Investment Rating - The report assigns a "Buy" rating for the company [4][52]. Core Views - Zijin Mining is a leading global provider of copper and gold ore, with significant mining investments in China and 15 other countries. The company is expanding into the new energy and materials industry, holding substantial lithium resources [4][13]. - The copper segment has seen a remarkable production increase, making Zijin Mining the only company in China and Asia to surpass one million tons of copper production in 2023, ranking it among the top five globally [4][26]. - The gold segment has also shown strong growth, with a significant increase in gold production due to acquisitions and the resumption of operations at key mines [4][38]. Summary by Sections Company Overview - Zijin Mining operates in the exploration, development, and engineering design of various metal resources, including copper, gold, zinc, lithium, silver, and molybdenum. The company has major projects in 17 provinces in China and 15 countries abroad [4][13]. Financial Performance - In 2023, the company achieved a revenue of 2934.03 billion yuan, a year-on-year increase of 8.54%, and a net profit attributable to shareholders of 211.19 billion yuan, up 5.38% year-on-year [14][50]. - The company’s copper-related business contributed 47.19% to gross profit, while gold contributed 25.35% [16]. Copper Segment - The copper production reached 1,007,300 tons in 2023, a year-on-year increase of 11.13%. The company accounted for approximately 62% of China's total copper production [4][26]. - The report highlights the positive supply-demand dynamics in the copper market, driven by production disruptions and strong demand from the new energy sector [24]. Gold Segment - The company’s gold production increased to 67.73 tons in 2023, a rise of 20.17% year-on-year, positioning it among the top gold producers in China and Asia [4][38]. - The report notes that the gold market is entering a bullish phase due to rising inflation expectations and geopolitical instability [34]. Profit Forecast and Investment Recommendations - The forecast for net profit attributable to shareholders for 2024-2026 is 235.50 billion yuan, 300.80 billion yuan, and 356.13 billion yuan, representing year-on-year growth rates of 11.51%, 27.73%, and 18.39% respectively [5][52]. - The report anticipates that the company’s rapid expansion in the copper and gold sectors, combined with high commodity prices, will drive significant revenue growth [52].

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2024年4月30日 狀態: 新提交 | 2. 股份分類 | 普通股 | 股份類別 | H | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 | 02899 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 5,736,940,000 | RMB | | 0.1 RMB | | 573,694,000 | | 增加 / 減少 (-) | | | | 0 | | RMB | | 0 | | 本月底結存 | | | 5,736,940,000 | RMB | | 0.1 RMB | | 573,694,000 | 本月底法定/註冊股本總額： RMB 2,632,598,894 致：香港交易及結算所有限公司 公司名稱: 紫金礦業集團股份有限公司 呈交日期: 2024年5月1日 FF301 I. 法定 ...

