Zijin Mining(601899) Hua Xia Shi Bao·2025-05-29 09:44Core Viewpoint - Zijin Mining is facing challenges in its copper business due to recent seismic events at its Kamoa-Kakula copper mine, while simultaneously planning to spin off its gold subsidiary, Zijin Gold International, to enhance international financing capabilities [3][10]. Group 1: Copper Business - As of the end of 2024, Zijin Mining's copper resources amount to 110 million tons, ranking second globally [2]. - The Kamoa-Kakula copper mine has experienced multiple seismic events, which are expected to negatively impact the annual production targets [3][11]. - The mine's operations have been temporarily suspended in affected areas, with a focus on processing surface stockpiles [11]. - The estimated contribution of the Kamoa-Kakula copper mine to Zijin Mining's net profit for 2024 is approximately RMB 1.72 billion, accounting for 5.37% of the total [11][12]. Group 2: Gold Business and Spin-off - Zijin Mining plans to spin off its wholly-owned subsidiary, Zijin Gold International, for listing on the Hong Kong Stock Exchange [4][5]. - The subsidiary, established in 2007, focuses on gold exploration, mining, processing, and sales, with projected net profits of RMB 1.371 billion, RMB 1.67 billion, and RMB 3.318 billion for 2022, 2023, and 2024, respectively [4][5]. - The spin-off aims to create an independent platform for financing and enhance Zijin Gold International's competitiveness in international capital markets [8]. Group 3: Financial Position and Debt - As of the end of 2024, Zijin Mining's current assets are RMB 98.939 billion, while current liabilities are RMB 99.784 billion, indicating a current asset deficit [8]. - The company has issued various debt instruments totaling over RMB 50 billion from 2020 to 2024 [8]. - Despite a significant increase in net profit of 62.39% year-on-year in Q1 2024, the company faces pressure from its aggressive acquisition strategy [9].