Zijin Mining(601899) 中国银河·2024-10-11 08:07Investment Rating - The report maintains a "Recommended" rating for the company [3] Core Views - The acquisition of the Akyem gold mine in Ghana is expected to achieve strategic goals, with the company investing $1 billion (approximately 70.71 billion RMB) to acquire 100% equity of Newmont Golden Ridge Ltd, which owns the Akyem gold mine project [1] - The Akyem gold mine has rich resource reserves and high development prospects, with a total gold resource of 54.4 tons and an average grade of 3.36 g/t, while the reserves are approximately 34.6 tons with an average grade of 1.35 g/t [1] - The acquisition price is reasonable, with a PE ratio of 7.8x, significantly lower than the current PE of over 20x for A-share gold companies, and the expected economic benefits are substantial [2] - The Akyem gold mine is one of the largest in Ghana, with an average annual gold production of 11.4 tons over the past three years, and the acquisition is strategically significant for achieving the company's goal of 100-110 tons of gold production by 2028 [2] Financial Projections - The company forecasts revenue of 293.4 billion RMB in 2023, increasing to 337.88 billion RMB in 2024, 375.52 billion RMB in 2025, and 400.14 billion RMB in 2026, with a revenue growth rate of 8.54%, 15.16%, 11.14%, and 6.56% respectively [5] - The projected net profit attributable to the parent company is 21.12 billion RMB in 2023, expected to rise to 31.84 billion RMB in 2024, 37.37 billion RMB in 2025, and 42.14 billion RMB in 2026, with profit growth rates of 5.38%, 50.76%, 17.36%, and 12.78% respectively [5] - The report anticipates an EPS of 0.79 RMB in 2023, increasing to 1.20 RMB in 2024, 1.41 RMB in 2025, and 1.59 RMB in 2026, with corresponding PE ratios of 21.31, 14.13, 12.04, and 10.68 [7]