Zijin Mining(601899) 太平洋·2024-10-29 02:17Investment Rating - The report maintains a "Buy" rating for Zijin Mining (601899) [1][3]. Core Insights - The company has shown significant growth in copper and gold production, with effective cost control and management leading to improved financial metrics [3][9]. - The acquisition of the Akyem gold mine in Ghana is expected to enhance the company's gold resource base [3][5]. - The company's financial leverage has decreased while return on equity (ROE) has increased, indicating a trend towards high-quality growth [2][3]. Summary by Sections Performance Overview - In the first three quarters of 2024, the company achieved revenue of 230.4 billion yuan, a year-on-year increase of 2%. The net profit attributable to shareholders was 24.4 billion yuan, up 51% year-on-year [9][10]. - For Q3 2024, the company reported revenue of 80 billion yuan, a 7% increase year-on-year, and a net profit of 9.3 billion yuan, reflecting a 58% year-on-year growth [9][10]. Production Growth - The company reported a copper production of 789,000 tons in the first three quarters of 2024, a 4.7% increase year-on-year, achieving 71% of its annual target [9][19]. - Gold production reached 54.3 tons, an 8.3% increase year-on-year, completing 74% of the annual target [9][19]. - The company’s silver production was 331.1 tons, up 6.7% year-on-year, while zinc production decreased by 4.2% to 310,000 tons [9][19]. Cost and Margin Analysis - The report highlights significant improvements in cost control, with production costs for gold and copper decreasing due to scale effects and lean management practices [2][3]. - The gross margin for the company improved, supported by rising prices and optimized costs [5][9]. Financial Metrics - As of Q3 2024, the company's asset-liability ratio was 55.4%, down 3.64 percentage points year-on-year, indicating a reduction in financial leverage [2][3]. - The operating cash flow for Q3 2024 was 15.7 billion yuan, a 61.5% increase year-on-year [2][3]. - The forecast for net profit attributable to shareholders for 2024-2026 is 31.4 billion, 36 billion, and 41 billion yuan, respectively [3][4].