Hua Xia Shi Bao·2025-06-19 11:45Core Viewpoint - Zijin Mining has announced a significant reduction in copper production guidance for its Kamoa-Kakula copper mine in the Democratic Republic of Congo due to flooding caused by damaged underground pumping facilities, impacting the company's overall revenue and profit expectations for 2025 [2][5][6]. Group 1: Production Impact - The Kamoa-Kakula copper mine's production guidance for 2025 has been revised down from 520,000-580,000 tons to 370,000-420,000 tons due to flooding in the eastern section of the mine [2][5]. - The company expects a corresponding reduction in its copper equity production for 2025 by 44,000 to 93,000 tons [6][7]. - The mine experienced multiple seismic events leading to structural failures, which contributed to the flooding [3][4]. Group 2: Financial Implications - The Kamoa-Kakula mine is projected to contribute approximately 1.72 billion RMB to Zijin Mining's net profit in 2024, accounting for about 5.37% of the company's total net profit [4]. - The overall revenue and profit expectations for Zijin Mining in 2025 are likely to be negatively affected due to the production cut at the Kamoa-Kakula mine [6][7]. Group 3: Market Context - In 2024, Zijin Mining achieved a revenue of 303.64 billion RMB, with copper sales accounting for 27.98% of this revenue [6]. - The company is one of the top copper producers globally, with a production growth rate of 24% over the past five years [6]. - The global copper market is experiencing a tight balance between supply and demand, with rising prices driven by increased demand from both developed and developing economies [7][8]. Group 4: Strategic Developments - Zijin Mining is establishing a joint venture with Ajilan Brothers Mining Company in Saudi Arabia to explore and potentially mine mineral resources, including zinc, copper, and gold [8][11]. - The joint venture will be controlled jointly by Zijin Mining and Ajilan Mining, with Zijin holding a 51% stake [11].