Core Viewpoint - Minsheng Securities initiates coverage on China Gold International (600916) with a "Buy" rating, projecting significant revenue and profit growth from 2025 to 2027, driven by the recovery of mining operations and ongoing exploration and technical upgrades [1][2]. Group 1: Financial Projections - Expected revenues for China Gold International are projected to be $1,119 million, $1,222 million, and $1,339 million for 2025, 2026, and 2027, respectively, representing growth rates of 47.9%, 9.2%, and 9.6% [1]. - Net profits are anticipated to reach $379 million, $460 million, and $544 million for the same years, with growth rates of 504%, 21.5%, and 18.2% [1]. Group 2: Mining Operations - The company operates two key mines: Changshanhao Gold Mine and Jiama Polymetallic Mine, with stable production and profitability before 2023, and a gradual recovery expected in 2024 [2]. - Changshanhao Gold Mine has a current gold resource of 158.57 tons and a reserve of 15.02 tons, with significant exploration results expected in the first half of 2025 [2]. - Jiama Polymetallic Mine, located in Tibet, has copper reserves of 207.5 million tons and gold reserves of 55.7 tons, with production capacity expected to recover to over 50,000 tons per day by 2026 [2]. Group 3: Market Conditions - The U.S. inflation is expected to decline in the second half of 2025, with potential interest rate cuts from the Federal Reserve, which may positively impact gold prices [3]. - Global central banks have been increasing gold purchases, with China’s central bank continuing to buy gold for ten consecutive months, indicating a rising willingness to allocate assets to gold [3]. - The geopolitical risks and declining credit quality of the U.S. dollar and bonds are likely to support a sustained increase in gold prices [3].