Financial Performance - Zijin Mining Group reported a revenue of RMB 100 billion in 2023, representing a year-on-year increase of 15%[1]. - The company achieved a net profit of RMB 20 billion, up 10% compared to the previous year[1]. - Total revenue for 2023 reached RMB 293.40 billion, a 8.54% increase from RMB 270.33 billion in 2022[8]. - Net profit attributable to shareholders of the parent company was RMB 21.12 billion, up 5.36% from RMB 20.04 billion in 2022[8]. - Total assets increased to RMB 343.01 billion, representing a growth of 12.09% compared to RMB 306.04 billion in 2022[9]. - Total liabilities rose to RMB 204.64 billion, an increase of 12.69% from RMB 181.59 billion in 2022[9]. - The total comprehensive income for 2023 was RMB 30.79 billion, an increase of 8.43% from RMB 28.40 billion in 2022[8]. - Operating cash flow reached RMB 36.9 billion, up 28.5% year-on-year[12]. - The company reported a significant increase in revenue, achieving a total of 20 billion RMB for the year, representing a 15% year-over-year growth[51]. - The company reported a net profit margin of 12%, reflecting improved operational efficiency[53]. Production and Operations - User data indicates a 25% increase in active mining projects, totaling 50 projects globally[1]. - The company plans to produce 1.11 million tons of copper, 73.5 tons of gold, 470,000 tons of zinc (lead), and 25,000 tons of lithium carbonate equivalent in 2024[14]. - The company reported a significant increase in lithium production, with a 40% rise in output year-on-year[1]. - The company achieved a historic milestone in copper production, becoming the only copper mining enterprise in China and Asia to exceed 1 million tons, with a total copper output of 1,007,290 tons in 2023, representing an 11.13% year-on-year increase[72]. - The company produced 67,726 kg (2,177,426 ounces) of gold in 2023, a year-on-year increase of 20.17%, accounting for approximately 23% of China's total gold production[79]. - The company plans to achieve lithium carbonate equivalent production capacity of 120,000 to 150,000 tons by 2025, with 2,903 tons produced in the reporting period[91]. - The company produced 421,852 tons of zinc concentrate, a year-on-year increase of 2.24%, and 333,081 tons of zinc ingots, up 4.59% year-on-year[86]. Strategic Initiatives - The company plans to expand its market presence in South America, targeting a 30% increase in production capacity by 2025[1]. - Zijin Mining is investing RMB 5 billion in new technology development for sustainable mining practices[1]. - The company is focusing on green mining initiatives, aiming for a 20% reduction in carbon emissions by 2025[1]. - The company aims to provide low-carbon mineral raw materials for humanity[6]. - The company is committed to achieving carbon peak by 2029 and carbon neutrality by 2050[16]. - The company is actively expanding into lithium and other new energy minerals, forming a strategic layout of lithium assets[48]. - The company is committed to enhancing the efficiency of silver, zinc, molybdenum, cobalt, and iron mining, with a focus on developing the largest single molybdenum mine globally[183]. Research and Development - Research and development expenses for 2023 were RMB 1.57 billion, a 27.29% increase from RMB 1.23 billion in 2022[8]. - The R&D budget has been increased by 10%, totaling 2 billion RMB, to support innovation in mining technologies[52]. - The company launched 164 new research projects during the reporting period, including 2 national-level technology projects[147]. - The company established a national key laboratory for the comprehensive utilization of low-grade gold resources[147]. Sustainability and ESG - The company emphasizes its commitment to sustainable mining practices and low-carbon initiatives[6]. - The company has received an A+ ESG rating from Refinitiv, ranking first in the industry[44]. - The company is enhancing its global competitiveness through strategic resource allocation despite geopolitical uncertainties[17]. - The company is focused on developing a complete mining value chain that is green, intensive, low-carbon, and circular[121]. - The company’s ESG performance ranked in the top 6% globally among mining companies, receiving multiple sustainability awards[111]. Market and Economic Conditions - Copper prices peaked at $9,550 per ton in early 2023 but fell to a low of $7,856 per ton by October due to geopolitical risks and weak demand[115]. - Global refined copper consumption grew by 4% in 2023, with a total apparent balance shortage of 87,000 tons for the year[115]. - The company is responding to global trends in energy transition and resource security, particularly in relation to critical minerals[120]. - The company is facing increased complexity in resource development due to rising resource nationalism and ESG requirements, impacting supply cycles[171]. Financial Health and Investments - The company has a high credit rating and unused credit lines of approximately RMB 160 billion, indicating robust financial health[151]. - The company has increased its interest-bearing debt, necessitating improved liquidity risk management[188]. - The company plans to enhance its liquidity by increasing the proportion of equity financing and optimizing its capital structure[188]. - The company has made significant investments in various projects, including RMB 16.46 billion in the Juno Copper Mine and RMB 6.9 billion in the Manono Lithium Project[162]. Corporate Governance - The board of directors emphasized the importance of corporate governance and risk management, with a new framework being introduced[51]. - The company has established a comprehensive governance system to comply with international safety and environmental standards[190]. - The company has implemented measures to address climate change and improve safety production standards in response to extreme weather events[190].

