Zijin Mining(601899) 民生证券·2024-07-01 00:00Investment Rating - The report maintains a "Recommended" rating for Zijin Mining [2][3][19] Core Views - The company has announced significant resource additions, with a total of 18.377 million tons of copper metal resources and 5.777 million tons of copper reserves added, accounting for approximately 14.2% of China's copper reserves as of the end of 2022 [2][7][12] - The company is leveraging its competitive advantage in geological exploration, achieving substantial resource growth through self-directed exploration efforts [15][18] - The copper production is expected to continue increasing, with projected net profits of 28.2 billion yuan, 34.5 billion yuan, and 39.6 billion yuan for 2024, 2025, and 2026 respectively, driven by rising copper and gold prices [19][21] Summary by Sections 1. Resource Addition Announcement - Zijin Mining has received approval for resource evaluations from natural resource authorities for its subsidiaries, resulting in significant copper resource additions [2][7] - The Xizang Julong Copper Mine is noted as the largest copper mine in China by registered resource volume, with a total copper metal resource of 25.8804 million tons [8][12] - The Heilongjiang Copper Mountain Mine is recognized as the only newly discovered super-large copper mine in Northeast China in nearly 40 years, adding 3.8331 million tons of copper metal resources [12][14] 2. Analysis: Technological Advancements and Exploration Breakthroughs - The company has successfully reduced the marginal grade of copper from 0.3% to 0.17%, indicating improved recovery capabilities [8][11] - The company has invested significantly in geological exploration, achieving a competitive exploration cost that is lower than the global average [15][18] 3. Key Highlights and Investment Recommendations - The company is expected to see continuous growth in its copper and gold production, with strategic expansions in lithium and molybdenum sectors [18][19] - The projected earnings per share for 2024, 2025, and 2026 are 1.06 yuan, 1.30 yuan, and 1.49 yuan respectively, with corresponding price-to-earnings ratios of 17x, 14x, and 12x [19][21]