Investment Rating - The investment rating for Zijin Mining (601899.SH) is "Buy" (maintained) [3] Core Views - The company reported a revenue of 230.396 billion yuan for Q3 2024, a year-on-year increase of 2.39%, and a net profit attributable to shareholders of 24.357 billion yuan, up 50.68% year-on-year [3] - The company is expanding its gold mining operations, with a significant acquisition of a gold mine in Ghana for 1 billion USD, expected to yield an average annual gold production of approximately 5.8 tons [4] - The company aims to accelerate its expansion plan, targeting to achieve its main economic indicators by 2028, two years ahead of the original 2030 timeline [4] Financial Performance Summary - Q3 2024 revenue reached 79.980 billion yuan, a year-on-year increase of 7.11% and a quarter-on-quarter increase of 5.74% [3] - Q3 2024 net profit attributable to shareholders was 9.273 billion yuan, reflecting a year-on-year increase of 58.17% and a quarter-on-quarter increase of 5.09% [3] - The company’s gross profit margin for Q3 2024 was 15.81%, with a projected increase to 19.81% in 2024E [6] Production and Cost Metrics - Q3 2024 production volumes included gold at 17.34 tons (down 1.50% QoQ), silver at 117 tons (up 5.90% QoQ), copper at 205.8 thousand tons (up 2.46% QoQ), and zinc at 110.9 thousand tons (up 4.27% QoQ) [1] - The production costs for Q3 2024 were gold at 233 yuan/gram (up 1.18% QoQ), silver at 1.81 yuan/gram (down 1.63% QoQ), copper at 22,900 yuan/ton (up 2.06% QoQ), and zinc at 790 yuan/ton (down 13.54% QoQ) [1] Earnings Forecast - The forecast for net profit attributable to shareholders for 2024-2026 has been raised to 33.2 billion, 40.4 billion, and 44.9 billion yuan respectively, with growth rates of 57.06%, 21.95%, and 10.99% [5] - The projected P/E ratios for 2024-2026 are 14X, 11X, and 10X respectively [5]

Investment Rating - The report maintains a "Buy" rating for Zijin Mining (601899) [1][3]. Core Insights - The company has shown significant growth in copper and gold production, with effective cost control and management leading to improved financial metrics [3][9]. - The acquisition of the Akyem gold mine in Ghana is expected to enhance the company's gold resource base [3][5]. - The company's financial leverage has decreased while return on equity (ROE) has increased, indicating a trend towards high-quality growth [2][3]. Summary by Sections Performance Overview - In the first three quarters of 2024, the company achieved revenue of 230.4 billion yuan, a year-on-year increase of 2%. The net profit attributable to shareholders was 24.4 billion yuan, up 51% year-on-year [9][10]. - For Q3 2024, the company reported revenue of 80 billion yuan, a 7% increase year-on-year, and a net profit of 9.3 billion yuan, reflecting a 58% year-on-year growth [9][10]. Production Growth - The company reported a copper production of 789,000 tons in the first three quarters of 2024, a 4.7% increase year-on-year, achieving 71% of its annual target [9][19]. - Gold production reached 54.3 tons, an 8.3% increase year-on-year, completing 74% of the annual target [9][19]. - The company’s silver production was 331.1 tons, up 6.7% year-on-year, while zinc production decreased by 4.2% to 310,000 tons [9][19]. Cost and Margin Analysis - The report highlights significant improvements in cost control, with production costs for gold and copper decreasing due to scale effects and lean management practices [2][3]. - The gross margin for the company improved, supported by rising prices and optimized costs [5][9]. Financial Metrics - As of Q3 2024, the company's asset-liability ratio was 55.4%, down 3.64 percentage points year-on-year, indicating a reduction in financial leverage [2][3]. - The operating cash flow for Q3 2024 was 15.7 billion yuan, a 61.5% increase year-on-year [2][3]. - The forecast for net profit attributable to shareholders for 2024-2026 is 31.4 billion, 36 billion, and 41 billion yuan, respectively [3][4].

