2 1 Shi Ji Jing Ji Bao Dao·2025-08-27 11:33Core Viewpoint - Zijin Mining has demonstrated strong profitability, leading to a significant increase in net profit and a focus on market capitalization management, as evidenced by its recent financial performance and strategic initiatives [1][3][10]. Financial Performance - Zijin Mining reported a 54.41% increase in net profit to 23.3 billion yuan for the first half of the year, with total revenue growing by 11.5% [1][3]. - The company anticipates net profits of 21.1 billion yuan and 32.1 billion yuan for 2023 and 2024, respectively, with potential for profits to exceed 40 billion yuan this year [1][7]. - The total profit, including minority interests and taxes, reached nearly 35 billion yuan in the first half of the year [3]. Product Performance - Gold and copper are the primary revenue sources, contributing 49.1% and 27.8% to sales, respectively, with gold prices reaching a historical high of 3,500 USD/ounce [3][4]. - Copper production increased by 9% to 570,000 tons, while gold production rose by 16% to 41 tons [3][4]. - The gross profit margin for gold improved to 72.59%, while copper's margin decreased to 65.03% due to rising costs [4]. Market Capitalization Management - The company has initiated a market capitalization management system, with the chairman taking on a leading role, and has executed a 1 billion yuan stock buyback plan [1][10]. - Zijin Mining's stock prices have surged, with A-shares and H-shares increasing by over 51% and 78%, respectively, in 2023 [1][12]. - Despite strong performance, the company's valuation remains lower than that of its peers, such as Southern Copper and Freeport-McMoRan [9][12]. Production Adjustments - The company has adjusted its production expectations for the Kamoa-Kakula copper project in the Democratic Republic of Congo due to geological issues, reducing the annual output forecast [5]. - Zijin Mining is also revising its lithium production targets in response to low lithium carbonate prices, focusing on cost reduction measures [6]. Market Context - The overall market for copper and gold has remained strong, with prices stabilizing at high levels, contributing to Zijin Mining's continued profitability [7][12]. - The broader market for non-ferrous metals has seen significant growth, with the sector's annual increase reaching 46.19% [12].