Summary of Conference Call Company and Industry - The conference call is regarding Zijin Mining, a prominent player in the mining industry, specifically focusing on its quarterly performance for the first quarter. Core Points and Arguments - The call was led by Huang Fu, the Chief Industry Researcher of Zijin Mining, who expressed gratitude to analysts, investors, and stakeholders for their interest in the company [1]. - Key executives present included Zheng Youcheng, the Secretary of the Board, and Zhao Jia, the General Manager of the Planning and Finance Department [1]. Other Important but Possibly Overlooked Content - The call serves as a platform for discussing the company's quarterly performance, indicating a focus on transparency and communication with stakeholders [1].

Investment Rating - The report maintains an "Accumulate" investment rating for the company, indicating a projected relative increase of 5% to 15% compared to the CSI 300 index over the next six months [2][19]. Core Views - The company has shown steady performance in 2023, achieving a revenue of 293.4 billion yuan, a year-on-year increase of 8.54%, and a net profit attributable to shareholders of 21.12 billion yuan, up 5.38% year-on-year [4][5]. - The company is positioned as a leading player in the global mining industry, with significant growth in copper and gold production, becoming the only company in China and Asia to exceed one million tons of copper production [5][6]. - The company is expected to further enhance its scale and strength, with production targets for 2024 set at 1.11 million tons of copper and 73.5 tons of gold [6][7]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 293.4 billion yuan and a net profit of 21.12 billion yuan, with a significant increase in copper production to 1.0073 million tons, gold production at 67.73 tons, and zinc (lead) production at 467,000 tons [4][5]. - The first quarter of 2024 saw a slight decline in revenue to 74.78 billion yuan, but net profit increased by 15.05% to 6.26 billion yuan [4]. Production and Resource Growth - The company has invested 379 million yuan in exploration, achieving significant progress in various mining projects, including the Chukalu-Peggy copper-gold mine and the Kolwezi copper-cobalt mine [5][6]. - As of the end of 2023, the company holds proven and inferred resources of 74.56 million tons of copper and 29.98 million tons of gold, with lithium resources amounting to 13.47 million tons [5]. Future Outlook - The company plans to increase its copper production to 1.11 million tons and gold production to 73.5 tons in 2024, with ongoing projects aimed at enhancing production efficiency and resource utilization [6][7]. - The report anticipates continued revenue and profit growth driven by the exploration and development of copper, gold, lithium, and other metals [6][7].

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a Q1 2024 net profit of 6.261 billion yuan, representing a year-on-year increase of 15.05% and a quarter-on-quarter increase of 26.37%. The net profit excluding non-recurring items was 6.224 billion yuan, a year-on-year increase of 15.92% but a quarter-on-quarter decrease of 2.89% [5][6] - The sales gross margin for Q1 2024 was 16.61%, a decrease of 1.33 percentage points quarter-on-quarter, while the mining segment's gross margin was 54.50%, an increase of 8.88 percentage points quarter-on-quarter [5] - The company experienced an increase in both volume and price for copper and gold businesses. In Q1 2024, gold production was 16.81 tons, a year-on-year increase of 5%, and copper production was 262,600 tons, also a year-on-year increase of 5% [5][6] Summary by Sections Financial Performance - The company achieved a Q1 2024 sales gross margin of 16.61% and a net profit margin of 10.23%, with the latter increasing by 0.77 percentage points quarter-on-quarter [5] - The cost of gold ingots was 277 yuan/gram, an increase of 8% year-on-year but a decrease of 6% quarter-on-quarter [5] - The company expects rapid profit growth over the next three years, with projected EPS of 0.99, 1.36, and 1.53 yuan per share for 2024, 2025, and 2026 respectively [6][9] Project Development - Key projects in the copper segment include the Chukalu-Pegji copper (gold) mine and the Bol copper mine, which are expected to achieve a production capacity of 300,000 tons of copper per year by 2025 [5] - The Kamoa project is anticipated to be operational in Q2 2024, with an expected annual capacity exceeding 600,000 tons of copper [5] - In the gold segment, the Rosbel gold mine expansion is expected to yield an annual production capacity of 10 tons of gold upon completion [5] Valuation and Forecast - The company is expected to maintain a strong position in the global metal resources market, with a projected net profit growth period driven by the expansion of key projects [6][9] - The estimated reasonable value range for the stock is between 19.80 and 20.79 yuan per share, based on a PE ratio of 20-21 times for 2024 [6][9]

Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The company's Q1 2024 performance exceeded expectations, with revenue of 74.78 billion yuan (year-on-year decrease of 0.2%, quarter-on-quarter increase of 9.3%) and a net profit attributable to shareholders of 6.26 billion yuan (year-on-year increase of 15.1%, quarter-on-quarter increase of 26.4%) [6]. - The improvement in performance is attributed to significant cost reductions and enhanced gross margins [6]. - Production of copper and gold increased by 7% and 4% year-on-year, respectively, with unit sales costs decreasing by 12% and 7% quarter-on-quarter [6]. Summary by Relevant Sections Financial Performance - Q1 2024 revenue reached 74.78 billion yuan, with a net profit of 6.26 billion yuan [6]. - The company forecasts net profits of 25.72 billion yuan, 31.45 billion yuan, and 35.82 billion yuan for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 18, 15, and 13 [6][7]. Production and Cost Analysis - Q1 2024 production figures include: - Copper: 216,000 tons (year-on-year increase of 7%, quarter-on-quarter increase of 6%) with a unit sales cost of 22,000 yuan/ton [6]. - Gold: 16.1 tons (year-on-year increase of 4%) with a unit sales cost of 223 yuan/gram [6]. - Zinc: 96,000 tons (year-on-year decrease of 9%) with a unit sales cost of 9,000 yuan/ton [6]. - The company plans to produce 1.11 million tons of copper, 73.5 tons of gold, and 470,000 tons of zinc in 2024 [6]. Future Growth Prospects - The company is engaged in multiple construction projects aimed at increasing copper and gold production, with significant expansions planned for various mines [6]. - The report anticipates continued price increases for copper and gold, supporting the company's growth trajectory [6].

Investment Rating - The report maintains a "Recommended" rating for the company [2]. Core Views - The company reported a revenue of 747.77 billion yuan for Q1 2024, a year-on-year decrease of 0.22% but a quarter-on-quarter increase of 9.33%. The net profit attributable to shareholders was 62.61 billion yuan, up 15.05% year-on-year and 26.37% quarter-on-quarter [1]. - The company's performance is driven by increased production and prices of key mineral products, along with effective cost control measures. The gross profit margin for mining operations reached 54.5%, an increase of 8.88 percentage points quarter-on-quarter [1]. - Key copper and gold projects are progressing as planned, with future growth potential in the renewable energy sector. The company aims to increase copper and gold production to 1.1 million tons and 73.5 tons, respectively, in 2024, with a compound annual growth rate of 10% and 15% over the next two years [1]. Financial Summary - For 2024, the company expects a net profit of 265.15 billion yuan, with projected earnings per share (EPS) of 1.01 yuan and a price-to-earnings (PE) ratio of 18x. The net profit is forecasted to grow to 375.23 billion yuan by 2026, with an EPS of 1.43 yuan and a PE ratio of 12x [6][7]. - The company’s revenue is projected to grow from 3,240.79 billion yuan in 2024 to 3,851.81 billion yuan in 2026, reflecting a revenue growth rate of 10.46% in 2024 and 6.66% in 2026 [6][7]. - The gross profit margin is expected to improve from 18.58% in 2024 to 20.89% in 2026, indicating effective cost management and operational efficiency [6][7].