Investment Rating - The report assigns a "Buy" rating for Zijin Mining, indicating an expected price increase of over 15% relative to the industry index within the next six months [17]. Core Views - The company's performance is driven by both volume and price increases, with significant contributions expected from new projects [1][10]. - The report highlights the company's robust resource reserves and excellent mining exploration capabilities, which are anticipated to support long-term stable development [10][11]. - The ongoing projects are expected to enhance metal production, further boosting the company's performance [9][10]. Financial Summary - For 2022A, the company reported revenue of 270,329 million yuan, with a year-on-year growth rate of 20.1%. The projected revenue for 2024E is 326,496 million yuan, reflecting an 11.3% growth [1]. - The net profit attributable to shareholders for 2022A was 20,042 million yuan, with a year-on-year growth of 27.9%. The forecast for 2024E is 32,734 million yuan, indicating a substantial growth of 55.0% [1]. - The company's return on equity (ROE) for 2024E is projected to be 23.0%, up from 19.2% in 2023A [1]. Production and Cost Metrics - In the first three quarters of 2024, the company produced 54,265 kg of gold and 789,459 tons of copper, marking increases of 8.33% and 4.67% year-on-year, respectively [2]. - The gross profit margin for the mining segment was 57.71% in the first three quarters of 2024, an increase of 7.42 percentage points year-on-year [3]. Cash Flow and Expenses - The net cash flow from operating activities increased by 40.38% year-on-year to 36,109 million yuan in the first three quarters of 2024 [4]. - The company's cash and cash equivalents at the end of the period were 25,424 million yuan, up 54.81% year-on-year [4]. Resource Reserves and Exploration - The company has significant copper and gold resources, with total copper resources amounting to 10,467 million tons and gold resources of 3,528 tons as of mid-2024 [8]. - Recent exploration successes include the discovery of additional copper and molybdenum resources at the Jilong Copper Mine, which is expected to enhance future production capabilities [6][8]. Project Development - Key ongoing projects include the Jilong Copper Mine expansion, which is expected to increase annual copper production significantly by 2026 [6][9]. - The acquisition of the Akyem Gold Mine in Ghana for $1 billion is anticipated to add substantial gold resources to the company's portfolio [7].

Investment Rating - The investment rating for Zijin Mining Group is "Overweight" [3] - The industry view is considered "Attractive" [3] Core Insights - Zijin Mining Group reported a net profit of Rmb24.357 billion for the first nine months of 2024, representing a 51% year-over-year increase. The net profit for Q3 2024 was Rmb9.27 billion, a 5% quarter-over-quarter growth, marking the highest quarterly profit since 2007 [1][2] - The strong performance in Q3 2024 was attributed to an all-time high gold price and the reversal of fair value loss, despite a 6% quarter-over-quarter correction in copper prices [1] - Gross profit for Q3 2024 was Rmb14.7 billion, with a gross margin of 18.4%, down from 19.7% in Q2 2024, primarily due to the impact of copper profitability [2] Financial Metrics - Revenue projections for Zijin Mining Group are as follows: Rmb288.553 billion for FY 2023, Rmb348.224 billion for FY 2024e, Rmb367.022 billion for FY 2025e, and Rmb348.463 billion for FY 2026e [3] - EBITDA is projected to be Rmb40.958 billion for FY 2023, Rmb51.671 billion for FY 2024e, Rmb55.116 billion for FY 2025e, and Rmb54.940 billion for FY 2026e [3] - The expected EPS for FY 2024e is Rmb1.16, with a P/E ratio of 13.6 [3] Production and Cost Metrics - Copper and gold output increased by 5.7% and 1.4% quarter-over-quarter, respectively, with year-to-date volumes reaching 790,000 tons of copper and 54.3 tons of gold [2] - The unit cost for copper decreased by 4.2% year-over-year to Rmb19,564 per ton, while the unit cost for gold increased by 1.3% year-over-year to Rmb286 per gram [2]

