the market [4] Future Guidance - The company projects copper and gold production targets of 1.15 million tons and 85 tons respectively for 2025, with long-term plans to reach 1.5-1.6 million tons of copper and 100-110 tons of gold by 2028 [5] - Revenue forecasts for 2025-2027 are estimated at 364.4 billion, 400.8 billion, and 440.9 billion respectively, with net profits expected to be 45.9 billion, 53.1 billion, and 57.3 billion [5]

Investment Rating - The report maintains an "Overweight" rating for the non-ferrous metals industry [2]. Core Views - The report highlights a bullish outlook for precious metals, particularly silver, driven by rising interest rate cut expectations and a weakening dollar, with silver prices reaching new highs [1][34]. - For industrial metals, the report is optimistic about copper prices due to macroeconomic easing and seasonal demand, while aluminum prices are expected to fluctuate in the short term [1][4]. - Energy metals, particularly lithium, are experiencing price declines amid weaker market sentiment, although demand remains stable due to seasonal factors [1][24]. Summary by Sections Precious Metals - Silver prices have surged, with COMEX silver reaching $40.75 per ounce, marking a significant technical breakout [1][34]. - Gold prices are also approaching $3,500 per ounce, with expectations of inflation rising in the U.S. economy [1][34]. Industrial Metals - Copper: The report anticipates a price increase due to macroeconomic easing and seasonal demand, with global refined copper production expected to rise by 3.6% year-on-year [1][4]. - Aluminum: The report notes a slight increase in theoretical operating capacity in China's aluminum industry, but anticipates price fluctuations due to mixed production adjustments [1][4]. Energy Metals - Lithium: Prices have declined, with battery-grade lithium carbonate dropping to 80,000 yuan per ton, while production and inventory levels are also decreasing [1][24]. - Metal Silicon: The report indicates stable supply and demand dynamics, with short-term price fluctuations expected [1][24]. Key Stocks - The report recommends several stocks in the non-ferrous metals sector, including: - Shandong Gold (Buy) with an EPS forecast of 1.75 yuan for 2027 [3]. - Chifeng Jilong Gold Mining (Buy) with an EPS forecast of 2.01 yuan for 2027 [3]. - China Hongqiao Group (Buy) with an EPS forecast of 2.83 yuan for 2027 [3].

消息面上，隔夜金价站上3400美元/盎司，创五周新高。美联储理事沃勒强调支持美联储9月会议降息25 个基点，预计未来3—6个月将进一步降息。此外，当前市场继续评估美联储独立性面临的威胁。值得关 注的是，近期多家黄金矿业公司中期业绩亮眼。紫金矿业（601899）上半年营归母净利润232.92亿元， 同比增加54.41%；赤峰黄金上半年归母净利润达11.07亿元，同比大幅增长55.79%。招金矿业上半年归 母净利润14.40亿元，同比激增160.44%。 赤峰黄金 紫金矿业 赤峰黄金 紫金矿业 招金矿业 灵宝黄金 分时图 日K线 周K线 月K线 25.97 0.89 3.55% 4.31% 2.87% 1.44% 0.00% 1.44% 2.87% 4.31% 24.00 24.36 24.72 25.08 25.44 25.80 26.16 09:30 10:30 11:30/13:00 14:00 15:00 0 89万 179万 268万 黄金股集体走高，截至发稿，中国黄金（600916）国际(02099)涨4.97%，报105.7港元；赤峰黄金 （600988）(06693)涨4.38%，报25.76港元 ...

Core Viewpoint - The company has signed a cooperation intention letter with Zijin Mining Group to develop the Shapingou molybdenum mine in Anhui, which is expected to strengthen the company's industrial chain and align with its development strategy, without significantly impacting the company's 2025 operating performance [2][11]. Group 1: Cooperation Agreement Details - The cooperation intention letter is a framework agreement based on mutual willingness, with only the commitments having legal binding force, while other aspects remain uncertain regarding formal contract signing [2][12]. - The agreement involves Zijin Mining transferring 24% of its stake in Anhui Jinsan Molybdenum Co., Ltd. to the company, resulting in Zijin holding 60% and the company holding 34% of the stake post-transfer [5][6]. - A new smelting company will be established jointly by both parties, with the company holding 51% and Zijin holding 49%, focusing on molybdenum smelting and deep processing [6][9]. Group 2: Financial and Operational Implications - The Shapingou molybdenum mine has a total molybdenum resource of 2.1 million tons, with an average grade of 0.187%, and a molybdenum metal reserve of 1.1 million tons at an average grade of 0.2% [5]. - The cooperation aims to ensure the efficient and scientific development of the Shapingou molybdenum mine, with both parties agreeing to prioritize financing and investment decisions based on their respective shareholdings [7][9]. - The company will conduct necessary financial, legal due diligence, and audits before finalizing the cooperation agreement [19].

Group 1: Industry Overview - In the first half of 2025, the prices of non-ferrous metal commodities rose overall, significantly contributing to industry profitability [1] - Over 60% of listed companies in the non-ferrous sector reported year-on-year growth in performance, with 90% achieving net profit [1] - Companies with profits exceeding 1 billion yuan reached 21 [1] Group 2: Key Company Performances - Zijin Mining (601899) reported revenue of 167.71 billion yuan, a year-on-year increase of 11.5%, and a net profit of 23.29 billion yuan, up 54.41% [1] - Shandong Gold (600547) achieved a net profit of 2.81 billion yuan, doubling year-on-year, driven by a significant rise in gold prices [1] - Luoyang Molybdenum (603993) recorded a net profit of 8.67 billion yuan, a historical high, with mining revenue reaching 39.40 billion yuan [2] - Northern Rare Earth (600111) saw a net profit of 931 million yuan, a staggering increase of 1951.52% due to strong domestic demand [2] Group 3: Price Trends and Market Dynamics - The price of praseodymium and neodymium oxide fluctuated between 400,000 to 450,000 yuan per ton in Q1 2025, with a 12.5% increase, followed by a drop due to international trade tensions [3] - The demand from sectors like new energy vehicles and robotics is expected to drive the rare earth market upward in the second half of the year [3] Group 4: Future Outlook - The industry remains optimistic about gold and copper price trends, with Zijin Mining noting potential market fluctuations due to U.S. copper import tariffs and low global non-U.S. exchange inventories [4] - Continued geopolitical tensions and a weak dollar are expected to bolster demand for gold, with central bank purchases remaining high [4] - Shandong Gold anticipates sustained investment demand for gold due to ongoing global geopolitical instability [4]

