Zijin Mining(601899) Guotai Junan Securities·2024-10-20 14:38Investment Rating - The report maintains a "Buy" rating for Zijin Mining and sets a target price of 22.25 CNY [3][4]. Core Views - In the first three quarters of 2024, both gold and copper production volumes and prices have risen, leading to record quarterly performance. The company continues to unveil new gold and copper projects, indicating sustained long-term growth potential [2][3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company's net profit attributable to shareholders reached 24.36 billion CNY, a year-on-year increase of 51%. The net profit for Q3 alone was 9.27 billion CNY, up 58% year-on-year and 5% quarter-on-quarter [3]. - The production volumes for gold, copper, and silver in the first three quarters were 54.3 tons, 789,000 tons, and 331 tons, respectively, representing year-on-year increases of 8%, 5%, and 7% [3]. - The average selling prices for Q3 were 537 CNY/gram for gold, 58,000 CNY/ton for copper, and 4.9 CNY/gram for silver, with year-on-year increases of 32%, 12%, and 36% respectively [3]. Production and Cost Analysis - The average sales cost for gold and copper in Q3 was 233 CNY/gram and 22,900 CNY/ton, with a slight increase in costs but overall performance meeting expectations [3]. - The company has ongoing resource acquisitions, including a 100% stake in the Akyem gold mine in Ghana, expected to contribute an average annual production of about 5.8 tons [3]. Future Outlook - The company plans to increase its gold and copper production to 90 tons and 1.17 million tons by 2025, representing increases of 32% and 16% from 2023 [3]. - Long-term projections indicate a compound annual growth rate of 9% for copper and gold production by 2028 [3]. - The company is diversifying its portfolio by investing in lithium, molybdenum, and silver, which are critical metals for global energy transition [3].