Financial Performance - The company's cost control efforts resulted in a decrease in sales costs for copper concentrate, electrolytic copper, and gold concentrate by 4.2%, 13.1%, and 0.5% year-on-year, respectively [2] - The asset-liability ratio decreased from 59.66% at the beginning of the year to 55.38%, indicating an ongoing optimization of the capital structure [2] - The company experienced significant growth in total profit, net profit attributable to shareholders, and operating cash flow due to enhanced profitability and effective cost control [3] Market Outlook - Copper prices are expected to fluctuate widely in the short term due to a weakening global economy, but supply tightness may support prices in the medium to long term [3] - Gold prices are anticipated to remain strong due to geopolitical uncertainties and expectations of interest rate cuts, with short-term fluctuations expected [3] Project Developments - The Juno Copper Mine project is scheduled to commence production by the end of June 2026, with an average annual output of approximately 76,000 tons of copper, 19.7 tons of silver, and 1,188 tons of molybdenum [4] - The company is actively pursuing resource acquisitions and self-exploration to enhance its resource reserves during periods of mining prosperity [3] Lithium Production - The company plans to produce 25,000 tons of lithium carbonate equivalent in 2024, but production timelines for certain projects have been delayed to 2025 due to regulatory and market conditions [5] - The global demand for lithium is expected to exceed 3 million tons by 2030, driven by the growth of the electric vehicle and energy storage sectors [5] Carbon Footprint Initiatives - The company is advancing carbon footprint accounting for its copper products, with pilot projects underway to assess the carbon footprint of copper concentrate and cathode copper [6] - The carbon footprint value of cathode copper products is reported to be significantly lower than domestic and global averages, positioning the company at an international leading level [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4][31]. Core Views - The company reported a record high in revenue and net profit for the first three quarters of 2024, achieving operating revenue of 230.40 billion yuan, a year-on-year increase of 2.39%, and a net profit attributable to shareholders of 24.36 billion yuan, a year-on-year increase of 50.68% [2][3]. - The company continues to benefit from high prices of gold and copper, with expectations for further price increases, which supports a clear growth path for production and performance [3][4]. - The acquisition of the Akyem gold mine in Ghana for $1 billion is expected to significantly contribute to the company's goal of producing over 100 tons of gold by 2028 [3]. Financial Performance Summary - For Q3 2024, the company achieved operating revenue of 79.98 billion yuan, a year-on-year increase of 7.11%, and a net profit of 9.27 billion yuan, a year-on-year increase of 58.17% [2][3]. - The production volumes for gold, copper, zinc, and silver in the first three quarters were 54.27 tons, 789.50 thousand tons, 309.70 thousand tons, and 331.11 tons, respectively, with gold and copper production exceeding 70% of the annual guidance [3]. - The average selling prices for gold, copper, zinc, and silver increased by 25.53%, 13.86%, 21.98%, and 32.66% year-on-year, respectively [3]. Future Projections - Revenue projections for 2024-2026 are 327.94 billion yuan, 361.80 billion yuan, and 386.43 billion yuan, with year-on-year growth rates of 11.77%, 10.32%, and 6.81% respectively [4][6]. - Net profit projections for the same period are 32.24 billion yuan, 38.14 billion yuan, and 43.40 billion yuan, with year-on-year growth rates of 52.66%, 18.29%, and 13.79% respectively [4][6].

Investment Rating - The report maintains a "Buy" investment rating for the company [5] Core Views - The company has experienced significant growth in its performance, primarily driven by increases in the production and prices of copper and gold [3][4] - The company has expanded its gold resource portfolio through the acquisition of a gold mine in Africa, enhancing its resource base [4] Summary by Sections Financial Performance - In Q3 2024, the company achieved a revenue of 79.98 billion yuan, a year-on-year increase of 7.11%, and a net profit attributable to shareholders of 9.273 billion yuan, up 58.17% year-on-year [2] - For the first three quarters of 2024, the company reported a total revenue of 230.396 billion yuan, a 2.39% increase year-on-year, and a net profit of 24.357 billion yuan, reflecting a 50.68% year-on-year growth [2] Production and Sales - The company produced 789,500 tons of copper in the first three quarters of 2024, a 4.67% increase year-on-year, and 54.27 tons of gold, an 8.33% increase year-on-year [3] - The average selling prices for copper concentrate, electrolytic copper, and gold ingots increased by 13.36%, 12.29%, and 20.35% respectively compared to the same period last year [3] Cost Analysis - The unit sales costs for copper concentrate, electrolytic copper, and gold ingots showed mixed results, with copper concentrate costs decreasing by 4.16% year-on-year, while electrolytic copper costs increased by 5.49% [3] Acquisition and Expansion - The company signed an agreement to acquire 100% equity of a gold mining project in Ghana for 1 billion USD, which is expected to enhance its gold resource base significantly [4] Earnings Forecast - The company’s revenue is projected to reach 337.345 billion yuan in 2024, with net profits expected to be 33.518 billion yuan, reflecting a PE ratio of 14.2 [5]

