Zijin Mining(SH:601899) Tianfeng Securities·2025-04-18 14:50Investment Rating - The investment rating for the company is "Buy" with a target price not specified [7][18]. Core Views - The company achieved record high performance in Q1 2025, with revenue of 78.93 billion yuan, a year-on-year increase of 5.55% and a quarter-on-quarter increase of 7.76%. The net profit attributable to shareholders reached 10.17 billion yuan, up 62.39% year-on-year and 32.15% quarter-on-quarter, driven by rising gold and copper prices [1][2]. - The production and sales of gold and copper met expectations, with gold production reaching 19.1 tons and copper production at 288,000 tons, achieving 22.5% and 25% of the annual targets respectively [2]. - The company completed the acquisition of the Akyem gold mine in Ghana, which generated sales revenue of 574 million USD and a net profit of 128 million USD in 2023. The ongoing projects in the Democratic Republic of Congo and other regions are expected to significantly increase production capacity [5][6]. Financial Performance - The average cost of gold production in Q1 was 251 yuan per gram, up 6.8% quarter-on-quarter, while the average cost of copper was 24,107 yuan per ton, a slight increase of 0.4%. The gross profit for gold was 7.04 billion yuan, and for copper, it was 8.34 billion yuan, reflecting a quarter-on-quarter increase of approximately 2.34 billion yuan for both metals [3]. - The company forecasts net profits of 40.95 billion yuan, 45.35 billion yuan, and 51.02 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 11.6x, 10.4x, and 9.3x [5][6]. Production and Capacity Expansion - The company aims to achieve production targets of 1.15 million tons of copper and 85 tons of gold in 2025, supported by ongoing projects that are expected to ramp up production significantly [5][6].