Investment Rating - The investment rating for the company is "Buy" (maintained) with a current price of 17.04 CNY and a target price of 20.25 CNY [1]. Core Views - The company reported Q1 2024 results that exceeded expectations, with revenue of 747.77 billion CNY, a slight year-on-year decline of 0.22%, but a quarter-on-quarter increase of 9.33%. The net profit attributable to shareholders was 62.61 billion CNY, reflecting a year-on-year growth of 15.05% and a quarter-on-quarter growth of 26.37% [2]. - The production of gold and copper increased in Q1 2024, with gold production at 16.8 tons (up 5.35% year-on-year) and copper production at 262,600 tons (up 5.19% year-on-year). The company’s key copper mines are expected to support annual production targets [3]. - Cost reduction and efficiency improvements have been effective, with the overall operating costs, especially for overseas projects, showing a significant quarter-on-quarter decline. The gross margin for mining operations was 54.50%, up 0.97 percentage points year-on-year and up 8.88 percentage points quarter-on-quarter [4]. - The company is optimistic about the price upcycle for gold and copper in 2024, with expectations for both volume and price increases. The planned copper production for 2024 is 1.11 million tons, and gold production is 73.5 tons, both higher than 2023 levels [5]. - Profit forecasts indicate a strong growth trajectory, with net profits expected to reach 263.57 billion CNY in 2024, 323.69 billion CNY in 2025, and 364.83 billion CNY in 2026. The estimated EPS for these years are 1.00 CNY, 1.23 CNY, and 1.39 CNY respectively, with a target PE of 20 times for 2024 [6]. Financial Summary - For 2024, the company expects revenues of 316,082 million CNY, with a growth rate of 7.73%. The net profit is projected to be 26,357 million CNY, reflecting a growth rate of 24.80% [7]. - The company’s total assets are projected to grow from 306,044 million CNY in 2022 to 428,857 million CNY by 2026, indicating a robust growth outlook [10]. - The company’s market capitalization is approximately 350,279.23 million CNY, with a total share capital of 26,325.99 million shares [8].

Investment Rating - The report maintains a "Recommended" rating for the company [2][7]. Core Views - The company reported a Q1 2024 revenue of 74.777 billion yuan, a year-on-year decrease of 0.2% but a quarter-on-quarter increase of 9.3%. The net profit attributable to shareholders was 6.261 billion yuan, representing a year-on-year increase of 15.1% and a quarter-on-quarter increase of 26.4% [1][7]. - The growth in net profit is primarily attributed to an increase in gross profit driven by rising prices and volumes of copper and gold [1][11]. - The company is expected to see continued growth in copper and gold production, with projected net profits of 28 billion yuan, 33.9 billion yuan, and 36.6 billion yuan for 2024, 2025, and 2026 respectively [2][11]. Summary by Sections 1. Event - The company released its Q1 2024 report, showing a revenue of 74.777 billion yuan and a net profit of 6.261 billion yuan, exceeding expectations [1][7]. 2. Copper and Gold Product Performance - The company experienced a year-on-year increase in net profit of 8.2 billion yuan, mainly due to a gross profit increase of 7.8 billion yuan from copper and gold [11][19]. - The production volumes for gold and copper increased by 5% each, while zinc production decreased by 9% [1][11]. 3. Gross Profit Analysis - The gross profit for Q1 2024 was 12.417 billion yuan, with a gross margin of 16.61%. The main contributors to gross profit growth were the copper and gold segments [14][19]. - The gross profit margin for gold and copper improved due to price increases outpacing cost increases [22][28]. 4. Expense Management - Total expenses decreased by 6.91 billion yuan in Q1 2024, with management and financial expenses showing significant reductions [30][33]. - The asset-liability ratio improved from 59.66% at the end of 2023 to 58.30% at the end of Q1 2024 [30][33]. 5. Non-Recurring Profit - Non-recurring profits increased due to a significant rise in income from funds occupied, contributing to an overall profit increase of 5.20 billion yuan [36][38]. 6. Cash Flow - The company reported a net cash inflow from operating activities of 8.172 billion yuan, indicating strong cash flow management [42][44]. - The financing activities generated a net cash inflow of 2.403 billion yuan, reflecting an increase in financing scale [42][44].