Investment Rating - The report maintains a "Buy" rating for the company [2][6] Core Views - The company benefits from high gold and copper prices, with Q3 performance meeting expectations. Q3 net profit attributable to shareholders reached 9.273 billion yuan, a 5.09% increase quarter-on-quarter [2][3] - The company has shown strong production growth in gold and copper, with Q1-Q3 gold production at 54.27 tons and copper production at 789.5 thousand tons, reflecting year-on-year increases of 8.33% and 4.67% respectively [3] - Cost control remains a strong point, with Q3 costs remaining stable, showcasing the company's operational efficiency. The unit sales cost for copper concentrate was 19,105 yuan/ton, a 2.64% increase quarter-on-quarter, while gold concentrate cost was 161.85 yuan/g, up 3.31% [4] - The acquisition of the Akyem gold mine in Ghana for $1 billion is expected to enhance the company's gold reserves and production capacity, supporting future growth targets [5] - Revenue and profit forecasts for 2024-2026 are optimistic, with projected revenues of 348.37 billion yuan, 358.28 billion yuan, and 372.14 billion yuan, and net profits of 33.61 billion yuan, 39.29 billion yuan, and 46.09 billion yuan respectively [6][8] Financial Summary - For 2024, the company is expected to achieve a revenue growth rate of 18.73% and a net profit growth rate of 59.12% [8][10] - The projected earnings per share (EPS) for 2024 is 1.26 yuan, with a price-to-earnings (P/E) ratio of 14.41 [8][10] - The company's total assets are projected to grow from 343.01 billion yuan in 2023 to 485.21 billion yuan by 2026, indicating strong financial health [9][11]

Summary of Conference Call Company and Industry - The conference call pertains to Zijing Mining Industry, a company in the mining sector Core Points and Arguments - The meeting content is intended solely for invited investors and is not to be publicly disclosed or distributed without authorization [1] - Zijing Mining reserves the right to pursue legal action against unauthorized reproduction or distribution of the meeting content [1] - The company disclaims any responsibility for losses or liabilities arising from unauthorized sharing of the conference materials [1] Other Important but Possibly Overlooked Content - The emphasis on confidentiality highlights the company's focus on protecting sensitive information and maintaining investor trust [1]

Investment Rating - The investment rating for Zijin Mining is maintained as "Buy" [2][3]. Core Views - The company reported a robust performance in Q3 2024, with a year-on-year increase in net profit attributable to shareholders of 58.17% [3]. - The revenue for Q3 2024 reached 799.80 billion yuan, reflecting a 7.11% year-on-year growth and a 5.74% quarter-on-quarter increase [3]. - The company has adjusted its profit forecasts for 2024-2026, expecting net profits of 327.8 billion yuan, 397.8 billion yuan, and 445.9 billion yuan respectively [3]. - The acquisition of the Akyem gold mine project in Ghana for 1 billion USD is expected to enhance the company's resource reserves and support future production targets [5]. Financial Performance Summary - In Q3 2024, the copper production increased by 3.39% year-on-year to 270,900 tons, while gold production rose by 6.24% to 188.6 tons [4]. - The average selling price of copper decreased by 9.38% quarter-on-quarter, while the selling prices of gold and zinc increased by 4.91% and 10.84% respectively [4]. - The operating cash flow for Q3 2024 was 156.62 billion yuan, up 61.54% year-on-year [3]. - The company’s total revenue is projected to grow from 270.33 billion yuan in 2022 to 413.22 billion yuan in 2026, with a compound annual growth rate of approximately 5.9% [6]. Production and Cost Analysis - The sales cost of copper decreased by 4.59% year-on-year in Q3 2024, while the sales cost of gold increased by 1.56% year-on-year [4]. - The company’s gross margin is expected to improve from 15.7% in 2022 to 20.6% in 2026 [6]. Future Outlook - The company is optimistic about maintaining high price levels for copper and gold, with expectations of stable production from key mines [3]. - The acquisition of the Akyem gold mine is anticipated to further enhance the company's production capabilities and resource base [5].