Guolian Securities·2024-10-16 06:00Investment Rating - The report maintains a "Buy" rating for Zijin Mining [6][31] Core Views - The acquisition of a high-quality gold mine is expected to enhance resource reserves and production capacity, positioning the company for significant growth in gold output [10][21] - The company is projected to achieve substantial increases in net profit and earnings per share (EPS) from 2024 to 2026, with net profits estimated at 31.898 billion, 38.050 billion, and 44.707 billion yuan respectively, and EPS at 1.20, 1.43, and 1.68 yuan [3][31] Summary by Sections Acquisition Details - Zijin Mining's wholly-owned subsidiary, Jinyuan International, plans to acquire 100% of Newmont Golden Ridge for approximately 1 billion USD (about 70.71 billion yuan), which holds the Akyem gold mine in Ghana [10][12] - The acquisition price corresponds to a 2023 PE ratio of about 7.81, indicating a reasonable valuation [10][12] Resource and Production Potential - The Akyem gold mine has proven gold resources of 54.4 tons and additional potential resources of 83 tons, which could be upgraded through further exploration [10][21] - The acquisition is expected to increase the company's gold production by approximately 10 tons annually, contributing to the goal of exceeding 100 tons of gold production by 2028 [21][31] Financial Projections - The company anticipates significant revenue growth, with projected revenues of 337.142 billion, 361.470 billion, and 378.865 billion yuan for 2024 to 2026, respectively [11][31] - The report forecasts a strong increase in EBITDA and net profit margins, reflecting the company's robust operational capabilities and market positioning [11][31]