Group 1 - The trend of A-share companies spinning off subsidiaries for IPOs is ongoing, with 20 companies updating their progress in 2023, including 5 completed, 9 in progress, and 6 terminated [1] - The spin-off allows subsidiaries to maximize capital market financing, improve funding shortages, and lower capital costs, providing sufficient funding for future development [1] - Parent companies can focus on their core businesses, enhancing operational capabilities and sustainability, thus increasing independence and competitiveness [1] Group 2 - The "A拆A" phenomenon has seen 4 companies complete their spin-offs, with examples including China Nonferrous Metal Construction Group and Hubei Xingfa Chemicals [2] - Ongoing spin-offs include companies like Zhongjie Nengyuan and Shenzhen Inovance Technology, with funds raised primarily for working capital, R&D, and production expansion [2] - For instance, Inovance plans to raise approximately 4.857 billion yuan for core component production in the new energy vehicle sector [2] Group 3 - The "A拆H" trend is also progressing, with 6 companies updating their plans for Hong Kong listings, leveraging the international market's advantages [3] - Successful listings, such as Nanshan Aluminum International, raised 2.379 billion HKD, with a stock price increase of over 77.74% since the IPO [3] - The objectives of these spin-offs include financing, enhancing independent operations, and optimizing capital structure, as seen in Shandong Gold's strategy for global market expansion [3] Group 4 - Zijin Mining views the spin-off of its overseas gold mining assets as a strategic move to enhance its international business and overall valuation [4] - The company submitted its Hong Kong listing application for its overseas gold assets, aiming to create a platform for overseas gold listings [4]

Core Viewpoint - The completion of the acquisition of 84% equity in Anhui Jinsan Molybdenum Co., Ltd. by the company marks a significant step in expanding its operations in the molybdenum sector, with plans for further development and collaboration with industry partners [1][2]. Group 1: Acquisition Details - The company completed the transfer of 84% equity in Anhui Jinsan Molybdenum Co., Ltd. on August 28, 2025, following the public bidding process initiated on October 21, 2022 [1]. - Anhui Jinsan Molybdenum Co., Ltd. holds 100% rights to the Shapingou Molybdenum Mine in Jinzhai County, Anhui Province, which has a total molybdenum metal resource of 2.1 million tons and a metal reserve of 1.1 million tons [1]. - The mining rights for the Shapingou Molybdenum Mine are valid until July 28, 2053, with a designed production scale of 10 million tons per year and an average annual molybdenum output of approximately 22,100 tons post-construction [1]. Group 2: Strategic Partnerships - Following the acquisition, the company will hold 84% of Jinsan Molybdenum, while Jinduicheng Molybdenum Co., Ltd. and Jinzhai County Urban Development Investment Co., Ltd. will hold 10% and 6% respectively [2]. - Jinduicheng Molybdenum Co., Ltd. plans to collaborate with Jinsan Molybdenum to invest in a new molybdenum smelting project to support local economic development and extend the industrial chain [2]. - A cooperation agreement was signed on August 29, 2025, where the company will transfer 24% of Jinsan Molybdenum's equity to Jinduicheng Molybdenum at the original acquisition price plus necessary financial costs, resulting in a new equity structure of 60% for the company and 34% for Jinduicheng Molybdenum [2].

Core Viewpoint - Zijin Mining has completed the acquisition of 84% equity in Anhui Jinsan Molybdenum Co., Ltd, enhancing its position in the molybdenum industry and facilitating local economic development through strategic partnerships [1][2] Group 1: Acquisition Details - The acquisition of 84% equity in Jinsan Molybdenum was finalized on August 28, 2025, following the public bidding process initiated on October 21, 2022 [1] - Jinsan Molybdenum holds 100% rights to the Shapingou Molybdenum Mine, which has a total molybdenum metal resource of 2.1 million tons and a metal reserve of 1.1 million tons [1] - The mining rights for the Shapingou Mine are valid until July 28, 2053, with an annual production capacity designed at 10 million tons [1] Group 2: Project Development and Operations - The project construction period is estimated to be 4.5 years, with an expected average annual molybdenum production of approximately 22,100 tons upon reaching full capacity [1] - The company is coordinating with relevant parties to expedite the necessary permits and approvals for the project, including mining licenses and environmental assessments [1] Group 3: Strategic Partnerships - Following the acquisition, Zijin Mining will hold 84% of Jinsan Molybdenum, while Jinduicheng Molybdenum Co., Ltd and Jinzhai County Urban Development Investment Co., Ltd will hold 10% and 6% respectively [2] - A cooperation agreement was signed on August 29, 2025, between Zijin Mining and Jinduicheng Molybdenum to establish a molybdenum smelting project, enhancing the local industrial chain [2] - Jinduicheng Molybdenum will hold 51% of the new smelting company, while Jinsan Molybdenum will retain 49%, ensuring a collaborative approach to the development and operation of the smelting facility [2]