Core Viewpoint - Guosen Securities initiates coverage on Zijin Gold International (02259) with an "outperform" rating, highlighting the company's competitive advantages inherited from Zijin Mining in the mining sector, focusing on overseas gold resources, low-cost acquisitions, and technological empowerment for strong future growth [1] Group 1: Company Overview - Zijin Gold International is formed by integrating Zijin Mining's overseas gold mines, becoming a leading global gold mining company [1] - The company holds interests in nine gold mines located in resource-rich areas across Central Asia, South America, Oceania, and Africa, including significant projects in Tajikistan, Kyrgyzstan, Australia, Guyana, Colombia, Suriname, Ghana, Kazakhstan, and Papua New Guinea [1] Group 2: Growth Potential - As of the end of 2024, the company's gold reserves are approximately 856 tons, ranking ninth globally, with a focus on developing low-grade and difficult-to-process gold resources [2] - The company anticipates an average annual compound growth rate of 21.4% in gold production from 2022 to 2024, driven by acquisitions of new mines and technological upgrades of existing ones [2] - For the period from 2025 to 2027, the company expects a continued average annual compound growth rate of over 15% in gold production [2] Group 3: Project Developments - The company has planned a series of construction and expansion projects within existing mining areas to enhance production capacity and resource conversion [3] - Specific projects include ongoing development of low-grade ore processing technologies at the Tajikistan mine, upgrades to the Norton Goldfield in Australia to increase annual processing capacity from 9 million tons to 11 million tons, and various enhancements at other mines to significantly boost production capabilities [3] Group 4: Market Outlook - The long-term outlook for gold prices remains positive, with a projected cumulative increase of over 65% by 2025, marking the best performance since 1979 [4] - Factors supporting this outlook include anticipated interest rate cuts by the Federal Reserve in 2026, a decline in dollar credibility, and continued accumulation of gold by global central banks, which may further drive up gold prices [4]