Zijin Mining(601899)2024-10-21 04:09Investment Rating - The report maintains a "Buy" rating for Zijin Mining (601899) [6] Core Views - The company's Q3 2024 performance met expectations, with revenue of 230.4 billion yuan (up 2.4% year-on-year) and net profit attributable to shareholders of 24.36 billion yuan (up 50.7% year-on-year) [6] - The increase in revenue and profit is attributed to rising prices (copper and gold prices up 10% and 22% year-on-year, respectively) and production growth (copper and gold production up 5% and 8% year-on-year) [6] - The company has announced a five-year plan aiming to achieve significant production targets by 2028, including copper production of 1.5-1.6 million tons and gold production of 100-110 tons annually [6] Summary by Sections Financial Performance - For Q3 2024, the company reported revenue of 799.8 billion yuan (up 7.1% year-on-year, up 5.7% quarter-on-quarter) and a net profit of 9.27 billion yuan (up 58.2% year-on-year, up 5.1% quarter-on-quarter) [6] - The gross margin for mining enterprises was 58.5%, a decrease of 1.2 percentage points from the previous quarter [6] Production Data - In Q3 2024, copper production increased by 6% quarter-on-quarter to 271,000 tons, while gold production rose by 1% to 18.9 tons [6] - The average selling price for copper was 58,000 yuan per ton (down 9.8% quarter-on-quarter), and for gold, it was 537.2 yuan per gram (up 5.1% quarter-on-quarter) [6] Strategic Developments - The company is proceeding with the internal project for the Tibet Juno copper mine with an investment of approximately 8.393 billion yuan, expected to be operational by June 2026 [6] - Zijin Mining signed an agreement to acquire 100% equity in the Akyem gold mine in Ghana for 1 billion USD, which is one of the largest gold mines in Ghana [6] - The company plans to optimize processes and reduce costs for projects in Argentina and Tibet due to delays in project approvals and low lithium prices [6] Profit Forecast - The profit forecast for 2024-2026 has been revised upwards due to rising gold prices, with expected net profits of 32.94 billion yuan, 37.96 billion yuan, and 39.42 billion yuan for the respective years [6]