Feng Huang Wang·2025-11-03 11:08Core Viewpoint - Gold prices are at historical highs, benefiting gold mining companies like Zijin Mining, which reported a net profit of 37.8 billion yuan in the first three quarters of this year, surpassing its total profit for the previous year [2][5]. Company Performance - Zijin Mining's net profit for the first three quarters reached 37.864 billion yuan, a year-on-year increase of 55%, averaging over 4.2 billion yuan per month [5][7]. - The company has a market capitalization exceeding 800 billion yuan and is the only Chinese company in the global top ten gold mining firms, holding over 1,500 tons of gold reserves, which is 46% of China's total [2][3]. Market Position and Valuation - Despite strong performance, Zijin Mining's valuation remains lower than its peers, with a price-to-earnings ratio of around 14, compared to over 20 for global gold and copper mining companies [5][7]. - The company's overseas gold business has become a significant profit driver, contributing 6.484 billion yuan to profits [7]. Strategic Expansion - Zijin Mining has expanded its operations internationally, owning large mining bases in 16 countries, with overseas assets accounting for 47% of its total and contributing 52% to profits [8][9]. - The company has made strategic acquisitions, including the purchase of Continental Gold for 1.33 billion Canadian dollars, enhancing its resource base [10]. Cost Management - Zijin Mining emphasizes cost control, with a full sustaining cost of 1,458 USD per ounce, ranking among the lowest in the top 15 global gold mining companies [15]. - The company has successfully turned previously unprofitable mines into profitable operations through technological improvements and cost management [15]. Leadership and Governance - Chairman Chen Jinghe has led Zijin Mining for over 32 years, focusing on separating ownership and management to enhance decision-making efficiency [18][20]. - The company has a strong shareholder base, with significant investments from institutions like the Abu Dhabi Investment Authority [20]. Future Outlook - Zijin Mining aims to achieve a gold production target of 100-110 tons by 2028, supported by recent acquisitions like the Raygorodok gold mine in Kazakhstan [21].