Zijin Mining(601899) 中国银河·2025-01-23 02:58Investment Rating - The report maintains a "Recommended" rating for Zijin Mining (stock code: 601899.SH) [1] Core Views - Zijin Mining is expected to achieve a net profit attributable to shareholders of 32 billion yuan in 2024, representing a year-on-year increase of 52%, with a non-recurring profit of 31.4 billion yuan, up 45% year-on-year [5] - The company has a strong production performance with copper production of 1.07 million tons and gold production of 73 tons in 2024, achieving completion rates of 96% and 99% respectively for its production targets [5] - The company is actively expanding its resource portfolio through acquisitions, including the Akyem gold mine and the La Arena gold mine in Peru, which are expected to significantly increase gold production [5] Financial Performance Summary - The projected financial metrics for Zijin Mining are as follows: - Revenue is expected to grow from 293.4 billion yuan in 2023 to 373.8 billion yuan in 2026, with a compound annual growth rate (CAGR) of approximately 9.13% [6] - Net profit attributable to shareholders is forecasted to increase from 21.1 billion yuan in 2023 to 43.3 billion yuan in 2026, reflecting a strong growth trajectory [6] - The earnings per share (EPS) is projected to rise from 0.79 yuan in 2023 to 1.63 yuan in 2026, indicating a positive outlook for shareholder returns [6] Production and Cost Management - The company plans to produce 1.15 million tons of copper and 85 tons of gold in 2025, with adjustments made due to power supply issues in the Democratic Republic of Congo [5] - Cost control measures are expected to continue, with a focus on maintaining a downward trend in production costs for key minerals [5] Resource Acquisition Strategy - Zijin Mining is expanding its resource base through strategic acquisitions, including: - The Akyem gold mine, which has an average annual gold production of 11.4 tons [5] - The La Arena gold mine in Peru, which is expected to produce approximately 3.8 tons of gold annually after expansion [5] - Control over Zangge Mining, which will enhance its copper and lithium production capabilities [5]