Sou Hu Cai Jing·2025-10-25 02:48Core Insights - The article highlights the remarkable growth and expansion of Zijin Mining, showcasing its impressive financial performance and strategic acquisitions in the mining sector [3][5][10]. Financial Performance - In the first nine months of 2025, Zijin Mining reported a revenue of 254.2 billion yuan and a net profit of 37.8 billion yuan, marking a 55% increase compared to the previous year [3]. - The company's gold sales reached 43.3 billion yuan, reflecting a nearly 70% increase year-on-year [5]. Strategic Acquisitions - On October 10, 2025, Zijin Mining acquired the RG gold mine in Kazakhstan for 8.6 billion yuan, increasing its number of gold mines to 17 [5]. - The RG gold mine is noted for its low extraction costs and strong profitability, with an average annual gold production of 6 tons expected between 2023 and 2024 [5]. Historical Context - Zijin Mining began its journey from the Zijinshan mining area in Fujian, initially considered a "chicken rib" mine due to low ore quality [8]. - The introduction of heap leaching technology significantly boosted its gold production from zero to over 1,000 kilograms within a few years [8]. Expansion Strategy - The company has aggressively expanded its operations, acquiring quality mines during downturns in gold prices, and has established a presence in 17 countries with over 30 large mining projects [10]. - Zijin Mining's average acquisition cost is reported to be $61.3 per ounce, which is lower than the industry average [10]. Market Dynamics - The surge in global gold prices, rising from $2,700 per ounce at the beginning of the year to $4,300 by mid-October, has significantly contributed to Zijin Mining's market valuation increase of 390 billion yuan [12][13]. - The company's high debt-to-asset ratio of 56.36% indicates a reliance on leverage for its aggressive expansion [13]. Investor Sentiment - There is a mix of optimism and skepticism among employees and the public regarding the company's rapid acquisitions and operational conditions, with some expressing concerns about outdated equipment and safety issues [12]. - The article emphasizes the importance for investors to remain cautious and informed about the high volatility and risks associated with mining stocks [14].